Watsco, Inc. (WSO) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day, and welcome to the Wattsco second quarter of 2025 earnings conference call. All participants will be in a listen-only mode for the duration of the call. And should you need any assistance today, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. And to withdraw a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Albert Namit, CEO and Chairman. Please go ahead. Good morning, everyone. Welcome to our second quarter earnings call. This is Al Namit, Chairman and CEO, and with me is A.J. Namit, President, Paul Johnston, Barry Logan, and Rick Gomez. Before we start our normal cautionary statement, this conference call has four looking statements as defined by SEC laws and regulations and are made pursuant to the safe harbor provisions of these various laws. Ultimate results may differ materially from the affordability statements. Wattsco delivered healthy second quarter results in a soft market conditions. I should say in soft market conditions. 2025 marks a year of significant product transition to next generation equipment. containing A2L refrigerants. The transition affects roughly 55% of our historical product sales. This transition affects our inventories, our supply chain, staffing levels in our branches, and other aspects of our business. Regulatory changes have historically been good for our business and good for our customers. We expect that transition to be no different than has happened in the past. The changes are substantial and complete, and we'll look forward to operations of simple...