COMFORT SYSTEMS USA INC Segments Disclosure
16. Segment Information
We have two reportable segments: (a) our mechanical segment, which includes HVAC, plumbing, piping, and controls, as well as off-site construction, monitoring and fire protection; and (b) our electrical segment, which includes installation and servicing of electrical systems. We consider these two lines of business to be separate segments because they require different skill sets, and the business models for providing services have some differences, as a mechanical system requires ongoing maintenance and monitoring and an electrical system generally does not. However, the business model for installation of new systems or retrofitting existing systems is very similar between the two segments. Segment information is prepared on the same basis that our Chief Operating Decision Maker (“CODM”) reviews financial information for operational decision-making purposes. Our CODM is the Chief Executive Officer. Our CODM allocates resources such as employees and capital resources primarily based on historical and potential future revenue, gross profit and operating income. Our CODM also uses segment gross profit and operating income when assessing pricing and performance by management teams in our operating segments.
Our activities are within the mechanical services industry and the electrical services industry, which represent our two reportable segments. We aggregate our operating segments into two reportable segments, as the operating segments meet all of the aggregation criteria. Substantially all of our revenue is generated, and all of our assets are located, in the United States, our country of domicile. The following tables present information about our reportable segments (in thousands):
| Mechanical Segment | | Electrical Segment | | Corporate | | Consolidated | |||||
Total assets at December 31, 2025 | $ | 3,683,678 | $ | 1,765,570 | $ | 991,921 | $ | 6,441,169 | ||||
Total assets at December 31, 2024 | $ | 3,162,677 | $ | 985,006 | $ | 563,405 | $ | 4,711,088 | ||||
Year Ended December 31, 2025 | ||||||||||||
| Mechanical Segment | | Electrical Segment | | Corporate | | Consolidated | |||||
Revenue | $ | 6,673,745 | $ | 2,427,896 | $ | — | $ | 9,101,641 | ||||
Cost of services | 5,101,349 | 1,804,393 | — | 6,905,742 | ||||||||
Gross profit | 1,572,396 | 623,503 | — | 2,195,899 | ||||||||
Selling, general and administrative expenses | 574,344 | 236,580 | 72,360 | 883,284 | ||||||||
Gain on sale of assets | (1,433) | (541) | — | (1,974) | ||||||||
Operating income (loss) | $ | 999,485 | $ | 387,464 | $ | (72,360) | $ | 1,314,589 | ||||
Reconciliation to income before income taxes: | ||||||||||||
Other income (expense) | (21,136) | |||||||||||
Income before income taxes | $ | 1,293,453 | ||||||||||
Amortization of identifiable intangible assets | $ | 54,162 | $ | 25,418 | $ | — | $ | 79,580 | ||||
Depreciation expense | $ | 50,754 | $ | 10,199 | $ | 1,426 | $ | 62,379 | ||||
Capital expenditures | $ | 126,436 | $ | 26,556 | $ | 1,911 | $ | 154,903 | ||||
Year Ended December 31, 2024 | ||||||||||||
| Mechanical Segment | | Electrical Segment | | Corporate | | Consolidated | |||||
Revenue | $ | 5,527,604 | $ | 1,499,872 | $ | — | $ | 7,027,476 | ||||
Cost of services | 4,413,108 | 1,137,957 | — | 5,551,065 | ||||||||
Gross profit | 1,114,496 | 361,915 | — | 1,476,411 | ||||||||
Selling, general and administrative expenses | 499,441 | 170,155 | 60,476 | 730,072 | ||||||||
Gain on sale of assets | (1,813) | (1,217) | — | (3,030) | ||||||||
Operating income (loss) | $ | 616,868 | $ | 192,977 | $ | (60,476) | $ | 749,369 | ||||
Reconciliation to income before income taxes: | ||||||||||||
Other income (expense) | (82,808) | |||||||||||
Income before income taxes | $ | 666,561 | ||||||||||
Amortization of identifiable intangible assets | $ | 74,873 | $ | 22,393 | $ | — | $ | 97,266 | ||||
Depreciation expense | $ | 39,601 | $ | 7,450 | $ | 1,168 | $ | 48,219 | ||||
Capital expenditures | $ | 80,957 | $ | 26,850 | $ | 3,264 | $ | 111,071 | ||||
Year Ended December 31, 2023 | ||||||||||||
| Mechanical Segment | | Electrical Segment | | Corporate | | Consolidated | |||||
Revenue | $ | 3,946,022 | $ | 1,260,738 | $ | — | $ | 5,206,760 | ||||
Cost of services | 3,195,916 | 1,020,335 | — | 4,216,251 | ||||||||
Gross profit | 750,106 | 240,403 | — | 990,509 | ||||||||
Selling, general and administrative expenses | 394,657 | 129,623 | 50,143 | 574,423 | ||||||||
Gain on sale of assets | (1,715) | (587) | — | (2,302) | ||||||||
Operating income (loss) | $ | 357,164 | $ | 111,367 | $ | (50,143) | $ | 418,388 | ||||
Reconciliation to income before income taxes: | ||||||||||||
Other income (expense) | (30,194) | |||||||||||
Income before income taxes | $ | 388,194 | ||||||||||
Amortization of identifiable intangible assets | $ | 17,619 | $ | 25,785 | $ | — | $ | 43,404 | ||||
Depreciation expense | $ | 30,850 | $ | 6,576 | $ | 736 | $ | 38,162 | ||||
Capital expenditures | $ | 82,449 | $ | 9,600 | $ | 2,789 | $ | 94,838 | ||||
For the years ended December 31, 2025, 2024, and 2023, one customer represented 12.8%, 13.3% and 13.8% of consolidated revenue, respectively, and was included in our mechanical segment revenues.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.