Watsco Q1 revenue down 2% to $1.53B, EPS $1.93 vs $2.17; core U.S. replacement sales up 10%

WATSCO INC

2025-Q1 EPS reported $1.93 revenue$1,531,086,000

Gross profit flat at $430M; margin improved 60 bps to 28.1%; operating income $112M (7.3% margin).
A2L refrigerant transition affects ~55% of sales; nearly $1B inventory conversion underway in 2025.
Dividend raised 11% to $12.00 per share; 51st consecutive year; cash $432M, no debt.
Operating cash flow use of $178M reflecting A2L inventory build and vendor payment timing.
Two new acquisitions in 2025; long-term strategy targets fragmented $74B HVAC/R distribution market.

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