Welcome to our dedicated page for Watsco news (Ticker: WSO), a resource for investors and traders seeking the latest updates and insights on Watsco stock.
Overview of Watsco, Inc.
Watsco, Inc. (NYSE: WSO) is the largest distributor of heating, ventilation, air conditioning, and refrigeration (HVAC/R) products in North America. With a history spanning over five decades, the company has evolved from a manufacturer of HVAC/R components to a dominant force in the distribution segment. Headquartered in the United States, Watsco operates an extensive network of over 500 locations across 36 U.S. states, Puerto Rico, Latin America, and the Caribbean. Its primary customer base consists of more than 125,000 contractors who service, repair, and replace HVAC/R systems for residential and light commercial applications.
Business Model and Revenue Streams
Watsco generates revenue primarily through the direct sale of HVAC/R products to contractors. These contractors, in turn, deliver critical services to homeowners, businesses, and industrial facilities. The company’s focus on the replacement market—a segment less volatile than new construction—provides a steady revenue stream. Watsco’s comprehensive product portfolio, combined with its expansive distribution network, positions it as a vital link in the HVAC/R supply chain.
The company’s revenue is distributed across four main product categories:
- Air conditioners, furnaces, and related parts: Representing approximately 50% of its business, this segment includes essential equipment for climate control systems.
- Air movement products: Accounting for 25% of sales, this category encompasses ductwork, insulation, and other components that facilitate airflow within HVAC systems.
- Controls and air treatment systems: Comprising 15% of revenue, this segment includes thermostats and advanced air quality solutions.
- Refrigeration products: Making up 10% of sales, this category serves the needs of cold storage and commercial refrigeration applications.
Market Position and Competitive Landscape
Watsco’s scale and geographic reach make it a critical player in the HVAC/R industry. The company’s operations are heavily concentrated in the United States, particularly in Sunbelt states where demand for air conditioning is high. It also has a meaningful presence in Canada, Puerto Rico, and Latin America, diversifying its geographic footprint. This extensive network enables Watsco to efficiently meet the needs of contractors and maintain a competitive edge against other distributors and manufacturers with direct sales channels.
In a competitive landscape, Watsco differentiates itself through its entrepreneurial culture, debt-free balance sheet, and adoption of leading technologies. These factors enhance its operational efficiency and customer service capabilities, solidifying its position as an industry leader.
Significance in the HVAC/R Industry
The HVAC/R industry plays a crucial role in ensuring comfort, safety, and efficiency in residential, commercial, and industrial settings. Watsco’s contributions are pivotal in this ecosystem, as its distribution network ensures timely access to essential products for contractors. The company also supports regulatory compliance by distributing energy-efficient and environmentally friendly solutions, reflecting broader industry trends.
Conclusion
Watsco, Inc. stands out as a cornerstone of the HVAC/R supply chain, connecting manufacturers with contractors who serve end-users. Its focus on replacement markets, comprehensive product offerings, and expansive distribution network underscore its importance in the industry. By addressing the needs of contractors and adapting to industry trends, Watsco continues to play a vital role in the HVAC/R ecosystem.
Watsco (NYSE:WSO) has announced an 11% increase in its annual dividend to $12.00 per share on both Common and Class B common stock, effective from the April 2025 quarterly payment. This marks the company's 51st consecutive year of dividend payments, reflecting strong 2024 performance and business confidence.
As the largest distributor of HVAC/R products in the United States, Canada, Mexico, and Puerto Rico, Watsco focuses on the replacement market. This sector has grown due to aging systems, higher energy efficient models, and essential HVAC needs in buildings. According to March 2023 EIA data, approximately 102 million HVAC systems in the United States are over 10 years old, operating below current efficiency standards.
Watsco (NYSE: WSO) reported strong Q4 2024 results with record performance across key metrics. Sales increased 9% to $1.75 billion, with gross profit up 13% to $468 million. The company achieved a 90 basis-point expansion in gross margin to 26.7% and 26% growth in operating income to $136 million.
For full-year 2024, sales grew 5% to $7.62 billion with operating income of $782 million. The company generated record operating cash flow of $773 million, up 38% year-over-year. E-commerce sales grew 8% to $2.6 billion, representing 35% of annual sales.
Watsco announced an 11% increase in its annual dividend to $12.00 per share, effective April 2025. The company maintains a strong financial position with $782 million in cash and short-term investments and a debt-free balance sheet. Growth was driven by residential equipment sales, which increased 16% in Q4, reflecting unit growth, new customer acquisition, and market share gains.
Watsco (NYSE: WSO) has announced its upcoming conference call to discuss 2024 fourth quarter and annual results, scheduled for Tuesday, February 18, 2025, at 10:00 a.m. (ET). The earnings results will be released before market opening on the same day.
As the largest distributor of HVAC/R products in the United States, Canada, Mexico, and Puerto Rico, Watsco plays a important role in climate change mitigation. According to March 2023 Energy Information Administration data, approximately 102 million HVAC systems in the United States are over 10 years old and operate below current efficiency standards.
The company's environmental impact is significant, having averted an estimated 22.8 million metric tons of CO2e emissions from January 2020 to December 2024 through higher-efficiency replacement HVAC systems. This achievement equals removing 5.3 million gas-powered vehicles from roads annually.
Watsco (NYSE: WSO) has declared a quarterly cash dividend of $2.70 per share on both Common and Class B common stock, payable on January 31, 2025, to shareholders of record as of January 17, 2025. The company has maintained a 51-year streak of dividend payments, emphasizing its commitment to sharing cash flow while maintaining a conservative balance sheet.
As the largest distributor of HVAC/R products across the United States, Canada, Mexico, and Puerto Rico, Watsco focuses on the replacement market. According to March 2023 data, approximately 102 million HVAC systems in the US have been operating for over 10 years below current efficiency standards. The company has contributed to environmental sustainability by averting an estimated 21.8 million metric tons of CO2e emissions from January 2020 to September 2024 through higher-efficiency HVAC system sales.
Watsco (NYSE: WSO) announces Rick Gomez, Vice President of Corporate Development, will present at the Stephens Investment Conference in Nashville on November 19, 2024, at 2:00 p.m. CT. The presentation will be available via live webcast on Watsco's website.
As the largest HVAC/R distributor in North America, Watsco focuses on the replacement market, serving approximately 102 million aging HVAC systems in the US. The company has made significant environmental contributions, averting an estimated 21.8 million metric tons of CO2e emissions from January 2020 to September 2024 through higher-efficiency HVAC system sales, equivalent to removing 5.2 million gas-powered vehicles annually.
Watsco (NYSE: WSO) reported record Q3 2024 results with sales increasing 2% to $2.16 billion and flat net income of $171 million. Operating cash flow improved 50% to $394 million for the nine months ended September 30, 2024. The company maintains a strong financial position with $550 million in cash and no borrowings. Business trends strengthened in October 2024 with mid-single digit sales growth. Unit sales of residential HVAC equipment stabilized during the 2024 selling season, complemented by solid growth in commercial HVAC systems. The company continues investing in technology platforms, with e-commerce sales growing 5% and representing 35% of total sales.
Watsco (NYSE: WSO) has announced its 2024 third quarter financial results conference call, scheduled for Wednesday, October 23, 2024, at 10:00 a.m. (EDT). The call will be web-cast by CCBN's StreetEvents and can be accessed through Watsco's website. Earnings results will be released before market opening on the same day. A replay will be available on the website.
Watsco operates the largest distribution network for HVAC/R products in the United States, Canada, Mexico, Puerto Rico, and exports to Latin America and the Caribbean. The company focuses on the replacement market, which has grown due to aging systems and the introduction of higher energy-efficient models. Watsco has contributed to reducing CO2e emissions through the sale of higher-efficiency HVAC systems, averting an estimated 21.8 million metric tons of CO2e emissions from January 2020 to September 2024.
Watsco, Inc. (NYSE: WSO) has declared a regular quarterly cash dividend of $2.70 per share on its Common and Class B common stock. The dividend is payable on October 31, 2024 to shareholders of record at the close of business on October 16, 2024. This marks 50 consecutive years of dividend payments by Watsco. The company's dividend philosophy aims to share cash flow while maintaining a conservative balance sheet and capacity for network expansion.
Watsco operates the largest distribution network for HVAC/R products in the United States, Canada, Mexico, and Puerto Rico. The company focuses on the replacement market, which has grown due to aging systems and the introduction of higher energy-efficient models. Watsco plays a significant role in reducing CO2e emissions through the sale of more efficient HVAC systems, having averted an estimated 20.9 million metric tons of CO2e emissions from January 2020 to June 2024.
Watsco Inc. (NYSE: WSO), the largest distributor of HVAC/R products, announced its participation in the 12th Annual Morgan Stanley Laguna Conference. Rick Gomez, Vice President of Corporate Development, will present on September 11, 2024, at 3:10 p.m. PDT. A live webcast will be available on Watsco's website.
Watsco operates in the HVAC/R replacement market, which has grown due to aging systems and the need for energy-efficient models. With approximately 102 million HVAC systems over 10 years old in the U.S., Watsco plays a important role in reducing CO2e emissions. From January 2020 to June 2024, the company averted an estimated 20.9 million metric tons of CO2e emissions through the sale of higher-efficiency HVAC systems, equivalent to removing 5 million gas-powered vehicles annually.
Watsco (NYSE: WSO) reported record sales and enhanced operating efficiency for Q2 2024. Key highlights include:
- Revenue increased 7% to a record $2.1 billion (4% same-store growth)
- Gross profit up 3% to $580 million (27.1% margin)
- Operating income of $269 million (12.6% margin)
- EPS of $4.49 vs $4.42 last year
- Operating cash flow improved by $100 million year-over-year
The company's growth strategy focuses on acquisitions, technology innovation, and industry catalysts like regulatory changes and electrification trends. Watsco maintains a strong financial position with $425 million in cash and no borrowings, supporting future growth opportunities.
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