Shares of Comfort Systems USA jumped Friday after the commercial HVAC systems contractor cleared estimates for Q1 results late Thursday.
Houston-based Comfort Systems reported a 77% increase in earnings to $4.75 per share adjusted. Revenue jumped 18% to $1.83 billion.
FactSet analysts expected earnings of $3.71 per share on $1.76 billion in sales. Comfort Systems' backlog grew to $6.89 billion from $5.99 billion last year.
CEO Brian Lane in the earnings news release noted that earnings "exceeded every past quarter," despite Q1 being their seasonally weakest period historically.
The company hiked its quarterly dividend to 45 cents, from 40 cents. That puts the yield at around 0.48%.
"Considering fast moving economic developments, we are preparing for a wide range of conditions," Lane said. "However, we continue to expect strong earnings and cash in 2025, and our booked work and pipelines make us optimistic for continuing success into 2026.
The company had a total free cash outflow of $109 million for the quarter, compared to an inflow of $122.6 million last year. Comfort Systems' reported cash and cash equivalents fell to $204.8 million during the quarter, down 63% from $549.9 million at year-end 2024.
Analyst Targets
DA Davidson analyst Brent Thielman in a Friday research note pointed out that bookings were a quarterly record and reported margins were "strong." Thielman expects Comfort Systems will return to positive free cash flow growth in the second quarter. He added that Comfort Systems' shorter-duration and faster project model, as well as ties to larger projects, should provide some insulation from tariffs. "We would also be interested in whether tariffs could present incremental revenue/market share capture opportunities, given FIX's advanced procurement capabilities," Thielman wrote.
DA Davidson has a buy rating on FIX stock with a 440 price target, 17% above where shares ended on Thursday.
Wall Street appears bullish on FIX stock. FactSet data shows that seven out of eight analysts covering Comfort Systems have a buy rating on the stock with an average target price of 493. One analyst has a hold rating.
Comfort Systems Stock
FIX stock surged 5.5% Friday to climb above their 200-day moving average.
Shares are attempting to start up the right side of a three-month consolidation, after falling from their Jan. 22 record high of 553.09.
FIX stock is up nearly 44% from an early April low, and down 6.4% for the year through Thursday.
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