Earnings summaries and quarterly performance for WATSCO.
Executive leadership at WATSCO.
Board of directors at WATSCO.
Research analysts who have asked questions during WATSCO earnings calls.
David Manthey
Robert W. Baird & Co. Incorporated
6 questions for WSO
Also covers: AIT, BECN, BLDR +13 more
RM
Ryan Merkel
William Blair & Company
6 questions for WSO
Also covers: AAON, AYI, AZEK +15 more
Christopher Snyder
Morgan Stanley
4 questions for WSO
Also covers: ALH, ALLE, AME +20 more
Jeffrey Hammond
KeyBanc Capital Markets
4 questions for WSO
Also covers: AOS, ETN, GGG +18 more
JS
Jeffrey Sprague
Vertical Research Partners
4 questions for WSO
Also covers: ALLE, AME, AYI +23 more
NC
Nigel Coe
Wolfe Research, LLC
4 questions for WSO
Also covers: AME, CARR, CNM +27 more
BL
Brett Linzey
Mizuho Securities
3 questions for WSO
Also covers: AIRO, AIT, ALLE +15 more
CS
C. Stephen Tusa
JPMorgan Chase & Co.
3 questions for WSO
Also covers: ADSK, ANSS, APG +17 more
PB
Patrick Baumann
JPMorgan Chase & Co.
3 questions for WSO
Also covers: ATS, CNM, FAST +5 more
Thomas Moll
Stephens Inc.
3 questions for WSO
Also covers: CARR, CGNX, DGII +13 more
Tommy Moll
Stephens Inc.
3 questions for WSO
Also covers: CGNX, DGII, DSGR +9 more
DK
Damian Karas
UBS
2 questions for WSO
Also covers: ALH, AOS, CGNX +14 more
Mitch Moore
KeyBanc Capital Markets Inc.
2 questions for WSO
Also covers: HI, NDSN, RRX
ST
Steve Toussaint
JPMorgan Chase & Co.
2 questions for WSO
Christopher Dankert
Loop Capital Markets
1 question for WSO
Also covers: AIT, ATKR, BDC +10 more
Samuel Snyder
Northcoast Research
1 question for WSO
Also covers: AOS, EME, FIX
SV
Stephen Volkmann
Jefferies
1 question for WSO
Also covers: AGCO, CARR, CAT +20 more
Recent press releases and 8-K filings for WSO.
Watsco Outlines Strategic Growth Initiatives and Financial Targets
WSO
New Projects/Investments
Revenue Acceleration/Inflection
M&A
- Watsco has introduced new strategic goals, referred to as "dream plan two," targeting $10 billion in sales, 30% gross margins, and five inventory turns.
- The company has transformed into a technology-driven business, with digital adoption currently contributing an estimated $750 million in sales benefit and e-commerce generating $200 million in sales and $70 million in annual margin contribution.
- Currently, 30% of Watsco's customers utilize its technology, with a substantial 70% runway for further adoption and engagement.
- Strategic initiatives focus on collaboration across business units, including "buying together, supply chaining together, and selling together" through programs like VCR, Hydros, and SupplySync, aimed at leveraging scale and improving efficiency and margins.
- Watsco maintains a pristine balance sheet with no debt and $7,800 million in cash, indicating a strong position for future internal and inorganic investments.
Dec 11, 2025, 2:00 PM
Watsco Unveils '10, 30, and 5' Growth Plan and Technology Focus
WSO
New Projects/Investments
Revenue Acceleration/Inflection
Guidance Update
- Watsco has established a new strategic "10, 30, and 5" goal, aiming for $10 billion in sales, 30% gross margins (up from current 27%), and 5 inventory turns.
- The company is leveraging technology, including a data-driven approach, AI, and platforms like Enclair and SupplySync.com, to drive growth, improve efficiency, and enhance customer engagement, with 30% of customers currently using their technology.
- Watsco identifies its parts and supplies business, which accounts for 30% of its total business and $1.6 billion in 2025 purchases, as a key margin-accretive growth opportunity, with plans to increase its share and optimize the supply chain.
- The company maintains a pristine balance sheet with no debt and $7,800 million in cash, positioning it for significant internal and inorganic investments.
Dec 11, 2025, 2:00 PM
Watsco Inc. Outlines "10, 30, and 5" Growth Plan and Digital Transformation Strategy
WSO
New Projects/Investments
Revenue Acceleration/Inflection
Guidance Update
- Watsco Inc. unveiled its "10, 30, and 5" growth plan, aiming for $10 billion in sales, 30% gross margins, and five inventory turns, building on current sales of approximately $7.5 billion and gross margins around 27%.
- The company highlighted its extensive 15-year digital transformation, centralizing data from 16 ERPs into a common data model and mastering product, customer, and supplier information to become a data-driven business.
- Watsco is leveraging its data for AI initiatives, including an internal AI chatbot ("ask.watsco") and a digital HVAC expert ("Al"), positioning itself at the forefront of AI adoption in its industry.
- Current digital adoption by customers stands at 30%, with these tech-engaged customers growing faster and exhibiting lower attrition, contributing an estimated $750 million in sales benefit and $200 million in e-commerce sales annually.
- To achieve its ambitious goals, Watsco plans to enhance collaboration across its business units through "buy together, supply chain together, and sell together" initiatives, including vendor consolidation and rationalization.
Dec 11, 2025, 2:00 PM
Watsco Inc. Reports Q3 2025 Earnings with Sales Decline and Margin Expansion
WSO
Earnings
Demand Weakening
New Projects/Investments
- Watsco Inc. reported a 4% total sales decline and 3% U.S. sales decline in Q3 2025, despite achieving double-digit pricing gains on new products.
- Gross margins expanded 130 basis points to 27.5% in Q3 2025, driven by growth in higher-margin non-equipment products, carryover OEM pricing, and pricing optimization tools.
- The company generated record third quarter cash flow of $355 million and maintains a strong balance sheet with no debt and $600 million in cash.
- Watsco is making significant progress in inventory reduction, targeting $500 million by year-end, with $350 million achieved in Q3 2025.
- E-commerce penetration reached 34% of sales, and the OnCall Air digital selling platform saw its annual run rate of sales increase by 19% to $1.7 billion over the last 12 months.
Oct 29, 2025, 2:00 PM
Watsco Inc. Reports Q3 2025 Results Amidst Market Transition
WSO
Earnings
Guidance Update
Demand Weakening
- Watsco Inc. reported a 4% decline in total sales and a 3% decline in U.S. sales for Q3 2025, while achieving a 130 basis point expansion in gross margins to 27.5% and generating record third-quarter cash flow of $355 million.
- The company noted that the transition to A2L refrigerants in 2025 is substantially complete, and they anticipate volatility to ease in 2026.
- For October 2025, Watsco observed an overall revenue decline in the 5% to 10% range.
- Watsco is focused on improving inventory turns (currently 3.6-3.7) and expects to reduce inventories by $500 million by year-end, with $350 million already achieved in Q3.
- The company maintains a strong balance sheet with no debt and a healthy cash position, providing opportunities for M&A and co-investment with OEM partners. They are also investing in technology, with e-commerce accounting for 34% of sales.
Oct 29, 2025, 2:00 PM
Watsco Reports Q3 2025 Results Amidst Market Transition
WSO
Earnings
Demand Weakening
New Projects/Investments
- Watsco Inc. reported a 4% decline in total sales and a 3% decline in U.S. sales for Q3 2025, experiencing subdued unit volumes despite achieving double-digit pricing gains on new products.
- Despite a challenging market environment and a significant product transition, the company generated record third-quarter cash flow of $355 million and expanded gross margins by 130 basis points to 27.5%.
- The company is focused on improving inventory management, targeting $500 million in reductions by year-end and aiming to increase inventory turns from the current 3.6-3.7 to enhance cash flow.
- Technology initiatives are driving growth, with e-commerce penetration reaching 34% of sales and the OnCall Air digital selling platform processing $1.7 billion in gross merchandise value over the past 12 months.
- Watsco maintains a strong balance sheet with no debt and a $600 million cash position, providing significant capacity for future growth investments and potential M&A.
Oct 29, 2025, 2:00 PM
Watsco Reports Third Quarter and Nine-Month 2025 Operating Results
WSO
Earnings
New Projects/Investments
Demand Weakening
- Watsco reported Q3 2025 revenues of $2.07 billion, a 4% decrease year-over-year, and diluted earnings per share of $3.98. For the nine-month period, revenues decreased 3% to $5.66 billion, and diluted EPS was $10.48.
- Despite challenging market conditions and a significant regulatory transition to A2L refrigerants, the company achieved a record Q3 gross profit margin of 27.5% and a record nine-month gross profit margin of 28.3%.
- Operating cash flow for Q3 2025 was a record $355 million, contributing to $170 million for the nine-month period ended September 30, 2025.
- Watsco continues to invest in technology, with e-commerce sales reaching approximately $2.5 billion (34% of overall sales) and the HVAC Pro+ Mobile Apps user community growing 18% to over 72,000 users over the last 12 months. The company also maintains a strong financial position with over $640 million in cash and investments and no debt.
Oct 29, 2025, 11:30 AM
Watsco Discusses HVAC Market Headwinds and Inventory Management
WSO
Demand Weakening
Guidance Update
Dividends
- The HVAC market is experiencing significant headwinds, with Watsco reporting unit volumes down 12% year-to-date as of September, and revenue remaining flattish. A major factor in this decline is a 60% reduction in new construction activity and a general decrease in consumer spending on home improvements.
- Watsco successfully sold off most of its accumulated 410A inventory, which started the year at approximately $1 billion, with only about $100 million left. The company is actively working to reduce overall inventory levels by year-end.
- Despite market challenges, Watsco's earnings were up slightly in Q2 and are anticipated to show a similar trend in Q3. The company's dividend policy is robust, driven by strong cash flow rather than EPS, and Watsco currently operates with no debt.
Sep 11, 2025, 11:50 PM
Watsco Discusses Market Conditions and Inventory Management at Morgan Stanley Conference
WSO
Demand Weakening
Dividends
- Watsco reported a 12% year-to-date decline in unit sales through July, a trend that remained consistent into September, with revenue dollars being flattish. This decline is largely attributed to reduced new construction activity and decreased consumer spending on home improvements.
- The company has significantly reduced its 410A inventory, from approximately $1 billion at the start of the year to about $100 million remaining, with 90% of the inventory reduction expected to be completed by year-end.
- Watsco's dividend policy is primarily driven by cash flow rather than EPS, supported by a 50-year history of dividend payments, a 10-11% compounded growth rate over the last 15 years, and a debt-free balance sheet.
Sep 11, 2025, 11:50 PM
Watsco Discusses Market Dynamics, Inventory, and Financial Strategy at Laguna Conference
WSO
Demand Weakening
Dividends
New Projects/Investments
- Watsco reported a 12% year-to-date decline in units as of Q2, a trend that persisted through September, with revenue remaining "flattish". This unit decline is primarily driven by a 60% impact from new construction and multifamily housing, alongside reduced consumer spending on homes.
- The company has largely sold off its initial $1 billion 410A inventory, with approximately $100 million remaining, and is actively working to reduce overall inventory levels by year-end.
- Watsco maintains strong pricing, with new product prices up around 12%, and protected margins. The company has no debt and a 50-year history of dividend payments, which are primarily cash flow-driven, allowing for potential increases even in a lower earnings environment.
Sep 11, 2025, 11:50 PM
Quarterly earnings call transcripts for WATSCO.
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