Key Points
Comfort Systems USA is benefiting from the AI boom and sitting on a vast backlog.
Its acquisition strategy should lead to more market share as it compounds growth.
Its high long-term revenue growth rates precede the AI boom.
Although the S&P500 and many stocks are down so far this year, Comfort Systems USA(NYSE: FIX) has been a notable exception. Shares are up by more than 54% year to date through April 6 as the HVAC company continues to function as a critical pick-and-shovel play for artificial intelligence (AI) infrastructure.
The chips that power AI software require cool temperatures, and that's where Comfort Systems USA comes into play, though it's not exclusively an AI stock, which is a good thing. If you're wondering if investing in Comfort Systems USA today can take you to millionaire status, here's my answer: It could certainly be a strong part of a diversified portfolio that gets you to a million.
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"Unprecedented demand" leads to a record backlog
Comfort Systems USA has been a long-term winner, producing more than 1,500% gains over the past five years. CEO Brian Lane cited "unprecedented demand" when sharing Q4 results in February. The company announced it had almost $12 billion in its backlog, which has roughly doubled since the beginning of the year. It was also up by 27.3% from the previous quarter.
Comfort Systems USA also has no problem turning its backlog into revenue. Sales jumped by 41.7% year over year in the quarter while net income more than doubled. High revenue growth has been a normal trend. The company has a 10-year revenue compound annual growth rate of 21.3%, and its three-year CAGR is 33.3%.
The booming AI infrastructure build-out has certainly helped, but Comfort Systems USA's 10-year CAGR history shows that it was doing well before all of the extra demand. The company's backlog should continue to grow thanks to high demand for AI data centers that need HVAC installation and maintenance.
Comfort Systems USA also acquires its way to more market share
Although organic sales growth is robust, Comfort Systems USA regularly reinvests capital into its business and has used acquisitions to expand its market share. For instance, it acquired Feyen Zylstra Holdings and Meisner Electric last year to reach customers in Michigan and Florida.
The company has been making multiple acquisitions each year, and since the strategy has worked well, I wouldn't be surprised if Comfort Systems USA acquires more in 2026 and beyond, expanding its market share through organic growth and acquisitions.
The company has not overspent. It recently raised its quarterly dividend payout from $0.60 to $0.70 per share, marking a 16.7% increase. Comfort Systems USA also wrapped up 2025 with $982 million in cash and cash equivalents, which was up by 78.5% year over year. To top it all off, the HVAC provider's current ratio -- which measures a company's abilityt to pay off short-term obligations -- improved, showing that it has no problem keeping up with current liabilities.
Comfort Systems USA is loaded with cash, has an exceptional backlog, and knows how to translate that backlog into meaningful revenue growth. Its acquisition strategy fuels more of what has already worked, which makes this growth stock a contender to help investors who want seven-figure portfolios.
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Comfort Systems USA. The Motley Fool has a disclosure policy.
