On July 30, Watsco Inc. announced its operating results for the second quarter and six-month period ended June 30, 2025. The company also provided updates related to innovation and technology, growth opportunities and overall business trends.

Watsco is the one of the largest distributor in the highly-fragmented $74 billion North American market for HVAC products. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total-shareholder return through a combination of strong organic growth and the acquisition of more than 70 market-leading businesses. In April 2025, the company raised its annual dividend by 11% to $12.00 per share, marking its 51^st consecutive year of dividends.

The company maintains a solid financial position with $293 million in cash, no debt and $3 billion in shareholders' equity as of June 30, 2025, enabling investments in long-term growth, including the company’s industry-leading technology platforms. Today, more than 70,000 contractors, installers and technicians engage with the company’s platforms, resulting in improved growth and lower attrition. Watsco is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position the conmpany to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.

2025 operating results reflect the ongoing regulatory transition to next-generation HVAC equipment that incorporates A2L refrigerants, which offer considerably lower global warming potential (GWP), a measurement of environmental impact. The transition encompasses HVAC equipment for residential and commercial applications and will ultimately result in the conversion of nearly $1 billion of inventory (55% of all products sold) across more than 650 locations in the U.S. To capitalize on the transition, Watsco has made substantial investments in customer training, technology enhancements and new inventory to support customers during the transition.

Review the company's operating results and update on innovation and strategic technology initiatives here.