Comfort Systems Raises Quarterly Dividend to $1.00 a Share
Key Facts
Comfort Systems on October 22, 2026, said it was raising its quarterly cash dividend to $1.00 a share, an increase of $0.10 from the last dividend. The amount is payable to shareholders of record at the close of business on November 12, with payment due on November 23. The company announced a dividend of $0.90 a share in July. The decision puts the new increase after that earlier dividend announcement, while the company’s statement did not explain it or link it to a specific objective. The announcement came as the company reported strong third-quarter results and a larger backlog.
The company’s revenue rose to $3.77 billion in the third quarter of 2026, from $2.45 billion in the same period of 2025. The chief executive said revenue increased 50% year over year. Net income was $489.0 million, compared with $291.6 million a year earlier. Diluted earnings per share reached $13.91, versus $8.25 in the third quarter of 2025. The chief executive described the increase in earnings per share as 70% year over year.
Cash flow from operations was $1.01 billion in the third quarter, up from $553.3 million in the same quarter of 2025. Backlog stood at $17.81 billion on September 30, 2026, compared with $14.06 billion on June 30 and $9.38 billion on September 30, 2025. The company said backlog increased 26.7% from the end of June and 90.0% year over year. Same-store backlog growth was 85.4% year over year. The expanding backlog reflects a clear increase in pending work compared with the two prior periods cited by the company.
The company said demand remained at elevated levels during the third quarter, following what it described as an unprecedented demand environment in 2025. It expects elevated demand to continue through the rest of 2026 and into 2027, particularly among manufacturing and technology customers. The chief executive said sustained demand and consistent execution by teams contributed to results he described as exceptional. He added that the company believes it is well positioned for organic growth, to maintain high levels of profitability and to generate continued cash flow through year-end and during 2027. At the same time, the company cited ongoing cost pressures and delays in some materials and equipment over the coming quarters.
In after-hours trading on October 22, the stock fell 7.96% to $1,177.54, according to Investing.com coverage attributed to Reuters, despite third-quarter results exceeding analysts’ expectations. The coverage said the market may have focused on the margin mix, project timing and elevated expectations. The company’s shares closed at $1,160.86 on October 23, according to EL7 data. The company had said its third-quarter earnings call would be held on October 23 at 11 a.m. Eastern time. Comfort Systems provides heating, ventilation and air-conditioning and electrical contracting services to commercial, industrial and institutional sectors, and has 211 locations in 155 cities.