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COMFORT SYSTEMS USA INC

CIK:0001035983|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CONSOLIDATED STATEMENTS OF OPERATIONS
REVENUE	$ 3,265,656	$ 2,173,319	$ 6,130,988	$ 4,004,605
COST OF SERVICES	2,421,428	1,663,422	4,532,348	3,091,292
Gross profit	844,228	509,897	1,598,640	913,313
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	287,047	210,466	556,043	405,340
GAIN ON SALE OF ASSETS	(785)	(442)	(1,087)	(998)
Operating income	557,966	299,873	1,043,684	508,971
OTHER INCOME (EXPENSE):
Interest income	11,051	2,819	19,563	7,086
Interest expense	(1,437)	(1,605)	(3,615)	(3,224)
Changes in the fair value of contingent earn-out obligations	(2,045)	(4,073)	(12,415)	(7,831)
Other	708	(530)	1,172	(506)
Other income (expense)	8,277	(3,389)	4,705	(4,475)
INCOME BEFORE INCOME TAXES	566,243	296,484	1,048,389	504,496
PROVISION FOR INCOME TAXES	124,641	65,636	236,409	104,359
NET INCOME	$ 441,602	$ 230,848	$ 811,980	$ 400,137
INCOME PER SHARE:
Basic	$ 12.54	$ 6.54	$ 23.06	$ 11.3
Diluted	$ 12.53	$ 6.53	$ 23.03	$ 11.28
SHARES USED IN COMPUTING INCOME PER SHARE:
Basic	35,221	35,307	35,216	35,415
Diluted	35,254	35,369	35,255	35,486

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 811,980	$ 400,137
Adjustments to reconcile net income to net cash provided by operating activities-
Amortization of identifiable intangible assets	43,668	39,906
Depreciation expense	38,602	28,866
Change in right-of-use assets	23,719	14,968
Bad debt expense	4,328	3,688
Deferred tax provision	3,219	1,097
Amortization of debt financing costs	464	340
Gain on sale of assets	(1,087)	(998)
Changes in the fair value of contingent earn-out obligations	12,415	7,831
Stock-based compensation	28,612	12,193
(Increase) decrease in-
Receivables, net	(633,131)	(239,680)
Inventories	(20,738)	(11,420)
Prepaid expenses and other current assets	(3)	3,817
Costs and estimated earnings in excess of billings and unbilled accounts receivable	(49,629)	(163,567)
Other noncurrent assets	(3,129)	135
Increase (decrease) in-
Accounts payable and other current liabilities	215,497	(320,130)
Billings in excess of costs and estimated earnings and deferred revenue	1,061,506	376,780
Other long-term liabilities	(8,039)	10,582
Net cash used in operating activities	1,528,254	164,545
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(288,837)	(53,481)
Proceeds from sales of property and equipment	2,132	2,064
Cash paid for acquisitions, net of cash acquired	(162,845)	(124,093)
Payments for investments	(66,123)	(7,478)
Proceeds from investments	48,209
Net cash used in investing activities	(467,464)	(182,988)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on revolving credit facility	(100,000)
Payments on other debt	(10,097)	(6,015)
Payments of dividends to stockholders	(52,785)	(30,033)
Share repurchases	(8,232)	(111,290)
Shares received in lieu of tax withholding	(16,662)	(6,599)
Proceeds from exercise of options	383	453
Payments for contingent consideration arrangements	(501)	(46,302)
Net cash used in financing activities	(187,894)	(199,786)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	872,896	(218,229)
CASH AND CASH EQUIVALENTS, beginning of period	981,898	549,939
CASH AND CASH EQUIVALENTS, end of period	$ 1,854,794	$ 331,710

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 1,854,794	$ 981,898
Billed accounts receivable, less allowance for credit losses of $23,491 and $19,708, respectively	3,278,811	2,577,858
Unbilled accounts receivable, less allowance for credit losses of $1,636 and $1,508, respectively	136,617	123,197
Other receivables, less allowance for credit losses of $270 and $325, respectively	122,100	116,157
Inventories	104,804	84,066
Prepaid expenses and other	146,723	138,560
Costs and estimated earnings in excess of billings, less allowance for credit losses of $416 and $255, respectively	144,553	88,817
Total current assets	5,788,402	4,110,553
PROPERTY AND EQUIPMENT, NET	653,873	387,952
LEASE RIGHT-OF-USE ASSETS	299,638	322,922
GOODWILL	1,101,475	1,025,515
IDENTIFIABLE INTANGIBLE ASSETS, NET	534,580	485,168
DEFERRED TAX ASSETS	80,920	84,139
OTHER NONCURRENT ASSETS	28,918	24,920
Total assets	8,487,806	6,441,169
CURRENT LIABILITIES:
Current maturities of long-term debt	215	6,163
Accounts payable	771,906	696,348
Accrued compensation and benefits	403,471	291,722
Billings in excess of costs and estimated earnings and deferred revenue	3,231,104	2,120,262
Accrued self-insurance	40,141	42,973
Other current liabilities	321,927	236,382
Total current liabilities	4,768,764	3,393,850
LONG-TERM DEBT	53,849	139,063
LEASE LIABILITIES	273,969	302,590
DEFERRED TAX LIABILITIES	3,892	3,892
OTHER LONG-TERM LIABILITIES	170,063	153,000
Total liabilities	5,270,537	3,992,395
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par, 5,000,000 shares authorized, none issued and outstanding
Common stock, $.01 par, 102,969,912 shares authorized, 41,123,365 and 41,123,365 shares issued, respectively	411	411
Treasury stock, at cost, 5,923,156 and 5,946,145 shares, respectively	(517,499)	(496,006)
Additional paid-in capital	394,107	363,314
Retained earnings	3,340,250	2,581,055
Total stockholders' equity	3,217,269	2,448,774
Total liabilities and stockholders' equity	$ 8,487,806	$ 6,441,169