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Comfort Systems USA Q3 revenue, profit beat estimates on strong demand

By Reuters News


Overview

  • US commercial HVAC contractor's Q3 revenue rose 54% yr/yr, beating analyst expectations

  • Q3 net income increased 68% yr/yr and beat analyst expectations

  • Company backlog reached $17.8 bln, up both sequentially and yr/yr


Outlook

  • Company expects robust demand to continue through year end and into 2027

  • Comfort Systems USA expects to maintain high profitability and solid cash flow into 2027

  • Company says it is well-positioned for organic growth through year end and 2027


Result Drivers

  • STRONG DEMAND - Co attributed quarterly results to strong ongoing demand for its services, per CEO Brian Lane

  • BACKLOG GROWTH - Co said sequential and yr/yr backlog growth was driven by robust demand and company reputation, per CEO Brian Lane

  • EXECUTION - Co cited execution by its teams as contributing to quarterly performance, per CEO Brian Lane


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$3.77 bln

$3.40 bln (10 Analysts)

Q3 Net Income

Beat

$489.04 mln

$446.13 mln (8 Analysts)

Q3 Operating Income

Beat

$624.57 mln

$583.17 mln (9 Analysts)

Q3 Pretax Profit

Beat

$635.06 mln

$580.47 mln (7 Analysts)

Q3 Gross Profit

$934.48 mln

Q3 Operating Cash Flow

$1.01 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy"

  • Wall Street's median 12-month price target for Comfort Systems USA, Inc. is $2,148.50, about 53.3% above its October 21 closing price of $1,401.27

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 41 three months ago


Reuters Recommended Reads

  • Oct 22 - HVAC equipment maker Burnham Holdings' Q3 sales, adj EPS rise

  • Oct 22 - Carrier to invest more than $600 million in new Texas facility

  • Oct 22 - Dover Q3 revenue rises 8%, slightly beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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