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Dec 31, 2023

Watsco Q4 2023 Earnings Report

Watsco reported a 1% increase in sales to a record $1.60 billion for Q4 2023, with EPS at $2.06.

Key Takeaways

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.

Sales increased by 1% to a record $1.60 billion.

Operating cash flow increased by 40% to a record $299 million.

EPS was $2.06, compared to $3.55 in the previous year.

Gross profit was $414 million with a gross margin of 25.8%.

Total Revenue
$1.6B
Previous year: $1.58B
+1.4%
EPS
$2.06
Previous year: $3.55
-42.0%
HVAC Equipment Revenue %
69%
Other HVAC Product Revenue %
27%
Commercial Ref. Product Revenue %
4%
Gross Profit
$414M
Previous year: $434M
-4.4%
Cash and Equivalents
$210M
Previous year: $148M
+42.4%
Free Cash Flow
$299M
Previous year: $204M
+46.6%
Total Assets
$3.73B
Previous year: $3.49B
+6.9%

Watsco

Watsco

Watsco Revenue by Segment

Forward Guidance

Watsco is well-positioned with its entrepreneurial culture, OEM relationships, leading technologies, and financial strength to optimize opportunities from industry catalysts such as regulatory changes, electrification, and the growth of ductless HVAC systems.

Positive Outlook

  • Scale and entrepreneurial culture provide competitive advantages.
  • Strong OEM relationships help optimize opportunities.
  • Leading technologies enhance market position.
  • Financial strength supports growth and investments.
  • Benefiting from regulatory changes and industry catalysts.

Challenges Ahead

  • Softer market conditions compared to previous years.
  • Decline in OEM shipments of unitary HVAC systems.
  • Seasonality affects financial results.
  • Competitive conditions within the industry.
  • Potential impacts from economic and regulatory factors.

Revenue & Expenses

Visualization of income flow from segment revenue to net income