Comfort Systems USA, Inc.
PART I
The terms “Comfort Systems,” “we,” “us,” “our,” or “the Company” refer to Comfort Systems USA, Inc. or Comfort Systems USA, Inc. and its consolidated subsidiaries, as appropriate in the context.
ITEM 1. Business
Comfort Systems USA, Inc., a Delaware corporation, was established in 1997. We provide mechanical and electrical contracting services. Our mechanical segment principally includes heating, ventilation and air conditioning (“HVAC”), plumbing, piping and controls, as well as off-site construction, monitoring and fire protection. Our electrical segment includes installation and servicing of electrical systems. We build, install, maintain, repair and replace mechanical, electrical and plumbing (“MEP”) systems through our 50 operating units with 190 locations in 142 cities throughout the United States.
We operate primarily in the commercial, industrial and institutional MEP markets and perform most of our services in manufacturing, healthcare, education, office, technology, retail and government facilities. Substantially all of our consolidated 2025 revenue was derived from commercial, industrial and institutional customers and multi-family residential projects. Approximately 63.2% of our revenue was attributable to installation services in newly constructed facilities and 36.8% was attributable to renovation, expansion, maintenance, repair and replacement services in existing buildings. Our consolidated 2025 revenue was derived from the following service industries:
| | | |
| | Percentage of |
|
Service Activity | | Revenue |
|
Mechanical Services |
| 73.3 | % |
Electrical Services | | 26.7 | % |
Total |
| 100.0 | % |
Industry Overview
We believe that commercial, industrial, and institutional mechanical and electrical contracting generate annual revenue in the United States of approximately $700 billion. Mechanical and electrical systems are necessary to virtually all commercial, industrial and institutional buildings. Because most buildings are sealed, HVAC systems provide the primary method of circulating fresh air in such buildings. Replacing an aging building’s existing systems with modern, energy-efficient systems significantly reduces a building’s energy consumption, carbon footprint, and operating costs while improving air quality and overall system effectiveness. Older commercial, industrial and institutional facilities frequently have poor air quality and provide less comfortable environments, and older HVAC systems result in significantly higher energy consumption than modern systems. As electrical systems age, they require service and replacement, and changing building configurations and technological power load requirements lead to the need to reconfigure and improve electrical systems in buildings on a regular basis.
Many factors affect mechanical and electrical services industry growth, including but not limited to, (i) population growth, which increases the need for commercial, industrial and institutional space, (ii) an aging installed base of buildings and equipment, (iii) increasing sophistication, complexity and efficiency of mechanical and electrical systems, and (iv) growing emphasis on internal air quality, environmental sustainability and energy efficiency.
Our industry can be broadly divided into two categories:
| ● | construction of and installation in new buildings, which provided approximately 63.2% of our revenue in 2025, and |
| ● | renovation, expansion, maintenance, repair and replacement in existing buildings, which provided the remaining 36.8% of our 2025 revenue. |
Construction, Installation, Expansion and Renovation Services—Construction, installation, expansion and renovation services consist of “design and build” and “plan and spec” projects. In “design and build” projects, the commercial MEP company is responsible for designing, engineering and installing a cost-effective, energy-efficient
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system customized to the specific needs of the building owner. Costs and other project terms are normally negotiated between the building owner or its representative and the contracting company. Companies that specialize in “design and build” projects use a consultative approach with customers and tend to develop long-term relationships with building owners and developers, general contractors, architects, consulting engineers and property managers. “Plan and spec” installation refers to projects in which a third-party architect or consulting engineer designs the MEP systems, and the installation project is “put out for bid.” We believe that “plan and spec” projects usually take longer to complete and frequently result in less efficient outcomes than “design and build” projects because the system design and installation process are not integrated, thus resulting in more frequent adjustments to project specifications, work requirements and schedules. Our investments in design and building information modeling enable us to collaborate with our customers to achieve reliable and energy efficient construction outcomes and to eliminate unnecessary waste.
Maintenance, Repair and Replacement Services—The Company’s services further include maintaining, repairing, replacing, reconfiguring and monitoring previously installed systems and building automation controls. The growth and aging of the installed base of MEP and related systems, changing requirements due to increasing technology deployment and the demand for more efficient systems and more capable building automation controls have fueled growth in these services. The increasing complexity of these systems leads many commercial, industrial and institutional building owners and property managers to outsource maintenance and repair, often through service agreements with service providers. State-of-the-art control and monitoring systems feature electronic sensors and microprocessors that are crucial to energy efficient operations. These systems require specialized training to install, maintain and repair. We believe that the work we perform to enhance and upgrade systems and controls helps Comfort Systems to optimize energy use and fundamentally reduce our nation’s carbon footprint.
Strategy
At Comfort Systems USA, Inc., our core purpose is to “Build Legacies” with our people, customers, and the companies who join us. To accomplish this purpose, we strive every day to be the best organization in the world (i) for a craft worker to build a successful career, (ii) for construction, service and administrative professionals to grow and thrive, (iii) for customers to meet their crucial building and service needs, and (iv) for any company in our industry to join with the assurance that their people will be respected and nurtured and that their legacy will be perpetuated and built upon. We focus on strengthening core operating competencies, on leading in sustainability, efficiency, and technological improvement, and on being fairly compensated for the work we do and the risks we manage on behalf of our customers. The key objectives of our strategy are to improve profitability and generate growth in our operations, to enable sustainable and efficient building environments, to improve the productivity of our workforce, and to acquire complementary businesses. Specifically, we are currently focused on the following elements:
Achieve Excellence in Core Competencies—We have identified seven core competencies that we believe are critical to attracting and retaining customers, increasing operating income and cash flow, and maximizing the productivity of our skilled labor force. The seven core competencies are: (i) safety, (ii) customer service, (iii) design and build expertise, (iv) effective pre-construction processes, (v) job and cost tracking, (vi) leadership in energy efficient and sustainable design, and (vii) best-in-class servicing of existing building systems.
Attract, Retain and Invest in our Employees—We seek to attract and retain quality employees by providing an enhanced career path that offers a stable income, attractive benefits, and excellent growth opportunities. We continually invest in training, including programs for project managers, field superintendents, service managers, service technicians, sales managers, estimators, and leadership and development of key managers and leaders. We believe that skilled labor forces in the building and services trades have become increasingly scarce and valuable, and we are increasingly focused on growing and improving our skilled labor force, including through recruitment, development, and skills training for our hourly workers.
Achieve Operating Efficiencies—We think we can achieve operating efficiencies and cost savings through purchasing economies, adopting “best practices,” and focusing on efficient job management. We are continually improving the “job loop” at our locations—qualifying, estimating, pricing, and executing projects effectively and efficiently. We also use our combined spend to gain purchasing advantages on products and services such as MEP components, raw materials, services, vehicles, bonding, insurance, and employee benefits.
Focus on Industrial, Commercial and Institutional Markets—We focus on the industrial, commercial, and institutional building markets, including construction, maintenance, repair, and replacement services. We believe that
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these complex markets are attractive because of their growth opportunities, large and diverse customer bases, attractive margins, and potential for long-term relationships with building owners.
Leverage Resources and Capabilities—We believe significant efficiencies can be achieved by leveraging resources among our operating locations. We have shifted certain fabrication activities to centralized locations to increase asset utilization. We opportunistically allocate our engineering, field, and supervisory labor from one operation to another to use our employee base more fully, meet our customers’ needs and share expertise. Our ability to share resources frequently allows us to pursue work that would otherwise not be available to us and allows us to provide a more diversified and steady deployment of our labor.
Maintain a Diverse Customer, Geographic, and Project Base—We have a distribution of revenue across end-use sectors that we believe reduces our exposure to negative developments in any given sector. We also have significant geographical diversification across all regions of the United States, again reducing our exposure to negative developments in any given region. Our distribution of revenue in 2025 by end-use sector was as follows:
| | | |
Technology | | 45.0 | % |
Manufacturing | | 22.1 | % |
Healthcare |
| 8.9 | % |
Education |
| 7.3 | % |
Government |
| 5.0 | % |
Office Buildings |
| 5.0 |
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
| Line item |
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| Period ending |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our historical Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and the Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2025 (the “Form 10-K”). This discussion contains “forward-looking statements” regarding our business and industry within the meaning of applicable securities laws and regulations. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause our actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include risks set forth in “Item 1A. Risk Factors” included in our Form 10-K. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The terms “Comfort Systems,” “we,” “us,” “our,” or the “Company,” refer to Comfort Systems USA, Inc. or Comfort Systems USA, Inc. and its consolidated subsidiaries, as appropriate in the context.
Introduction and Overview
We are a national provider of comprehensive mechanical and electrical installation, renovation, maintenance, repair, and replacement services within the mechanical and electrical services industries. We operate primarily in the commercial, industrial, and institutional markets and perform most of our work in technology, manufacturing, healthcare, education, government, office, and retail facilities. We operate our business in two business segments: mechanical and electrical.
Nature and Economics of Our Business
In our mechanical business segment, customers hire us to ensure heating, ventilation, and air conditioning (“HVAC”) systems deliver specified or generally expected heating, cooling, conditioning, and circulation of air in a facility. This entails installing core system equipment such as packaged heating and air conditioning units, or in the case of larger facilities, separate core components such as chillers, boilers, air handlers, and cooling towers. We also typically install connecting and distribution elements such as piping and ducting.
In our electrical business segment, our principal business activity is electrical construction and engineering in the commercial and industrial fields. We also perform electrical contracting services and electrical service work.
In both our mechanical and electrical business segments, our responsibilities usually require conforming the systems to pre-established engineering drawings and equipment and performance specifications, which we frequently participate in establishing. Our project management responsibilities include staging equipment and materials to project sites, deploying labor to perform the work, and coordinating with other service providers on the project, including any subcontractors we might use to deliver our portion of the work.
Approximately 94.4% of our revenue is earned on a project basis for installation services in newly constructed facilities or for replacement of systems in existing facilities. When competing for project business, we usually estimate the costs we will incur on a project and then propose a bid to the customer that includes a contract price and other performance and payment terms. Our bid price and terms are intended to cover our estimated costs on the project and provide a profit margin to us commensurate with the value of the installed system to the customer, the risk that project costs or duration will vary from estimate, the schedule on which we will be paid, the opportunities for other work that we might forego by committing capacity to this project, and other costs that we incur to support our operations but which are not specific to the project. Typically, customers will seek pricing from competitors for a given project. While the criteria on which customers select a provider vary widely and include factors such as quality, technical expertise, on-time performance, post-project support and service, and company history and financial strength, we believe that price for value is the most influential factor for most customers in choosing a mechanical or electrical installation and service provider.
After a customer accepts our bid, we generally enter into a contract with the customer that specifies what we will deliver on the project, what our related responsibilities are, and how much and when we will be paid. Our overall
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price for the project is typically set at a fixed amount in the contract, although changes in project specifications or work conditions that result in unexpected additional work are usually subject to additional payment from the customer via what are commonly known as change orders. Project contracts typically provide for periodic billings to the customer as we meet progress milestones or incur costs on the project. Project contracts in our industry also frequently allow for a small portion of progress billings or contract price to be withheld by the customer until after we have completed the work. Amounts withheld under this practice are known as retention or retainage.
Labor, materials, and overhead costs account for the majority of our cost of service. Accordingly, labor management and utilization have the most impact on our project performance. Given the fixed price nature of much of our project work, if our initial estimate of project costs is wrong or we incur cost overruns that cannot be recovered in change orders, we can experience reduced profits or even significant losses on fixed price project work. We also perform some project work on a cost-plus or a time and materials basis, under which we are paid our costs incurred plus an agreed-upon profit margin, and such projects are sometimes subject to a guaranteed maximum cost. These margins are frequently less than fixed-price contract margins because there is less risk of unrecoverable cost overruns in cost-plus or time and materials work.
As of June 30, 2026, we had 8,941 projects in process. Our average project takes six to nine months to complete, with an average contract price of approximately $3.3 million. Our projects generally require working capital funding of equipment and labor costs. Customer payments on periodic billings generally do not recover these costs until late in the job. Our average project duration, together with typical retention terms as discussed above, generally allow us to complete the realization of revenue and earnings in cash within one year. We have what we consider to be a well-diversified distribution of revenue across end-use sectors that we believe reduces our exposure to negative developments in any given sector. Because of the integral nature of our services to most buildings, we have the legal right in almost all cases to attach liens to buildings or related funding sources when we have not been fully paid for installing systems, except with respect to some government buildings. The service work that we do, which is discussed further below, usually does not give rise to lien rights.
We also perform larger projects. Taken together, projects with contract prices of $2 million or more totaled $28.06 billion of aggregate contract price as of June 30, 2026, or approximately 94% of a total aggregate contract price for all projects in progress, totaling $29.88 billion. Generally, projects closer in size to $2 million will be completed in one year or less. It is unusual for us to work on a project that exceeds two years in length.
A stratification of projects in progress as of June 30, 2026, by aggregate contract price, is as follows:
| | | | | |
| | | | Aggregate | |
| | No. of | | Contract Price | |
Contract Price of Project | | Projects | | (in millions) | |
Under $2 million |
| 7,659 | | $ | 1,819.1 |
$2 million - $10 million |
| 756 | |
| 3,326.5 |
$10 million - $25 million |
| 242 | |
| 3,887.5 |
$25 million - $50 million |
| 159 | |
| 5,513.5 |
Greater than $50 million |
| 125 | |
| 15,335.5 |
Total |
| 8,941 | | $ | 29,882.1 |
In addition to project work, approximately 5.6% of our revenue represents maintenance and repair service on already installed HVAC, electrical, and controls systems. This kind of work usually takes from a few hours to a few days to perform. Prices to the customer are based on the equipment and materials used in the service as well as technician labor time. We usually bill the customer for service work when it is complete, typically with payment terms of up to 30 days. We also provide maintenance and repair services under ongoing contracts. Under these contracts, we are paid regular monthly or quarterly amounts and provide specified service based on customer requirements. These agreements typically are for one or more years and frequently contain 30- to 60-day cancellation notice periods.
A relatively small portion of our revenue comes from national and regional account customers. These customers typically have multiple sites and contract with us to perform maintenance and repair service. These contracts may also provide for us to perform new or replacement systems installation. We operate a national call center to dispatch
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technicians to sites requiring service. We perform the majority of this work with our own employees, with the balance being subcontracted to third parties that meet our performance qualifications.
Profile and Management of Our Operations
We manage our 51 operating units based on a variety of factors. Financial measures we emphasize include profitability and use of capital as indicated by cash flow and by other measures of working capital principally involving project cost, billings, and receivables. We also monitor selling, general, administrative, and indirect project support expense, backlog, workforce size and mix, growth in revenue and profits, variation of actual project cost from original estimate, and overall financial performance in comparison to budget and updated forecasts. Operational factors we emphasize include project selection, estimating, pricing, safety, management and execution practices, labor utilization, training, and the make-up of both existing backlog as well as new business being pursued, in terms of project size, technical application, facility type, end-use customers and industries, and location of the work.
Most of our operations compete on a local or regional basis. Attracting and retaining effective operating unit managers is an important factor in our business, particularly in view of the relative uniqueness of each market and operation, the importance of relationships with customers and other market participants, such as architects and consulting engineers, and the high degree of competition and low barriers to entry in most of our markets. Accordingly, we devote considerable attention to operating unit management quality, stability, and contingency planning, including related considerations of compensation and non-competition protection where applicable.
Economic and Industry Factors
As a mechanical and electrical services provider, we operate in the broader nonresidential construction services industry and are affected by trends in this sector. While we do not have operations in all major cities of the United States, we believe our national presence is sufficiently large that we experience trends in demand for and pricing of our services that are consistent with trends in the national nonresidential construction sector. As a result, we monitor the views of major construction sector forecasters along with macroeconomic factors they believe drive the sector, including trends in gross domestic product, interest rates, business investment, employment, demographics, and the fiscal condition of federal, state, and local governments.
Spending decisions for building construction, renovation and system replacement are generally made on a project basis, usually with some degree of discretion as to when and if projects proceed. With larger amounts of capital, time, and discretion involved, spending decisions are affected to a significant degree by uncertainty, particularly concerns about economic and financial conditions and trends. We have experienced periods of time when economic weakness caused a significant slowdown in decisions to proceed with installation and replacement project work.
Operating Environment and Management Emphasis
We have experienced increasing demand since 2022, culminating in an unprecedented overall demand environment in 2025 and through the second quarter of 2026. We currently expect that the demand environment, especially for manufacturing and technology customers, will remain at high levels during 2026. Over the last several years, we have also experienced increases in labor costs and delays in delivery of certain materials and equipment. We anticipate that cost pressures and intermittent delays in our supply chain will persist over the next several quarters.
We have a credit facility in place with terms we believe are favorable that does not expire until October 2030. As of June 30, 2026, we had $1.01 billion of credit available to borrow under our credit facility. We have strong surety relationships to support our bonding needs, and we believe our relationships with the surety markets are strong and benefit from our operating history and financial position. We have generated positive free cash flow in each of the last 27 calendar years and will continue our emphasis in this area. We believe that the relative size and strength of our Balance Sheet and surety relationships, as compared to most companies in our industry, represent competitive advantages for us.
As discussed at greater length in “Results of Operations” below, we expect price competition to continue as local and regional industry participants compete for customers.
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Cyclicality and Seasonality
The construction industry is subject to business cycle fluctuation. As a result, our volume of business, particularly in new construction projects and renovation, may be adversely affected by declines in new installation and replacement projects in various geographic regions of the United States during periods of economic weakness.
The mechanical and electrical contracting industries are also subject to seasonal variations. The demand for new installation and replacement is generally lower during the winter months (the first quarter of the year) due to reduced construction activity during inclement weather and less use of air conditioning during the colder months. Demand for our services is generally higher in the second and third calendar quarters due to increased construction activity and increased use of air conditioning during the warmer months. Accordingly, we expect our revenue and operating results will generally be lower in the first calendar quarter.
Critical Accounting Estimates
Management believes that there have been no significant changes during the three months ended June 30, 2026 to the items that we disclosed as our “Critical Accounting Estimates” in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K for the fiscal year ended December 31, 2025. A summary of significant accounting policies and a summary of recent accounting pronouncements applicable to our Consolidated Financial Statements are included in Note 2, “Summary of Significant Accounting Policies and Estimates.”
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Results of Operations (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | |
|
| Three Months Ended June 30, |
| Six Months Ended June 30, | | | ||||||||||||||||
| | 2026 | | 2025 | | 2026 | | 2025 |
| | ||||||||||||
Revenue | | $ | 3,265,656 | | 100.0 | % | $ | 2,173,319 | | 100.0 | % | $ | 6,130,988 | | 100.0 | % | $ | 4,004,605 | | 100.0 | % | |
Cost of services | |
| 2,421,428 |
| 74.1 | % |
| 1,663,422 |
| 76.5 | % |
| 4,532,348 |
| 73.9 | % |
| 3,091,292 |
| 77.2 | % | |
Gross profit | |
| 844,228 |
| 25.9 | % |
| 509,897 |
| 23.5 | % |
| 1,598,640 |
| 26.1 | % |
| 913,313 |
| 22.8 | % | |
Selling, general and administrative expenses | |
| 287,047 |
| 8.8 | % |
| 210,466 |
| 9.7 | % |
| 556,043 |
| 9.1 | % |
| 405,340 |
| 10.1 | % | |
Gain on sale of assets | |
| (785) |
| — | |
| (442) |
| — | |
| (1,087) |
| — | |
| (998) |
| — | | |
Operating income | |
| 557,966 |
| 17.1 | % |
| 299,873 |
| 13.8 | % |
| 1,043,684 |
| 17.0 | % |
| 508,971 |
| 12.7 | % | |
Interest income | |
| 11,051 |
| 0.3 | % |
| 2,819 |
| 0.1 | % |
| 19,563 |
| 0.3 | % |
| 7,086 |
| 0.2 | % | |
Interest expense | |
| (1,437) |
| — | |
| (1,605) |
| (0.1) | % |
| (3,615) |
| (0.1) | % |
| (3,224) |
| (0.1) | % | |
Changes in the fair value of contingent earn-out obligations | |
| (2,045) |
| (0.1) | % |
| (4,073) |
| (0.2) | % |
| (12,415) |
| (0.2) | % |
| (7,831) |
| (0.2) | % | |
Other income (expense) | |
| 708 |
| — | |
| (530) |
| — | |
| 1,172 |
| — | |
| (506) |
| — | | |
Income before income taxes | |
| 566,243 |
| 17.3 | % |
| 296,484 |
| 13.6 | % |
| 1,048,389 |
| 17.1 | % |
| 504,496 |
| 12.6 | % | |
Provision for income taxes | |
| 124,641 | | | |
| 65,636 | | | |
| 236,409 | | | |
| 104,359 | | | | |
Net income | | $ | 441,602 | | 13.5 | % | $ | 230,848 | | 10.6 | % | $ | 811,980 | | 13.2 | % | $ | 400,137 | | 10.0 | % | |
We had 50 operating locations as of December 31, 2025. In the second quarter of 2026, we completed the acquisition of R.C. Hunt Electric, LLC (“Hunt”), which reports as a separate operating location. We had 51 operating locations as of June 30, 2026. Acquisitions are included in our results of operations from the respective acquisition date. The same-store comparison from 2026 to 2025, as described below, excludes Hunt, which was acquired on May 1, 2026, Feyen-Zylstra Holdings, LLC (“Feyen Zylstra”), which was acquired on October 1, 2025, Meisner Electric, Inc. (“Meisner”), which was acquired on October 1, 2025, and four months of results for Right Way Plumbing & Mechanical LLC (“Right Way”), which was acquired on May 1, 2025. An operating location is included in the same-store comparison on the first day it has comparable prior year operating data, except for immaterial acquisitions that are often absorbed and integrated with existing operations.
Revenue—Revenue for the second quarter of 2026 increased $1.09 billion, or 50.3%, to $3.27 billion compared to the same period in 2025. The increase included a 6.5% increase primarily related to the Hunt, Feyen Zylstra, and Meisner acquisitions, as well as a 43.8% increase in revenue related to same-store activity. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
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The following table presents our operating segment revenue (in thousands, except percentages):
| | | | | | | | | | | | |
|
| Three Months Ended June 30, |
| |||||||||
| | 2026 | | | 2025 | | ||||||
Revenue: | | | | | | | | | | | | |
Mechanical Segment | | $ | 2,296,667 | | 70.3 | % | | $ | 1,638,672 |
| 75.4 | % |
Electrical Segment | |
| 968,989 |
| 29.7 | % | |
| 534,647 |
| 24.6 | % |
Total | | $ | 3,265,656 |
| 100.0 | % | | $ | 2,173,319 |
| 100.0 | % |
Revenue for our mechanical segment increased $658.0 million, or 40.2%, to $2.30 billion for the second quarter of 2026 compared to the same period in 2025. Of this increase, $8.4 million resulted from the acquisition of Right Way and $649.6 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our Texas operations ($219.4 million), one of our Indiana operations ($123.6 million), and one of our North Carolina operations ($115.5 million).
Revenue for our electrical segment increased $434.3 million, or 81.2%, to $969.0 million for the second quarter of 2026 compared to the same period in 2025. Of this increase, $132.6 million resulted from the acquisition of Hunt, Feyen Zylstra, and Meisner and $301.7 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($186.6 million).
Revenue for the first six months of 2026 increased $2.13 billion, or 53.1%, to $6.13 billion compared to the same period in 2025. The increase included a 5.8% increase primarily related to the Hunt, Feyen Zylstra, Meisner, and Right Way acquisitions, as well as a 47.3% increase in revenue related to same-store activity. The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog. The increase in demand has been especially strong in the technology sector, particularly for data centers.
The following table presents our operating segment revenue (in thousands, except percentages):
| | | | | | | | | | | | |
|
| Six Months Ended June 30, |
| |||||||||
| | 2026 | | | 2025 | | ||||||
Revenue: | | | | | | | | | | | | |
Mechanical Segment | | $ | 4,357,289 | | 71.1 | % | | $ | 3,040,887 |
| 75.9 | % |
Electrical Segment | |
| 1,773,699 |
| 28.9 | % | |
| 963,718 |
| 24.1 | % |
Total | | $ | 6,130,988 |
| 100.0 | % | | $ | 4,004,605 |
| 100.0 | % |
Revenue for our mechanical segment increased $1.32 billion, or 43.3%, to $4.36 billion for the first six months of 2026 compared to the same period in 2025. Of this increase, $29.2 million resulted from the acquisition of Right Way and $1.29 billion was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at one of our Texas operations ($400.8 million), one of our Indiana operations ($261.2 million), and one of our North Carolina operations ($248.6 million).
Revenue for our electrical segment increased $810.0 million, or 84.0%, to $1.77 billion for the first six months of 2026 compared to the same period in 2025. Of this increase, $202.6 million resulted from the acquisition of Hunt, Feyen Zylstra, and Meisner and $607.4 million was attributable to same-store activity. The same-store revenue increase primarily resulted from an increase in activity in the technology sector at our Texas electrical operation ($387.5 million).
Backlog reflects revenue still to be recognized under contracted or committed installation and replacement project work. Project work generally lasts less than one year. Service agreement revenue, service work, and short duration projects, which are generally billed as performed, do not flow through backlog. Accordingly, backlog represents only a portion of our revenue for any given future period, and it represents revenue that is likely to be reflected in our operating results over the next six to 12 months. As a result, we believe the predictive value of backlog information is limited to indications of general revenue direction over the near term, and should not be interpreted as indicative of ongoing revenue performance over several quarters.
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The following table presents our operating segment backlog (in thousands, except percentages):
| | | | | | | | | | | | | | | | | | |
| | June 30, 2026 | | | December 31, 2025 | | | June 30, 2025 | | |||||||||
Backlog: | | | | | | | | | | | | | | | | | | |
Mechanical Segment | | $ | 10,058,662 | | 71.5 | % | | $ | 9,026,661 |
| 75.6 | % | | $ | 5,814,217 |
| 71.6 | % |
Electrical Segment | |
| 4,002,847 |
| 28.5 | % | |
| 2,917,940 |
| ||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-08-26 | Lane Brian E. | CHIEF EXECUTIVE OFF. | Sell | -16,024 | $1,608.21 | -$25,769,923 |
| 2026-08-17 | GEORGE WILLIAM III | CHIEF FINANCIAL OFFICER | Sell | -2,554 | $1,859.65 | -$4,749,549 |
| 2026-08-11 | MYERS FRANKLIN indirect | Director | Sell | -4,000 | $1,693.92 | -$6,775,691 |
| 2026-08-10 | MYERS FRANKLIN | Director | Sell | -3,500 | $1,690.47 | -$5,916,647 |
| 2026-06-24 | MYERS FRANKLIN | Director | Sell | -6,700 | $1,954.47 | -$13,094,949 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-10-22 10-Q expected by 2026-11-07 (in 39 days)
- ~2027-02-18 10-K expected by 2027-02-25 (in 158 days)
- ~2027-04-22 10-Q expected by 2027-05-08 (in 221 days)
- ~2027-07-22 10-Q expected by 2027-08-07 (in 312 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-23 10-Q Quarterly Report
- 2026-07-23 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-06-22 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-23 10-Q Quarterly Report
- 2026-04-23 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-04-09 DEF 14A Proxy Statement
- 2026-02-19 10-K Annual Report
- 2026-02-19 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-12-19 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-23 10-Q Quarterly Report
- 2025-10-23 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-09-02 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Financial Statements and Exhibits
- 2025-07-24 10-Q Quarterly Report
- 2025-07-24 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-05-22 8-K Shareholder Vote Results; Other Events; Financial Statements and Exhibits