Q2 2024 Comfort Systems USA Inc Earnings Call Transcript
Key Points
- Comfort Systems USA Inc (FIX) reported a 40% increase in revenue for Q2 2024, reaching $1.8 billion.
- The company's mechanical segment revenue increased by 49%, driven by organic growth, acquisitions, and modular expansion.
- EBITDA doubled to $223 million compared to the same quarter last year, with same-store EBITDA increasing by over 80%.
- The backlog remains strong at $5.8 billion, a 38% year-over-year increase, indicating sustained demand.
- Free cash flow for the first six months of 2024 was $290 million, and the company retired all bank debt as of June 30, 2024.
- Comfort Systems USA Inc (FIX) faces tougher prior year comparable results for the remainder of the year, which may impact growth rates.
- The company acknowledged that the significant contingent consideration opportunity from recent acquisitions could lead to larger purchase-related adjustments in future quarters.
- Despite strong performance, the company noted that maintaining current margins in the long term could be challenging.
- The electrical segment, while performing well, may face sustainability issues in maintaining over 22% margins consistently.
- SG&A expenses increased to $180 million, and while the percentage of revenue decreased, further SG&A leverage may be difficult to achieve.
Good day, and thank you for standing by, and welcome to the Q2 2024 Comfort Systems USA earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Julie Shaeff, Chief Accounting Officer. Please go ahead.
Thanks, Daniel. Good morning. Welcome to Comfort Systems USA's Second Quarter 2024 earnings calls. Our comments today as well as our press releases contain forward-looking statements within the meaning of the applicable securities laws and regulations.
What we will say today is based upon the current plans and expectations of Comfort Systems USA. Those plans and expectations include risks and uncertainties that might cause actual future activities and results of our operations to be materially different from those set forth in our comments.
You can read a detailed listing and commentary concerning our specific risk factors in
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