Comfort Systems USA Sets Records in Q1 2026 with Strong Revenue and Profit Growth
Comfort Systems USA, a leading provider of mechanical services to commercial buildings, has announced its first-quarter 2026 earnings results, showcasing an impressive performance driven by sustained demand from various sectors.
The company reported a 56% increase in revenue for the quarter, reaching $2.9 billion, with same-store revenue growing by 51%, or $943 million. This remarkable growth is attributed to strong demand in both segments, including an 88% increase in revenue from its electrical segment and a 47% surge in revenue from its mechanical segment.
Comfort Systems USA's gross profit for the quarter was $754 million, a significant jump of $351 million compared to the same period last year. The company's gross profit percentage also saw a substantial improvement, growing to 26.3%, up from 22% in Q1 2025. This growth was driven by favorable developments on late-stage projects, including change orders, which contributed $43 million to gross profit.
The mechanical segment witnessed a particularly impressive performance, with its quarterly gross profit percentage improving to 26.9%, compared to 21.7% last year. The electrical segment also saw a notable improvement, with its margins increasing by almost two full percentage points to 24.9%.
SG&A expense for the quarter was $269 million, an increase from $195 million in Q1 2025. However, this rise is attributed to the company's efforts to reward and grow its teams across the nation. As a result, SG&A as a percentage of revenue decreased to 9.4%, compared to 10.6% in the prior year.
Comfort Systems USA's operating income for Q1 2026 was $486 million, a remarkable increase of 132% from last year's figure. This growth is driven by improved gross profit margins and SG&A leverage, resulting in an operating income percentage that rose sharply to 17%, up from 11.4%. The company's effective tax rate for the quarter was 23.2%, with expectations of a similar rate for the full year.
Net income for Q1 2026 came in at $370 million, or $10.51 per share, more than double last year's net income of $169 million and $4.19 per share. This outstanding performance has resulted in a record backlog of $12.5 billion, reflecting sustained demand across various sectors, including technology.
Commenting on the results, Comfort Systems USA CEO Brian Lane expressed his satisfaction with the company's performance, stating that it had been driven by the continued outstanding performance of its field teams. The company has also announced an increase in its quarterly dividend to $0.80 per share, indicating its commitment to rewarding shareholders while maintaining a strong balance sheet.
