### At a GlanceComfort Systems' Q3 2026 results exceeded expectations, with management reporting EPS of $13.91, a significant increase of $5.66 year-over-year, and emphasizing that performance surpassed recent record levels.

Key data: Revenue of $3.8 billion, up 54% year-over-year; EPS of $13.91, compared to $8.25 in the prior year; backlog reached a record high of $17.8 billion, up 90% year-over-year.

Business progress: Mechanical business activity and profitability grew substantially, while the electrical business achieved organic growth with high margins. On August 1, the company acquired Lewis Electrical and Neopod, which are expected to contribute over $100 million in annual revenue. The modular business continued to expand, with capacity projected to reach 6 million square feet by the end of 2027, though no programmatic agreements have been secured with new customers. Service revenue and profit both achieved double-digit growth.

Guidance & Outlook: Management expects same-store revenue growth in the mid-20% range for 2027, with gross margins expected to remain at recent strong levels. Full-year capital expenditure is projected at 4%-5% of revenue, remaining elevated through the first half of 2027.

Risk/Highlight Signals: Management emphasized that customers are locking in orders early due to capacity scarcity, with labor being the growth bottleneck rather than demand. New customers (frontier labs and colo providers) have generated actual orders but have not yet entered into programmatic partnerships.