FIX earnings analysis
What we found in FIX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Comfort Systems reported Q1 2026 revenue of $2,865,332,000, up 56.5% year-over-year, with gross margin expanding to 26.3% and operating margin to 17.0%. Net income rose to $370,378,000 and operating cash flow was strong at $388,828,000, producing free cash flow of $242,229,000. Backlog climbed to $12,454,726,000, supporting management’s constructive outlook for the remainder of 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue surge
- Revenue increased to $2,865,332,000 in Q1 2026 from $1,831,286,000 in Q1 2025 (a 56.5% increase, +$1,034,046,000).
- Margin expansion
- Gross profit rose to $754,412,000 and gross margin improved to 26.3% (from 22.0% in Q1 2025); operating income increased to $485,718,000 with operating margin of 17.0% (from 11.4%).
- Strong cash generation
- Net cash provided by operating activities was $388,828,000 and free cash flow was $242,229,000 (capex purchases of $147,473,000) in the quarter.
- Backlog supports near-term revenue
- Backlog as of March 31, 2026 was $12,454,726,000, up 80.8% year-over-year from $6,888,818,000 (and +4.3% sequentially from $11,944,601,000 at December 31, 2025).
- Segment strength — electrical notably robust
- Mechanical revenue grew to $2,060,622,000 (up $658,407,000, +47.0% YoY) and Electrical revenue grew to $804,710,000 (up $375,639,000, +87.5% YoY); electrical same-store growth contributed $305,600,000.
- Net income improvement
- Net income was $370,378,000 in Q1 2026 versus $169,289,000 in Q1 2025 (increase of $201,089,000).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising labor/SG&A pressure
- SG&A increased to $268,996,000 (up $74,122,000, +38.0% YoY) and management attributes $54,000,000 of the same-store SG&A increase to higher compensation costs.
- Contingent earn-out volatility
- Expense from changes in the fair value of contingent earn-out obligations was $10,370,000 in Q1 2026 (versus $3,758,000 in Q1 2025), an increase of $6,612,000.
- Higher effective tax rate this quarter
- Provision for income taxes was $111,768,000 in Q1 2026 (effective tax rate 23.2%), up from $38,723,000 (18.6% effective rate) in Q1 2025.
- Supply-chain and cost pressure persists
- Management states it anticipates continued cost pressures and intermittent supply delays; to mitigate it is ordering earlier and collaborating with customers (no numeric relief signaled).
- Backlog convertibility caution
- While backlog is $12,454,726,000, management discloses backlog predictive value is limited to the near term and may not fully convert to revenue beyond six to 12 months.
- No material risk-factor changes disclosed
- The filing refers investors to Item 1A in the 2025 Form 10-K and does not identify new or materially changed risk factors in this 10-Q.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 26.3%
- Operating margin
- 17.0%
- Segment
- Mechanical: $2,060,622,000 (71.9%) — up $658,407,000, +47.0% YoY (includes $20,800,000 from Right Way acquisition; same-store +$637,600,000)
- Segment
- Electrical: $804,710,000 (28.1%) — up $375,639,000, +87.5% YoY (includes $70,000,000 from Feyen Zylstra and Meisner; same-store +$305,600,000)
What they said about what is next.
No numeric forward guidance provided. Management states it 'anticipates high ongoing demand' and 'currently expect[s] that supportive conditions for our industry... are likely to continue for the remainder of 2026.'
The filing reads better than the one before it.
What came before.
- 10-K · February 19, 2026
- Comfort Systems USA reports accelerating top-line and margin expansion through 2025 with Q4 revenue of $2.646B and diluted EPS of $9.37 (Q4 actuals). The company cites a large backlog of approximately $24.17B (8,427…
- 10-Q · October 23, 2025
- Comfort Systems reported a strong Q3: revenue rose 35.2% YoY to $2.451 billion and gross margin expanded to 24.8% (from 21.1%), driving operating income of $378.9 million (15.5% margin) and net income of $291.6 million.…
- 10-Q · July 24, 2025
- Comfort Systems reported a strong Q2 with revenue of $2.173 billion (up 20.1% y/y) and net income of $230.8 million, driving EPS of $6.53 and a material beat to consensus. Margins expanded materially (gross margin 23.5%…
- 10-Q · April 24, 2025
- Comfort Systems reported strong Q1 2025 operating results with revenue of $1,831,286 (in thousands), up $294.3 million (19.1%) year-over-year, driven by same-store growth and acquisitions. Gross margin expanded to 22.0%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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