FIX · Comfort Systems USA, Inc.

Comfort Systems USA delivered a standout second quarter, with revenue surging 50% to $3.27 billion, driven by robust demand across its commercial, industrial, and institutional markets. Net income jumped 91% to $441.6 million, translating to diluted EPS of $12.53, up from $6.53 in the prior-year quarter. Operating margin expanded to 17.1% from 13.8%, reflecting strong cost control and favorable project mix. Gross margin improved to 25.9% from 23.5%, underscoring the company's pricing power and operational efficiency. The company generated an unprecedented $1.14 billion in operating cash flow, compared to $252.5 million a year ago, highlighting working capital improvements and strong cash conversion. Backlog reached a record $14.06 billion, up from $8.12 billion at June 30, 2025, and increased sequentially from $12.45 billion at March 31, 2026, indicating sustained demand momentum. CEO Brian Lane attributed the performance to unmatched execution by the company's workforce and favorable market conditions. The company also raised its quarterly dividend by $0.10 to $0.90 per share, reflecting confidence in its financial strength. With a strong balance sheet — cash of $1.85 billion and minimal debt — Comfort Systems is well-positioned to capitalize on a robust pipeline extending into 2027.