Comfort Systems USA drew 14 news stories in the 24 hours to 23 October, against a usual 1.3 a day.

What stands out in the filings

Net income rose 94.8% over the year while free cash flow rose 205.6%: reported profit and cash are moving at different speeds. At the same time, capital spending rose 336.7%, faster than operating cash flow’s 223.9%, so less of the cash generated was left over. Revenue fell 36.6% yet the operating margin rose 5.4 percentage points: the company is earning more on less.

The top line

Revenue is falling. Revenue over the twelve months to Q3 2026 was $5.27 billion, which fell 36.6% on the year before. That growth rate was up 11.9 percentage points on the rate a quarter earlier.

Profitability

Profit is there at every level. The trailing gross margin was 26.8%. The trailing operating margin was 18.8%, up 5.4 percentage points from a year earlier. The trailing net margin was 30.9%. Net income over the twelve months was $1.63 billion, which rose 94.8% on the year before.

Cash flow

Cash generation improved. Operating cash flow over the twelve months was $3.01 billion, up 223.9% on the year before. Alongside that, capital spending was $565.5 million, or 10.7% of revenue. Free cash flow, operating cash flow less capital spending, was $2.44 billion, up 205.6% on the year before. Free cash flow was 46.3% of revenue (the free-cash-flow margin), up 36.7 percentage points from a year earlier. The average diluted share count fell 0.7% over the year.

Against its own history

Set against the company’s own record: today’s free-cash-flow margin of 46.3% is higher than 95% of the company’s own past quarterly readings, which have ranged from 0.9% to 56.3%. Alongside that, today’s operating margin of 18.8% is higher than 98% of the company’s own past quarterly readings, which have ranged from −3.5% to 18.8%. Today’s twelve-month revenue growth rate of −36.6% is higher than 5% of the company’s own past quarterly readings, which have ranged from −73.9% to 35.0%.

The valuation angle

Our model translates these figures into value. In our model, growth 5 percentage points lower would lower the value by 23.9%, and 5 percentage points higher would raise it by 31.5%. Over those twelve months, a free-cash-flow margin 1 percentage point lower would lower it by 2.0%.

What the filings cannot tell you

Our figures run to Q3 2026, from the company’s own filings; they cannot confirm, explain or rule out anything in the reports. Write one or two sentences on which of the figures above bear on the topic of the coverage, without adding any figure or cause.