Watsco Reports Record Q3 Gross Profit, Margin, and Cash Flow Amidst Challenging Market Conditions

Watsco, the largest distributor in the North American HVAC market, reported record Q3 gross profit, gross margin, and operating cash flow despite challenging market conditions. The company's revenue declined 4% due to significant regulatory transitions to new HVAC systems incorporating A2L refrigerants. However, Watsco's operating profit remained flat over the past 12 months, and operating margins improved 10 basis points. The company's investments in training, technology, and logistics to effect the transition are expected to improve operating efficiency moving forward.