What Happened?
Shares of HVAC and electrical contractor Comfort Systems (NYSE: FIX) jumped 21.7% in the afternoon session after the company reported stellar second-quarter 2025 financial results that significantly surpassed analyst expectations for both revenue and profit.
The mechanical and electrical contracting firm announced revenue of $2.17 billion, a 20% increase from the same quarter last year and well ahead of the consensus estimate of $1.95 billion. Profitability was even more impressive, with earnings per share (EPS) soaring 75% year-over-year to $6.53, crushing Wall Street's forecast of $4.68. Adding to the positive results, Comfort Systems reported a record backlog of $8.12 billion. Backlog represents contracted future work, and this substantial increase from the prior year's $5.77 billion signaled robust demand and strong future revenue visibility to investors.
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What Is The Market Telling Us
Comfort Systems’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. But moves this big are rare even for Comfort Systems and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 11% on the news that the company reported stunning first-quarter 2025 results, which crushed earnings and backlog expectations, pointing to strong demand and solid execution in a typically soft seasonal period. Same-store backlog grew 16%, a massive jump that signaled growing confidence from customers and a robust pipeline of future projects. Zooming out, we think this was a solid quarter.
Comfort Systems is up 59.6% since the beginning of the year, and at $683.89 per share, has set a new 52-week high. Investors who bought $1,000 worth of Comfort Systems’s shares 5 years ago would now be looking at an investment worth $15,901.
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