Watsco Inc
XMUN:WC3
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Watsco Inc
XMUN:WC3
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Newmont Corporation
TSX:NGT
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Stroeer SE & Co KgaA
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Watsco Inc
Watsco is a major distributor of heating, ventilation, air conditioning, and refrigeration equipment, parts, and supplies. It sells the equipment contractors need to install and repair cooling and heating systems, along with replacement parts, tools, and maintenance items. Its customers are mainly HVAC contractors, dealers, and service companies that buy from Watsco when they need products quickly and reliably. The company makes money by buying products from manufacturers and reselling them through its distribution network. A big part of its role is moving equipment and parts from factories to the local businesses that actually put systems in homes, apartments, offices, and other buildings. Watsco also uses technology and logistics to make ordering, inventory management, and delivery easier for contractors. What makes Watsco’s business model distinct is that it sits in the middle of a large, fragmented market where speed, product availability, and local relationships matter a lot. It is not a manufacturer and does not install the systems itself; instead, it helps keep the HVAC supply chain running by stocking the right products and getting them to contractors when they need them.
Watsco is a major distributor of heating, ventilation, air conditioning, and refrigeration equipment, parts, and supplies. It sells the equipment contractors need to install and repair cooling and heating systems, along with replacement parts, tools, and maintenance items. Its customers are mainly HVAC contractors, dealers, and service companies that buy from Watsco when they need products quickly and reliably.
The company makes money by buying products from manufacturers and reselling them through its distribution network. A big part of its role is moving equipment and parts from factories to the local businesses that actually put systems in homes, apartments, offices, and other buildings. Watsco also uses technology and logistics to make ordering, inventory management, and delivery easier for contractors.
What makes Watsco’s business model distinct is that it sits in the middle of a large, fragmented market where speed, product availability, and local relationships matter a lot. It is not a manufacturer and does not install the systems itself; instead, it helps keep the HVAC supply chain running by stocking the right products and getting them to contractors when they need them.
Revenue: Watsco said second-quarter sales rose 2% to $2.1 billion, helped by stabilizing markets and 5% growth in residential HVAC equipment.
Margins: Gross margin fell to 27.5% from 29.3% last year, which management said was mainly a comparison to unusually strong pricing in 2025 rather than a new trend.
Demand: Management said the market has stabilized, with July showing 4% to 5% organic growth through July 28 and unit growth in both the quarter and July.
Geography: New construction is slowing in the South, especially Florida and Texas, while the North remains strong.
Technology: E-commerce sales grew 13%, e-commerce penetration reached 37% of sales over the last 12 months, and OnCallAir generated $1.9 billion of gross merchandise value.
Acquisition: Jackson Supply joined Watsco on June 1 and contributed about $20 million in revenue for the month, with management emphasizing its growth potential.
Balance Sheet: Watsco ended the quarter with $464 million in cash and no debt, and raised its annual dividend 10% to $13.20 per share.
