Comfort Systems Usa (FIX) Economic Moat Analysis31

Evidence

We compete on the basis of our technical expertise and experience, financial and operational resources, nationwide presence, industry reputation and dependability.

Risk factors / competitive factors · Filed 19/02/2026

These systems require specialized training to install, maintain and repair.

Business / specialized training for building systems · Filed 20/02/2025

Commercial, industrial and institutional service agreements usually have terms of one or more years, with automatic annual renewals, and frequently include thirty- to sixty-day cancellation notice periods.

Business / service agreement renewal and cancellation terms · Filed 20/02/2025

For a small portion of our business in which our services are delivered in the form of service maintenance agreements for existing systems to be repaired and maintained, as opposed to constructed, our performance obligation is to maintain the customer’s mechanical system for a specific period of time.

Revenue recognition / maintenance agreements as a small portion of business · Filed 23/07/2026

Attracting and retaining effective operating unit managers is an important factor in our business, particularly in view of the relative uniqueness of each market and operation, the importance of relationships with customers and other market participants, such as architects and consulting engineers, and the high degree of competition and low barriers to entry in most of our markets.

MD&A / operating management and low entry barriers · Filed 23/07/2026

We believe our smaller competitors generally compete with us based on price and their long-term relationships with local customers.

Business / local competitors' customer relationships · Filed 19/02/2026

Smaller competitors are sometimes able to win bids for these projects based on price alone due to their lower cost and financial return requirements.

Risk factors / smaller competitors winning on price · Filed 19/02/2026

Moreover, if we do not employ new technologies as quickly or efficiently as our competitors, or if our competitors develop or utilize more cost-effective or customer-preferred technologies (such as data analytics, artificial intelligence and other new and emerging technologies) that give them a competitive advantage in the proposal bidding and selection process, it could have a material adverse effect on our ability to win and retain business from customers.

Risk factors / competing technology and customer retention · Filed 19/02/2026

We also use our combined spend to gain purchasing advantages on products and services such as MEP components, raw materials, services, vehicles, bonding, insurance, and employee benefits.

Business strategy / combined purchasing practices · Filed 22/02/2024

We believe that the relative size and strength of our Balance Sheet and surety relationships, as compared to most companies in our industry, represent competitive advantages for us.

MD&A / management's claimed balance-sheet and surety advantage · Filed 23/07/2026

CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (Unaudited) ​ ​ ​ ​ ASSETS ​ ​ ​ ​ ​ ​ ​ CURRENT ASSETS: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,854,794 ​ $ 981,898 ​ Billed accounts receivable, less allowance for credit losses of $23,491 and $19,708, respectively ​ 3,278,811 ​ 2,577,858 ​ Unbilled accounts receivable, less allowance for credit losses of $1,636 and $1,508, respectively ​ 136,617 ​ 123,197 ​ Other receivables, less allowance for credit losses of $270 and $325, respectively ​ 122,100 ​ 116,157 ​ Inventories ​ 104,804 ​ 84,066 ​ Prepaid expenses and other ​ 146,723 ​ 138,560 ​ Costs and estimated earnings in excess of billings, less allowance for credit losses of $416 and $255, respectively ​ 144,553 ​ 88,817 ​ Total current assets ​ 5,788,402 ​ 4,110,553 ​ PROPERTY AND EQUIPMENT, NET ​ 653,873 ​ 387,952 ​ LEASE RIGHT-OF-USE ASSETS ​ ​ 299,638 ​ ​ 322,922 ​ GOODWILL ​ 1,101,475 ​ 1,025,515 ​ IDENTIFIABLE INTANGIBLE ASSETS, NET ​ 534,580 ​ 485,168 ​ DEFERRED TAX ASSETS ​ ​ 80,920 ​ ​ 84,139 ​ OTHER NONCURRENT ASSETS ​ 28,918 ​ 24,920 ​ Total assets ​ $ 8,487,806 ​ $ 6,441,169 ​ LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ ​ CURRENT LIABILITIES: ​ ​ ​ ​ ​ ​ ​ Current maturities of long-term debt ​ $ 215 ​ $ 6,163 ​ Accounts payable ​ ​ 771,906 ​ ​ 696,348 ​ Accrued compensation and benefits ​ 403,471 ​ 291,722 ​ Billings in excess of costs and estimated earnings and deferred revenue ​ 3,231,104 ​ 2,120,262 ​ Accrued self-insurance ​ 40,141 ​ 42,973 ​ Other current liabilities ​ 321,927 ​ 236,382 ​ Total current liabilities ​ 4,768,764 ​ 3,393,850 ​ LONG-TERM DEBT ​ 53,849 ​ 139,063 ​ LEASE LIABILITIES ​ ​ 273,969 ​ 302,590 ​ DEFERRED TAX LIABILITIES ​ 3,892 ​ 3,892 ​ OTHER LONG-TERM LIABILITIES ​ 170,063 ​ 153,000 ​ Total liabilities ​ 5,270,537 ​ 3,992,395 ​ COMMITMENTS AND CONTINGENCIES ​ ​ ​ ​ ​ ​ ​ STOCKHOLDERS’ EQUITY: ​ ​ ​ ​ ​ ​ ​ Preferred stock, $.01 par, 5,000,000 shares authorized, none issued and outstanding ​ — ​ — ​ Common stock, $.01 par, 102,969,912 shares authorized, 41,123,365 and 41,123,365 shares issued, respectively ​ 411 ​ 411 ​ Treasury stock, at cost, 5,923,156 and 5,946,145 shares, respectively ​ (517,499) ​ (496,006) ​ Additional paid-in capital ​ 394,107 ​ 363,314 ​ Retained earnings ​ 3,340,250 ​ 2,581,055 ​ Total stockholders’ equity ​ 3,217,269 ​ 2,448,774 ​ Total liabilities and stockholders’ equity ​ $ 8,487,806 ​ $ 6,441,169 ​ ​ The accompanying notes are an integral part of these consolidated financial statements.

Consolidated balance sheets / cash, debt, equity and property investment · Filed 23/07/2026

There were no outstanding borrowings on the revolving credit facility as of June 30, 2026.

Debt note / no revolving-credit borrowings at June 30, 2026 · Filed 23/07/2026

Historically, approximately 10% to 20% of our business has required bonds.

Commitments and contingencies / historical bonded-business share · Filed 23/07/2026

​ Current market conditions for surety markets and bonding capacity are adequate, with acceptable terms and conditions.

Commitments and contingencies / current surety-market availability · Filed 23/07/2026

Some of these competitors and potential competitors have greater financial resources than we do to finance development opportunities and support their operations.

Business / competitors and potential competitors with greater financial resources · Filed 19/02/2026

While we believe our customers consider a number of these factors in awarding contracts, a large portion of our work is awarded through a bid process.

Risk factors / competitive bidding · Filed 19/02/2026

Consequently, price is often the principal factor in determining which contractor is selected, especially on smaller, less complex projects.

Risk factors / price as a principal selection factor · Filed 19/02/2026

CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 REVENUE ​ $ 3,265,656 ​ $ 2,173,319 ​ $ 6,130,988 ​ $ 4,004,605 ​ COST OF SERVICES ​ 2,421,428 ​ 1,663,422 ​ 4,532,348 ​ 3,091,292 ​ Gross profit ​ 844,228 ​ 509,897 ​ 1,598,640 ​ 913,313 ​ SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ​ 287,047 ​ 210,466 ​ 556,043 ​ 405,340 ​ GAIN ON SALE OF ASSETS ​ (785) ​ (442) ​ (1,087) ​ (998) ​ Operating income ​ 557,966 ​ 299,873 ​ 1,043,684 ​ 508,971 ​ OTHER INCOME (EXPENSE): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ 11,051 ​ 2,819 ​ 19,563 ​ 7,086 ​ Interest expense ​ (1,437) ​ (1,605) ​ (3,615) ​ (3,224) ​ Changes in the fair value of contingent earn-out obligations ​ (2,045) ​ (4,073) ​ (12,415) ​ (7,831) ​ Other ​ 708 ​ (530) ​ 1,172 ​ (506) ​ Other income (expense) ​ 8,277 ​ (3,389) ​ 4,705 ​ (4,475) ​ INCOME BEFORE INCOME TAXES ​ 566,243 ​ 296,484 ​ 1,048,389 ​ 504,496 ​ PROVISION FOR INCOME TAXES ​ 124,641 ​ 65,636 ​ 236,409 ​ 104,359 ​ NET INCOME ​ $ 441,602 ​ $ 230,848 ​ $ 811,980 ​ $ 400,137 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ INCOME PER SHARE: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 12.54 ​ $ 6.54 ​ $ 23.06 ​ $ 11.30 ​ Diluted ​ $ 12.53 ​ $ 6.53 ​ $ 23.03 ​ $ 11.28 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SHARES USED IN COMPUTING INCOME PER SHARE: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 35,221 ​ 35,307 ​ 35,216 ​ 35,415 ​ Diluted ​ 35,254 ​ 35,369 ​ 35,255 ​ 35,486 ​ The accompanying notes are an integral part of these consolidated financial statements.

Consolidated statements of operations / first-half 2026 and 2025 results · Filed 23/07/2026

Given the fixed price nature of much of our project work, if our initial estimate of project costs is wrong or we incur cost overruns that cannot be recovered in change orders, we can experience reduced profits or even significant losses on fixed price project work.

MD&A / fixed-price contracts and unrecoverable overruns · Filed 23/07/2026

We also perform some project work on a cost-plus or a time and materials basis, under which we are paid our costs incurred plus an agreed-upon profit margin, and such projects are sometimes subject to a guaranteed maximum cost.

MD&A / cost-plus terms and guaranteed maximum costs · Filed 23/07/2026

We have procedures to reduce commodity cost exposure, including costs due to tariffs, such as purchasing commodities early for projects, as well as selectively including time or market-based escalation and escape provisions in bids and contracts.

Business / selective escalation and escape provisions · Filed 20/02/2025

We have generated positive free cash flow in each of the last 27 calendar years and will continue our emphasis in this area.

MD&A / 27 consecutive calendar years of positive free cash flow · Filed 23/07/2026

The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog.

Results of operations / market conditions driving same-store growth · Filed 23/07/2026

The increase in demand has been especially strong in the technology sector, particularly for data centers.

Results of operations / data-center demand · Filed 23/07/2026

For the years ended December 31, 2024 and 2023, one customer represented 13.3% and 13.8% of consolidated revenue, respectively, and was included in our mechanical segment revenues.

Segment information / significant customer revenue in 2023 and 2024 · Filed 20/02/2025

| 2026 Proxy Statement 37 Table of Contents Compensation Discussion and Analysis Elements of Compensation Elements of Compensation The Company’s executive compensation program consists of four basic elements: COMPENSATION ELEMENT OBJECTIVE KEY CHARACTERISTICS BASE SALARY ● Provide a fixed level of cash compensation for performing day-to-day functions ● Attract and retain strong executive talent ● Levels are evaluated annually by the Committee ● For 2025, base salaries were established based on a number of factors, including each executive’s performance and tenure, advice from the Committee’s independent compensation consultant, and analysis of peer group and survey data and economic conditions ANNUAL INCENTIVE PLAN ● Reward annual financial and individual performance ● Target awards are established as a percentage of base salary ● The majority of each award’s target opportunity is based on the achievement of objective, pre-established goals related to the Company’s EPS and FCF performance LONG-TERM INCENTIVE AWARDS ● Reward long-term Company performance ● Encourage focus on growing stockholder value ● Align management’s interests with stockholders’ interests ● Encourage retention of key management employees, stability, and continuity of leadership ● Awards are provided through a combination of time-vesting RSUs and dollar-denominated PSUs ● Dollar-denominated PSUs are earned based on the achievement of objective, pre-established performance goals, including total shareholder return relative to certain comparable companies and the Company’s EPS performance ● RSUs are subject to a three-year ratable vesting schedule; dollar-denominated PSUs that are earned based on performance cliff vest following the end of a three-year performance period BENEFITS ● Attract and retain strong executive talent ● Provide basic financial stability ● Participation in health, welfare, and retirement benefit plans, generally on the same terms as all other full-time employees of the Company While base salaries, together with health, welfare, and retirement benefits, are designed to provide basic compensation and financial stability, the purpose of annual incentive compensation is primarily to encourage the Company’s executive officers to focus on the execution of the Company’s business strategy and plan for the current year.

Compensation discussion / 2025 incentive metrics and vesting structure · Filed 09/04/2026

In 2025, the Committee did not make any adjustments or exercise discretion to exclude any unusual or non-recurring items or acquisition related items to EPS or FCF for purposes of determining levels of achievement under the annual incentive plans.

Compensation discussion / no discretionary metric exclusions for 2025 annual incentives · Filed 09/04/2026

2025 CORPORATE FINANCIAL INCENTIVE ACHIEVEMENT LEVELS EPS Incentive Award Achievement FCF Incentive Award Achievement Corporate Financial Incentive Awarded Named Executive Officer Base Salary $ (As a % of Base Salary) (In Dollars) $ (As a % of Base Salary) (In Dollars) $ (As a % of Base Salary) (In Dollars) $ Brian Lane 1,250,000 161.0 % 2,012,500 69.0 % 862,500 230.0 % 2,875,000 William George 775,000 126.0 % 976,500 54.0 % 418,500 180.0 % 1,395,000 Trent McKenna 725,000 126.0 % 913,500 54.0 % 391,500 180.0 % 1,305,000 Laura Howell 575,000 91.0 % 523,250 39.0 % 224,250 130.0 % 747,500 Terrence Reed 450,000 91.0 % 409,500 39.0 % 175,500 130.0 % 585,000 | 2026 Proxy Statement 41 Table of Contents Compensation Discussion and Analysis Allocation Among Compensation Elements Individual Performance Incentive In addition to, and independent from, the Corporate Financial Incentive portion of the annual incentive plan, for 2025 each Named Executive Officer was eligible to receive the Individual Performance Incentive, which is annual incentive compensation based on the executive’s achievement of individual performance goals related to the Company’s business and strategy.

Compensation discussion / actual 2025 financial incentive awards · Filed 09/04/2026

Stock Ownership Requirements The Company’s stock ownership requirements provide that within three years of being appointed as an executive officer, or being promoted to such a position, an executive is required to beneficially own Common Stock, taking into account all outstanding vested and unvested stock options, RSUs, PSUs, and shares of stock, having a market value or cost basis, whichever is higher, equal to at least the following multiple of his or her base salary (for purposes of determining an executive’s stock ownership multiple, if an executive holds more than one title subject to a stock ownership requirement, then the title with the higher multiple will apply to such executive): LEVEL BASE SALARY MULTIPLE Chief Executive Officer President Chief Operating Officer Chief Financial Officer General Counsel Senior Vice President Chief Accounting Officer Regional Vice President For purposes of calculating the above multiple, the actual compensation expense incurred by the Company related to the equity award is used only if it is greater than the current market value of the Common Stock subject to the equity award.

Compensation discussion / executive stock ownership requirements and qualifying awards · Filed 09/04/2026

The committee is made up solely of independent directors, as defined in the applicable NYSE and SEC rules, and it operates under a written charter, amended and effective as of March 2026, and approved by the Board of Directors, which is available under the “Governance” tab on the Company’s website at http://investors.comfortsystemsusa.com.

Audit committee report / independent membership and written charter · Filed 09/04/2026

Lane and George also provide for severance benefits if the executive resigns from the

Termination benefits / legacy executive resignation provision · Filed 09/04/2026

Company (with or without good reason) within 90 days following the change in control event.

Termination benefits / resignation within 90 days after change in control · Filed 09/04/2026

During the six months ended June 30, 2026, we repurchased less than 0.1 million shares for approximately $8.2 million, inclusive of the applicable excise tax, at an average price of $1,438.19 per share.

Share repurchase program / actual first-half 2026 expenditure · Filed 23/07/2026

During the year ended December 31, 2025, we repurchased 0.4 million shares for approximately $217.9 million, inclusive of the applicable excise tax, at an average price of $489.40 per share.

Share repurchase program / actual 2025 expenditure · Filed 19/02/2026

Value of Initial Fixed $100 Investment Based on: Year Summary Compensation Table Total for PEO ($)(1) Compensation Actually Paid to PEO ($)(2) Average Summary Compensation Table Total for Non-PEO NEOs ($)(1) Average Compensation Actually Paid to Non-PEO NEOs ($)(2) Total Shareholder Return ($)(3) Peer Group Total Shareholder Return ($)(4) Net Income (thousands) ($)(5) Earnings Per Share ($)(6) (a) (b) (c) (d) (e) (f) (g) (h) (i) 2025 10,620,815 21,202,213 2,842,532 6,976,510 1,814.51 219.76 1,022,558 28.88 2024 8,176,738 14,549,444 2,398,730 5,142,103 821.48 182.40 522,433 14.60 2023 6,635,459 10,681,797 3,226,300 4,022,097 397.06 158.19 323,398 9.01 2022 5,386,708 6,948,812 1,616,978 1,907,821 221.05 114.87 245,947 6.82 2021 4,503,087 7,814,908 1,288,647 1,950,011 188.98 127.67 143,348 3.93 (1) Reflects the amounts of total compensation reported for Mr.

Pay versus performance / five-year earnings and compensation results · Filed 09/04/2026

Our average project takes six to nine months to complete, with an average contract price of approximately $3.3 million.

MD&A / average project duration · Filed 23/07/2026

During the quarter ended March 31, 2026, the Company revised the form of performance restricted stock unit award agreement under the 2017 Omnibus Incentive Plan to provide that future performance restricted stock unit awards (“PSU”) will be denominated in a specific number of shares rather than a target dollar value.

Other information / adopted revision to future PSU award form · Filed 23/04/2026

Publication history

Sources

• filing-1 · Filed 19/02/2026
• filing-2 · Filed 23/07/2026
• filing-3 · Filed 09/04/2026
• filing-4 · Filed 20/02/2025
• filing-5 · Filed 22/02/2024
• filing-6 · Filed 23/04/2026