Mike Francis

Mike Francis inquired about Watsco's sales performance in January and February of the current year, and asked for assumptions regarding SG&A trends for the upcoming quarters following a 2% reduction in Q4 2025.

Answer

EVP Barry Logan reported that sales for January and February were down in the mid-single-digit range, attributing some softness to severe weather but cautioning against drawing strong inferences for the full season. Regarding SG&A, Barry Logan and President A.J. Nahmad indicated that Q4 reductions provide an opportunity for further efficiency, especially out of season. They noted that growth investments in new branches and technology could be offset by these reductions, with variable expenses tied to volume potentially increasing SG&A if earnings grow.