Thu, Apr 24, 8:07 PM (24 days ago)
**Comfort Systems USA, Inc. (FIX) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,831,286,000 (up 19.1% YoY) - **Gross Profit:** $403,416,000 (up 35.7% YoY) - **Operating Income:** $209,098,000 (up 54.4% YoY) - **Net Income:** $169,289,000 (up 75.8% YoY) - **Earnings per Share (EPS):** $4.77 (up 76.7% YoY) **Profit Margins:** - **Gross Margin:** 22.0% (up from 19.3% in Q1 2024) - **Operating Margin:** 11.4% (up from 8.8% in Q1 2024) - **Net Margin:** 9.2% (up from 6.3% in Q1 2024) **Cash Flow:** - **Operating Cash Flow:** -$87,950,000 (down from $146,557,000 in Q1 2024) - **Free Cash Flow:** -$109,063,000 (down from $122,619,000 in Q1 2024) **Earnings Changes:** - **Revenue Growth:** Driven by strong market conditions and increased backlog, particularly in the technology sector. - **Gross Profit Increase:** Due to higher revenues and improved operational execution. - **Operating Income Growth:** Reflects increased revenue and controlled SG&A expenses. **Quarterly Performance Discussion:** - **Revenue Growth:** 19.1% YoY, with significant contributions from acquisitions and same-store activity. - **Gross Profit Margin Improvement:** From 19.3% to 22.0%, indicating better operational efficiency. - **Operating Income Margin:** Increased from 8.8% to 11.4%, showing better cost management. - **Net Income Margin:** Rose from 6.3% to 9.2%, reflecting overall financial health improvement. **Trends and Uncertainties:** - **Strong Demand:** Continued high demand in the technology and manufacturing sectors. - **Supply Chain Challenges:** Persistent labor costs and supply chain issues impacting project timelines and costs. - **Economic Uncertainties:** Potential recession risks and economic conditions may affect future performance. **Future Operations Impact:** - **Backlog:** $6,888,818,000, indicating a strong pipeline of future revenue. - **Cash Flow Management:** Focus on maintaining liquidity and managing working capital effectively. - **Strategic Acquisitions:** Continued investment in strategic acquisitions to drive growth. **Outlook:** - **Positive Outlook:** Strong demand and backlog suggest solid earnings for 2025. - **Challenges:** Ongoing supply chain and labor issues, potential economic downturns. - **Liquidity:** Strong liquidity position with significant borrowing capacity under the credit facility.