In the dynamic landscape of large-scale engineering and construction, two firms—Comfort Systems USA, Inc. (FIX) and AECOM (ACM)—stand out as key players, each navigating distinct paths to capitalize on the sector’s robust growth. The recent Federal Reserve rate cut in September 2025, which lowered interest rates to a range of 4-4.25%, has injected fresh optimism into the market. Lower financing costs are expected to spur investments in large-scale projects, further bolstering the demand for infrastructure and EPCM services that these companies provide.
Comfort Systems, a Texas-based mechanical and electrical contracting services provider, is currently riding a wave of strong industrial and technology-driven construction demand. With a market capitalization of approximately $28.99 billion, the company is well-positioned to capture growth across critical end markets. As of June 30, 2025, Comfort Systems’ backlog reached a record $8.12 billion, up from $5.77 billion a year earlier, reflecting strong booking momentum. The company’s strategic acquisitions, such as the purchase of Right Way Plumbing & Mechanical LLC, are expected to expand its market share and contribute significantly to its revenue. Additionally, Comfort Systems has demonstrated a commitment to shareholder value by increasing its quarterly dividend to 50 cents per share, a move that has elevated investor sentiment.
On the other hand, AECOM, another Texas-based firm with a market capitalization of approximately $17.61 billion, is capitalizing on robust infrastructure demand both domestically and internationally. The company’s backlog as of the third quarter of fiscal 2025 stood at $24.59 billion, up 5% from the prior-year period. AECOM is particularly focused on opportunities outside the U.S., with key markets including Canada, the Middle East, and the UK. The recent 10-year infrastructure strategy announcement by the UK government, which highlights investments of GBP 725 billion across key sectors, reflects heightened opportunities for AECOM. However, the company’s heavy reliance on government spending and exposure to international regulatory risks pose challenges.
When comparing the fundamentals of the two stocks, several factors stand out. Comfort Systems’ share price performance over the past six months has significantly outperformed AECOM and the broader Construction sector. Additionally, Comfort Systems has been trading above AECOM on a forward 12-month price-to-earnings (P/E) ratio basis over the last five years. The Zacks Consensus Estimate for Comfort Systems’ 2025 EPS indicates 52.4% year-over-year growth, with the 2026 estimate indicating an increase of 9.9%. In contrast, AECOM’s EPS growth expectations are positive but more moderate, with a 15.9% increase for fiscal 2025 and a 9.8% improvement for 2026.
Comfort Systems’ trailing 12-month return on equity (ROE) of 39.33% significantly exceeds AECOM’s average of 27.87%, underscoring its efficiency in generating shareholder returns. This operational efficiency, combined with strong execution, record backlog, and upward-trending estimates, makes Comfort Systems a compelling investment opportunity. While AECOM benefits from global infrastructure opportunities, its heavy reliance on government spending and exposure to international regulatory risks present challenges that investors must consider.
In conclusion, while both Comfort Systems and AECOM are poised to benefit from favorable industry trends, Comfort Systems’ strong fundamentals and near-term growth trajectory make it a more attractive investment option. The company’s strategic acquisitions, robust backlog, and commitment to shareholder value position it well to capitalize on the sector’s growth opportunities. As the construction industry continues to evolve, Comfort Systems stands out as a leader in delivering sustainable and innovative solutions.