Houston’s Major Private Companies: Calpine, Friedkin, Tricon Energy

The list of Houston’s largest private companies, particularly the top 10, reflects the diversity and economic health of the city’s business environment.

Spanning a wide range of sectors including energy, home construction, hospitality and vehicle sales, a majority of companies reported increased revenue in 2023, even as high interest rates and inflation persist in the United States.

THE CHRONICLE 100: Top Companies, Employers, and More in Houston

Calpine, a power generation company, took the top spot with nearly $13.7 billion in revenue in 2023. The 10% increase brought its revenue to its highest level since the company was taken private in 2018. Calpine, which has been at or near the top of the list for six consecutive years, produces enough electricity at power plants in the United States and Canada to power 26 million homes.

Friedkin Group, led by Houston billionaire Dan Friedkin, moved into second place, reporting 2023 revenue of $13.3 billion, up 20% year-over-year. The company owns Gulf States Toyota, one of the automaker’s largest independent distributors. It also has stakes in hospitality, entertainment, sports and adventure companies, including Italy’s AS Roma soccer team, Auberge Resorts Collection and Diamond Creek Golf Club in North Carolina.

“We continue to see growing demand for the best-in-class products, services and experiences we deliver across our global portfolio of businesses and are deeply grateful to our customers and associates across the TFG family of brands,” the company said in an email.

Friedkin replaced Tricon Energy, a global chemicals distributor and marketer led by Ignacio Torras, which fell to No. 3 with 2023 revenue of $10.6 billion, down 15% from the previous year.

“Despite a 6% increase in volume for Tricon last year, market commodity prices declined an average of 21%, resulting in lower revenues compared to the prior year,” the company said in an email.

Another chemical company, manufacturer Ascend Performance Materials, came in at No. 8 with $2.4 billion in revenue, down 20% from 2022.

G&A Partners, which provides human resources, payroll and other services, held on to No. 4 with nearly $7.4 billion in revenue, up more than 20% for the year. The company, which expanded in the Northeast last year and the Southeast in 2022, attributed that to improved efficiency and a larger sales team.

Fertitta Entertainment, by far the largest employer among private companies with 46,000 employees, including 9,500 in Houston, held on to its fifth-place spot with revenue of $4.94 billion, down slightly from the year. Owned by Houston Rockets owner Tilman Fertitta, the gaming, restaurant, hospitality and entertainment company owns the Golden Nugget Hotels and Casinos, the Post Oak Hotel, Landry’s, Morton’s, Del Frisco’s and other restaurant chains.

A GROWING PORTFOLIO: Tilman Fertitta’s Real Estate Buying Spree Continues With Two Key Purchases in Uptown-River Oaks

Two of the country’s largest homebuilders — David Weekley Homes and Perry Homes — moved up the rankings and are among the six homebuilders on the list, along with Legend Homes, Westin Homes, Long Lake Ltd. and Newmark Homes.

In sixth place, David Weekley Homes, which operates in 19 markets in the U.S., reported revenue of nearly $3.1 billion last year, up 3%. The company said demand for new homes rebounded in 2023, driven by a lack of inventory in the existing home market and its ability to offer financing and incentives to buyers.

“With improved supply chain and labor availability, we were able to build homes faster,” said Chief Financial Officer Heather Humphrey.

Perry Homes, which expanded out of Texas into Florida this year, generated nearly $2.4 billion in revenue in 2023, up 8%. Ranked ninth, the company, which builds in more than 100 Texas neighborhoods in Houston, Austin, Dallas and San Antonio, is owned by Kathy Perry Britton, daughter of late founder Bob Perry.

“Because we’re targeting buyers who are moving upmarket, many of our buyers aren’t as sensitive to higher interest rates,” said CEO Todd Chachere. “For those who are, we’ve been able to minimize their impact through interest rate reduction programs.”

Leslie Doggett Industries joined the top 10 at No. 7 after increasing $600 million, or 28 percent of its revenue. Owner Leslie Doggett said in an email that the acquisition of Kinsel Ford, Toyota, Mazda and Lincoln auto dealerships in Beaumont contributed to its $2.7 billion in sales, “but all divisions had record revenues due to hyper demand.” The company handles sales and repairs of automobiles, construction equipment, over-the-road and vocational trucks and material handling equipment such as forklifts.

Triple-S Steel rounded out the top 10 with revenue of $2.3 billion, down 11% year-over-year. Sam Stein, product manager for the structural steel wholesaler, cited two main factors behind the decline.

“Rising interest rates and fluctuating steel prices have both contributed to a slowdown in commercial construction, which is a major market segment for our business across the country,” Stein said in an email.

Several local general construction companies, however, saw revenue increases in 2023. Arch-Con Corp. was among the biggest winners with a 25% increase driven by industrial and multifamily projects in Houston, Austin and Denver, the company said.

Smith, which had been in the top 10 for three years, slipped to 11th place after revenue fell nearly 60% to $1.95 billion. The electronics components distributor said it has adapted to market fluctuations over the past four decades, providing supply chain solutions to customers in times of shortage and excess.

“After two unprecedented shortages, triggered by the COVID-19 pandemic, demand has leveled off, reducing revenue,” Mark Bollinger, Smith’s director of globalization, said in an email. “Yet this period has also given us the opportunity to innovate and introduce new strategies to support our global customers.”

Besides Fertitta Entertainment, the largest local employers on the private list are engineering and construction firm S&B (3,500 employees), specialty services provider Universal Plant Services (2,431), bridge and highway construction company Williams Brothers Construction Co. (2,177), Friedkin Group (1,682) and independent beverage distributor Silver Eagle Distributors (1,095).