Watsco Earnings Reports

Watsco, Inc. experienced a 4% revenue decline to $2.07 billion in Q3 2025, primarily due to a significant regulatory transition to A2L refrigerants and weaker consumer spending. Despite these headwinds, the company achieved record gross profit margin of 27.5% and maintained strong operating cash flow, demonstrating resilience and effective management of the transition.

Watsco experienced a 4% decrease in revenues to $2.06 billion in Q2 2025, primarily due to lower unit volumes from temperate weather, reduced homebuilding, and transition impacts. Despite this, the company achieved a record gross profit of $603 million and expanded operating income by 1% to $272 million, driven by improved gross margins from pricing technologies and OEM actions. Diluted EPS slightly increased to $4.52.

Watsco posted a slight decline in revenue and net income in Q1 2025 amid the early stages of a large-scale product transition to A2L refrigerants. While U.S. replacement market sales were strong, weakness in other end-markets and seasonal headwinds impacted overall performance.

Watsco achieved a 9% YoY revenue increase, driven by strong HVAC equipment sales. Operating income grew 26%, and net income rose 17%. The company also expanded its gross and operating margins while maintaining a debt-free balance sheet.

Watsco reported a 2% increase in sales, reaching a record $2.16 billion for the third quarter of 2024. The company's net income remained flat at $171 million, and earnings per share declined by 3% to $4.22. The company sees potential for further improving productivity and is gratified that its focus on the balance sheet has produced record cash flow.

Watsco reported a record $2.1 billion in revenue for Q2 2024, a 7% increase year-over-year, with EPS of $4.49 compared to $4.42 last year. The company's strong cash flow and debt-free balance sheet supported long-term investment and growth.

Watsco reported a 1% increase in revenues to a record $1.56 billion for Q1 2024. The company generated record first quarter operating cash flow of $104 million and strengthened its balance sheet with $479 million in cash and investments. EPS was $2.17 compared to $2.83 in the previous year.

Watsco's Q4 2023 results showed a 1% increase in sales, reaching a record $1.60 billion. EPS was reported at $2.06, compared to $3.55 in the previous year. The company experienced a 40% increase in operating cash flow, achieving a record $299 million.