Comfort Systems to Expand Modular Capacity to 6 Million Sq Ft by 2027 on Data Center Demand

Comfort Systems USA (FIX) said it expects its modular manufacturing footprint to reach roughly 6 million square feet by the end of 2027, up from more than 4 million square feet at the end of 2026, as data center clients lock in construction and fabrication capacity in advance. The mechanical and electrical contractor projects roughly 25% revenue growth in its existing business for 2027, with gross margins holding near recent strong levels. Backlog stood at $17.81 billion at the end of the third quarter, up about 27% from $14.06 billion at the end of the second quarter and about 90% year over year. Large projects have stretched execution timelines to roughly 18 to 24 months. Modular operations accounted for 17% of revenue in the first nine months. Management said the 2027 expansion is based on existing customer arrangements, typically including five-year purchase volume commitments, before the company commits major capital expenditure. Third-quarter revenue was $3.766 billion, up 53.7% year over year. Net income was $489 million, up 67.7%, with diluted earnings per share of $13.91. Gross margin was 24.8%, flat versus a year earlier, while operating margin rose to 16.6% from 15.5%. Comfort Systems forecasts capital expenditure at 4% to 5% of revenue in 2026, remaining elevated in the first half of 2027.