Comfort Systems USA, Inc.

Q2 2026 revenue was $3.3 billion, up $1.1 billion year over year. Net income was $442 million, or $12.53 per share, versus $231 million, or $6.53 per share, a year ago. Gross profit was $844 million versus $510 million last year, and gross margin improved to 25.9% from 23.5%. Operating income increased to $558 million from $300 million, and operating margin rose to 17.1% from 13.8%. EBITDA was $600 million versus $334 million last year, and free cash flow was $999 million. Management said same-store revenue growth was 44% in the quarter and expects full-year same-store growth to finish in the mid- to high 30% range. Full-year effective tax rate is expected to be around 23%. Backlog ended at a record $14.1 billion, up $5.9 billion year over year and $1.6 billion sequentially. Capital expenditures for full year 2026 are expected to be approximately 5% of revenue, and the company ended the quarter in a net cash position of over $1.8 billion.

Brian Lane characterized the quarter as “fantastic” and said execution was “amazing” across the company. He emphasized record revenue, strong demand in Technology, rising bookings, and a new backlog high, while also highlighting the Hunt Electric acquisition as a strategic fit and calling the company “bullish long term” on its industry. His tone was very upbeat and confident, with repeated emphasis on the quality of the team and the strength of customer demand.

Bill George said results were “extraordinary,” citing 44% same-store revenue growth, nearly $1 billion of free cash flow, EBITDA up 80%, and gross margin of 25.9%. He noted SG&A rose to $287 million but fell to 8.8% of revenue from 9.7% last year, helping operating income grow 86% to $558 million. He also said full-year CapEx should be about 5% of revenue, the tax rate should be around 23%, and the company remains in a net cash position of over $1.8 billion despite acquisition spending and major investment.

Analysts focused heavily on cash flow, modular capacity, backlog duration, and whether data center sentiment or local moratoriums could slow demand. Management said the $999 million of free cash flow reflected broad health in the business plus some advanced cash and strong payment terms, while capital deployment will continue to prioritize owned facilities, selective buybacks, and acquisitions. On modular, they said the 5 million square foot target is mainly tied to existing customers and multiyear commitments, not speculation, and that new pilot customers could require more space later. On data centers, they said they see no sign of a demand letdown and believe the work will continue to get built despite public pushback.