Description

Comfort Systems USA: Revenue Up 56% And Supply Constrained Not Demand Constrained

Comfort Systems USA reported a strong first quarter of 2026, marked by significant growth in revenue, gross margins, and earnings per share compared to the prior year. The company’s same-store revenue increased by 51%, leading to total first quarter revenue of $2.9 billion, a 56% rise year-over-year. This growth was driven by robust demand across both the Electrical and Mechanical segments, with respective revenue increases of 88% and 47%, supported notably by continued strength in the technology sector. The company ended the quarter with a record backlog of $12.5 billion, $5 billion higher than the comparable period last year, underpinning a healthy pipeline of future work. Gross profit rose to $754 million, yielding an all-time high gross margin of 26.3%, up from 22.0% a year prior. This improvement was bolstered by favorable developments, including $43 million in change orders on late-stage projects, primarily in the Mechanical segment.