Will Strong Backlog and Bookings Drive Comfort Systems' Growth Ahead?

Comfort Systems USA, Inc. (FIX) is seeing solid business momentum as strong bookings and an expanding backlog highlight healthy demand across its core markets. The company continues to benefit from rising activity in technology and industrial projects, supported by ongoing investment in data centers, manufacturing facilities and healthcare infrastructure. A balanced mix of long-term contracts and recurring service work is helping ensure revenue stability and visibility for the coming years.

Backlog reached a record $8.1 billion at the end of the second quarter of 2025, up 41% from the prior year, with $2.2 billion of the growth coming from same-store operations. Same-store backlog rose 37% year over year, reflecting steady project flow and improved execution. Strong bookings from technology-driven construction and modular projects have been a key growth driver. Revenues increased 20% year over year to $2.2 billion, supported by solid execution and backlog conversion. Same-store revenues increased 19% in the quarter and 17% year to date.

Looking ahead, the company expects same-store revenues to grow at a mid-teen rate for the full-year 2025. The broad project mix, along with growing participation in healthcare and education markets, continues to provide diversification. With a record backlog, rising bookings and strong visibility through 2026 and beyond, Comfort Systems remains well-positioned for multiyear growth across its expanding end markets.

FIX’s Price Performance vs. Other Market Players

Shares of Comfort Systems have gained 56% in the past three months against the Zacks Building Products - Air Conditioner and Heating industry’s decline of 5.5%. In the same time frame, shares of other industry players, such as Watsco, Inc. (WSO) and Tecogen Inc. (TGEN) have declined 23.7% and gained 64.2%, respectively.

Price Performance

Comfort Systems’ Valuation Trend

From a valuation standpoint, FIX trades at a forward 12-month price-to-earnings ratio of 34.68X, up from the industry’s 26.92X.

EPS Estimate Trend of FIX

Comfort Systems’ earnings estimates for 2025 and 2026 have trended upward in the past 30 days by 0.5% to $22.36 per share and 0.7% to $24.61, respectively. The estimated figures for 2025 and 2026 indicate 53.2% and 10.1% year-over-year growth, respectively.

Comfort Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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