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Dec 31, 2022
Comfort Systems USA Q4 2022 Earnings Report
Reported increased revenue, record earnings, great cash flow, and a surge of backlog.
Key Takeaways
Comfort Systems USA reported a strong fourth quarter and full year 2022, marked by increased revenue, record earnings, great cash flow, and a surge in backlog. The company also announced the acquisition of Eldeco, Inc., which is expected to contribute significantly to future revenue.
Net income for Q4 2022 was $55.4 million, or $1.54 per diluted share, compared to $37.6 million, or $1.04 per diluted share, for Q4 2021.
Revenue for Q4 2022 was $1,117.2 million, up from $856.1 million in 2021.
Operating cash flow for Q4 2022 was $132.0 million, compared to $27.5 million in 2021.
Backlog as of December 31, 2022, reached $4.06 billion, compared to $2.31 billion as of December 31, 2021.
Forward Guidance
Comfort Systems expects continued growth and strong ongoing profitability in 2023, supported by high levels of demand and the recent acquisition of Eldeco.
Positive Outlook
- Continued high levels of demand for services.
- Anticipated synergies from the acquisition of Eldeco.
- Strengthening performance in the electrical segment.
- Robust same-store increases in backlog.
- Expected neutral to slightly accretive contribution to earnings per share from Eldeco acquisition in 2023 and 2024.
Challenges Ahead
- Risk of incorrect estimates for bidding fixed-price contracts.
- Potential for contractual commitments to exceed labor resources.
- Risk of failing to perform contractual obligations efficiently enough to maintain profitability.
- Potential for national or regional weakness in construction activity and economic conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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