Watsco

What Watsco does

Watsco (NYSE: WSO) is the largest distributor of heating, ventilation, air conditioning, and refrigeration (HVAC/R) products in North America. Founded in 1947 as Wagner Tool & Supply Corp., reincorporated in Florida in 1956, and publicly listed since 1963, the company has grown through a disciplined buy-and-build strategy that has added 73 businesses since 1989 and produced 15% compound annual sales growth over the past 35 years. Watsco operates 670+ branch locations across the United States, Canada, Mexico, the Caribbean, and South America through major operating subsidiaries including Carrier Enterprise (a joint venture with Carrier Global Corporation in which Watsco holds 60-80% controlling interests), Baker Distributing, Gemaire Distributors, East Coast Metal Distributors, Homans Associates, Peirce-Phelps, TEC Distribution, and Jackson Supply (acquired June 2026). The company serves approximately 120,000 active contractors, installers, and dealers, with roughly 74,000 engaging digitally. Watsco distributes equipment (~65-67% of revenue) and parts/supplies (~29-30%) from leading OEMs including Carrier, Bryant, Rheem, Goodman, Amana, Daikin, Mitsubishi, Trane, Lennox, Midea, and Gree, with commercial refrigeration contributing the remaining ~4-5%.

Watsco's revenue model is hardware distribution at scale, with FY2025 revenue of $7.24B (a 5% YoY decline), record gross margin of 28.0%, and a debt-free balance sheet holding $780M in cash. The company has invested over $250M in technology across the past five years, fielding a portfolio of proprietary digital platforms: HVAC Pro+ mobile applications and an e-commerce platform covering ~1.3 million SKUs used by ~74,000 contractors and representing $2.5B (35%) of 2025 sales; OnCallAir, a digital sales platform that enabled contractors to quote ~336,000 households and generate $1.9B in GMV over the twelve months ended March 2026 (a 20% YoY increase); the AlertAQ IoT platform from subsidiary Alert Labs, which analyzes 25B+ gallons of water annually and has saved customers over $80M; and CreditForComfort consumer financing integrated with OnCallAir. E-commerce sales grew 16% in Q1 2026 to a $2.6B annualized run-rate, with top-performing regions exceeding 60% e-commerce penetration.

The company's go-to-market is a hybrid of physical branch distribution, counter-level technical sales, and digital self-service. Watsco's value proposition centers on immediate access to broad product assortments across multiple OEMs and price points, technical expertise at point of sale, same-day delivery to contractor job sites, and 24/7 digital access through mobile apps and e-commerce. Watsco targets the HVAC replacement market (primary) and new construction market (secondary), with approximately 73,000-74,000 contractors engaging digitally with the company. Watsco also operates Watsco Ventures as an in-house technology investment and innovation lab, and has integrated with climate fintech partner Coral for instant rebate financing on heat pump installations. The company has paid dividends for 52 consecutive years and delivered a 17% compounded annual total shareholder return since 1989.

Name

Watsco

Legal name

Watsco Inc.

Website

http://www.watsco.com/

Company type

Public

Founded year

1945

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Watsco is North America's largest HVAC/R distributor with 670+ branches in the US, Canada, Mexico, and Caribbean. It sells equipment, parts, and supplies from leading OEMs to roughly 120,000 contractors through Carrier Enterprise, Baker, Gemaire, and East Coast Metal Distributors.

Ownership category

akta.pro rank

Product category

HVAC/R Distribution

NAICS

Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers (42373), Refrigeration Equipment and Supplies Merchant Wholesalers (423740)

SIC

Wholesale-Hardware & Plumbing & Heating Equipment & Supplies (5070), Steam & Air-Conditioning Supply (4961)

akta.pro primary industry

HVAC, Water Heaters & Indoor Air Quality Distribution (CRAOAFAJ)

Keywords

• HVAC distribution
• Refrigeration products
• HVAC parts supplies
• Commercial refrigeration
• Heating cooling distribution

Headquarters

HQ city

Coral Gables

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. HVAC Equipment Distribution: Sale of air conditioning, heating, and refrigeration equipment including residential ducted and ductless air conditioners (1-5 tons), gas/electric/oil furnaces, commercial HVAC systems (1-1/2 to 25 tons). Represents approximately 65-67% of total revenue. Revenue recognized at point of sale through branch network distribution.
2. HVAC Parts and Supplies Distribution: Sale of replacement parts including compressors, evaporator coils, motors, and component parts, plus supplies such as thermostats, insulation, refrigerants, ductwork, tools, and copper tubing. Represents approximately 29-30% of total revenue. Consumable/maintenance products with recurring purchase patterns.
3. Commercial Refrigeration Products: Sale of commercial refrigeration products representing approximately 4-5% of total revenue.
4. Digital Commerce/E-Commerce: E-commerce sales through HVAC Pro+ platform reached approximately $2.5 billion in 2025 (35% of total sales), growing 16% in Q1 2026. This represents the digital channel for all product categories.

Go-to-market motion2 records

Distribution channels7 records

Marketing channels6 records

Core offering

Watsco is the largest HVAC/R distributor in North America, selling residential and commercial air conditioning, heating, and refrigeration equipment, replacement parts, and supplies through a network of 670+ branch locations and proprietary digital platforms. Its core revenue (~65-67%) comes from HVAC equipment sales with a long tail of parts, supplies, and commercial refrigeration products distributed to contractors, dealers, and technicians across the US, Canada, Mexico, and the Caribbean.

Product overview

Watsco operates as the largest HVAC/R distributor in North America with a platform-plus-distribution model. The company combines physical distribution operations (over 670 locations across business units including Carrier Enterprise, Baker Distributing, Gemaire Distributors, and East Coast Metal Distributors) with technology platforms including the HVAC Pro+ Mobile Apps and E-Commerce platform for digital ordering, OnCallAir digital sales platform for contractor-to-homeowner quoting, and Alert Labs' AlertAQ IoT water and HVAC intelligence solutions. Watsco's revenue mix comprises HVAC equipment (approximately 65-67% of sales), other HVAC products (29-30%), and commercial refrigeration products (4-5%). The company also maintains Watsco Ventures as an investment and innovation arm.

Differentiator

Problem solved

Functional benefit

Brands

• HVAC Pro+: Mobile apps and e-commerce platform providing contractors seamless digital experience for sourcing products, technical help, real-time inventory, pricing, and product information
• OnCallAir
• CreditForComfort
• AlertAQ

Products and services

• Residential and Commercial HVAC Equipment Distribution Sale of air conditioning, heating, and refrigeration equipment including residential ducted and ductless air conditioners (1-5 tons), gas/electric/oil furnaces, and commercial HVAC systems (1-1/2 to 25 tons). Distributed via Carrier Enterprise, Baker Distributing, Gemaire, East Coast Metal, Jackson Supply, and other subsidiaries. Represents approximately 65-67% of total revenue. Sold to HVAC contractors and dealers across the US, Canada, Mexico, and the Caribbean.
• HVAC Parts and Supplies Distribution Sale of replacement parts including compressors, evaporator coils, motors, and component parts, plus supplies such as thermostats, insulation, refrigerants, ductwork, tools, and copper tubing. Represents approximately 29-30% of total revenue with recurring, consumable purchase patterns. Sold to HVAC contractors and technicians through branches and digital channels.
• Commercial Refrigeration Products Sale of commercial refrigeration products distributed through Baker Distributing and other business units. Represents approximately 4-5% of total revenue. Targeted at foodservice and commercial refrigeration contractors.
• HVAC Pro+ Mobile Apps and E-Commerce Platform Mobile applications and e-commerce platform providing contractors seamless digital access for sourcing products, real-time inventory, pricing, technical support, warranty look-up, system match-ups, intelligent search, dynamic reordering, and 24/7 self-service. Covers approximately 1.3 million SKUs and is used by over 350,000 contractors, technicians, and installers annually. Generated ~$2.5 billion in e-commerce sales (35% of total sales) in 2025.
• OnCallAir Digital Sales Platform Digital sales platform that enables HVAC/R contractors to engage, present, and quote solutions to homeowners with professional proposals including multiple quality options, integrated with CreditForComfort consumer financing. Generated approximately $1.9 billion in GMV across quotes to about 336,000 households in the twelve months ended March 2026, a 20% year-over-year increase.
• CreditForComfort Consumer Financing Consumer financing platform integrated with the OnCallAir digital sales platform, enabling HVAC contractors to offer financing options to homeowners purchasing HVAC/R solutions.
• AlertAQ Water and HVAC Intelligence Platform (Alert Labs) IoT platform with cellular-connected smart building sensors for water leak detection, real-time building monitoring, and HVAC intelligence. Analyzes over 25 billion gallons of water annually and has saved customers over $80 million. Award-winning (Deloitte Technology Fast 50 Clean Technology; B Corp certified at 98.9 score). Sold to commercial and institutional building owners such as higher education campuses.

Quantifiable outcome

• 24.5M metric tons CO2e emissions averted from high-efficiency equipment sales (Jan 2020 - Dec 2024)
• +6 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability5 records

Feature5 records

Partnerships

14 partnerships are on record, tiered core and minor.

• Jackson Supply CompanycoreStrategic or Co-development Partner · 2 June 2026Watsco completed acquisition of Jackson Supply Company, one of the Sunbelt's largest independent HVAC distributors with $230 million in annual sales and 25 locations across 7 states. Jackson Supply will retain its name, vendor relationships, go-to-market strategy, brand identity, and culture under Watsco's ownership. Existing leadership team, including Jim Durrett and Jennifer Ballsieper, will continue to lead the company. Transaction funded through stock.
• Carrier Global Corporation (TEC Distribution LLC)minorStrategic or Co-development Partner · 9 April 2021Watsco formed new joint venture TEC Distribution LLC with Carrier to operate Temperature Equipment Corporation's HVAC distribution business with 32 locations in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, and Wisconsin. Watsco holds 80%, Carrier holds 20%.
• Carrier Global Corporation (Carrier Enterprise III)coreStrategic or Co-development Partner · 1 January 2012Third joint venture with Carrier contributing 35 company-owned locations in Canada. Watsco holds 60% controlling interest, Carrier holds 40% non-controlling interest.
• Carrier Global Corporation (Carrier Enterprise II)coreStrategic or Co-development Partner · 1 January 2011Second joint venture with Carrier contributing company-owned locations in Northeast US. Watsco contributed Homans Associates LLC locations. Watsco holds 80% controlling interest. This venture also purchased Carrier's Mexico distribution operations.
• Carrier Global Corporation (Carrier Enterprise I)coreStrategic or Co-development Partner · 1 January 2009Watsco formed joint venture Carrier Enterprise I with Carrier Global Corporation. Carrier contributed company-owned locations in Sun Belt states and Puerto Rico, plus export division in Miami. Watsco contributed certain locations distributing Carrier products. Watsco holds 80% controlling interest, Carrier holds 20%. This represented 56% of Watsco revenues in 2021.
• CarriercoreChannel Partner/ Reseller/ DistributorMajor OEM partner through Carrier Enterprise joint ventures. Watsco is exclusive distributor of Carrier and Bryant branded residential, ductless, light-commercial and applied commercial HVAC equipment lines.
• RheemcoreChannel Partner/ Reseller/ DistributorMajor equipment manufacturer partner. Watsco distributes Rheem HVAC equipment through business units including Gemaire Distributors.
• Daikin Comfort Technologies North America (Goodman, Amana)coreChannel Partner/ Reseller/ DistributorDaikin-owned brands Goodman and Amana distributed through East Coast Metal Distributors and Jackson Supply. Products include residential and commercial HVAC equipment.
• Mitsubishi ElectriccoreChannel Partner/ Reseller/ DistributorWatsco is leading distributor of ductless HVAC products in North America. Mitsubishi Electric VRF and ductless systems distributed through Gemaire and other business units.
• Gree Electric AppliancesminorChannel Partner/ Reseller/ DistributorEquipment manufacturer partner. Distributed through Carrier Enterprise locations alongside Carrier, Bryant, and Midea product lines.
• ChemoursminorChannel Partner/ Reseller/ DistributorNon-equipment HVAC/R manufacturer partner providing refrigerants and related chemical products. Important supplier for parts and supplies category.
• TranecoreChannel Partner/ Reseller/ DistributorMajor equipment manufacturer providing commercial HVAC systems and solutions. Key supplier relationship for commercial product offerings.
• LennoxcoreChannel Partner/ Reseller/ DistributorEquipment manufacturer partner providing residential and commercial HVAC equipment. Distributed through Watsco branch network.
• Midea GroupminorChannel Partner/ Reseller/ DistributorEquipment manufacturer providing ductless and residential HVAC products. Distributed through Carrier Enterprise alongside Carrier and Bryant brands.

Scale indicators13 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• Johnstone Supply: Largest direct competitor of Watsco in HVAC/R distribution; member-owned cooperative serving residential and commercial HVAC contractors across the US with a comparable mix of equipment, parts, and supplies. Highly comparable on customer base, product mix, and route-to-market.
• R.E. Michel Company: Long-standing HVAC distributor serving contractors with heating, cooling, and refrigeration equipment and parts across the US. Directly comparable to Watsco on product mix, customer base, and branch-based distribution model.
• Hajoca Corporation: Large US wholesale distributor of plumbing, heating, cooling, and industrial products with a decentralized branch model. Comparable to Watsco in serving contractor customers via multi-brand branch distribution, with overlap in HVAC equipment and parts.
• Winsupply: Cooperative-style distributor of HVAC, plumbing, and other building products through local companies across the US. Comparable to Watsco in customer base, multi-OEM product assortment, and decentralized operating model.

Broad incumbents

• Ferguson Enterprises: Largest US distributor of plumbing and a major distributor of HVAC products, serving contractors through a national branch network. Comparable to Watsco in distribution scale, public-company governance, and contractor-customer focus, but with broader plumbing exposure.
• Genuine Parts Company: Diversified industrial and automotive parts distributor with HVAC/R exposure through its Motion Industries segment. Comparable to Watsco in distribution model, public-company scale, and buy-and-build growth strategy, though much broader in end markets.
• QXO: Building products distributor pursuing aggressive M&A consolidation across roofing, insulation, and adjacent categories. Comparable to Watsco in distribution model and acquisition-driven growth, but focused on roofing/building envelope rather than HVAC/R.
• Pool Corporation: Largest US specialty distributor of pool supplies and related outdoor living products. Comparable to Watsco as a publicly traded, branch-based specialty distributor with strong cash generation, dividend track record, and tech-enabled ordering platform.

Others

• Carrier Global Corporation: HVAC OEM and Watsco's largest JV partner through Carrier Enterprise I, II, III, and TEC Distribution (Watsco 80%/60% controlling interest). Not a direct competitor but a critical commercial partner and vertical reference for HVAC supply chain economics.
• Trane Technologies: Major HVAC OEM and one of the seven defendants in the 2026 price-coordination class action. Not a direct distribution peer, but a key supplier-customer vertical reference and a major competitor to Carrier, Rheem, Daikin, and Lennox for the equipment Watsco distributes.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/watsco
• Xx.com/WatscoInc
• Facebookfacebook.com/121420387901018

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A7 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Watsco