Comfort Systems’ Backlog Reaches $17.81 Billion as Technology Share Rises to 59%
Key Facts
Comfort Systems’ backlog stood at $17.81 billion on September 30, 2026, according to its earnings release, above $14.06 billion on June 30 and $9.38 billion a year earlier. The figure represents work accumulated at the end of September, not third-quarter revenue. The company’s president said on the earnings call that backlog increased by $8.4 billion, or 90%, year over year. Quarter over quarter, it added $3.8 billion, or 27%. The increase offers an indication of the volume of work awaiting execution, while its conversion into revenue remains tied to the company’s ability to complete projects.
Third-quarter results showed revenue of $3.77 billion, net income of $489.0 million and diluted earnings per share of $13.91. In the third quarter of 2025, the company recorded revenue of $2.45 billion, net income of $291.6 million and diluted earnings per share of $8.25. The figures reflect increases in revenue, income and per-share earnings compared with the year-earlier period. Operating cash flow was also $1.01 billion for the quarter, versus $553.3 million a year earlier. The results provide a picture of financial performance alongside the expansion in backlog.
Technology projects accounted for a larger share of the company’s business, making up 59% of revenue in the first nine months of 2026, compared with 42% in the year-earlier period. Management said quarterly bookings were strong, particularly in this sector. It explained that technology is classified within the industrial segment. That means the 59% share applies to revenue over the nine months and does not represent technology’s share of backlog alone. In its filing with the U.S. Securities and Exchange Commission, the company said favorable industry conditions, particularly among manufacturing and technology customers, are expected to continue through the rest of 2026 and into 2027.
Gross margin remained at 24.8% in the third quarter, the same rate recorded in the third quarter of 2025. Still, gross profit rose 53.7% to $934.5 million. The company said in its filing that demand, particularly from manufacturing and technology customers, remained high during the quarter. At the same time, it pointed to rising labor costs and delays in the delivery of some materials and equipment. It said its outlook indicates demand will remain at elevated levels through the rest of 2026 and 2027, while labor costs and delivery schedules are factors tied to execution.
The chief executive said sustained demand and the company’s ability to execute put it in a position to achieve organic growth through the rest of the year and in 2027, while maintaining high profitability and continued cash flow. On the earnings call, management forecast same-store revenue growth in the mid-40% range in 2026, followed by the mid-20% range in 2027. The company aims to exceed 4 million square feet of space in its modular business by the end of 2026. It also aims to reach about 6 million square feet of capacity by the end of 2027. In its filing, the company said it expects to recognize revenue equal to about 65% to 75% of remaining performance obligations over the 12 months following the end of September 2026.
The third-quarter earnings call was held on October 23, 2026, at 11:00 a.m. U.S. Eastern time. That day, the company’s shares, listed under the ticker FIX, closed at $1160.86, according to EL7 data. Investing.com reported that the stock fell 7.96% to $1,177.54 in after-hours trading. That came despite the quarter’s results beating analysts’ estimates, according to the site. The contrast between results and trading activity puts the market’s response to the reported figures and outlook in focus.