10-K - Watsco, Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Watsco, Inc. reported strong financial results for fiscal year 2025, with revenues of $7.24 billion and net income attributable to the company of $497.0 million. The company generated $569.6 million in operating cash flow and maintained a solid balance sheet with total assets of $4.41 billion and shareholders' equity of $3.22 billion. Key performance drivers included the company's strategic acquisitions and technology investments, with HVAC equipment sales accounting for 67% of revenues. The company's joint ventures with Carrier represented 53% of total revenues. Watsco maintained its position as the largest HVAC/R distributor in North America, operating from 695 locations across 43 U.S. states, Canada, Mexico, and Puerto Rico.

Key Takeaways

1Revenue reached $7.24 billion with HVAC equipment sales comprising 67% of total revenue

2Net income attributable to Watsco, Inc. was $497.0 million with basic EPS of $12

3Operating cash flow was $569.6 million supporting dividend payments of $473.8 million

4Joint ventures with Carrier accounted for 53% of the company's total revenues

5The company operates from 695 locations serving more than 130,000 active contractors

Key Financial Metrics

EPS

$12

Revenue

$7.24B

Net Income

$497.0M

Gross Margin

28.0%

Gross Profit

$2.03B

free cash flow

$535.1M

Operating Income

$720.3M

operating margin

9.9%

Business Segments

HVAC Equipment67% of total revenues, sourced from approximately 20 vendors

$4.85B

Other HVAC Products29% of total revenues, sourced from more than 1,300 vendors

$2.10B

Commercial Refrigeration4% of total revenues, sourced from approximately 150 vendors

$289.6M

United States90% of revenues from 637 locations

$6.52B

Canada5% of revenues from 34 locations

$362.0M

Latin America and Caribbean5% of revenues from 24 locations

$362.0M