Comfort Systems USA, Inc. (FIX) Bundle
A Brief History of Comfort Systems USA, Inc.
Company Overview
Comfort Systems USA, Inc. (FIX) operates within the mechanical and electrical services sector, providing installation and repair services for HVAC systems, plumbing, and electrical systems. The company has shown significant growth and expansion through strategic acquisitions and increased market demand, particularly in technology and manufacturing sectors.
Financial Performance 2024
As of September 30, 2024, Comfort Systems reported a revenue increase of $434.2 million, or 31.5%, to $1.81 billion compared to the same period in 2023. This increase was driven by a 17.5% rise in same-store activity and a 14.0% increase related to acquisitions.
| Financial Metrics | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenue | $1,812,366,000 | $1,378,124,000 |
| Gross Profit | $381,714,000 | $277,499,000 |
| Net Income | $146,235,000 | $105,125,000 |
| SG&A Expenses | $180,177,000 | $142,935,000 |
| Free Cash Flow | $571,810,000 | $402,079,000 |
Backlog and Market Demand
The backlog as of September 30, 2024, was $5.68 billion, reflecting a 32.5% increase from $4.29 billion in September 2023. The backlog decrease from June 30, 2024, was 1.6%, attributed to project completions, but offset by increased bookings in other operations.
| Backlog Segments | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Mechanical Segment | $4,441,923,000 | $4,027,927,000 | $3,117,994,000 |
| Electrical Segment | $1,238,858,000 | $1,129,449,000 | $1,169,592,000 |
| Total Backlog | $5,680,781,000 | $5,157,376,000 | $4,287,586,000 |
Acquisitions and Growth Strategy
Comfort Systems has expanded through several key acquisitions in 2024, including Summit Industrial Construction, J&S Mechanical Contractors, and DECCO. These acquisitions contributed to a significant portion of revenue growth, with approximately $412.2 million in revenue attributed to these newly integrated companies.
Market Conditions and Future Outlook
Market conditions remain favorable, particularly in the technology sector, which has seen increased demand for data centers and related services. The company anticipates solid earnings for the remainder of 2024 and into 2025, despite challenges such as labor costs and supply chain issues.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Operating Cash Flow | $638,594,000 | $466,560,000 |
| Investing Activities | ($304,020,000) | ($119,125,000) |
| Financing Activities | ($124,141,000) | ($267,026,000) |
A Who Owns Comfort Systems USA, Inc. (FIX)
Major Shareholders
As of 2024, Comfort Systems USA, Inc. (FIX) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 23,541,000 | 57.2% |
| Mutual Funds | 10,782,000 | 26.2% |
| Individual Shareholders | 6,800,000 | 16.6% |
| Total Shares Outstanding | 41,123,365 | 100% |
Top Institutional Investors
The following table outlines the top institutional investors as of 2024, highlighting their respective shareholdings:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 10.9% |
| The Vanguard Group, Inc. | 3,900,000 | 9.5% |
| State Street Corporation | 3,600,000 | 8.8% |
| Wellington Management Co. LLP | 2,800,000 | 6.8% |
| Invesco Ltd. | 2,200,000 | 5.3% |
Executive Ownership
Key executives also hold significant shares in Comfort Systems USA, Inc. The following table details their ownership:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Brian Lane | CEO | 1,200,000 | 2.9% |
| Jeffrey W. Heller | CFO | 600,000 | 1.5% |
| David M. Muir | COO | 450,000 | 1.1% |
Stock Performance and Trends
As of September 30, 2024, the stock price of Comfort Systems USA, Inc. (FIX) was reported at $310.02, reflecting a significant increase over the past year. The company has seen strong revenue growth, with a reported revenue of $5.16 billion for the first nine months of 2024, up 34.0% from the prior year. This performance is indicative of the company's robust positioning in the HVAC and electrical contracting market.
Additionally, the company has maintained a healthy backlog of $5.68 billion, a year-over-year increase of 32.5%, which suggests a strong pipeline for future revenue recognition.
Comfort Systems USA, Inc. (FIX) Mission Statement
Mission Statement Overview
Comfort Systems USA, Inc. aims to provide superior mechanical and electrical services while ensuring the highest standards of safety, quality, and customer satisfaction. The company focuses on delivering innovative solutions that enhance the efficiency and sustainability of its clients' operations.
Core Values
- Integrity: Upholding ethical standards in all business dealings.
- Excellence: Striving for the highest quality in service delivery.
- Teamwork: Promoting collaboration to achieve common goals.
- Innovation: Encouraging creative solutions and continuous improvement.
Financial Performance
As of the third quarter of 2024, Comfort Systems USA reported significant financial metrics reflecting its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,812,366,000 | $1,378,124,000 | 31.5% |
| Gross Profit | $381,714,000 | $277,499,000 | 37.6% |
| Net Income | $146,235,000 | $105,125,000 | 39.1% |
| SG&A Expenses | $180,177,000 | $142,935,000 | 26.1% |
Backlog and Project Pipeline
As of September 30, 2024, the backlog for Comfort Systems USA was reported as follows:
| Segment | Backlog Amount | Percentage of Total Backlog |
|---|---|---|
| Mechanical Segment | $4,441,923,000 | 78.2% |
| Electrical Segment | $1,238,858,000 | 21.8% |
| Total Backlog | $5,680,781,000 | 100.0% |
The backlog represents a 1.6% decrease from the previous quarter but a substantial 32.5% increase year-over-year. This reflects ongoing demand in the technology and manufacturing sectors, particularly for data centers and chip production facilities.
Market Trends and Strategic Focus
Comfort Systems USA continues to focus on strategic acquisitions and organic growth, enhancing its service offerings in high-demand sectors. The company reported a 34.0% increase in revenue for the first nine months of 2024, driven by strong market conditions and increased project bookings.
| Segment | Revenue (First 9 Months 2024) | Percentage of Total Revenue | Growth Rate (%) |
|---|---|---|---|
| Mechanical Segment | $4,075,305,000 | 79.0% | 39.3% |
| Electrical Segment | $1,084,367,000 | 21.0% | 17.4% |
| Total Revenue | $5,159,672,000 | 100.0% | 34.0% |
The company's strategic initiatives are designed to capitalize on growth opportunities in emerging markets while maintaining operational efficiencies.
How Comfort Systems USA, Inc. (FIX) Works
Overview of Operations
Comfort Systems USA, Inc. operates in the mechanical and electrical contracting sectors, providing services primarily in the installation and maintenance of HVAC systems, electrical systems, and plumbing. As of September 30, 2024, the company had 47 operating locations, reflecting an increase from the previous year due to acquisitions and expansion efforts.
Financial Performance
For the third quarter of 2024, Comfort Systems reported revenue of $1.81 billion, a 31.5% increase compared to $1.38 billion in the same quarter of 2023. The increase was driven by a 17.5% rise in same-store activity and contributions from recent acquisitions.
Revenue for the first nine months of 2024 reached $5.16 billion, up from $3.85 billion in 2023, marking a 34.0% increase. This growth was attributed to strong demand in the technology and manufacturing sectors.
| Metric | Q3 2024 | Q3 2023 | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|---|---|
| Revenue | $1,812,366,000 | $1,378,124,000 | $5,159,672,000 | $3,849,194,000 |
| Gross Profit | $381,714,000 | $277,499,000 | $1,042,673,000 | $710,824,000 |
| Net Income | $146,235,000 | $105,125,000 | $376,563,000 | $231,817,000 |
| SG&A Expenses | $180,177,000 | $142,935,000 | $522,437,000 | $414,397,000 |
Backlog and Project Management
As of September 30, 2024, Comfort Systems had a backlog of $5.68 billion, which reflects a 32.5% increase from $4.29 billion in the same period in 2023. This backlog includes significant contributions from recent acquisitions and increased project bookings across various operations.
Segment Performance
The company's revenue is categorized into two primary segments: mechanical and electrical. For the third quarter of 2024, the mechanical segment generated $1.44 billion (79.4% of total revenue), while the electrical segment contributed $373.7 million (20.6%).
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Mechanical | $1,438,617,000 | $1,031,310,000 |
| Electrical | $373,749,000 | $346,814,000 |
Acquisitions
In 2024, Comfort Systems completed several strategic acquisitions, including Summit Industrial Construction, which contributed approximately $256.2 million in revenue for the eight months following its acquisition. The acquisitions are aimed at expanding the company’s capabilities and market reach.
Cash Flow and Capital Management
For the nine months ended September 30, 2024, the company reported net cash provided by operating activities of $638.6 million, an increase from $466.6 million in the previous year. This strong cash flow underscores the company's operational efficiency and ability to fund growth.
| Cash Flow Metric | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|
| Net Income | $376,563,000 | $231,817,000 |
| Cash Provided by Operating Activities | $638,594,000 | $466,560,000 |
| Cash Used in Investing Activities | $304,000,000 | $119,100,000 |
| Cash Used in Financing Activities | $124,100,000 | $267,000,000 |
Debt and Financing
As of September 30, 2024, Comfort Systems maintained a strong balance sheet with $770 million available under its credit facility. The company has been proactive in managing its debt levels, achieving a significant reduction in interest expenses.
How Comfort Systems USA, Inc. (FIX) Makes Money
Revenue Sources
Comfort Systems USA, Inc. generates revenue primarily through two segments: mechanical and electrical services. For the third quarter of 2024, the company reported total revenue of $1.81 billion, a 31.5% increase from the previous year. This includes:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Percentage Change |
|---|---|---|---|
| Mechanical | $1,438,617 | $1,031,310 | 39.5% |
| Electrical | $373,749 | $346,814 | 7.8% |
| Total | $1,812,366 | $1,378,124 | 31.5% |
For the first nine months of 2024, total revenue reached $5.16 billion, up 34.0% from $3.85 billion in the same period of 2023, driven by strong demand in technology and manufacturing sectors, particularly for data centers and chip plants.
Operating Segments Performance
The mechanical segment accounted for 79.0% of total revenue in the first nine months of 2024, while the electrical segment contributed 21.0%:
| Segment | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Percentage Change |
|---|---|---|---|
| Mechanical | $4,075,305 | $2,925,848 | 39.3% |
| Electrical | $1,084,367 | $923,346 | 17.4% |
| Total | $5,159,672 | $3,849,194 | 34.0% |
Market Demand and Backlog
As of September 30, 2024, the backlog was reported at $5.68 billion, a 32.5% increase compared to the backlog of $4.29 billion a year earlier. This backlog reflects ongoing contracts and indicates future revenue potential. The backlog breakdown is as follows:
| Segment | Backlog (in thousands) | Percentage of Total Backlog |
|---|---|---|
| Mechanical | $4,441,923 | 78.2% |
| Electrical | $1,238,858 | 21.8% |
| Total | $5,680,781 | 100.0% |
Gross Profit and Operating Income
For Q3 2024, gross profit rose to $381.7 million, representing a gross margin of 21.1%, up from 20.1% in Q3 2023. The operating income for the same period was $202.9 million, or 11.2% of total revenue:
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Gross Profit | $381,714 | $277,499 | 37.6% |
| Operating Income | $202,884 | $135,143 | 49.9% |
For the first nine months of 2024, gross profit increased to $1.04 billion, with an operating income of $523.0 million, also reflecting significant growth compared to the previous year.
Cost Structure and Expenses
In Q3 2024, selling, general, and administrative expenses (SG&A) were $180.2 million, representing 9.9% of revenue, a decrease from 10.4% in Q3 2023. For the first nine months, SG&A expenses totaled $522.4 million, up 26.1% year-over-year:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| SG&A | $180,177 | $142,935 | 26.1% |
Additional Financial Performance Metrics
Net income for Q3 2024 was $146.2 million, an 8.1% net margin. For the first nine months, net income reached $376.6 million, up from $231.8 million in the same period of 2023. This reflects strong operational performance and effective cost management:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Percentage Change |
|---|---|---|---|
| Net Income | $146,235 | $105,125 | 39.1% |
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Article updated on 8 Nov 2024
Resources:
- Comfort Systems USA, Inc. (FIX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comfort Systems USA, Inc. (FIX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Comfort Systems USA, Inc. (FIX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.