Watsco, Inc.
NYSE•WSO
CEO: Mr. Albert H. Nahmad
Sector: Industrials
Industry: Industrial - Distribution
Listing Date: 1984-06-07
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
Contact Information
Market Cap
$14.13B
P/E (TTM)
24.0
23.4
Dividend Yield
3.4%
52W High
$535.40
52W Low
$323.05
52W Range
Rank21Top 5.2%
6.4
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Strong • 6.4 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025
Financial Dashboard
Q3 2025 Data
Revenue
$2.07B-4.31%
4-Quarter Trend
EPS
$3.98-6.13%
4-Quarter Trend
FCF
$346.43M+55.37%
4-Quarter Trend
2025 Q3 Earnings Highlights
Key Highlights
Nine Month Revenue Decreased Nine months revenues fell 3.5% to $5.66B USD, driven by a 4% drop in same-store sales compared to the prior year period.
Gross Margin Improved Nine months gross profit margin expanded 140 basis points to 28.3% due to pricing actions and favorable sales mix shifts across product lines.
EPS Declined Moderately Diluted EPS for nine months decreased to $10.48 USD from $10.92 USD, reflecting lower net income attributable to shareholders.
Shareholders Equity Increased Total shareholders' equity grew $237.4M USD to $3.30B USD as of September 30, 2025, showing balance sheet strength.
Risk Factors
HVAC Sales Volume Decline Residential HVAC sales dropped 8% in Q3 2025 due to temperate weather, lower housing activity, and A2L product transition impacts.
Operating Cash Flow Lower Net cash provided by operating activities fell $224.4M USD for nine months, impacting liquidity resources available for operations.
Supplier Concentration Risk Continued monitoring of macroeconomic conditions and potential tariff increases impacting product costs and supply chain stability remains a concern.
Financing Access Volatility Disruptions in credit markets could adversely affect drawing on revolving credit or increase borrowing costs based on SOFR rate volatility.
Outlook
Managing A2L System Transition Actively selling new A2L systems while assessing inventory related to phasing out higher GWP 410A systems by year-end 2025.
Continued Acquisition Strategy Management continually evaluates potential acquisitions and joint ventures, believing financial position supports future financing needs if opportunities arise.
Liquidity Sources Sufficient Operating cash flows, cash on hand, and ATM program funds are expected to meet liquidity needs for the foreseeable future.
Focus on Efficiency Sales Regulatory mandates drive increased sales of higher-efficiency HVAC systems, reducing end-user carbon footprints and increasing average selling prices.
Peer Comparison
Revenue (TTM)
CHRW$16.50B
TXT$14.24B
$8.07B
Gross Margin (Latest Quarter)
53.2%
TRU46.5%
ALLE45.8%
Key Metrics
Symbol | Market Cap | P/E (TTM) | ROE (TTM) | Debt to Assets |
|---|---|---|---|---|
| CHRW | $19.34B | 32.8 | 33.8% | 28.7% |
| WWD | $18.65B | 42.1 | 18.5% | 5.3% |
| ZTO | $17.12B | 13.6 | 14.2% | 0.0% |
Long-Term Trends
Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
5.6%
Steady Growth
4Q Net Income CAGR
25.0%
Profitability Improved
Cash Flow Stability
50%
Cash Flow Needs Attention
Research & Insights
Next earnings:Feb 17, 2026
EPS:$2.03
|Revenue:-
Reports
All Years
Form 10-Q - Q3 2025
Period End: Sep 30, 2025|Filed: Nov 7, 2025|Revenue: $2.07B-4.3%|EPS: $3.98-6.1%MissForm 10-Q - Q2 2025
Period End: Jun 30, 2025|Filed: Aug 8, 2025|Revenue: $2.06B-3.6%|EPS: $4.53+0.7%MissForm 10-Q - Q1 2025
Period End: Mar 31, 2025|Filed: May 9, 2025|Revenue: $1.53B-2.2%|EPS: $1.93-11.1%MissForm 10-K - FY 2024
Period End: Dec 31, 2024|Filed: Feb 28, 2025|Revenue: $7.62B+4.6%|EPS: $13.34-2.4%BeatForm 10-Q - Q3 2024
Period End: Sep 30, 2024|Filed: Nov 1, 2024|Revenue: $2.16B+1.6%|EPS: $4.24-2.8%MissForm 10-Q - Q2 2024
Period End: Jun 30, 2024|Filed: Aug 2, 2024|Revenue: $2.14B+6.8%|EPS: $4.50+1.6%MissForm 10-Q - Q1 2024
Period End: Mar 31, 2024|Filed: May 3, 2024|Revenue: $1.56B+0.9%|EPS: $2.17-23.3%MissForm 10-K - FY 2023
Period End: Dec 31, 2023|Filed: Feb 23, 2024|Revenue: $7.28B+0.1%|EPS: $13.67-11.6%Beat