{"schemaVersion":1,"research":true,"symbol":"fix","name":"Comfort Systems Usa","topic":"moat","path":"/stock/fix/moat","status":"published","version":3,"updatedAt":"2026-10-18T13:19:59.144Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"none","summary":"Comfort Systems USA has useful expertise, customer relationships, purchasing scale and financial capacity, but the supplied disclosures establish low entry barriers and meaningful price competition rather than a durable economic moat. Strong earnings, cash generation and growth demonstrate execution; they do not establish protected economics or realized pricing power. Data-center demand supports current results, while short projects, cancellable service agreements and competitive bidding limit customer dependence.","advantages":[{"mechanism":"intangible_assets","claim":"Technical expertise and customer relationships provide current differentiation, but a protected reputation advantage or durable customer dependence is not demonstrated.","durability":"Specialized training supports complex work, but most markets have low entry barriers. Maintenance agreements provide some continuity but represent a small portion of business and frequently permit cancellation on short notice.","risks":"Local competitors have their own customer relationships; personnel departures, in-house service provision and competing technologies could weaken differentiation. These are exposures, not evidence of realized deterioration.","invalidation":"The differentiation claim would weaken if established customers moved comparable complex work to alternatives without meaningful disruption. The no-moat conclusion would warrant reconsideration if sustained repeat awards and price premiums attributable to unique capabilities were demonstrated across weaker demand conditions.","competitors":[],"evidenceIds":["e1","e2","e3","e4"],"counterEvidenceIds":["e5","e6","e7","e8"]},{"mechanism":"cost_advantage","claim":"Combined purchasing and financial capacity support a possible relative resource advantage, but a sustained company-wide cost advantage is not established. Management's claimed balance-sheet and surety advantage is only partly corroborated by actual financial capacity.","durability":"Purchasing scale is an existing practice; its comparative savings are unquantified. Bonding is relevant to only approximately 10%–20% of historical business, and current surety-market capacity is adequate.","risks":"Smaller competitors sometimes win on price because of lower costs and return requirements. Other potential competitors have greater financial resources. Purchasing efficiencies and prefabrication improvements lack comparative operating measurements.","invalidation":"This resource advantage would weaken if financing or bonding constrained project awards, or comparable competitors consistently delivered at lower total cost. A moat would require demonstrated, persistent cost or project-access advantages through differing demand conditions.","competitors":[],"evidenceIds":["e9","e10","e11","e12"],"counterEvidenceIds":["e7","e13","e14","e15"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Risk factors / competitive factors","excerpt":"We compete on the basis of our technical expertise and experience, financial and operational resources, nationwide presence, industry reputation and dependability."},{"id":"e2","sourceId":"filing-4","location":"Business / specialized training for building systems","excerpt":"These systems require specialized training to install, maintain and repair."},{"id":"e3","sourceId":"filing-4","location":"Business / service agreement renewal and cancellation terms","excerpt":"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."},{"id":"e4","sourceId":"filing-2","location":"Revenue recognition / maintenance agreements as a small portion of business","excerpt":"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."},{"id":"e5","sourceId":"filing-2","location":"MD&A / operating management and low entry barriers","excerpt":"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."},{"id":"e6","sourceId":"filing-1","location":"Business / local competitors' customer relationships","excerpt":"We believe our smaller competitors generally compete with us based on price and their long-term relationships with local customers."},{"id":"e7","sourceId":"filing-1","location":"Risk factors / smaller competitors winning on price","excerpt":"Smaller competitors are sometimes able to win bids for these projects based on price alone due to their lower cost and financial return requirements."},{"id":"e8","sourceId":"filing-1","location":"Risk factors / competing technology and customer retention","excerpt":"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."},{"id":"e9","sourceId":"filing-5","location":"Business strategy / combined purchasing practices","excerpt":"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."},{"id":"e10","sourceId":"filing-2","location":"MD&A / management's claimed balance-sheet and surety advantage","excerpt":"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."},{"id":"e11","sourceId":"filing-2","location":"Consolidated balance sheets / cash, debt, equity and property investment","excerpt":"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."},{"id":"e12","sourceId":"filing-2","location":"Debt note / no revolving-credit borrowings at June 30, 2026","excerpt":"There were no outstanding borrowings on the revolving credit facility as of June 30, 2026."},{"id":"e13","sourceId":"filing-2","location":"Commitments and contingencies / historical bonded-business share","excerpt":"Historically, approximately 10% to 20% of our business has required bonds."},{"id":"e14","sourceId":"filing-2","location":"Commitments and contingencies / current surety-market availability","excerpt":"​ Current market conditions for surety markets and bonding capacity are adequate, with acceptable terms and conditions."},{"id":"e15","sourceId":"filing-1","location":"Business / competitors and potential competitors with greater financial resources","excerpt":"Some of these competitors and potential competitors have greater financial resources than we do to finance development opportunities and support their operations."},{"id":"e16","sourceId":"filing-1","location":"Risk factors / competitive bidding","excerpt":"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."},{"id":"e17","sourceId":"filing-1","location":"Risk factors / price as a principal selection factor","excerpt":"Consequently, price is often the principal factor in determining which contractor is selected, especially on smaller, less complex projects."},{"id":"e18","sourceId":"filing-2","location":"Consolidated statements of operations / first-half 2026 and 2025 results","excerpt":"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."},{"id":"e19","sourceId":"filing-2","location":"MD&A / fixed-price contracts and unrecoverable overruns","excerpt":"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."},{"id":"e20","sourceId":"filing-2","location":"MD&A / cost-plus terms and guaranteed maximum costs","excerpt":"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."},{"id":"e21","sourceId":"filing-4","location":"Business / selective escalation and escape provisions","excerpt":"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."},{"id":"e22","sourceId":"filing-2","location":"MD&A / 27 consecutive calendar years of positive free cash flow","excerpt":"We have generated positive free cash flow in each of the last 27 calendar years and will continue our emphasis in this area."},{"id":"e23","sourceId":"filing-2","location":"Results of operations / market conditions driving same-store growth","excerpt":"The same-store revenue growth was largely driven by strong market conditions, including the increase in our backlog."},{"id":"e24","sourceId":"filing-2","location":"Results of operations / data-center demand","excerpt":"The increase in demand has been especially strong in the technology sector, particularly for data centers."},{"id":"e25","sourceId":"filing-4","location":"Segment information / significant customer revenue in 2023 and 2024","excerpt":"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."},{"id":"e26","sourceId":"filing-3","location":"Compensation discussion / 2025 incentive metrics and vesting structure","excerpt":"| 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."},{"id":"e27","sourceId":"filing-3","location":"Compensation discussion / no discretionary metric exclusions for 2025 annual incentives","excerpt":"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."},{"id":"e28","sourceId":"filing-3","location":"Compensation discussion / actual 2025 financial incentive awards","excerpt":"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."},{"id":"e29","sourceId":"filing-3","location":"Compensation discussion / executive stock ownership requirements and qualifying awards","excerpt":"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."},{"id":"e30","sourceId":"filing-3","location":"Audit committee report / independent membership and written charter","excerpt":"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."},{"id":"e31","sourceId":"filing-3","location":"Termination benefits / legacy executive resignation provision","excerpt":"Lane and George also provide for severance benefits if the executive resigns from the"},{"id":"e32","sourceId":"filing-3","location":"Termination benefits / resignation within 90 days after change in control","excerpt":"Company (with or without good reason) within 90 days following the change in control event."},{"id":"e33","sourceId":"filing-2","location":"Share repurchase program / actual first-half 2026 expenditure","excerpt":"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."},{"id":"e34","sourceId":"filing-1","location":"Share repurchase program / actual 2025 expenditure","excerpt":"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."},{"id":"e35","sourceId":"filing-3","location":"Pay versus performance / five-year earnings and compensation results","excerpt":"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."},{"id":"e36","sourceId":"filing-2","location":"MD&A / average project duration","excerpt":"Our average project takes six to nine months to complete, with an average contract price of approximately $3.3 million."},{"id":"e37","sourceId":"filing-6","location":"Other information / adopted revision to future PSU award form","excerpt":"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."}],"changes":["Retain the previous no-moat verdict: low entry barriers and realized price-based competition outweigh unproven structural advantages.","Add criterion-level assessments that recognize demonstrated execution, cash discipline and actual incentive arrangements without upgrading the moat.","Recognize limited recurring customer demand and contractual protections; distinguish these from durable switching costs and demonstrated price increases."],"limitations":["All supplied evidence is issuer-sourced. Financial results and contractual disclosures support numerical assessments, while claimed competitive superiority remains incompletely demonstrated.","No companies are specifically established as operating competitors. Named suppliers, compensation peers, acquisition targets and executives' former employers are not treated as competitors; competitor arrays are therefore empty.","No comparable-project pricing history, quantified bid premiums, customer cohort renewal rates or comparative unit-cost data are supplied. Higher average project value does not establish higher prices for equivalent work.","Executive ownership requirements are disclosed, but the supplied passages do not establish actual executive ownership levels or compliance. The ownership calculation includes unvested awards.","Acquisition spending, integration returns and full capital-expenditure cash flows are incompletely covered. Capital-discipline assessment draws on cash generation, financing, repurchases and balance-sheet outcomes.","All source dates retain dateKind filed. Latest operating evidence covers June 30, 2026 and was filed July 23, 2026; later operating performance is not established."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":1,"rationale":"Expertise and purchasing scale provide differentiation, but disclosed low entry barriers and smaller competitors' price wins undermine a protected structural advantage.","evidenceIds":["e1","e5","e7","e9"]},{"criterion":"durability","grade":1,"rationale":"Projects average six to nine months. Maintenance agreements offer renewal continuity but frequently allow short-notice cancellation and cover only a small portion of business.","evidenceIds":["e3","e4","e36"]},{"criterion":"customer_dependency","grade":1,"rationale":"Specialized systems require expertise, but dependence on this particular contractor is weakly supported. Competitive bidding and cancellable maintenance arrangements provide alternatives.","evidenceIds":["e2","e3","e16","e17"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Long-running positive cash generation and financial capacity support resilience, but price competition and technological substitution constrain protection of economic advantages. The technology disclosure is a prospective risk, not realized erosion.","evidenceIds":["e7","e8","e11","e22"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":null,"rationale":"The passages establish competitive bidding and price sensitivity, but do not disclose realized comparable-work price changes or premiums. Earnings growth and larger projects cannot isolate observed pricing outcomes.","evidenceIds":["e16","e17","e18","e36"]},{"criterion":"retention","grade":2,"rationale":"A significant customer contributed revenue in both 2023 and 2024, providing indirect evidence of repeat demand. Automatic service renewals support continuity, but cancellation rights and the small maintenance-agreement share limit the inference. No retention rate is established.","evidenceIds":["e25","e3","e4"]},{"criterion":"margin_resilience","grade":2,"rationale":"First-half gross profit and operating income grew faster than revenue, demonstrating favorable realized margin outcomes. Strong market and data-center demand limit evidence of resilience under stress; fixed-price exposure limits automatic cost recovery.","evidenceIds":["e18","e19","e23","e24"]},{"criterion":"contractual_freedom","grade":1,"rationale":"Much project work is fixed-price, with unrecovered overruns borne by the contractor. Cost-plus work and selective escalation provisions offer partial protection, but guaranteed maximum costs and bidding constrain pricing discretion.","evidenceIds":["e16","e19","e20","e21"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":3,"rationale":"Twenty-seven consecutive years of positive free cash flow, increased cash, reduced reported debt and no revolving borrowings support strong demonstrated discipline. Repurchase expenditure fell substantially in first-half 2026 versus full-year 2025. This does not establish repurchase valuation quality or acquisition returns.","evidenceIds":["e22","e11","e12","e33","e34"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual 2025 incentive awards used EPS and free cash flow, with no discretionary exclusions that year. Long-term awards include performance conditions and three-year vesting. Ownership requirements support alignment but count unvested awards and do not establish actual holdings. The March 2026 PSU form revision applies to future grants and does not prove subsequent grants or vesting.","evidenceIds":["e26","e27","e28","e29","e37"]},{"criterion":"execution","grade":3,"rationale":"Five-year earnings growth, continued first-half 2026 revenue and profit expansion, and a long positive-cash-flow record demonstrate strong operating execution. This is an indirect assessment of project delivery; favorable demand contributed materially and prevents attributing all improvement to management.","evidenceIds":["e35","e18","e22","e23","e24"]},{"criterion":"governance","grade":2,"rationale":"An independent audit committee and compensation decisions without discretionary metric exclusions provide concrete safeguards. Legacy change-in-control agreements allow Lane and George benefits following resignation with or without good reason, weakening alignment. 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ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":21.009121909487845,"operating_margin":10.66341599743635,"roic":50.20042922725517,"fcf_margin":10.50143750046247,"sbc_revenue":0.2368702504284611},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":22.02910959839151,"operating_margin":11.418096354146758,"roic":null,"fcf_margin":56.32397124206705,"sbc_revenue":1.190911741803301},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roiic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/1035983/000110465926017530/fix-20251231x10k.htm","publishedAt":"2026-02-19","sha256":"dda5e0b380208cc1a4028fe6c5e4efaad2cfb870810b872b135db5952137e73e","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/1035983/000110465926086258/fix-20260630x10q.htm","publishedAt":"2026-07-23","sha256":"721135f726b76285f6f0e16a040d5caa4b2938ec1c91fe003ca97471b05805f5","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/1035983/000130817926000245/fix014562-def14a.htm","publishedAt":"2026-04-09","sha256":"a4bb9bf22e753654929a5635e1fc970346343c98eb3e196d84a06d2344de44cc","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/1035983/000155837025001222/fix-20241231x10k.htm","publishedAt":"2025-02-20","sha256":"90075d44e946cef1b23e8bc838f734f06e3c37df58e96af069945342c989bde8","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/1035983/000155837024001529/fix-20231231x10k.htm","publishedAt":"2024-02-22","sha256":"537307ad34f48d660a3537fd0a31161ece503037a9228806d6d84bc8a995d4ab","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/1035983/000110465926047689/fix-20260331x10q.htm","publishedAt":"2026-04-23","sha256":"3d8eef3a908ef631e1e81d611dbdfd60c35c5b24114474ece11366b15811d2d3","dateKind":"filed"}],"history":[{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"none","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"none","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}