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Mar 31, 2021

Comfort Systems USA Q1 2021 Earnings Report

First quarter results were reported with increased earnings, cash flow, and sequential backlog.

Key Takeaways

Comfort Systems USA reported a strong start to 2021. Net income increased to $26.5 million, or $0.73 per diluted share, compared to $17.7 million, or $0.48 per diluted share, in the same quarter of the previous year. Revenue was $669.8 million, and operating cash flow reached $84.6 million.

Earnings significantly exceeded the first quarter of 2020.

Backlog strengthened this quarter compared to year-end.

Pipeline and bidding activity remain strong.

Good trends are seen in underlying activity levels, especially in industrial, technology, and modular markets.

Total Revenue
$670M
Previous year: $700M
-4.3%
EPS
$0.73
Previous year: $0.48
+52.1%
Total Backlog
$1.66B
Previous year: $1.62B
+2.5%
Gross Profit
$123M
Previous year: $117M
+5.4%
Cash and Equivalents
$52.1M
Previous year: $133M
-60.9%
Free Cash Flow
$80.3M
Previous year: $15.1M
+431.5%
Total Assets
$1.72B
Previous year: $1.62B
+6.0%

Comfort Systems USA

Comfort Systems USA

Forward Guidance

The company looks forward to continued strong results for the balance of 2021 and are optimistic about their prospects for the next several quarters.

Positive Outlook

  • Headwinds are subsiding.
  • Pipeline and bidding activity remain strong.
  • Good trends in underlying activity levels.
  • Strong execution.
  • Receipt of large advance payments for certain orders and projects.

Challenges Ahead

  • Some delays in bookings and starts.
  • Impact of the global pandemic.
  • Sporadic air pockets caused by the pandemic.
  • Use of incorrect estimates for bidding a fixed-price contract.
  • National or regional weakness in construction activity and economic conditions.