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WSO-B

Watsco, Inc.

WSO-B

Watsco, Inc. • NYSE
$351.50 ▲ 0.00% (+0.00)
Market Cap $13.33 B
52w High $535.00
52w Low $351.50
Dividend Yield 11.70%
P/E 27.33
Volume 11
Outstanding Shares 37.93M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.067B ▲ $360.075M ▲ $189.23M ▲ 9.155% ▲ $3.98 ▼ $249.488M ▼
Q2-2025 $2.062B ▲ $331.619M ▲ $183.613M ▲ 8.903% ▲ $4.53 ▲ $282.779M ▲
Q1-2025 $1.531B ▼ $317.435M ▼ $80.061M ▼ 5.229% ▼ $1.93 ▼ $117.819M ▼
Q4-2024 $1.754B ▼ $331.896M ▲ $96.841M ▼ 5.521% ▼ $2.39 ▼ $140.086M ▼
Q3-2024 $2.16B $315.997M $171.031M 7.918% $4.24 $250.309M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $524.348M ▲ $4.555B ▼ $1.253B ▼ $2.815B ▲
Q2-2025 $292.978M ▼ $4.73B ▲ $1.508B ▲ $2.76B ▲
Q1-2025 $431.823M ▼ $4.454B ▼ $1.366B ▼ $2.665B ▲
Q4-2024 $781.94M ▲ $4.532B ▲ $1.468B ▲ $2.657B ▼
Q3-2024 $550.023M $4.517B $1.356B $2.696B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $189.23M ▼ $354.937M ▲ $-208.773M ▼ $-113.57M ▼ $31.37M ▲ $346.428M ▲
Q2-2025 $216.768M ▲ $-7.446M ▲ $-22.304M ▼ $-112.554M ▲ $-138.845M ▼ $-14.283M ▲
Q1-2025 $94.54M ▼ $-177.644M ▼ $244.556M ▲ $-161.679M ▼ $-94.448M ▼ $-185.185M ▼
Q4-2024 $115.18M ▼ $378.897M ▲ $-7.951M ▲ $-133.469M ▼ $-23.752M ▼ $370.865M ▲
Q3-2024 $201.647M $232.764M $-65.404M $-98.871M $125.169M $222.968M

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown nicely over the past several years and is now well above pre‑2020 levels. Profitability, however, looks more mature than fast‑growing: gross profit has risen with sales, but operating and net income have essentially leveled off over the last three years and even dipped slightly from a recent peak. That suggests a solid, profitable core business facing some pressure from costs, pricing mix, or a normalizing industry cycle. Overall, the income statement shows a stable, well‑established distributor with healthy margins but limited recent earnings growth despite higher sales.

Balance Sheet

Balance Sheet The balance sheet looks progressively stronger. Total assets and shareholders’ equity have climbed steadily, pointing to a larger, more firmly capitalized company over time. Cash on hand has risen sharply most recently, giving Watsco more financial flexibility. Debt remains moderate relative to the company’s size and equity base, implying a conservative use of leverage. In plain terms, Watsco appears to be in a solid financial position, with a cushion to handle downturns and pursue growth initiatives.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has improved meaningfully over the last few years, and free cash flow closely tracks it because the company does not need to spend heavily on equipment or facilities. This “asset‑light” profile means a high share of accounting profits turns into actual cash. The pattern suggests Watsco can reliably fund its own needs, support shareholder returns, and still have room for acquisitions or technology investments, without depending heavily on new borrowing.

Competitive Edge

Competitive Edge Watsco holds a leading position as the biggest HVAC/R distributor in a very fragmented market, giving it scale advantages that smaller rivals struggle to match. Its wide branch network, especially in hotter regions where air conditioning demand is strongest, makes it highly convenient for contractors. Deep relationships with major manufacturers and a long track record of acquiring and integrating local distributors add to its strength. At the same time, the company is still exposed to construction and renovation cycles and to competition from regional players, but its size, network, and partnerships together form a meaningful competitive moat.

Innovation and R&D

Innovation and R&D For a distributor, Watsco is unusually technology‑driven. It has invested heavily in digital tools that help contractors run their businesses—from mobile ordering and product data to digital quoting, financing, and analytics. These platforms appear widely adopted and help “lock in” customers by becoming part of their daily workflow. The company is also pushing into AI‑based tools and preparing a unified platform for larger institutional customers. Overall, Watsco is using software and data to differentiate itself in a business that historically competed mostly on inventory and relationships.

Summary

Watsco looks like a mature, profitable market leader in HVAC/R distribution, with stable earnings, a strengthening balance sheet, and strong, dependable cash flow. Growth in revenue has outpaced growth in profit recently, suggesting a more moderate phase of the cycle or some margin pressure, but not a structurally weak business. Its real standout feature is the combination of scale and a deep digital ecosystem that ties contractors closely to its platform, which supports its competitive moat. Key things to watch going forward include how margins evolve through the industry cycle, how effectively Watsco monetizes its technology investments, and whether its acquisition and digital strategies continue to sustain above‑industry growth over time.