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Watsco, Inc. (NYSE: WSO) is the largest distributor of heating, air conditioning, and refrigeration (HVAC/R) products in North America. Established over 50 years ago, Watsco transitioned from manufacturing HVAC/R components to distribution in 1989, emerging as an industry leader. The company operates 507 locations across 36 states, Puerto Rico, Latin America, and the Caribbean. As of 2023, Watsco generates 90% of its revenue from the U.S., with additional operations in Canada and Latin America, each contributing 5% to sales.
With a robust network of 4,000 employees, Watsco supports over 125,000 contractors who provide essential HVAC/R installation, repair, and replacement services. The company’s extensive product range meets the needs of four key industry segments:
- Air Conditioners, Furnaces, and Related Parts: Accounting for 50% of their offerings.
- Air Movement Products: Including ductwork and insulation, contributing 25%.
- Controls: Such as thermostats and air treatment systems, comprising 15%.
- Refrigeration Products: Making up 10% of their inventory.
Watsco’s significant presence in the HVAC/R market, particularly in the Sunbelt states, positions it strategically to capitalize on growth opportunities. The company’s entrepreneurial culture, industry scale, and technological transformation efforts contribute to strong margins and sustained long-term growth. Watsco’s commitment to innovation and regulatory compliance ensures it remains a pivotal player in the HVAC/R industry.
Recent achievements highlight Watsco’s dynamic approach and continuous evolution. For the latest updates, you can pre-register for events here and here.
Watsco Completes Acquisition of Temperature Equipment Corporation
Watsco, Inc. (NYSE: WSO) finalized the acquisition of Temperature Equipment Corporation (TEC), adding $291 million in sales and expanding its presence with 32 locations across several states. Founded in 1935, TEC services around 10,000 HVAC customers and offers a wide range of HVAC solutions from Carrier. The joint venture, where Watsco owns 80% and Carrier 20%, aims to fuel TEC's growth while leveraging Watsco's innovative technologies. This acquisition supports Watsco’s strategy to enhance its industry leadership within the HVAC sector.
Watsco Declares Quarterly Dividend
On April 1, 2021, Watsco, Inc. (NYSE: WSO) announced a quarterly cash dividend of $1.95 per share, payable on April 30, 2021, to shareholders of record by April 15, 2021. This follows a 10% increase in its annual dividend rate to $7.80 per share, announced in February 2021, stemming from a record operating cash flow in 2020. Watsco maintains a commitment to sharing cash flow with shareholders and has consistently paid dividends for 47 years.
Watsco, Inc. (NYSE: WSO) has signed an agreement to acquire Temperature Equipment Corporation (TEC), marking Watsco’s first entry into the U.S. Midwest. TEC, a major HVAC distributor, reported $291 million in sales for 2020 and serves approximately 10,000 contractor customers from 32 locations across multiple states. Watsco will own 80% of TEC, expected to close within 30 days. This acquisition aligns with Watsco's buy-and-build strategy, aimed at expanding its HVAC/R distribution network while leveraging TEC's established market presence.
Watsco, Inc. (NYSE:WSO) has announced a 10% increase in its annual dividend, raising it to $7.80 per share, effective from April 2021. The decision, supported by strong cash flow and a solid balance sheet, reflects the company's confidence in its ongoing performance. Watsco has maintained a strong dividend payment history for 47 consecutive years, emphasizing its commitment to sharing increasing cash flow with shareholders while keeping a conservative financial approach.
Watsco achieved record financial results for 2020, showcasing strong growth across multiple metrics. Key highlights include:
- 24% EPS growth to $1.14 and 8% sales growth to a record $5.05 billion.
- 10% increase in net income to $270 million and a 59% increase in operating cash flow to $534 million.
- A 10% dividend raise to $7.80 per share effective April 2021.
The company's growth is attributed to its focus on technology and efficiency, with significant investments in digital transformation.
Watsco, Inc. (NYSE: WSO) will host a conference call on February 11, 2021, at 10:00 a.m. (EDT) to discuss its fourth quarter and annual financial results for 2020. The earnings results will be released before the market opens on the same day. Investors can access the conference call via a web-cast link provided on Watsco's website. Participants are encouraged to pre-register for immediate access. Watsco is the largest distribution network for HVAC/R products, serving the U.S., Canada, Mexico, and beyond, with a focus on energy-efficient systems.
Watsco, Inc. (NYSE: WSO) has declared a quarterly cash dividend of $1.775 per share, payable on January 29, 2021, for shareholders on record as of January 15, 2021. This marks the 47th consecutive year of dividend payments, reflecting the company's commitment to return cash flow to shareholders. Watsco emphasizes a conservative financial approach in determining future dividends, considering investment opportunities and economic conditions. As the largest HVAC/R product distributor, Watsco has a significant presence across North America and opportunities for sustainable growth.
Watsco (NYSE: WSO) announced that its annual sales for 2020 have exceeded $5 billion, marking a significant milestone since its inception in 1972. The company shifted its focus to HVAC distribution in 1989 and has since cultivated a decentralized management culture, fostering growth and partnerships. Watsco sees substantial opportunity in the $40 billion U.S. HVAC market, emphasizing the importance of technology integration and sustainability. The company operates the largest HVAC/R distribution network across North America, helping contractors and technicians maintain energy-efficient systems.
Watsco, Inc. reported record results for Q3 and the first nine months of 2020, with significant increases in sales, operating income, and EPS. Key metrics include a 25% EPS rise to $2.76, a 10% sales growth reaching $1.54 billion, and a remarkable 89% increase in operating cash flow to $373 million. The company’s operating margin expanded by 120 basis points to 10.2%. Enhanced technology adoption, particularly in mobile and e-commerce platforms, has driven customer engagement and sales growth. Watsco maintains a conservative balance sheet with nearly zero debt, supporting continued investment in growth opportunities.
Watsco, Inc. (NYSE: WSO) will host a conference call on October 22, 2020, at 10:00 a.m. EDT to discuss its third-quarter financial results. The earnings will be released before the market opens on the same day. Investors can pre-register for the call to receive a unique PIN for immediate access. Watsco is the largest HVAC/R distribution network in North America, serving over 300,000 contractors annually through 603 locations. The company focuses on replacing older systems with more energy-efficient solutions, highlighting its commitment to environmental standards.
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