Can Comfort Systems Capitalize on Healthcare Construction Growth?

Comfort Systems USA FIX is expanding its presence in healthcare construction, aligning with sector trends that point to steady long-term demand. While the company is known for its strength in the technology and industrial sectors, healthcare is emerging as a notable contributor to growth, supported by broader demographic shifts and infrastructure needs.

During the first quarter of 2025, the company highlighted that healthcare now accounts for approximately 10% of the overall business. Comfort Systems also indicated that the dollar value of this segment has grown, indicating a real increase in activity rather than just changes in mix. The company views healthcare as a steadily growing opportunity, citing the aging U.S. population as a long-term structural driver for increased hospital and facility construction.

FIX noted continued strength in institutional markets, including healthcare, which, along with education and government, accounted for 24% of total revenues in the first quarter of 2025, supported by stable demand across these segments. The company emphasized that customer demand remains strong, with current bookings supported by large, complex projects. Comfort Systems’ depth of skilled labor and national scale position it well to capture healthcare-related mechanical and electrical contracts that require experienced teams and strong balance sheet capabilities.

Looking ahead, the company expects healthcare to remain a reliable and expanding end market. With strong project visibility and consistent institutional demand, FIX is expected to benefit from long-term healthcare construction demand, as the need for expanded and modernized medical facilities continues to rise.

Other Industry Players Tapping Healthcare Construction Demand

As Comfort Systems strengthens its position in healthcare construction, companies like EMCOR Group, Inc. EME and Jacobs Solutions Inc. J are also advancing in this growing segment.

EMCOR continues to see growing opportunity in healthcare construction through its mechanical and electrical services offerings. In the first quarter of 2025, the company saw revenue growth of 10.2% and 42.3% year over year in its mechanical and electrical construction segments, respectively. This performance was supported by increased activity in several markets, including healthcare. 

As of March 31, 2025, EMCOR’s healthcare-related remaining performance obligations were $1.5 billion, up 38% year over year, reflecting growing demand from hospitals and medical systems. With a diversified project pipeline and expanding geographic reach, EMCOR is well-positioned to support both new construction and upgrades in healthcare facilities.

Jacobs continues to see momentum in healthcare-related infrastructure through its People & Places Solutions segment. This division includes consulting, design, engineering and project management services for sectors such as healthcare, life sciences and advanced facilities. Jacobs’ efficient project execution has been a consistent strength, supporting growth across public and private health infrastructure programs. 

As of the fiscal second quarter of 2025, the company reported a total backlog of $22.16 billion, up 20% year over year, driven by strong project wins. With an expanding portfolio of medical facility planning and construction management work, Jacobs remains well-positioned to support the growing demand for modern, efficient healthcare infrastructure in the United States.

FIX’s Price Performance, Valuation and Estimates

Comfort Systems stock has gained 48.5% in the past three months, outpacing the industry and the S&P 500’s rise of 11.1% and 6.4%, respectively.

The stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-earnings ratio of 25.89X.

Comfort Systems’ earnings estimates for 2025 and 2026 have trended upward in the past 60 days by 3.8% to $19.28 per share and 1.8% to $20.41, respectively. The estimated figures for 2025 and 2026 indicate 32.1% and 5.8% year-over-year growth, respectively.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research