Comfort Systems Orders Jump to $17.81 Billion as Revenue Growth Expected in 2027
Key Facts
Comfort Systems USA management said it expects full-year 2027 comparable-store revenue growth in the mid-20s range, while third-quarter results showed a record backlog of $17.81 billion as of September 30, 2026. The growth estimate came during the company's October 23 earnings call and does not represent a precise target or formal guidance in the results statement. The backlog expanded from $14.06 billion on June 30 and stood at $9.38 billion a year earlier. The increase offers an indication of the volume of work booked at the company as it prepares for next year. Management said on the call: "We estimate full-year 2027 comparable-store revenue growth in the mid-20s range."
Third-quarter results reflected strong business expansion, with revenue of $3.77 billion, compared with $2.45 billion in the corresponding period of 2025. Net income rose to $489.0 million from $291.6 million, while diluted earnings per share were $13.91 versus $8.25 a year earlier. The chief executive said revenue increased 50% year over year and earnings per share rose 70%. Operating cash flow also exceeded $1 billion in a single quarter, reaching $1.01 billion compared with $553.3 million in the third quarter of 2025. The company said cash flow "exceeded $1 billion in a single quarter," pointing to improved cash generated from operations alongside revenue and profit growth.
Revenue and profit growth extended to the nine months ended September 30, 2026. Revenue was $9.90 billion, compared with $6.46 billion in the same period of 2025. Net income climbed to $1.30 billion from $691.8 million, and diluted earnings per share were $36.94 compared with $19.52. Operating cash flow also totaled $2.54 billion for the nine months, versus $717.8 million a year earlier. These figures underscore the breadth of the improvement during the year, while the backlog continued to expand alongside financial performance.
The revenue mix details showed increasing reliance on the technology segment, whose revenue accounted for 59% of the total, up from 42% a year earlier. Industrial companies also contributed 76% of total revenue year to date. These sectors featured among the sources of demand discussed by management on the earnings call, with coverage also pointing to data center projects. The mix puts expansion in technology and industrial work at the center of the explanation for revenue and backlog growth. It comes alongside management's estimate of comparable-store revenue growth in the mid-20s range in 2027.
Management's comments on demand were not limited to the volume of booked work; they also addressed the investment needed to support execution. According to the call transcript, the company spent more than $100 million expanding prefabrication facilities for traditional construction work. It expected capital spending to remain elevated through the first half of 2027. Investing.com coverage also reported that modular capacity could exceed 4 million square feet by the end of 2026 and reach about 6 million square feet by the end of 2027. The plans reflect the company's focus on expanding prefabrication capabilities and modular capacity alongside its growing backlog.
Despite beating earnings and revenue estimates, according to Investing.com coverage, the stock fell during the October 23 session. It stood at $1,194.79, down 6.61% at 11:59 a.m. Eastern time, after reaching a session low of $1,111.11. The coverage noted that the company had not provided new earnings guidance, which remained an open question for investors. In the results statement, the chief executive said the company believes it is positioned for organic growth through year-end and in 2027, while maintaining high profitability and strong cash flow. Among upcoming developments announced by the company, Chief Financial Officer Bill George will retire after filing the 2026 annual report and will be succeeded by Julie Shiff, chief accounting officer.