FIXComfort Systems USA

We generated $849.1 million $1.19 billion of net cash flow from operating activities during 2024 2025 compared to $639.6 $849.1 million during 2023. 2024. The $209.5 $337.3 million increase in cash provided by operating activities was primarily driven by higher earnings before non-cash expenses such as amortization of intangible assets in the current year and a $366.4 an $877.9 million benefit from changes in billings in excess of costs and estimated earnings and deferred revenue driven by the timing of customer billings and payments. These increases were partially offset by a $778.9 million decrease in accounts payable and accrued other current liabilities driven by the size and timing of payments, including postponement of federal tax payments. On July 22, 2024, due to Hurricane Beryl, the Internal Revenue Service announced tax relief that extended the due dates for our federal tax payments until February 3, 2025. We thus made an $80.0 million federal tax payment in the first quarter of 2025 that otherwise would have been paid in the second half of 2024. These increases were partially offset by 2024, as a $317.0 million change in billings in excess result of costs and deferred revenue tax relief from the Internal Revenue Service due to more advance payments Hurricane Beryl. In 2023, we filed our 2022 federal tax return requesting a refund of our $107.1 million overpayment, which was received in April 2025 and positively impacted our second quarter cashflows. Along with the prior year. We have refund, we received large advance payments $11.3 million (or $8.9 million, net of tax) of interest income that reduced our provision for income taxes in the current and prior years that will reverse when project costs are incurred, except to the extent that additional advance payments are received. first quarter of 2025.

While we have security, internal control Moreover, cyberattacks are expected to accelerate on a global basis in frequency and technology measures magnitude as threat actors are becoming increasingly sophisticated in place using techniques and tools—including artificial intelligence to protect our systems engage in automated, targeted, and networks, these measures could fail as a result of a cyber-attack, other third-party action, employee error, malfeasance or other coordinated attacks—that circumvent security failure. In the ordinary course of business, we have been targeted by malicious cyber-attacks. controls, evade detection and remove forensic evidence. Because the techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not identified until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures. As a result, we may be required to expend significant resources to protect against the threat of system disruptions and security breaches or to alleviate problems caused by these disruptions and breaches. Any of these events could damage our reputation and have a material adverse effect on our business, results of operations, financial condition and cash flows.

We have As of December 31, 2025, we had a $6.8 $34.4 million investment in a construction-focused technology fund U.S. Treasury bills with a fair value that is not readily determinable and is maturities greater than ninety days but less than one year, which are recorded at cost. This investment amortized cost and is included in “Other Noncurrent Assets” “Prepaid Expenses and Other” in our Consolidated Balance Sheet and is reviewed quarterly for impairment. We did not recognize any impairments in the current year related to this investment. Sheet.