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AI brief of an SEC Form 8-K · Watsco (WSO)

Watsco Q3 revenue falls 4% to $2.07 billion; EPS $3.98 vs $4.22 a year earlier

Negative Impact 3 of 5 earnings Written later

Watsco reported third-quarter 2025 revenue of $2.07 billion, down 4%, and diluted earnings per share of $3.98 versus $4.22 a year earlier. The company attributed the decline to a regulatory transition to new HVAC systems with A2L refrigerants, which it says is expected to conclude in early 2026, along with weaker consumer spending and slower housing activity.

Key points

  • Q3 operating income fell 6% to $235 million; gross profit was flat at $569 million while gross margin rose 130 basis points to 27.5%
  • Nine-month revenue decreased 3% to $5.66 billion and diluted EPS decreased 4% to $10.48
  • Inventory was reduced to $1.6 billion at September 30, 2025, down $351 million in the quarter from the peak; Q3 operating cash flow was $355 million
  • Watsco plans to hold an investor day on December 11, 2025

The filing

CompanyWatsco (WSO)
Form8-K, current report
Filed with the SECOct 29, 2025, 7:30 AM ET
Accession number0001193125-25-254667

Items reported: 2.02 Results of Operations7.01 Regulation FD Disclosure

Read the filing on SEC.gov ↗

Written by AI on Nov 8, 2026, 1:12 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on October 29, 2025.

Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.