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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $2.45 bln | $2.15 bln (8 Analysts) |
Q3 Net Income | Beat | $291.61 mln | $217 mln (6 Analysts) |
Q3 Operating Income | Beat | $378.87 mln | $283.90 mln (6 Analysts) |
Q3 Pretax Profit | Beat | $370.45 mln | $281 mln (5 Analysts) |
Q3 Adjusted Free Cash Flow | $553.30 mln | ||
Q3 Gross Profit | $607.87 mln |
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.)