COMFORT SYSTEMS USA INC (FIX)

Comfort Systems USA, Inc., a Delaware corporation established in 1997, provides mechanical and electrical contracting services. It builds, installs, maintains, repairs and replaces mechanical, electrical and plumbing (MEP) systems through 50 operating units with 190 locations in 142 cities across the United States. The company states that commercial, industrial and institutional mechanical and electrical contracting generates roughly $700 billion of annual revenue in the United States.

The company reports two segments. The mechanical segment principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, monitoring and fire protection. The electrical segment covers installation and servicing of electrical systems. About 63.2% of 2025 revenue came from installation services in newly constructed facilities, using either "design and build" or "plan and spec" approaches. The remaining 36.8% came from renovation, expansion, maintenance, monitoring, repair and replacement services in existing buildings, provided through service calls or service agreements that typically run one or more years with automatic annual renewals. The company also offers remote monitoring of power usage, temperature, pressure, humidity and air flow, and invests in prefabrication, modular and off-site construction, and design and building information modeling.

Substantially all 2025 revenue came from commercial, industrial and institutional customers and multi-family residential projects, including building owners, developers, general contractors, architects, consulting engineers and property managers. By end-use sector, 2025 revenue was 45.0% technology, 22.1% manufacturing, 8.9% healthcare, 7.3% education, 5.0% government, 5.0% office buildings, 3.7% retail, restaurants and entertainment, 1.4% multi-family and residential, and 1.6% other. About 92.7% of revenue is earned on a project basis and about 7.3% from maintenance and service. At December 31, 2025, the company had 8,427 projects in process with an aggregate contract value of about $24.17 billion. The average project takes six to nine months and has an average contract price of about $2.9 million. The largest project in progress had a contract price of $496.9 million.

Local management teams make day-to-day operating decisions, supported by regional leadership. Local staff generally include design engineers, energy efficiency experts, sales and customer service personnel, installation and service technicians, sheet metal and prefabrication technicians, and estimators. Administrative functions such as insurance, employee benefits, training, safety programs and cash management are centralized. Certain fabrication activities are consolidated in centralized locations, and labor is shared across operations. The company uses its combined spend to gain purchasing advantages on MEP components, raw materials, vehicles, bonding and insurance, and it pursues growth partly through acquisitions. Project contracts typically provide for periodic billings, with a portion often withheld by customers as retainage until work is completed.