© Reuters.
HOUSTON – Comfort Systems USA, Inc. (NYSE: NYSE:), a national provider of mechanical contracting services, has announced the acquisition of J & S Mechanical Contractors, Inc., a company based in West Jordan, Utah, specializing in mechanical construction for commercial and industrial sectors in the Mountain West region.
J & S Mechanical, established in 1976, is recognized for its involvement in some of the largest and most technical construction projects within its service area. The acquisition is expected to contribute annualized revenues between $145M and $160M and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $12M to $15M. Comfort Systems anticipates that J & S will have a neutral to slightly accretive impact on its earnings per share in 2024 and 2025.
Brian Lane, CEO of Comfort Systems USA, expressed enthusiasm about the acquisition, highlighting J & S’s strong reputation and expertise in the Intermountain West markets. He noted that the addition of J & S would enhance Comfort Systems’ commitment to these areas, citing the acquired company’s workforce as a valuable asset for future growth.
Jack Jensen, President of J & S, shared a positive outlook on the merger, emphasizing shared core values with Comfort Systems, such as customer service, employee growth, and business integrity. Executive Vice President Justin Barlow remarked on the alignment with Comfort Systems as a means to uphold the founders’ legacy and provide a promising future for the team.
Comfort Systems USA operates across the nation with 172 locations in 131 cities, offering services that include heating, ventilation, air conditioning, and electrical contracting for commercial, industrial, and institutional clients.
This press release includes forward-looking statements regarding future business expectations, which are subject to risks and uncertainties. The company has not provided a quantitative reconciliation of the non-GAAP financial measure EBITDA due to the forward-looking nature of this estimate. These statements are based on current beliefs and expectations and may differ from actual future results due to various factors outlined in the company’s SEC filings.
The information in this article is based on a press release statement from Comfort Systems USA, Inc.
InvestingPro Insights
As Comfort Systems USA, Inc. (NYSE: FIX) expands its reach with the acquisition of J & S Mechanical Contractors, the company’s financial health and market performance become a focal point for investors. The latest data from InvestingPro shows a robust market capitalization of $8.01B, indicating a strong presence in the market. With a Price/Earnings (P/E) ratio of 28.08, slightly adjusted to 27.17 for the last twelve months as of Q3 2023, the company’s valuation reflects its earnings potential relative to its share price. This is complemented by a Price/Book ratio of 6.64, suggesting investors are willing to pay a premium for the company’s net assets.
InvestingPro Tips highlight several positive indicators for Comfort Systems. Analysts have revised their earnings upwards for the upcoming period, signaling confidence in the company’s future financial performance. Additionally, the company has demonstrated a significant return over the last week, with a 1-week price total return of 8.51%, and an impressive 1-year price total return of 85.38%, showcasing strong short-term and long-term growth.
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