earnings
confidence high
sentiment positive
materiality 0.90
Watsco Reports Q2 2025 Results: Record Gross Margins and Operating Margin Expansion Despite Revenue Decline
WATSCO INC
2025-Q2 EPS reported
$6.50
revenue$3,593,528,000
- Revenue decreased 4% to $2.06 billion, but gross profit rose 4% to a record $603 million with 220 bps margin expansion to 29.3%.
- EPS was $4.52 vs $4.49 prior year; operating income up 1% to $272 million; operating margin expanded 60 bps to 13.2%.
- A2L product transition drove double-digit pricing, offset by lower unit volumes; new A2L equipment sales mix reached 60% in Q2.
- Watsco raised annual dividend 11% to $12.00 per share in April 2025, marking 51st consecutive year of dividends.
- Company had $293M cash, no debt, $3B equity; invested over $250M in technology in last five years; 70,000+ users on HVAC Pro+ Mobile Apps.