Watsco Inc

Latest Results (21.09.2025):

Watsco Inc. reported its financial results for the first quarter of 2025, demonstrating resilience amidst a transitioning product landscape and maintaining a strong balance sheet. Despite a slight decline in revenues, the company achieved improved gross margins and continued its commitment to shareholder returns with an increased dividend.

Revenue and Profitability

For Q1 2025, Watsco Inc. reported revenues of $1.53 billion, marking a 2% decrease compared to the previous year. Gross profit remained steady at $430 million, while the gross profit margin saw an improvement of 60 basis points, reaching 28.1%. Operating income was $112 million, resulting in an operating margin of 7.3%.

Earnings Per Share

The company's earnings per share declined to $1.93 from $2.17 in the prior year, reflecting the overall revenue decrease and the impact of ongoing product transitions.

Sales Performance

Watsco's core U.S. residential replacement sales increased by 10%, driven by new customer acquisition, unit growth, price increases, and a favorable product mix of higher-efficiency systems. Conversely, international sales declined by 9%, influenced by lower volumes in new housing markets and the phased transition to A2L refrigerants.

Financial Position

As of March 31, 2025, Watsco Inc. maintained a robust financial position with $432 million in cash, no outstanding debt, and $3 billion in shareholders’ equity. The company also announced an 11% increase in its annual dividend to $12.00 per share, continuing its 51st consecutive year of dividend payments.

Strategic Investments and Growth

Watsco continues to invest in industry-leading technologies and its digital platform, enhancing customer engagement and operational efficiency. The company is well-positioned to navigate the ongoing transition to A2L refrigerants and is actively pursuing growth opportunities through strategic acquisitions.