Core Insights - Watsco, Inc. reported strong operating results for Q2 2025, with record gross profit margins and expanded operating margins amid the transition to A2L products [1][4][7] - The company maintains a robust financial position, with significant cash reserves and no debt, allowing for continued investments in growth and technology [3][14] - The ongoing regulatory transition to next-generation HVAC equipment incorporating A2L refrigerants is expected to impact sales and inventory management [4][6] Financial Performance - Q2 revenues decreased by 4% to $2.06 billion, while gross profit increased by 4% to a record $603 million, resulting in a gross profit margin of 29.3%, up 220 basis points [8][23] - Operating income rose by 1% to $272 million, with an operating margin of 13.2%, reflecting a 60 basis point increase [8][23] - For the first half of 2025, revenues decreased by 3% to $3.59 billion, with gross profit increasing by 2% to $1.03 billion and a gross profit margin of 28.7%, up 140 basis points [11][23] Market Trends and Innovations - The transition to A2L refrigerants is driving double-digit pricing realization, although unit volumes have been affected by weather conditions and lower homebuilding activity [6][9] - Watsco has invested over $250 million in technology over the past five years, enhancing its digital ecosystem and customer experience [11][12] - The company's HVAC Pro+ Mobile Apps and e-commerce platform have significantly improved customer engagement, with e-commerce sales reaching approximately $2.5 billion, accounting for 34% of total sales [11][12] Strategic Initiatives - Watsco's "buy and build" acquisition strategy has led to the acquisition of 12 companies since 2019, contributing approximately $1.6 billion in annualized sales [13] - The company is leveraging AI-driven initiatives to enhance customer experience and operational efficiencies, with tools like "Ask.Watsco" and "AL.watsco" [15][12] - Watsco plans to target institutional customers through Project "WatscoOne," aiming to provide comprehensive solutions across multiple markets and product categories [15]

MIAMI, July 18, 2025 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it will host its second quarter 2025 conference call on Wednesday, July 30, 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 on our website at www.watsco.com. The earnings results will be released before the market opens on July 30, 2 ...

Core Points - Watsco, Inc. has declared a quarterly cash dividend of $3.00 per share, marking the 200th consecutive quarter of dividend payments [1][2] - The company has a history of paying dividends for 51 consecutive years, reflecting its commitment to sharing cash flow while maintaining a conservative balance sheet [2] - Watsco focuses on the replacement market for HVAC/R products, which is growing due to aging systems and the need for energy-efficient models [4] Company Overview - Watsco is the largest distributor of heating, air conditioning, and refrigeration products in the U.S., Canada, Mexico, and Puerto Rico, with exports to Latin America and the Caribbean [3] - The company plays a significant role in addressing climate change by promoting the replacement of older HVAC systems with higher efficiency models [5] Market Opportunity - There are approximately 102 million HVAC systems in the U.S. that are over 10 years old, many of which operate below current efficiency standards, presenting a substantial market opportunity for Watsco [4] - From January 1, 2020, to March 31, 2025, Watsco is estimated to have averted 23.7 million metric tons of CO2e emissions through the sale of higher-efficiency HVAC systems, equivalent to removing 5.5 million gas-powered vehicles from the road annually [6]