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Watsco, Inc.

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
2665 South Bayshore Drive, Suite 901, Miami, FL, 33133, United States
305-714-4100
www.watsco.com
Market Cap
$14.64B
P/E (TTM)
24.9
26
Dividend Yield
3.2%
52W High
$571.42
52W Low
$350.00
52W Range
5%
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: 2015-2024

Financial Dashboard

Q3 2025 Data

Revenue

$2.07B-4.31%
4-Quarter Trend

EPS

$3.98-6.13%
4-Quarter Trend

FCF

$354.94M+59.19%
4-Quarter Trend

2025 Q2 Earnings Highlights

Key Highlights

Gross Margin Expansion Gross margin improved 140 basis-points for six months ended June 30, 2025, reaching 28.7% versus 27.3% prior year.
Quarterly Net Income Growth Net income attributable to Watsco, Inc. for the quarter grew 1% to $183.613M compared to $181.410M last year.
Strong Investing Cash Flow Investing activities provided $222.3M net cash for six months 2025, driven by maturing short-term investments.
Quarterly Revenue Dip Quarterly revenues decreased 4% to $2.062B USD, impacted by lower unit volume in residential HVAC equipment sales.

Risk Factors

Operating Cash Usage Operating activities used $185.1M cash in H1 2025, primarily due to higher inventory balances for A2L product transition.
Same-Store Sales Decline Same-store sales declined 4% for the quarter, reflecting lower home building activity and temperate weather impacts.
Tax Legislation Uncertainty New tax law signed July 4, 2025, requires evaluation; management currently assesses potential material impacts on financials.
Financing Cash Outflow Financing activities used $274.2M cash in H1 2025, largely due to common stock repurchases and dividend payments.

Outlook

Continued Acquisition Strategy Company executed three acquisitions in H1 2025, including SIE and Hawkins, continuing focus on market expansion.
A2L Product Transition Focus Investing in technology to capture richer sales mix as regulatory mandates drive increased sales of higher-efficiency systems.
Liquidity Position Assessment Liquidity expected sufficient via operating cash flows, ATM program availability, and revolving credit agreement capacity.

Peer Comparison

Revenue (TTM)

C.H. Robinson Worldwide, Inc.CHRW
$16.50B
-7.1%
Textron Inc.TXT
$14.24B
+0.6%
XPO, Inc.XPO
$8.07B
-0.3%

Gross Margin (Latest Quarter)

Graco Inc.GGG
53.2%
+0.0 pp
TransUnionTRU
46.5%
-12.2 pp
Allegion plcALLE
45.8%
+1.1 pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
CHRW$17.97B30.533.8%28.7%
XPO$16.25B49.219.4%63.3%
TRU$15.90B37.89.6%46.1%

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

Reports
All Years
  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Aug 8, 2025|
    Revenue: $2.06B-3.6%
    |
    EPS: $4.53+0.7%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: May 9, 2025|
    Revenue: $1.53B-2.2%
    |
    EPS: $1.93-11.1%
    Miss
  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 28, 2025|
    Revenue: $7.62B+4.6%
    |
    EPS: $13.34-2.4%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Nov 1, 2024|
    Revenue: $2.16B+1.6%
    |
    EPS: $4.24-2.8%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Aug 2, 2024|
    Revenue: $2.14B+6.8%
    |
    EPS: $4.50+1.6%
    Miss
  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: May 3, 2024|
    Revenue: $1.56B+0.9%
    |
    EPS: $2.17-23.3%
    Miss
  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 23, 2024|
    Revenue: $7.28B+0.1%
    |
    EPS: $13.67-11.6%
    Meet
  • Form 10-Q - Q3 2023

    Period End: Sep 30, 2023|Filed: Nov 3, 2023|
    Revenue: $2.13B+4.5%
    |
    EPS: $4.36+7.9%
    Meet