Watsco, Inc. boosts its annual dividend by 10% to $13.20 per share, marking its 52nd consecutive year of paying dividends, positioning the company for growth with entrepreneurial culture, transformational technologies, and a debt-free balance sheet. The company maintains a solid financial position with $780 million in cash and investments and no debt, enabling sustained investments in growth and industry-leading technologies. Watsco is the largest distributor in the North American HVAC market, achieving a 17% compounded annual total-shareholder return through organic growth and acquisitions.
Despite industry volatility due to factors like the COVID-19 pandemic, regulatory changes, and supply chain disruptions, Watsco’s 2025 performance includes a 52% increase in revenues to $7.2 billion, a 96% increase in operating income to $720 million, and an 88% increase in earnings per share to $12.25. The company’s financial strength and resilience position it well for further growth and optimization in 2026.
Watsco’s innovation and technology investments include AI-driven initiatives to enhance the customer experience and improve efficiency. The company’s digital ecosystem, including the HVAC Pro+ Mobile Apps and E-Commerce platform, have transformed the customer experience, resulting in increased convenience, higher customer satisfaction, and greater loyalty. E-commerce sales totaled approximately $2.5 billion in 2025, comprising 35% of overall sales, with consistent order trends and customer attrition year over year.
With a focus on building a healthy balance sheet and utilizing a buy and build acquisition strategy, Watsco has acquired 12 companies since 2019, representing approximately $1.6 billion in annualized sales and 120 locations. The company’s long-term track record of generating annual operating cash flow in excess of net income positions it for sustained growth and investments in strategic opportunities.
Watsco’s full-year and fourth-quarter financial results reflect the impact of industry dynamics, seasonal trends, and strategic initiatives. The company’s performance in 2025, including a record gross profit margin of 28.0%, demonstrates its ability to navigate challenges and capitalize on opportunities for growth. Key metrics include an operating income of $720 million, a net income of $587,588, and a diluted earnings per share of $12.25.
Read more at GlobeNewswire: Watsco Reports Record Full-Year Gross Margin, Meets