Watsco, Inc. (WSO) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, good day, and welcome to the WESCO Incorporated Third Quarter Conference Call. All participants will be in listen-only mode. Should you need assistance, 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 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Albert Named, Chairman and CEO. Please go ahead. Good morning, everyone. Welcome to our third quarter earnings call. And this is Al Namit, Chairman and CEO. And with me is AJ, President of Watsco, Paul Johnston, Barry Logan, and Rick Gomez. Before we start our normal cautionary statement, this conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws. Ultimate results may differ materially in the forward-looking statement. I am pleased to report that Watson generated healthy earnings and record cash flow despite a very challenging market environment. As we all know, 2025, a year of significant transition to next-generation equipment containing A2L refrigerants. The transition affected roughly 55% of products sold and influence most every aspect of our business. Regulatory changes have historically been good for our business and good for our customers. In the long term, we expect this transition to be no different. The transition is substantially complete, and we look forward to operating a far simpler business in 2026. Throughout all of the volatility, we are satisfied that our earnings are largely intact Our balance sheet remains strong and our t...