Watsco, Inc. (NYSE:WSO) Q1 2025 Earnings Conference Call April 23, 2025 10:00 AM ET Company Participants Albert Nahmad - Chairman & Chief Executive Officer Paul Johnston - Executive Vice President Barry Logan - Executive Vice President, Planning & Strategy & Secretary A.J. Nahmad - President Rick Gomez - Vice President Conference Call Participants Stephen Volkmann - Jefferies David Manthey - Baird Jeffrey Sprague - Vertical Research Tommy Moll - Stephens Ryan Merkel - William Blair Brett Linzey - Mizuho Pat ...

Watsco (WSO) reported $1.53 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.2%. EPS of $1.93 for the same period compares to $2.17 a year ago.The reported revenue represents a surprise of -7.62% over the Zacks Consensus Estimate of $1.66 billion. With the consensus EPS estimate being $2.29, the EPS surprise was -15.72%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

Financial Performance - Revenues decreased 2% to $1.53 billion compared to $1.56 billion in the prior year[15] - Net income for Q1 2025 decreased to $94,540 from $104,262 in Q1 2024, representing a decline of approximately 10.5%[30] - Net cash used in operating activities was $(177,644) in Q1 2025, compared to $103,706 in Q1 2024, indicating a significant negative shift[30] Profitability and Margins - Gross profit margin improved by 60 basis points to 28.1% from 27.5% in the previous year[15] Cash Flow and Investments - Operating cash flow was a use of cash totaling $178 million, reflecting inventory investments in new A2L products[12] - Cash flows from investing activities showed a net inflow of $244,556 in Q1 2025, contrasting with a net outflow of $(210,965) in Q1 2024[30] - The company had capital expenditures of $(7,443) in Q1 2025, up from $(5,787) in Q1 2024, indicating increased investment in assets[30] Dividends and Shareholder Returns - Watsco raised its annual dividend by 11% to $12.00 per share effective April 2025[3] - Dividends on Common and Class B Common stock increased to $(109,037) in Q1 2025 from $(96,765) in Q1 2024, reflecting a rise of approximately 12.5%[30] Assets and Equity - Total assets as of March 31, 2025, were $4.45 billion, with shareholders' equity at $3.09 billion[28] - Watsco's strong balance sheet includes $432 million in cash and no outstanding debt[3] Inventory and Working Capital - Accounts receivable increased significantly to $83,864 in Q1 2025 from $(33,502) in Q1 2024, indicating a substantial change in working capital[30] - Inventories net increased to $(389,990) in Q1 2025 from $(307,219) in Q1 2024, showing a rise in inventory levels[30] Market and Sales Growth - Core U.S. market for residential replacement sales increased by 10% (12% on a same-day basis) due to new customer acquisition and improved product mix[6] - Watsco's digital user-community consists of approximately 67,000 contractors and technicians, leading to higher sales growth rates among digital users[4] - The company has acquired 11 companies since 2019, contributing to $1.6 billion in annualized sales[16] Foreign Exchange Impact - The effect of foreign exchange rate changes on cash and cash equivalents resulted in a positive impact of $319 in Q1 2025, compared to a negative impact of $(2,390) in Q1 2024[30] Provisions and Doubtful Accounts - The company reported a provision for doubtful accounts of $840 in Q1 2025, slightly down from $862 in Q1 2024[30] Transition to New Products - The transition to new A2L products affects approximately 55% of Watsco's sales and will convert nearly $1 billion of inventory over the year[5]

MIAMI, April 23, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE:WSO) announced its operating results for the first quarter ended March 31, 2025 and provided commentary on growth opportunities, business trends, its financial position and long-term growth drivers. Watsco is the leading distributor in the HVAC/R marketplace, serving over 375,000 contractors, technicians and installers from 693 locations across the U.S., Canada and Latin America. Since entering distribution in 1989, the Company has scaled to be th ...

Debt-Free Balance Sheet, Industry-Leading Technology and Scale Create Competitive Advantage; Business Trends Improve Ahead of Summer Selling SeasonMIAMI, April 23, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced its operating results for the first quarter ended March 31, 2025 and provided commentary on growth opportunities, business trends, its financial position and long-term growth drivers. Watsco is the leading distributor in the HVAC/R marketplace, serving over 375,000 contractors, technicia ...

MIAMI, April 09, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE:WSO) announced today that it has scheduled a conference call to discuss its 2025 first quarter results on Wednesday, April 23, 2025 at 10:00 a.m. (EDT). Prepared remarks regarding the results will be followed by a question-and-answer session with the senior management team. The conference call will be web-cast by CCBN's StreetEvents and can be found under the link highlighted on our website at www.watsco.com. The earnings results will be released ...

Accordingly, Watsco has the opportunity to be a significant and important contributor toward climate change as it plays an important role to lower CO2e emissions. According to the Department of Energy, HVAC systems account for roughly half of U.S. household energy consumption. As such, replacing older systems at higher efficiency levels is a critical means for homeowners to reduce electricity consumption and their carbon footprint. Based on estimates validated by independent sources, Watsco averted an estim ...

Core Viewpoint - Watsco's shares have decreased by approximately 0.7% since the last earnings report, but have outperformed the S&P 500 index [1] Estimates Movement - Estimates for Watsco have trended upward over the past month [2] VGM Scores - Watsco has a strong Growth Score of A and a Momentum Score of A, but a Value Score of D, placing it in the bottom 40% for value investment strategy. The overall aggregate VGM Score is B [3] Outlook - The upward trend in estimates is promising, and Watsco holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - Watsco is part of the Zacks Building Products - Air Conditioner and Heating industry. Carrier Global, a competitor in the same industry, reported revenues of $5.15 billion for the last quarter, reflecting a year-over-year increase of 0.9% [5] - Carrier Global is expected to report earnings of $0.57 per share for the current quarter, which represents an 8.1% decrease from the previous year. The Zacks Consensus Estimate for Carrier has increased by 1.6% over the last 30 days [6]

Watsco, Inc. (WSO) is benefiting from strong residential demand and higher commercial equipment sales. The company’s growth is supported by consistent investments in technology and strategic acquisitions. Its e-commerce and digital sales platform is also contributing to performance. However, increased costs and expenses are a concern.Shares of Watsco have risen 5.5% in the past three months against the Zacks Building Products - Air Conditioner and Heating industry’s 7.7% decline. WSO also fared better than ...

MIAMI, March 11, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced its participation in the upcoming J.P. Morgan 2025 Industrials Conference. Barry Logan, Executive Vice President, and Rick Gomez, Vice President, will participate in a fireside chat at the event on Wednesday, March 12, 2025 at 8:15 a.m. (EDT). A live webcast of the event will be available in the Investor Relations section of Watsco’s website at https://investors.watsco.com/events. About Watsco Watsco is the largest distributo ...