Watsco Inc. has announced its operating results for the full-year and fourth quarter period ended Dec. 31, 2025. The company has also provided updates related to innovation and technology, business trends and long-term growth opportunities.

Watsco also announced a 10% increase in its annual dividend to $13.20 per share effective with its next regular dividend payment in April 2026. This year marks Watsco’s 52^nd consecutive year of paying dividends.

Watsco is the largest distributor in the highly-fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved a 17% compounded annual total-shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

The company maintains a solid financial position with currently $780 million in cash and investments and no debt, enabling sustained investments in growth, including the company’s industry-leading technologies. Approximately 73,000 contractors, installers and technicians engage digitally with the company, which contributes to customer growth and reduced attrition. AI-driven initiatives have also been launched to further enhance the customer experience and improve efficiency. These investments are especially critical as contractors increase their adoption of digital, data-driven solutions in their businesses.

Recent Industry Dynamics

Since 2019, the HVAC/R industry has experienced volatility due to various macroeconomic and industry-specific factors that impacted OEMs, distributors and contractors alike. The COVID pandemic and subsequent supply chain disruptions, the 2023 regulatory transition to new higher-efficiency products, the reduction of available legacy refrigerants and the slow-down in housing activities have weighed on performance and contributed to volatility.

The industry was further impacted in 2025 by the transition to A2L refrigerant products, the second such regulatory-driven product change in three years. The transition impacted approximately 55% of products sold across 650 locations domestically and resulted in the conversion of over $1 billion of inventory to new products. In response, Watsco invested in people, technology, logistics, training and more to support its customers during the transition.

Despite these dynamics, the company believes its overall performance in the context of these complexities and other macroeconomic headwinds speaks well of its business model and overall execution. 

Click here for key performance metrics.