Comfort Systems USA Reports 31.5% Revenue Growth in Q3 2024, Net Income Up 39.1%

Comfort Systems USA, Inc. reported significant financial growth in its latest 10-Q filing for the third quarter and the nine months ended September 30, 2024. The company achieved total revenue of $1,812.4 million for the third quarter, marking a 31.5% increase from $1,378.1 million in the same period of 2023. For the nine months, revenue rose to $5,159.7 million, up 34.0% from $3,849.2 million year-over-year. This growth was driven by strong demand in the technology sector, particularly for data centers and chip plants, and was supported by same-store revenue growth of 23.1% and contributions from recent acquisitions.

Gross profit for the third quarter increased to $381.7 million, or 21.1% of revenue, compared to $277.5 million (20.1%) in Q3 2023. For the nine-month period, gross profit rose to $1,042.7 million, representing a 46.7% increase from $710.8 million in the prior year. Operating income also saw substantial growth, reaching $202.9 million (11.2% of revenue) in Q3 2024, up from $135.1 million (9.8%) in Q3 2023, and $523.0 million for the nine months, compared to $298.1 million in 2023.

Net income for the third quarter was $146.2 million, an increase from $105.1 million in Q3 2023, while for the nine months, net income rose to $376.6 million from $231.8 million. Basic earnings per share for Q3 2024 were $4.10, up from $2.93 in the prior year, and for the nine months, it increased to $10.54 from $6.47.

The company’s total assets grew to $4.41 billion as of September 30, 2024, compared to $3.31 billion at the end of 2023. Cash and cash equivalents also saw a significant increase, reaching $415.6 million, up from $205.2 million at the end of 2023. The company reported a backlog of $5.68 billion, a 32.5% increase from the previous year, reflecting strong project bookings.

Strategically, Comfort Systems completed several acquisitions, including Summit Industrial Construction and J&S Mechanical Contractors, which contributed $256.2 million and $106.3 million in revenue, respectively, for the eight months following their acquisitions. The company also expanded its stock repurchase program, increasing the shares authorized for repurchase by 0.4 million shares.

Overall, Comfort Systems USA, Inc. demonstrated robust financial performance and strategic growth through acquisitions, positioning itself favorably in the market despite ongoing challenges such as increased labor costs and supply chain constraints.