10 Best Engineering Stocks to Buy for 2025

7. Comfort Systems USA, Inc. (NYSE:FIX)

Number of Hedge Fund Holders: 35

Comfort Systems USA, Inc. (NYSE:FIX) provides electrical and mechanical contracting services. It also offers engineering, design-assist, turnkey, and direct-hire construction services of modular systems for the industrial, power, and advanced technology sectors.

The company’s operating income in fiscal Q3 2024 was 50% higher than its already strong fiscal Q3 last year. Revenue for fiscal Q3 2024 was $1.8 billion, an increase of $343 million or 32% compared to last year. In addition, the company’s same-store backlog was 21% higher than last year, supported by exceptional strength in its pipelines.

Comfort Systems USA, Inc. (NYSE:FIX) experienced a 39% revenue increase in its Mechanical segment. This growth was attributed to modular expansion, recent expansions, and substantial organic construction and service growth. Its Electrical segment also grew 8% in revenue, with overall same-store revenue increasing by 18% or $241 million. The remaining $193 million increase came from the company’s acquisitions.

Construction accounted for 84% of the company’s revenue, with projects for existing building construction representing 27% and new buildings 57%. This reflects its strong operational model. Comfort Systems USA, Inc. (NYSE:FIX) also increased the pace of its share repurchases in fiscal Q3 2024, and returned $42 million to shareholders in 2024 by retiring more than 130,000 shares.

Carillon Chartwell Small Cap Growth Fund stated the following regarding Comfort Systems USA, Inc. (NYSE:FIX) in its first quarter 2024 investor letter:

“Another strong performer was Comfort Systems USA, Inc. (NYSE:FIX). The company is a modular construction company, involved in manufacturing plant and data center construction. Given strong demand trends, the company is reporting record growth and backlogs.”