Watsco, Inc. announced its third quarter 2024 financial results, reporting record sales of $2.16 billion, a 1.6% increase compared to the third quarter of 2023. Net income for the quarter was $171 million, with diluted earnings per share of $4.22. The company noted that unit sales of residential HVAC equipment stabilized during the combined second and third quarters of 2024.
The company's operating cash flow reached a record $394 million for the nine-month period ending September 30, 2024, representing a 50% increase. Watsco maintained a strong financial position with $550 million in cash and short-term investments and no borrowings under its $600 million revolving credit facility. This financial strength positions the company for continued investment in growth opportunities.
Watsco highlighted strengthening business trends in October 2024, with meaningful unit growth and an overall mid-single digit sales growth rate. The company is also making progress in regaining sales and market share following product and supply chain disruptions from one of its primary OEMs in 2023. Management anticipates the upcoming A2L regulatory transition in 2025 will influence approximately 60% of its sales, presenting opportunities for customers to upgrade to more energy-efficient and environmentally-friendly systems.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.