Comfort Systems (FIX) Expands With the J & S Acquisition
Comfort Systems USA, Inc. FIX strengthened its market standing by acquiring J & S Mechanical Contractors, Inc., based in West Jordan, UT. Founded in 1976, J & S specializes in mechanical construction services across the Mountain West region, undertaking complex projects for commercial and industrial clients.
This strategic move is expected to contribute significantly to Comfort Systems' growth, with J & S initially adding annualized revenues ranging from $145 million to $160 million. Moreover, J & S is anticipated to bring in earnings before interest, taxes, depreciation, and amortization of $12 million to $15 million.
As a valuable addition to Comfort Systems, J & S is forecasted to make a neutral to slightly accretive contribution to earnings per share in 2024 and 2025, considering amortization expenses. The acquisition aligns with Comfort Systems' commitment to excellence, as J & S boasts a robust reputation in Utah, delivering outstanding results in industrial, institutional, and commercial markets.
Comfort Systems continues to position itself as a leader in the industry, leveraging the expertise and regional influence gained through the acquisition of J & S. Investors can anticipate enhanced profitability and market presence as Comfort Systems capitalizes on J & S's established track record and deep roots in the region.
Acquisitions: A Growth Driver
FIX remains dedicated to pursuing growth through acquisitions while concurrently returning value to shareholders through cash dividends and stock repurchases.
On Feb 1, 2024, Comfort Systems successfully completed the acquisition of Summit Industrial Construction, LLC. Summit, a specialized industrial mechanical contractor, enhances Comfort Systems' capabilities in engineering, design-assist, and turnkey construction services for modular systems.
On Feb 1, 2023, Comfort Systems acquired Eldeco, Inc., based in South Carolina. Specializing in electrical design and construction services in the Southeastern region of the United States, Eldeco is now a fully owned subsidiary of Comfort Systems. This integration is reflected in FIX's electrical segment, marking a strategic expansion in the company's service portfolio and regional presence.
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Shares of Comfort Systems have surged 91.2% over the past year, outperforming the Zacks Building Products - Air Conditioner and Heating industry’s 43.6% rise. The company has been experiencing increased revenues across its operations. Notably, the modular business demonstrated exceptional performance during third-quarter 2023, managing extraordinary growth with superb execution.
Zacks Rank & Key Picks
Comfort Systems currently carries a Zacks Rank #3 (Hold).
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Howmet Aerospace Inc. HWM currently carries a Zacks Rank #2. The stock has gained 14.4% in the past six months.
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