--- title: "Watsco - B | 8-K: FY2025 Revenue: USD 7.239 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/276124073.md" datetime: "2026-02-17T12:33:20.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276124073.md) - [en](https://longbridge.com/en/news/276124073.md) - [zh-HK](https://longbridge.com/zh-HK/news/276124073.md) --- # Watsco - B | 8-K: FY2025 Revenue: USD 7.239 B Revenue: As of FY2025, the actual value is USD 7.239 B. EPS: As of FY2025, the actual value is USD 12.25. EBIT: As of FY2025, the actual value is USD 720.35 M. #### Dividends Watsco, Inc. announced a 10% increase in its annual dividend, raising it to $13.20 per share on each outstanding share of its Common and Class B common stock . This increase will be reflected in the company’s next quarterly dividend payment in April 2026 . Watsco, Inc. has a history of paying dividends to shareholders for 52 consecutive years . The annual dividend rate was increased to $13.20 per share, effective February 17, 2026 . Dividends paid increased from $6.40 per share in 2019 to $11.70 per share in 2025, an 83% change with an 11% CAGR . #### Full-Year 2025 Performance - **Revenues**: Watsco, Inc. reported revenues of $7.24 billion in 2025, a 5% decrease compared to the previous year . - **Gross Profit**: Gross profit was $2.0 billion, a 1% decrease from the prior year . - **Gross Profit Margin**: The gross profit margin expanded by 120 basis points to a record 28.0% . - **SG&A Expenses**: Selling, general and administrative (SG&A) expenses increased by 3% . - **Operating Income**: Operating income decreased 8% to $720 million . - **Operating Margin**: The operating margin was 10.0% in 2025, down from 10.3% in the previous year . - **Net Income**: Net income was $587,588 thousand in 2025, compared to $635,740 thousand in 2024 . Net income attributable to Watsco, Inc. was $496,994 thousand in 2025, down from $536,286 thousand in 2024 . - **Operating Cash Flow**: Operating cash flow for the full year was $570 million, representing 97% of net income . Net cash provided by operating activities was $569,613 thousand in 2025, a decrease from $773,102 thousand in 2024 . #### Fourth Quarter 2025 Performance - **Revenues**: Revenues decreased 10% to $1.58 billion . - **Gross Profit**: Gross profit was $428 million, an 8% decrease . - **Gross Profit Margin**: The gross profit margin expanded 40 basis points to 27.1% . - **SG&A Expenses**: SG&A expenses decreased by 2% . - **Operating Income**: Operating income declined 25% to $102 million, with operating margins at 6.4% . - **Operating Cash Flow**: Record operating cash flow of $400 million was generated during the fourth quarter . #### Sales Trends (Full-Year 2025) - **U.S. Markets**: Overall sales declined 4% . - **Non-U.S. Markets**: Sales declined 10% . - **HVAC Equipment**: Sales of HVAC equipment (67% of sales) decreased 7% . - **Other HVAC Products**: Sales for other HVAC products (29% of sales) decreased 1% . - **Commercial Refrigeration Products**: Sales of commercial refrigeration products (4% of sales) remained flat . #### Sales Trends (Fourth Quarter 2025) - **HVAC Equipment**: Sales of HVAC equipment (67% of sales) decreased 13% . - **Other HVAC Products**: Sales for other HVAC products (29% of sales) decreased 4% . - **Commercial Refrigeration Products**: Sales of commercial refrigeration products (4% of sales) increased 5% . - **Average Selling Price**: Average selling price domestically increased 11% . #### Key Performance Metrics (2019 vs. 2025) - **Revenues**: Increased from $4.8 billion in 2019 to $7.2 billion in 2025, a 52% change with a 7% CAGR . - **Operating Income**: Increased from $367 million in 2019 to $720 million in 2025, a 96% change with a 12% CAGR . - **Gross Margin**: Expanded by 370 basis points from 24.3% in 2019 to 28.0% in 2025 . - **Net (Debt) Cash**: Shifted from -$81 million in 2019 to $733 million in 2025, an increase of $814 million . #### Cash Flow and Financial Position - **Cash and Investments**: The company maintains $780 million in cash and investments and has no debt . - **Inventory**: Inventory peaked at $2.1 billion during 2025 and declined 30% to $1.4 billion by December 31, 2025 . - **Net Cash Used in Investing Activities**: - $98,122 thousand in 2025, compared to - $290,670 thousand in 2024 . - **Net Cash Used in Financing Activities**: - $568,116 thousand in 2025, compared to - $158,530 thousand in 2024 . - **Cash and Cash Equivalents**: Ended the year 2025 with $433,283 thousand, down from $526,271 thousand at the end of 2024 . #### Unique Metrics and Operational Details - **Technology Investment**: Over the last five years, more than $250 million has been invested in technology, with a current annual run rate of approximately $60 million and nearly 300 technologists . - **HVAC Pro+ Mobile Apps Users**: The authenticated user community increased 15% to approximately 73,000 users . Approximately 73,000 contractors, installers, and technicians currently engage digitally with Watsco, Inc. . - **E-commerce Sales**: E-commerce sales totaled approximately $2.5 billion in 2025, comprising 35% of overall sales . - **OnCallAir® Gross Merchandise Value (GMV)**: Products sold by customers through OnCallAir® generated approximately $400 million in GMV during Q4 2025 . For the full year 2025, GMV was $1.8 billion, a 20% increase over 2024, with contractors presenting quotes to approximately 329,000 households . - **Acquisitions**: The company acquired three distributors in 2025 . Since 2019, Watsco, Inc. has acquired 12 companies, representing approximately $1.6 billion in annualized sales and 120 locations . #### Outlook / Guidance Watsco, Inc. anticipates a more conventional industry environment and improved growth prospects as 2026 unfolds . The company aims to further optimize inventory and enhance operating efficiency . It expects to generate annual operating cash flow in excess of net income, consistent with its long-term track record . Watsco, Inc. is advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies . These investments are intended to position Watsco, Inc. to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses . ### Related Stocks - [WSO.B.US](https://longbridge.com/en/quote/WSO.B.US.md) ## Related News & Research - [Endava Announces Third Quarter Fiscal Year 2026 Results | DAVA Stock News](https://longbridge.com/en/news/287209628.md) - [Nordson Corporation Reports Record Second Quarter Fiscal 2026 Results and Increases Full Year Guidance | NDSN Stock News](https://longbridge.com/en/news/287115182.md) - [Key facts: Caleres names D. 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