Watsco Q3 2024 Earnings Report
Key Takeaways
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.
Sales increased 2% to a record $2.16 billion (flat on a same-store basis).
Operating income decreased 2% to $250 million (11.6% operating margin).
Net income attributable to Watsco was $171 million, flat versus last year.
Earnings per share declined 3% to $4.22.
Watsco
Watsco
Forward Guidance
Watsco believes the market environment for HVAC products stabilized this year, and they look forward to helping their customers navigate next year’s regulatory transition toward the new A2L systems.
Positive Outlook
- Market environment for HVAC products stabilized this year.
- Helping customers navigate next year’s regulatory transition toward the new A2L systems.
- Regulatory change will ultimately impact approximately 60% of sales.
- Offers contractor customers the opportunity to upgrade older HVAC systems with new products.
- New products are both more energy-efficient and environmentally-friendly.