Earnings summaries and quarterly performance for WATSCO.
Executive leadership at WATSCO.
Board of directors at WATSCO.
Research analysts who have asked questions during WATSCO earnings calls.
David Manthey
Robert W. Baird & Co. Incorporated
8 questions for WSO
Also covers: AIT, BECN, BLDR +13 more
RM
Ryan Merkel
William Blair & Company
7 questions for WSO
Also covers: AAON, AYI, AZEK +15 more
Christopher Snyder
Morgan Stanley
6 questions for WSO
Also covers: ALH, ALLE, AME +21 more
Jeffrey Hammond
KeyBanc Capital Markets
5 questions for WSO
Also covers: AOS, ETN, GGG +19 more
PB
Patrick Baumann
JPMorgan Chase & Co.
5 questions for WSO
Also covers: ATS, CNM, FAST +5 more
Tommy Moll
Stephens Inc.
5 questions for WSO
Also covers: CARR, CGNX, DGII +12 more
BL
Brett Linzey
Mizuho Securities
4 questions for WSO
Also covers: AIRO, AIT, ALLE +15 more
JS
Jeffrey Sprague
Vertical Research Partners
4 questions for WSO
Also covers: ALLE, AME, AYI +23 more
NC
Nigel Coe
Wolfe Research, LLC
4 questions for WSO
Also covers: AME, CARR, CNM +29 more
CS
C. Stephen Tusa
JPMorgan Chase & Co.
3 questions for WSO
Also covers: ADSK, ANSS, APG +17 more
Thomas Moll
Stephens Inc.
3 questions for WSO
Also covers: CARR, CGNX, DGII +13 more
DK
Damian Karas
UBS
2 questions for WSO
Also covers: ALH, AOS, CGNX +14 more
JH
Jeff Hammond
KeyBanc Capital Markets Inc.
2 questions for WSO
Also covers: GTES, MIDD, NDSN +2 more
Mitch Moore
KeyBanc Capital Markets Inc.
2 questions for WSO
Also covers: HI, NDSN, RRX
ST
Steve Toussaint
JPMorgan Chase & Co.
2 questions for WSO
ST
Steve Tusa
JPMorgan Chase & Co.
2 questions for WSO
Also covers: AIN, ALTR, CARR +16 more
Christopher Dankert
Loop Capital Markets
1 question for WSO
Also covers: AIT, ATKR, BDC +10 more
MF
Mike Francis
William Blair
1 question for WSO
Samuel Snyder
Northcoast Research
1 question for WSO
Also covers: AOS, EME, FIX
SV
Stephen Volkmann
Jefferies
1 question for WSO
Also covers: AGCO, CARR, CAT +21 more
Recent press releases and 8-K filings for WSO.
Watsco Reports Strong Q4 2025 Results, Increases Dividend, and Achieves Inventory Goals
WSO
Earnings
Dividends
Demand Weakening
- Watsco reported strong Q4 2025 results, including double-digit pricing gains on new A2L products, a 40 basis point increase in gross margins to 27.1%, and a 2% drop in SG&A.
- The company announced a 10% increase in annual dividends to $13.20, marking its 52nd consecutive year of dividend payments.
- Watsco achieved a debt-free status for all of 2025, met its $500 million inventory reduction goal, and generated record fourth quarter cash flow of $400 million.
- Management anticipates improved sales performance and operating efficiency as the A2L product transition concludes, with a long-term objective of 30% gross margins.
- Despite a 6% decline in the aftermarket add-on replacement market in 2025, and early 2026 sales (January and February) being down in the mid-single digit range, the company expects a "normalization" of the channel.
Feb 17, 2026, 3:00 PM
Watsco Reports Q4 2025 Results, Increases Dividends, and Highlights Strategic Growth
WSO
Earnings
Dividends
M&A
- Watsco reported double-digit pricing gains on new A2L products in Q4 2025, raising gross margins by 40 basis points to 27.1%, with the full-year gross margin reaching 28%. The company aims for a long-term gross margin target of 30%.
- For the full year 2025, Watsco completed 12 business acquisitions totaling over $1.6 billion in sales, was debt-free for the entire year, and generated record fourth-quarter cash flow of $400 million. The company also boosted its annual dividends by 10% to $13.20, marking its 52nd consecutive year of payments.
- Watsco successfully met its $500 million inventory reduction goal by the end of Q4 2025, with inventory now around 18%-19% of prior 12-month sales, aligning with the 10-year average. E-commerce sales account for 35% of total sales, and the OnCall Air platform processed $1.8 billion in gross merchandise value for the year.
Feb 17, 2026, 3:00 PM
Watsco Reports Strong Q4 2025 Results, Boosts Dividend, and Achieves Debt-Free Year
WSO
Earnings
Dividends
Demand Weakening
- Watsco reported a 10% increase in its annual dividend to $13.20, marking its 52nd consecutive year of dividend payments.
- For Q4 2025, the company achieved double-digit pricing gains on new A2L products, raised gross margins by 40 basis points to 27.1%, and improved operating efficiency with SG&A dropping 2%.
- Watsco was debt-free for the entirety of 2025, met its $500 million inventory reduction goal, and generated record fourth-quarter cash flow of $400 million.
- The company's inventory is in "great shape" at the end of 2025, with a long-term goal to increase inventory turns to five.
- Sales in January and February 2026 are currently down in the mid-single digit range (around 5%).
Feb 17, 2026, 3:00 PM
Watsco, Inc. Announces Q4 and Full-Year 2025 Results and Dividend Increase
WSO
Earnings
Dividends
Demand Weakening
- Watsco, Inc. reported full-year 2025 revenues of $7.24 billion, a 5% decrease year-over-year, while gross profit margin expanded 120 basis-points to a record 28.0%.
- For the fourth quarter of 2025, revenues decreased 10% to $1.58 billion, and diluted earnings per share were $1.68.
- The company announced a 10% increase in its annual dividend rate to $13.20 per share, effective with its next payment in April 2026, marking its 52nd consecutive year of dividend payments.
- Watsco generated record operating cash flow of $400 million in Q4 2025 and reduced inventory by 30% to $1.4 billion at year-end, maintaining a strong financial position with $780 million in cash and investments and no debt.
Feb 17, 2026, 12:30 PM
Watsco Reports Full-Year 2025 Results, Boosts Dividend, and Achieves Record Gross Margin
WSO
Earnings
Dividends
Demand Weakening
- Watsco announced a 10% increase in its annual dividend to $13.20 per share, effective April 2026, marking its 52nd consecutive year of dividend payments.
- For the full-year 2025, Watsco's revenues decreased 5% to $7.24 billion, while gross profit margin expanded 120 basis-points to a record 28.0%. Earnings per share were $12.25, down from $13.30 in the prior year.
- In the fourth quarter of 2025, revenues decreased 10% to $1.58 billion with earnings per share of $1.68. The company generated a record operating cash flow of $400 million for the quarter.
- Watsco ended 2025 with a debt-free balance sheet, holding $780 million in cash and investments, and successfully reduced inventory by 30% to $1.4 billion at December 31, 2025.
- The company's digital platforms saw significant adoption, with e-commerce sales reaching approximately $2.5 billion (35% of overall sales) and the OnCallAir® platform generating $1.8 billion in gross merchandise value (GMV) in 2025, a 20% increase from 2024.
Feb 17, 2026, 12:30 PM
Watsco Outlines Strategic Growth Initiatives and Financial Targets
WSO
New Projects/Investments
Revenue Acceleration/Inflection
M&A
- Watsco has introduced new strategic goals, referred to as "dream plan two," targeting $10 billion in sales, 30% gross margins, and five inventory turns.
- The company has transformed into a technology-driven business, with digital adoption currently contributing an estimated $750 million in sales benefit and e-commerce generating $200 million in sales and $70 million in annual margin contribution.
- Currently, 30% of Watsco's customers utilize its technology, with a substantial 70% runway for further adoption and engagement.
- Strategic initiatives focus on collaboration across business units, including "buying together, supply chaining together, and selling together" through programs like VCR, Hydros, and SupplySync, aimed at leveraging scale and improving efficiency and margins.
- Watsco maintains a pristine balance sheet with no debt and $7,800 million in cash, indicating a strong position for future internal and inorganic investments.
Dec 11, 2025, 2:00 PM
Watsco Unveils '10, 30, and 5' Growth Plan and Technology Focus
WSO
New Projects/Investments
Revenue Acceleration/Inflection
Guidance Update
- Watsco has established a new strategic "10, 30, and 5" goal, aiming for $10 billion in sales, 30% gross margins (up from current 27%), and 5 inventory turns.
- The company is leveraging technology, including a data-driven approach, AI, and platforms like Enclair and SupplySync.com, to drive growth, improve efficiency, and enhance customer engagement, with 30% of customers currently using their technology.
- Watsco identifies its parts and supplies business, which accounts for 30% of its total business and $1.6 billion in 2025 purchases, as a key margin-accretive growth opportunity, with plans to increase its share and optimize the supply chain.
- The company maintains a pristine balance sheet with no debt and $7,800 million in cash, positioning it for significant internal and inorganic investments.
Dec 11, 2025, 2:00 PM
Watsco Inc. Outlines "10, 30, and 5" Growth Plan and Digital Transformation Strategy
WSO
New Projects/Investments
Revenue Acceleration/Inflection
Guidance Update
- Watsco Inc. unveiled its "10, 30, and 5" growth plan, aiming for $10 billion in sales, 30% gross margins, and five inventory turns, building on current sales of approximately $7.5 billion and gross margins around 27%.
- The company highlighted its extensive 15-year digital transformation, centralizing data from 16 ERPs into a common data model and mastering product, customer, and supplier information to become a data-driven business.
- Watsco is leveraging its data for AI initiatives, including an internal AI chatbot ("ask.watsco") and a digital HVAC expert ("Al"), positioning itself at the forefront of AI adoption in its industry.
- Current digital adoption by customers stands at 30%, with these tech-engaged customers growing faster and exhibiting lower attrition, contributing an estimated $750 million in sales benefit and $200 million in e-commerce sales annually.
- To achieve its ambitious goals, Watsco plans to enhance collaboration across its business units through "buy together, supply chain together, and sell together" initiatives, including vendor consolidation and rationalization.
Dec 11, 2025, 2:00 PM
Watsco Inc. Reports Q3 2025 Earnings with Sales Decline and Margin Expansion
WSO
Earnings
Demand Weakening
New Projects/Investments
- Watsco Inc. reported a 4% total sales decline and 3% U.S. sales decline in Q3 2025, despite achieving double-digit pricing gains on new products.
- Gross margins expanded 130 basis points to 27.5% in Q3 2025, driven by growth in higher-margin non-equipment products, carryover OEM pricing, and pricing optimization tools.
- The company generated record third quarter cash flow of $355 million and maintains a strong balance sheet with no debt and $600 million in cash.
- Watsco is making significant progress in inventory reduction, targeting $500 million by year-end, with $350 million achieved in Q3 2025.
- E-commerce penetration reached 34% of sales, and the OnCall Air digital selling platform saw its annual run rate of sales increase by 19% to $1.7 billion over the last 12 months.
Oct 29, 2025, 2:00 PM
Watsco Inc. Reports Q3 2025 Results Amidst Market Transition
WSO
Earnings
Guidance Update
Demand Weakening
- Watsco Inc. reported a 4% decline in total sales and a 3% decline in U.S. sales for Q3 2025, while achieving a 130 basis point expansion in gross margins to 27.5% and generating record third-quarter cash flow of $355 million.
- The company noted that the transition to A2L refrigerants in 2025 is substantially complete, and they anticipate volatility to ease in 2026.
- For October 2025, Watsco observed an overall revenue decline in the 5% to 10% range.
- Watsco is focused on improving inventory turns (currently 3.6-3.7) and expects to reduce inventories by $500 million by year-end, with $350 million already achieved in Q3.
- The company maintains a strong balance sheet with no debt and a healthy cash position, providing opportunities for M&A and co-investment with OEM partners. They are also investing in technology, with e-commerce accounting for 34% of sales.
Oct 29, 2025, 2:00 PM
Quarterly earnings call transcripts for WATSCO.
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