Filing Flows › Watsco (WSO) › Q1 2025
Watsco (WSO) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Watsco (WSO) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), -2% from a year earlier and -13% from the quarter before. Operating margin was 7.3%, net earnings $80.1M (5.2% of revenue).
Watsco, Q1 2025: revenue $1.5B (-2% year over year), operating margin 7.3%, net earnings $80.1M, operating cash flow −$178M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | -13% | -2% |
| Gross profit | $430M | -8% | -0.2% |
| Operating profit | $112M | -18% | -11% |
| Net earnings | $80.1M | -17% | -8% |
| Operating cash flow | −$178M | — | — |
What changed
Revenue was $1.5B in Q1 2025, down 2% year over year and down 13% from the previous quarter.
Gross margin was 28.1%, up 0.5 points from a year earlier. Operating profit was $0.11B, a 7.3% margin (down 0.8 points year over year). Operating expenses grew 4% against a revenue fall of 2%. Net earnings were $0.08B, down 8% year over year. The effective tax rate was 19.6%.
Operating cash flow was −$0.18B. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.29B. Capital expenditures of $0.01B exceeded it, leaving free cash flow of −$0.19B.
Questions
What was Watsco's revenue in the first quarter 2025?
Watsco (WSO) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), -2% from a year earlier and -13% from the quarter before.
Was Watsco profitable in the first quarter 2025?
Operating profit was $112M (7.3% of revenue) and net earnings $80.1M.
Source: Watsco 10-Q on SEC EDGAR.