Watsco revenues down 5%
18th February 2026
USA: Watsco, the leading US HVAC distributor, saw revenues decrease 5% in 2025 to $7.24bn, despite higher average selling prices due to the A2L product transition.
While gross profit decreased 1% to $2bn, margins expanded 120 basis-points to a record 28%.
The figures reflect a 4% overall sales decline in US markets and a 10% decline in non-US markets. HVAC equipment, which accounts for 67% of sales, fell 7%, while sales for other HVAC products decreased 1%. Sales of commercial refrigeration products, which account for 4% of sales, were reported to be flat.
E-commerce sales totalled approximately $2.5bn during 2025 and comprised 35% of overall sales.
Commenting on the figures, Watsco chairman and CEO Albert H Nahmad said he was gratified at the results during the recent complicated business environment. “We raised margins, nearly doubled our profitability, invested $300m in technology, nearly doubled our dividend and fortified our balance sheet to allow investment in most any-sized growth opportunity,” he said. “We expect a more conventional industry environment and better prospects for growth as 2026 unfolds, and we believe there is room to further optimise inventory and improve operating efficiency.”
