The following is a summary of the Watsco, Inc. (WSO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Watsco delivered record sales this quarter, showing strength in both residential and commercial markets.
Operating efficiency improved, reflected by lower SG&A as a percentage of sales.
Strong cash flow was generated and the company maintains a pristine balance sheet to support growth.
Business Progress:
Annualized e-commerce sales exceeded $2.5 billion with active users growing faster than non-users.
OnCall Air platform presented quotes to approximately 160,000 households, generating significant sales.
New low GWP A2L systems are being actively introduced, aligning with federal regulatory changes and tech enhancements.
Opportunities:
Increased adoption of company platforms by contractors led to market share gains.
Federal regulatory changes providing opportunities for growth, specifically through energy efficiency mandates and the shift towards electrification, are driving sales of high-efficiency systems like heat pumps.
Risks:
The gross margin was down 100 basis points year-on-year, partly due to the timing of price increases with OEMs.
More details: Watsco IR
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