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On Monday, Stifel analysts maintained their Buy rating on Comfort Systems USA (NYSE:FIX) with an unchanged price target of $471.00. The firm’s analysts highlighted the company’s first quarter 2025 performance, noting revenues exceeded expectations, particularly in the modular and electrical segments, which saw year-over-year increases of 41% and 22%, respectively. With total revenue of $7.3 billion over the last twelve months and an impressive 31.5% growth rate, Comfort Systems USA demonstrates robust financial health, earning a "GREAT" overall score on InvestingPro’s comprehensive assessment. The company’s total revenue rose by 19% compared to the same period last year, with organic growth contributing 15% and acquisitions adding 4%.
The technology end market, which includes data centers, saw a substantial year-over-year increase of 46%, reflecting the company’s strong position in this area. Adjusted EBITDA for the quarter reached $209 million, surpassing the consensus estimate of $173 million, contributing to a remarkable trailing twelve-month EBITDA of $964.7 million. This result was primarily due to a stronger-than-anticipated gross margin performance of 21.6%, especially in the Mechanical sector. InvestingPro analysis shows the company currently trading near its Fair Value, with 13 additional exclusive insights available to subscribers.
Comfort Systems USA confirmed its forecast for high single-digit same-store sales growth for the full year of 2025 and expects to maintain the high gross margins observed over recent quarters. The company’s total backlog grew by 17% year-over-year, with organic backlog up by 16%. Furthermore, total orders surged by 19% year-over-year, with the Electrical segment experiencing a significant increase of 59%.
The company emphasized its robust project pipeline, particularly in the technology sector, and reported a record level of backlog for the upcoming year of 2026, based on the figures at this point in the current year. This performance indicates sustained growth and a strong market presence for Comfort Systems USA.
In other recent news, Comfort Systems USA reported impressive financial results for the first quarter of 2025, significantly surpassing analysts’ expectations. The company achieved earnings per share of $4.75, well above the projected $3.71, and generated revenue of $1.8 billion, exceeding the anticipated $1.75 billion. This performance marked a 75% year-over-year increase in earnings per share and a 19% rise in revenue. Comfort Systems also noted a strong backlog of $6.9 billion, indicating robust future demand. Additionally, KeyBanc analyst Alex Dwyer maintained a Sector Weight rating on Comfort Systems, citing the company’s solid margin expansion and strong demand across various markets. KeyBanc’s analysis suggests the stock is fairly valued, with potential for further growth if macroeconomic conditions remain stable. Comfort Systems’ management expressed confidence in managing supply chain challenges and rising costs, indicating these issues are unlikely to impact profit margins significantly. The company remains optimistic about continued growth in 2025, driven by strong performance in the industrial and technology sectors.
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