Filing Flows › Watsco (WSO) › Q4 2025
Watsco (WSO) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 27, 2026
Watsco (WSO) reported revenue of $1.6B for the fourth quarter 2025 (Q4 2025), -10% from a year earlier and -24% from the quarter before. Operating margin was 6.4%, net earnings $71.7M (4.5% of revenue).
Watsco, Q4 2025: revenue $1.6B (-10% year over year), operating margin 6.4%, net earnings $71.7M, operating cash flow $400M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.6B | -24% | -10% |
| Gross profit | $428M | -25% | -8% |
| Operating profit | $102M | -57% | -25% |
| Net earnings | $71.7M | -56% | -26% |
| Operating cash flow | $400M | +13% | +6% |
| Free cash flow | $388M | +12% | +5% |
What changed
Revenue was $1.6B in Q4 2025, down 10% year over year and down 24% from the previous quarter.
Gross margin was 27.1%, up 0.5 points from a year earlier. Operating profit was $0.10B, a 6.4% margin (down 1.3 points year over year). Operating expenses fell 2% while revenue fell 10%. Net earnings were $0.07B, down 26% year over year. The effective tax rate was 18.9%.
Operating cash flow was $0.40B (up 6% year over year), 459% of net income including minority interests. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items added $0.29B. Capital expenditures of $0.01B left free cash flow of $0.39B.
Questions
What was Watsco's revenue in the fourth quarter 2025?
Watsco (WSO) reported revenue of $1.6B for the fourth quarter 2025 (Q4 2025), -10% from a year earlier and -24% from the quarter before.
Was Watsco profitable in the fourth quarter 2025?
Operating profit was $102M (6.4% of revenue) and net earnings $71.7M.
Source: Watsco 10-K on SEC EDGAR.