Watsco Q4 Revenue Drops 10%, EPS Misses by 11%
Watsco reported Q4 revenue of $1.58 billion, a 10% year-on-year decline that missed estimates by 1.9%, and GAAP EPS of $1.68, 11% below consensus. For fiscal 2025, the company posted $497 million in profit, or $12.25 per share, on $7.24 billion in revenue.
1. Q4 Financial Performance
Watsco delivered Q4 revenue of $1.58 billion, down 10% year-on-year and missing street estimates by 1.9%. GAAP EPS of $1.68 fell 11% below consensus, while adjusted EBITDA reached $121.3 million and operating margin narrowed to 6.4% from 7.8%.
2. Full-Year 2025 Results
For fiscal 2025, the company earned $497 million in net profit, or $12.25 per share, on $7.24 billion in revenue, reflecting a slowdown from prior year growth as annual sales leveled off.
3. Market Reaction and Outlook
The stock dipped 1.9% to $410.00 following the release, and analysts forecast 3.8% revenue growth and 8.1% EPS growth for the next 12 months, indicating cautious optimism despite recent misses.