Our guest on the show this week was Brian Lane, the President and CEO of Comfort Systems, a $3.6 billion market cap company that provides mechanical and electrical services, including installation, repair and maintenance, to customers in the US. Brian became CEO in 2011 and over the last 11 years, has overseen very impressive revenue growth and stock performance. The company has consistently made acquisitions over the last decade but still has a lot of white space left domestically. Given Comfort Systems’ track record and runway for future growth, it was great to talk with Brian about:
- Comfort Systems’ acquisition philosophy and its value proposition to potential targets;
- How the company is approaching a potential recessionary period in the US;
- The process by which Comfort Systems has built up a recurring revenue base;
- The structure of the industry from a competitive perspective; and
- How the company is overcoming both inflationary and labor availability challenges.
For full disclosure, Cove Street is NOT a Comfort Systems shareholder.
Please enjoy the interview at the following sites:
Apple: https://podcasts.apple.com/us/podcast/consolidating-the-mechanical-and-electrical/id1579124518?i=1000577884370
Spotify: https://open.spotify.com/episode/78L9uidyeVoRLI1z4XVdnF
YouTube: https://youtu.be/P88tJrYyqxc
Podbean: https://compounders.podbean.com/e/consolidating-the-mechanical-and-electrical-contracting-industries-with-brian-lane-president-and-ceo-of-comfort-systems-usa-inc-nyse-fix/
If you missed our last Compounders episode with Steve Daly, CEO of Instructure Holdings, you can view it here.
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