Watsco, Inc. Lifts Dividend and Margins Despite Tough HVAC Market
- brg_news_room
- 8 hours ago
- 1 min read
USA: Watsco reported resilient 2025 results amid regulatory transitions and softer housing demand, delivering a record full-year gross margin of 28% and record fourth-quarter operating cash flow of US$400 million. Revenue slipped 5% to US$7.24 billion and EPS eased to US$12.25, reflecting lower HVAC unit volumes and higher operating costs tied to the A2L refrigerant shift. Even so, pricing optimisation and OEM actions supported margin gains. The company reduced inventories by 30% to US$1.4 billion and ended the year with a debt-free balance sheet and US$780 million in cash and investments. It raised its annual dividend 10% to US$13.20 per share, marking 52 consecutive years of dividends. Digital momentum remained strong, with e-commerce at 35% of sales and about 73,000 users on its apps. Chairman and CEO Albert H. Nahmad expects more normalised conditions and growth opportunities in 2026.
Source: Watsco
