Comfort Systems Stock Before Q3 Earnings: Buy Now or Wait for Results?

Comfort Systems USA, Inc. (FIX) is scheduled to report third-quarter 2025 results on Oct. 23, after the closing bell.

In the last reported quarter, Comfort Systems reported adjusted earnings per share (EPS) of $6.53, beating the consensus mark and rising 74.6% year over year. The strong earnings growth was driven by higher margins across both Mechanical and Electrical segments, supported by strong execution on large, complex projects and favorable pricing. Revenues grew 20% year over year to $2.17 billion, fueled by broad-based demand across technology, industrial and institutional markets, along with strong contribution from modular construction.

Comfort Systems has an impressive record of surpassing earnings expectations, exceeding the consensus mark in the last four quarters. The average surprise over this period is 22.4%, as shown in the chart below.

How Are Estimates Placed for FIX?

The Zacks Consensus Estimate for the third-quarter EPS has increased to $6.20 from $6.10 over the past 30 days. The estimated figure indicates 51.6% growth from the year-ago reported figure. The consensus mark for revenues is $2.16 billion, indicating a 19% year-over-year increase.

For 2025, FIX is expected to register 58.5% EPS growth from that reported a year ago.

What the Zacks Model Unveils for FIX

Our proven model does not conclusively predict an earnings beat for Comfort Systems this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

FIX’s Earnings ESP: Comfort Systems has an Earnings ESP of -8.92%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: FIX currently carries a Zacks Rank of #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape FIX’s Q3 Performance

Comfort Systems continues to benefit from strong demand across technology and industrial markets. Large and complex projects, particularly data centers, are likely to have remained a major growth driver in the third quarter of 2025. Industrial customers are expected to have contributed significantly to the revenue mix, supported by healthy activity in manufacturing and process facilities. With robust pipelines in both technology and industrial sectors, the company is likely to have sustained momentum as customers seek specialized expertise for complex, high-value projects.

The Mechanical segment, which accounted for 75.4% of total revenues in the second quarter, is expected to have driven most of the growth. Steady activity in data centers and industrial facilities, along with stable institutional demand, likely supported the segment’s performance. The Electrical segment, which contributed 24.6% of total revenues in the second quarter, is also expected to have performed well, supported by strong execution on ongoing technology-related and large-scale industrial projects. Continued demand for integrated mechanical and electrical solutions is expected to have strengthened overall project flow during the quarter.

A record-high backlog is expected to have provided visibility and stability to ongoing operations. The company is likely to have benefited from consistent bookings across industrial, institutional and modular construction projects, supporting sustained revenue generation. Service operations are also expected to have remained a stable contributor, providing recurring revenues and helping balance the cyclicality of large projects.

From the margin perspective, Comfort Systems is expected to have benefited from a favorable mix of complex, high-value projects and disciplined project execution. Strategic acquisitions are likely to have added scale and expanded capabilities across regional markets, further enhancing the company’s growth base. Overall, strong demand trends, healthy backlog and continued expansion are likely to have supported steady performance in the third quarter of 2025.

FIX Stock’s Price Performance & Valuation

So far this year, shares of Comfort Systems have gained 95.6% compared with the Zacks Building Products - Air Conditioner and Heating industry’s 1.8% fall and the S&P 500’s rallies of 15.4%, respectively. FIX stock has also outperformed the broader Construction sector's 6.6% rise during the same period. The stock has also outperformed peers such as EMCOR Group (EME), Quanta Services (PWR) and MasTec (MTZ). EMCOR, MasTec and Quanta Services gained 52%, 38.4% and 52.2% so far this year.

Comfort Systems’ shares are currently trading at a forward 12-month price-to-earnings (P/E) ratio of 34.3, a 28.8% premium to the industry average of 26.64.

Furthermore, FIX trades at a clear premium to peers such as EMCOR (25.82X) and MasTec (27.49X), though it remains at a discount to Quanta (36.51X).

Should Investors Consider FIX Stock Now?

Comfort Systems enters the third quarter on strong footing, supported by steady demand across technology and industrial markets, a record backlog and continued strength in high-value project execution. Expanding service operations and recent acquisitions are enhancing scale and diversification, reinforcing the company’s long-term growth potential.

Given the solid fundamentals, consistent execution and visibility into future projects, the stock remains well-positioned for sustained performance. Investors looking for exposure to large-scale infrastructure and technology-driven construction trends may consider Comfort Systems as an attractive long-term opportunity.

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

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