SPX5,771.62+4.05 0.07%
DIA425.55+0.06 0.02%
IXIC18,242.72+54.13 0.30%

I'm happy to help! However, I don't see any article text provided. The text you provided appears to be the table of contents for a 10-K financial report, which is a lengthy document that publicly traded companies are required to file with the Securities and Exchange Commission (SEC). If you could provide the actual article text, I'd be happy to help you generate a title for the article.

Press release·02/28/2025 22:04:04
Listen to the news
I'm happy to help! However, I don't see any article text provided. The text you provided appears to be the table of contents for a 10-K financial report, which is a lengthy document that publicly traded companies are required to file with the Securities and Exchange Commission (SEC). If you could provide the actual article text, I'd be happy to help you generate a title for the article.

I'm happy to help! However, I don't see any article text provided. The text you provided appears to be the table of contents for a 10-K financial report, which is a lengthy document that publicly traded companies are required to file with the Securities and Exchange Commission (SEC). If you could provide the actual article text, I'd be happy to help you generate a title for the article.

I apologize, but it seems that you haven’t provided the financial report (10-K) for me to summarize. Please share the report, and I’ll be happy to assist you in summarizing it in a single paragraph, focusing on key financial figures, main events, and significant developments.

Watsco, Inc. Financial Performance Overview

Revenues

  • Watsco’s revenues increased by 5% in 2024 compared to 2023, reaching $7.62 billion.
  • The increase was driven by $147.9 million from acquired locations and $13.0 million from new locations opened, partially offset by a $11.6 million decrease from closed locations.
  • On a same-store basis, revenues increased 3% in 2024.
  • HVAC equipment sales, which make up 70% of total sales, increased 5% driven by a 5% increase in residential products and a 7% increase in commercial HVAC equipment.

Gross Profit

  • Gross profit increased 3% to $2.04 billion in 2024.
  • Gross margin declined 60 basis points to 26.8% primarily due to sales mix, less beneficial pricing actions from HVAC equipment suppliers, and lower sales margins related to supply chain disruptions for one of Watsco’s OEM partners.

Selling, General & Administrative (SG&A) Expenses

  • SG&A expenses increased 6% to $1.29 billion in 2024.
  • As a percentage of revenues, SG&A increased to 17.0% from 16.8% in 2023, primarily due to higher salaries, commissions, and facility/healthcare costs.

Operating Income

  • Operating income decreased 2% to $781.8 million in 2024.
  • Operating margin declined to 10.3% from 10.9% in 2023 on a same-store basis.

Net Income Attributable to Watsco, Inc.

  • Net income attributable to Watsco, Inc. remained flat at $536.3 million in 2024 as higher gross profit and interest income were offset by higher SG&A expenses and income taxes.

Liquidity and Capital Resources

  • Watsco had $526.3 million in cash and cash equivalents and $255.7 million in short-term investments as of December 31, 2024.
  • The company has a $600 million revolving credit facility, of which there was no outstanding balance at the end of 2024.
  • Watsco generated $773.1 million in cash flow from operations in 2024, up from $562.0 million in 2023.
  • The company paid $10.55 per share in dividends in 2024 and increased the annual dividend to $12.00 per share effective April 2025.

Overall, Watsco delivered solid financial performance in 2024 with revenue growth, though profitability was impacted by margin pressures. The company maintains a strong liquidity position to fund operations, investments, and shareholder returns.