AI Takeaway
FIX (Comfort Systems USA) delivered exceptional Q1 FY2026 results with revenue surging 56.5% YoY to $2.87B and net income more than doubling to $370.4M, driven by strong demand across its mechanical and electrical contracting segments.
Revenue
$2.87B
++56.47% YoY
EPS (Basic)
$10.52
++120.55% YoY
Gross Margin
26.3%
++4.30% YoY
Operating Income
$485.72M
++132.29% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue jumped 56.5% YoY to $2.87B in Q1 FY2026 from $1.83B in the prior year period, reflecting robust demand for HVAC, plumbing, electrical, and related services, likely boosted by acquisitions and strong organic growth in data center and industrial end markets.
Source: Source: 10-Q Income Statement
Gross margin expanded 430 basis points YoY to 26.3% from 22.0%, while operating margin widened 553 basis points to 17.0% from 11.4%, indicating significant operating leverage and improved project mix as higher-value work outpaced cost growth.
Source: Source: 10-Q Income Statement
Operating cash flow swung from -$88.0M in Q1 FY2025 to +$388.8M in Q1 FY2026, a $476.8M improvement, signaling much stronger working capital management and earnings quality in the current period.
Source: Source: 10-Q Cash Flow Statement
2 more insights available
Upgrade to unlockAs a specialty contractor, FIX is exposed to cost overruns, schedule delays, and performance issues on large complex projects. With revenue growing rapidly at 56.5% YoY, the company must execute on a significantly larger backlog, increasing operational complexity and the risk of margin erosion on individual contracts.
Source: Source: 10-Q Income Statement & Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $10.51 versus the $6.87 analyst consensus — a +52.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.87B | $1.83B | +56.47% |
Cost of Revenue | $2.11B | $1.43B | +47.84% |
Gross Profit | $754.41M | $403.42M | +87.01% |
Operating Income | $485.72M | $209.1M | +132.29% |
Net Income | $370.38M | $169.29M | +118.78% |
EPS (Basic) | $10.52 | $4.77 | +120.55% |
EPS (Diluted) | $10.51 | $4.75 | +121.26% |
SG&A Expense | $269M | $194.87M | +38.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.94B | $4.57B | +51.85% |
Current Assets | $4.5B | $2.6B | +73.28% |
Total Liabilities | $4.12B | $2.79B | +47.67% |
Current Liabilities | $3.63B | $2.41B | +50.58% |
Stockholders' Equity | $2.82B | $1.78B | +58.41% |
Cash & Equivalents | $1.05B | $204.76M | +412.88% |
Long-Term Debt | $39.08M | $67.84M | -42.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $388.83M | $-87.95M | +542.10% |
Investing Cash Flow | $-184M | $-96.78M | -90.12% |
Financing Cash Flow | $-136.56M | $-160.45M | +14.89% |
Share Buybacks | $2.55M | $91.37M | -97.21% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 26.3% | 22.0% | +4.30% |
Operating Margin | 17.0% | 11.4% | +5.53% |
Net Margin | 12.9% | — | — |
ROE | 13.2% | — | — |
ROA | 5.3% | — | — |
Current Ratio | $1.24 | — | — |
Debt to Equity | $1.465 | — | — |
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FIX revenue grew 56.5% year-over-year to $2.87B in Q1 FY2026, up from $1.83B in Q1 FY2025. This exceptional growth reflects strong demand for mechanical and electrical contracting services, likely driven by data center construction, industrial projects, and acquisition contributions.
The key takeaways from FIX's Q1 FY2026 earnings are outstanding across the board: revenue surged 56.5%, net income more than doubled to $370.4M, and operating margin expanded to 17.0% from 11.4%. Additionally, operating cash flow swung from -$88M to +$389M and cash on hand jumped to $1.05B, signaling strong financial health.
Yes, FIX significantly improved its profit margins in Q1 FY2026, with gross margin expanding to 26.3% from 22.0% and operating margin widening to 17.0% from 11.4% a year ago. This margin expansion indicates the company is winning higher-value contracts and achieving strong operating leverage on its growing revenue base.
FIX's financial health appears very strong after Q1 FY2026, with cash and equivalents of $1.05B (up 413% YoY), long-term debt of only $39.1M, and positive operating cash flow of $388.8M. The current ratio of 1.24x is adequate, and the company's near-zero long-term debt position provides significant flexibility for future growth investments.
Key risks to monitor for FIX include project execution risk on a rapidly growing backlog, potential labor cost inflation in the skilled trades workforce, and integration challenges from acquisitions that appear to have contributed to the 51.8% surge in total assets. Additionally, the current ratio of 1.24x, while positive, leaves limited room for working capital stress if project billing cycles slow.