WATSCO INC

Watsco, Inc. (NASDAQ: WSO) operates as the largest distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies in North America. The company maintains its website at www.watsco.com and serves as a critical intermediary between manufacturers and contractors in the HVAC/R industry.

The company distributes an expansive product portfolio consisting of residential and commercial HVAC equipment, replacement parts, supplies, and commercial refrigeration products. HVAC equipment sales account for 67 percent of revenues, while other HVAC products comprise 29 percent and commercial refrigeration products represent 4 percent. Watsco sources equipment from approximately 20 vendors, non-equipment products from more than 1,300 vendors, and commercial refrigeration products from approximately 150 vendors. The company's top ten suppliers account for 85 percent of purchases, with Carrier representing 62 percent and Rheem representing 8 percent of total purchases.

Operating from 695 locations across 43 U.S. states, Canada, Mexico, and Puerto Rico, Watsco serves more than 130,000 active contractors in the replacement and new construction markets. The United States represents 90 percent of revenues with 637 locations, while Canada accounts for 5 percent with 34 locations, and Latin America and the Caribbean comprise 5 percent with 24 locations. The company employs approximately 7,050 full-time and part-time employees, with approximately 8 percent located in Canada and Mexico.

Watsco's growth strategy combines acquisitions with organic expansion, having acquired 72 HVAC/R distribution businesses since 1989. The company maintains significant joint ventures with Carrier Global Corporation, which collectively represented 53 percent of revenues in 2025. These ventures include Carrier Enterprise I, II, III, and Temperature Equipment Corporation, providing controlling interests ranging from 60 to 80 percent.

The company generated revenues of $7.2 billion in 2025, reflecting substantial growth from $64.1 million in 1989. Watsco maintains approximately 1,100 salespeople with an average of 11 years of industry experience and emphasizes an ownership culture through various stock-based equity plans, with approximately 4,200 employees serving as Watsco shareholders.