The business model differs from plumbing, and the smaller firms are profitable. First, many more parts and equipment on each job can be marked up. A new switch, coil, fan, motor, and freon. Every items is between can be priced and become a significant part of the invoice, Secondly, there can be a lot more recurring revenue for annual and seasonal checks, changing filters, and you can add changing batteries on smoke alarms, and refreerator filers to the mix as value adds. Plumbers do not do this. But this makes the customer very sticky. Third, advertising is expensive, and referrals are key. You only get referrals if you have excellent technicians with a high EQ, do great work, and look crisp when they start the job. The problem with the larger firms is that the hired technicians don't meet the standard, customer satisfaction falls, and referrals drop off.

Yes so many exciting macro drivers for HVAC but the story is out and valuations are very steep even for 2 truck types of firms esp if they can claim any service book.