Comfort Systems USA, Inc.

Blowout results & operating leverage (what’s good) - Q2 2026 revenue: $3.3B, up +$1.1B YoY. - Same-store revenue growth: +44% (core demand/retention strength). - EPS: $12.53, +92% YoY (vs. $6.53 prior year). - Margins improved materially: Gross margin ~25.9% (vs. 23.5% YoY). Mechanical margin jumped to 25.6% (vs. 22.9%); Electrical margin to 26.4% (vs. 25.3%). - Operating income: $558M, +86% YoY; operating margin 17.1% vs 13.8%. - Cash flow: ~$999M free cash flow in the quarter; EBITDA $600M (+80% YoY).

Backlog & bookings strength—new highs (what’s good / surprising) - Backlog: $14.1B, record high, up +73% YoY (same-store increase +$5.6B). - Bookings trending up and momentum is strongest in Technology (including both Construction and Modular). - Timing/outlook for next quarters: Entered Q3 with same-store backlog +69% vs. last year; company expects increased sequential and YoY backlog into 2H 2026. - Modular bookings noted: $510M modular bookings in Q2, adding ~+$500M net modular backlog on top of burn (signals continued demand outpacing capacity).

Full-year forecast & “exit rate” caution (expectations / what investors should watch) - 2026 same-store revenue guidance: mid- to high 30% range (implies still very strong 2H). - CFO/management emphasized growth will remain strong but Q4 comparables are very heavy, so the “exit rate” will be different than what was seen earlier in the year. - CapEx expectation: ~5% of revenue for 2026 (supports capacity expansion; see modular build-out below). - Tax: full-year effective tax rate expected around ~23% (benefited by discrete item in Q2).