Watsco, Inc.

watsco.com

What Do They Do?

Distributes air conditioning and heating equipment, related parts and supplies, and commercial refrigeration products to contractors serving residential and commercial markets.

How Do They Make Money?

Customers pay for finished HVAC/R products when they pick them up or receive a shipment; separate service work is paid for when the service is performed.

FY2025 revenue

Who Are Their Customers?

HVAC contractors buy equipment and supplies through Watsco's locations for replacement and new-construction jobs; contractors and dealers then sell and install products for homeowners, businesses and other end users.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in FY2025 and turned 7 cents into free cash flow.

Operating income, FY2025

10% of revenue

▼ −8% vs FY2024 ($781.8M, 10%)

Net income, FY2025

7% of revenue

▼ −7% vs FY2024 ($536.3M, 7%)

Free cash flow, FY2025

7% of revenue

▼ −28% vs FY2024 ($743M, 10%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +2%; vs $2.1B in Q2 FY2025
Net income: ▼ −11%; vs $183.6M in Q2 FY2025

Jul 29, 2026 Acquired Jackson Supply, an HVAC distributor Jackson Supply operates across 25 Sunbelt locations and had annualized sales of approximately $230 million.

Growing. Revenue grew 15% in 4 years, from $6.3B in FY2021 to $7.2B in FY2025, about 4% a year.

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