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