Overview

• Comfort Systems USA Q3 revenue and net income beat analyst expectations, per LSEG data

• Company's Q3 EPS doubled from last year due to favorable project developments

• Company acquired two electrical firms, expecting to add over $200 mln in annual revenue

Outlook

• Company optimistic about Q4 and 2026 due to strong backlog and acquisitions

• Comfort Systems USA expects over $200 mln incremental annual revenue from acquisitions

• Backlog exceeds $9 bln, driven by unprecedented demand for services

Result Drivers

• PROJECT EXECUTION - Favorable developments in late-stage projects contributed to doubling Q3 EPS from last year, according to CEO Brian Lane

• BACKLOG GROWTH - Unprecedented demand for services drove backlog growth, reaching over $9 bln, per CEO Brian Lane

• ACQUISITIONS - Acquisition of two electrical companies expected to add over $200 mln in annual revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "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 $795.00, about 4.3% above its October 21 closing price of $829.36

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw7SWYSxa

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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.)