Comfort Systems USA Exceeds Expectations with Record-Breaking Q1 Earnings
Comfort Systems USA, a leading provider of mechanical and electrical contracting services, has reported a stellar first quarter (Q1) earnings performance, exceeding expectations in multiple areas. The company's revenue grew by 19% year-over-year to $1.8 billion, with same-store revenue increasing by a significant 15%. This impressive growth reflects the continued strong demand for large and complex projects, driven by trends such as onshoring and technological advancements.
Comfort Systems USA's President and CEO, Brian Lane, highlighted the company's remarkable performance in his opening remarks during the Q1 earnings conference call. "We are reporting earnings per share that exceed every past quarter, a remarkable accomplishment given that the first quarter is historically our seasonally weakest period," he said.
The company's backlog has reached a new high of nearly $7 billion, with same-store growth in both sequential and year-over-year backlog. This strong financial position enables Comfort Systems USA to invest in its business, including the addition of Century Contractors as a partner company in January 2025.
Comfort Systems USA's commitment to its shareholders was also evident during the conference call. The company announced an increase to its quarterly dividend by $0.05 to $0.45 per share and continued to purchase shares. This strategy reflects the company's focus on rewarding its shareholders while maintaining a strong balance sheet.
Despite the uncertainty surrounding tariffs and other policy changes, Comfort Systems USA remains optimistic about its future prospects. The company is focused on project execution, labor force recruitment and retention, and selecting the best projects for its workforce. With record broad-based backlog, persistent demand, and advanced technology driving growth, Comfort Systems USA expects strong results in 2025 and beyond.
Bill George, Chief Financial Officer, provided additional details about the company's financial performance during the conference call. Revenue increased in both segments, with a 22% increase in the Electrical segment and an 18% increase in the Mechanical segment. Gross profit grew to $403 million, a $106 million improvement compared to the previous year, with gross profit percentage increasing to 22.0%. The company expects same-store revenue growth for full-year 2025 to be in the high single-digit percent range.
Comfort Systems USA's strong Q1 performance has set the stage for continued success throughout 2025 and beyond. With a solid financial position, a commitment to its shareholders, and a focus on project execution and labor force recruitment, the company is well-positioned to capitalize on growth opportunities in the mechanical and electrical contracting services market.
