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Dec 31, 2024
Watsco Q4 2024 Earnings Report
Watsco reported record fourth-quarter sales, expanded margins, and strong cash flow.
Key Takeaways
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.
Record Q4 revenue of $1.75 billion (+9% YoY).
Net income grew 17% to $96.84 million.
Operating margin expanded by 110 basis points to 7.8%.
Strong cash position with $526.27 million in cash and equivalents.
Watsco
Watsco
Watsco Revenue by Segment
Revenue by Segment
HVAC Equipment Revenue
CapyFin.comOther HVAC Products Revenue
CapyFin.comCommercial Refrigeration Products Revenue
CapyFin.com Forward Guidance
Watsco expects continued revenue growth driven by digital adoption, HVAC equipment demand, and margin expansion.
Positive Outlook
- Strong demand for A2L HVAC products.
- Continued investment in digital platforms to drive market share.
- Debt-free balance sheet allows for strategic investments.
- Dividend increased by 11% to $12.00 per share.
- Resilient commercial equipment sales growth.
Challenges Ahead
- Seasonality impacts Q1 and Q4 results.
- Macroeconomic uncertainty may impact future demand.
- Supply chain constraints could affect inventory availability.
- Rising operating expenses may impact margins.
- Potential market saturation in key regions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income