Comfort Systems USA, Inc. (NYSE:FIX) (the "Company") today reported results for the quarter and annual period ended December 31, 2024.

For the quarter ended December 31, 2024, net income was $145.9 million, or $4.09 per diluted share, as compared to $91.6 million, or $2.55 per diluted share, for the quarter ended December 31, 2023. Revenue for the fourth quarter of 2024 was $1.87 billion compared to $1.36 billion in 2023. The Company reported operating cash flow of $210.5 million in the current quarter compared to $173.0 million in 2023.

Backlog as of December 31, 2024 was $5.99 billion as compared to $5.68 billion as of September 30, 2024 and $5.16 billion as of December 31, 2023. On a same-store basis, backlog increased from $5.16 billion as of December 31, 2023 to $5.60 billion as of December 31, 2024.

The Company reported net income of $522.4 million, or $14.60 per diluted share, for the twelve months ended December 31, 2024, as compared to $323.4 million, or $9.01 per diluted share in 2023. The Company also reported revenue of $7.03 billion for the twelve months ended December 31, 2024, as compared to $5.21 billion in 2023. Operating cash flow for the twelve months ended December 31, 2024 was $849.1 million, as compared to $639.6 million in 2023.

Brian Lane, Comfort Systems USA's President and Chief Executive Officer, said, "We are reporting record annual and fourth quarter earnings as our amazing teams across the United States continue their excellent performance. Per share earnings in 2024 were over 60% higher than the spectacular results we achieved in 2023, and our strong quarterly results were also without precedent."

Mr. Lane continued, "Cash flow was extraordinary throughout 2024 as we succeeded in organically funding our investments in new companies and also significant share purchases. We believe that our strong earnings, cash flow, and robust backlog indicate continued strength in our execution, customer relationships, and prospects. Fourth quarter bookings were strong, and we ended the year with same-store growth in both sequential and year-over-year backlog. With an unprecedented and broadly based backlog, healthy project pipelines, persistent demand for construction services relating to advanced technology, and an unmatched workforce, we expect continuing strong results in 2025."

The Company will host a webcast and conference call to discuss its financial results and position on Friday, February 21, 2025 at 10:00 a.m. Central Time. To register for the call, please visit https://register.vevent.com/register/BI8cd852271e8c433cb4d799af8715623d. Upon registering, participants will receive dial-in information and a unique PIN to join the call. The call and the slide presentation to accompany the remarks can be accessed on the Company's website at www.comfortsystemsusa.com under the "Investor" tab. A replay of the entire call will be available on the Company's website on the next business day following the call.

Comfort Systems USA^® is a leading provider of commercial, industrial and institutional heating, ventilation, air conditioning and electrical contracting services, with 178 locations in 136 cities across the nation. For more information, visit the Company's website at www.comfortsystemsusa.com.

Certain statements and information in this press release may constitute forward-looking statements regarding our future business expectations, which are subject to applicable securities laws and regulations. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements, which are generally not historic in nature. These forward-looking statements are based on the current expectations and beliefs of Comfort Systems USA, Inc. and its subsidiaries (collectively, the "Company") concerning future developments and their effect on the Company. While the Company's management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that it anticipates, and the Company's actual results of operations, financial condition and liquidity, and the development of the industry in which the Company operates, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of our results or developments in subsequent periods. All comments concerning the Company's expectations for future revenue and operating results are based on the Company's forecasts for its existing operations and do not include the potential impact of any future acquisitions. The Company's forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control) and assumptions that could cause actual future results to differ materially from the Company's historical experience and its present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the use of incorrect estimates for bidding a fixed-price contract; undertaking contractual commitments that exceed the Company's labor resources; failing to perform contractual obligations efficiently enough to maintain profitability; national or regional weakness in construction activity and economic conditions; rising inflation and fluctuations in interest rates; shortages of labor and specialty building materials or material increases to the cost thereof; the Company's business being negatively affected by health crises or outbreaks of disease, such as epidemics or pandemics (and related impacts, such as supply chain disruptions); financial difficulties affecting projects, vendors, customers, or subcontractors; the Company's backlog failing to translate into actual revenue or profits; failure of third party subcontractors and suppliers to complete work as anticipated; difficulty in obtaining, or increased costs associated with, bonding and insurance; impairment to goodwill; errors in the Company's cost-to-cost input method of accounting; the result of competition in the Company's markets; the Company's decentralized management structure; material failure to comply with varying state and local laws, regulations or requirements; debarment from bidding on or performing government contracts; retention of key management; seasonal fluctuations in the demand for mechanical and electrical systems; the imposition of past and future liability from environmental, safety, and health regulations including the inherent risk associated with self-insurance; adverse litigation results; an increase in our effective tax rate; a material information technology failure or a material cyber security breach; risks associated with acquisitions, such as challenges to our ability to integrate those companies into our internal control environment; our ability to manage growth and geographically-dispersed operations; our ability to obtain financing on acceptable terms; extreme weather conditions (such as storms, droughts, extreme heat or cold, wildfires and floods), including as a result of climate change, and any resulting regulations or restrictions related thereto; and other risks detailed in our reports filed with the Securities and Exchange Commission (the "SEC").

For additional information regarding known material factors that could cause the Company's results to differ from its projected results, please see its filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether because of new information, future events, or otherwise.

— Financial tables follow —

Comfort Systems USA, Inc.
Consolidated Statements of Operations
(In Thousands, Except per Share Amounts)

	Three Months Ended												Twelve Months Ended
	December 31,												December 31,
	(Unaudited)
	2024			%			2023			%			2024			%			2023			%
Revenue	$	1,867,804		100.0		%	$	1,357,566		100.0		%	$	7,027,476		100.0		%	$	5,206,760		100.0		%
Cost of services		1,434,066		76.8		%		1,077,881		79.4		%		5,551,065		79.0		%		4,216,251		81.0		%
Gross profit		433,738		23.2		%		279,685		20.6		%		1,476,411		21.0		%		990,509		19.0		%

SG&A		207,635		11.1		%		160,026		11.8		%		730,072		10.4		%		574,423		11.0		%
Gain on sale of assets		(252	)	—				(619	)	—				(3,030	)	—				(2,302	)	—
Operating income		226,355		12.1		%		120,278		8.9		%		749,369		10.7		%		418,388		8.0		%

Interest income (expense), net		3,286		0.2		%		650		—				4,906		0.1		%		(6,789	)	(0.1	)	%
Changes in the fair value of contingent earn-out obligations		(43,712	)	(2.3	)	%		(9,400	)	(0.7	)	%		(88,146	)	(1.3	)	%		(23,607	)	(0.5	)	%
Other income, net		109		—				201		—				432		—				202		—
Income before income taxes		186,038		10.0		%		111,729		8.2		%		666,561		9.5		%		388,194		7.5		%

Provision for income taxes		40,168						20,148						144,128						64,796
Net income	$	145,870		7.8		%	$	91,581		6.7		%	$	522,433		7.4		%	$	323,398		6.2		%

Income per share
Basic	$	4.10					$	2.56					$	14.64					$	9.03
Diluted	$	4.09					$	2.55					$	14.60					$	9.01

Shares used in computing income per share:
Basic		35,601						35,752						35,689						35,802
Diluted		35,692						35,852						35,775						35,895
Dividends per share	$	0.350					$	0.250					$	1.200					$	0.850

Supplemental Non-GAAP Information — (Unaudited) (In Thousands, Except per Share Amounts)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2024		2023		2024		2023

Net income	$	145,870	$	91,581	$	522,433	$	323,398
Tax gains related to prior years		—		—		—		(10,761	)
Tax-related SG&A costs, net of tax		—		—		—		1,063
Net income excluding tax gains	$	145,870	$	91,581	$	522,433	$	313,700

Diluted income per share	$	4.09	$	2.55	$	14.60	$	9.01
Tax gains related to prior years		—		—		—		(0.30	)
Tax-related SG&A costs, net of tax		—		—		—		0.03
Diluted income per share excluding tax gains	$	4.09	$	2.55	$	14.60	$	8.74

Note: Net income excluding tax gains and diluted income per share excluding tax gains are presented because the Company believes they reflect the results of the core ongoing operations of the Company, and we believe they are responsive to frequent questions we receive from third parties. These amounts, however, are not considered primary measures of an entity's financial results under generally accepted accounting principles, and accordingly, they should not be considered an alternative to operating results as determined under generally accepted accounting principles and as reported by the Company.

Supplemental Non-GAAP Information — Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") — (Unaudited) (In Thousands)

	Three Months Ended										Twelve Months Ended
	December 31,										December 31,
	2024			%		2023			%		2024			%		2023			%

Net income	$	145,870				$	91,581				$	522,433				$	323,398
Provision for income taxes		40,168					20,148					144,128					64,796
Other expense (income), net		(109	)				(201	)				(432	)				(202	)
Changes in the fair value of contingent earn-out obligations		43,712					9,400					88,146					23,607
Interest expense (income), net		(3,286	)				(650	)				(4,906	)				6,789
Gain on sale of assets		(252	)				(619	)				(3,030	)				(2,302	)
Tax-related SG&A costs		—					—					—					1,345
Amortization		22,042					11,131					97,266					43,404
Depreciation		12,842					10,445					48,219					38,162
Adjusted EBITDA	$	260,987		14.0	%	$	141,235		10.4	%	$	891,824		12.7	%	$	498,997		9.6	%

Note: The Company defines adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") as net income, provision for income taxes, other expense (income), net, changes in the fair value of contingent earn-out obligations, interest expense (income), net, gain on sale of assets, goodwill impairment, other one-time expenses or gains and depreciation and amortization. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is presented because it is a financial measure that is frequently requested by third parties. However, Adjusted EBITDA is not considered under generally accepted accounting principles as a primary measure of an entity's financial results, and accordingly, Adjusted EBITDA should not be considered an alternative to operating income, net income, or cash flows as determined under generally accepted accounting principles and as reported by the Company.

Comfort Systems USA, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)

	December 31,		December 31,
	2024		2023


Cash and cash equivalents	$	549,939	$	205,150
Billed accounts receivable, net		1,861,212		1,318,926
Unbilled accounts receivable, net		95,786		72,774
Costs and estimated earnings in excess of billings, net		91,681		28,084
Other current assets, net		191,623		286,166
Total current assets		2,790,241		1,911,100
Property and equipment, net		277,180		208,568
Goodwill		875,270		666,834
Identifiable intangible assets, net		434,417		280,397
Other noncurrent assets		333,980		238,680
Total assets	$	4,711,088	$	3,305,579

Current maturities of long-term debt	$	6,042	$	4,867
Accounts payable		654,943		419,962
Billings in excess of costs and estimated earnings and deferred revenue		1,149,257		909,538
Other current liabilities		772,528		386,838
Total current liabilities		2,582,770		1,721,205
Long-term debt		62,293		39,345
Other long-term liabilities		361,349		267,200
Total liabilities		3,006,412		2,027,750
Total stockholders' equity		1,704,676		1,277,829
Total liabilities and stockholders' equity	$	4,711,088	$	3,305,579

Selected Cash Flow Data (Unaudited) (In Thousands)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2024			2023			2024			2023

Cash provided by (used in):
Operating activities	$	210,463		$	173,008		$	849,057		$	639,568
Investing activities	$	(39,489	)	$	(73,883	)	$	(343,509	)	$	(193,008	)
Financing activities	$	(36,618	)	$	(31,598	)	$	(160,759	)	$	(298,624	)

Free cash flow:
Cash from operating activities	$	210,463		$	173,008		$	849,057		$	639,568
Purchases of property and equipment		(40,676	)		(25,264	)		(111,071	)		(94,838	)
Proceeds from sales of property and equipment		1,927			858			5,538			5,951
Free cash flow	$	171,714		$	148,602		$	743,524		$	550,681

Note: Free cash flow is defined as cash flow from operating activities less customary capital expenditures, plus the proceeds from asset sales. Other companies may define free cash flow differently. Free cash flow is presented because it is a financial measure that is frequently requested by third parties. However, free cash flow is not considered under generally accepted accounting principles as a primary measure of an entity's financial results, and accordingly, free cash flow should not be considered an alternative to operating income, net income, or cash flows as determined under generally accepted accounting principles and as reported by the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220702100/en/

Julie Shaeff, Chief Accounting Officer

ir@comfortsystemsusa.com; 713-830-9687

675 Bering Drive, Suite 400

Houston, Texas 77057

713-830-9600

Comfort Systems USA Reports Fourth Quarter and Full Year 2024 Results