Financial Performance - Revenues decreased 2% to 1.53billioncomparedto1.56 billion in the prior year[15] - Net income for Q1 2025 decreased to 94,540from104,262 in Q1 2024, representing a decline of approximately 9%[30] - Dividends on Common and Class B Common stock increased to (109,037)inQ12025from(96,765) in Q1 2024, reflecting a rise of approximately 12.5%[30] Profitability and Margins - Gross profit margin improved by 60 basis points to 28.1% from 27.5% in the previous year[15] Market and Sales Growth - Core U.S. market for residential replacement sales increased by 10% (12% on a same-day basis) due to new customer acquisition and improved product mix[6] - The transition to new A2L products affects approximately 55% of Watsco's sales and will convert nearly 1billionofinventoryovertheyear[5]−Thecompanyhasacquired11companiessince2019,contributingto1.6 billion in annualized sales[16] Cash Flow and Investments - Operating cash flow was a use of cash totaling 178million,reflectinginventoryinvestmentsinnewproducts[12]−Cashflowsfrominvestingactivitiesshowedanetinflowof244,556 in Q1 2025, contrasting with a net outflow of (210,965)inQ12024[30]−Capitalexpendituresnetted(7,443) in Q1 2025, compared to (5,787)inQ12024,indicatingincreasedinvestmentincapitalassets[30]BalanceSheetandLiquidity−Thecompanyhasadebt−freebalancesheetwith432 million in cash and 3billioninshareholders′equity[3]−CashandcashequivalentsattheendofQ12025were431,823, up from 278,864attheendofQ12024,markinganincreaseofabout5583,864 in Q1 2025 from (33,502)inQ12024,indicatingasubstantialchangeinworkingcapital[30]−Inventoriesnetted(389,990) in Q1 2025, compared to (307,219)inQ12024,showinganincreaseininventorylevels[30]TechnologyandUserEngagement−Watsco′stechnologyplatformshaveresultedinapproximately60319 in Q1 2025, compared to a negative adjustment of (2,390)inQ12024[30]ProvisionforDoubtfulAccounts−Thecompanyreportedaprovisionfordoubtfulaccountsof840 in Q1 2025, slightly down from $862 in Q1 2024[30]
