HOUSTON - Comfort Systems USA, Inc. (NYSE: NYSE:FIX), a national leader in commercial and industrial HVAC and electrical contracting services, has officially completed the acquisition of Summit Industrial (TSX:SMU_u) Construction, LLC, a Houston-based specialty industrial mechanical contractor.
Summit Industrial Construction is recognized for its engineering, design-assist, and direct hire construction services in the advanced technology, power, and industrial sectors. The company's expertise spans modular and site-based construction, including process piping, equipment setting, and specialty concrete work.
The transaction is expected to bring an annual revenue increase of $375 million to $400 million for Comfort Systems USA, with earnings before interest, taxes, depreciation, and amortization (EBITDA) anticipated to be between $35 million and $40 million. However, due to amortization expenses, the acquisition's impact on earnings per share is projected to be neutral to slightly accretive in 2024 and 2025.
Brian Lane, CEO of Comfort Systems USA, expressed enthusiasm about the acquisition, stating, "We are delighted to announce the closing of our agreement to acquire Summit, an extremely capable provider of modular and other complex mechanical services." He also welcomed Summit's leadership and workforce, expressing confidence in their continued innovation and growth within Comfort Systems USA's network.
Comfort Systems USA operates 172 locations across 131 cities nationwide. The acquisition of Summit is seen as a strategic move to enhance the company's capabilities and market reach.
This news article is based on a press release statement from Comfort Systems USA, Inc.
InvestingPro Insights
As Comfort Systems USA, Inc. (NYSE: FIX) integrates Summit Industrial Construction into its operations, investors and industry watchers are keenly observing the company's performance metrics. According to real-time data from InvestingPro, Comfort Systems USA has a market capitalization of $8 billion and is trading at a Price/Earnings (P/E) ratio of 27.17 when adjusted for the last twelve months as of Q3 2023. This valuation comes as the company showcases a robust revenue growth of 28.02% over the same period.
Notably, the company's stock has been performing well with a significant price uptick, currently trading near its 52-week high, at 97.87% of the peak value. This bullish trend is supported by a strong one-year price total return of 79.27%, indicating investor confidence and a positive market sentiment surrounding Comfort Systems USA's strategic moves, including the recent acquisition.
InvestingPro Tips further highlight that Comfort Systems USA has raised its dividend for 11 consecutive years and maintains a consistent dividend payment track record of 19 years. Analysts have also revised their earnings upwards for the upcoming period, suggesting a positive outlook for the company's profitability. For those interested in deeper financial analysis and additional insights, InvestingPro offers a range of tips, with the current count standing at 15 more tips available to subscribers.
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