Watsco Reports Record Third Quarter Sales, Strong Cash Flow and Improving Demand
Watsco posted record Q3 revenue of $2.22 billion, up 7% year-over-year (4% same-store), with residential HVAC equipment sales up 7% on 5% unit growth as end-market demand stabilizes. Profitability slipped: gross margin fell to 26.4% from 27.5% and diluted EPS declined 5% to $3.77, pressured by customer and end-market mix, smaller OEM price increases, and acquired-location integration. The newly closed Jackson Supply and Granite Group acquisitions add roughly $730 million in annualized revenue and 107 locations, while nine-month operating cash flow jumped 79% to $304 million.
Key figures
- Eps
- 3.77
- Revenue
- 2220358000
- Revenue Yoy
- 7%
- Eps yoy
- -5%
- Ocf yoy
- 79%
- Gross margin
- 26.4%
- Gross profit
- 586287000
- Nine month eps
- 9.72
- Oncallair gmv 9m
- 1600000000
- Operating income
- 225208000
- Operating margin
- 10.1%
- Nine month revenue
- 5858227000
- Ecommerce sales 12m
- 2750000000
- Gross margin prior year
- 27.5%
- Annual dividend per share
- 13.2
- Same store revenue growth
- 4%
- Acquired annualized revenue
- 730000000
- Nine month operating cash flow
- 303659000
AI analysis
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.