Overview
Watsco, Inc. is a North American distributor of air-conditioning, heating and refrigeration (HVAC/R) equipment, replacement parts and supplies. It serves contractors who install and repair systems for residential and commercial customers. Its products range from heating and cooling equipment to compressors, motors, thermostats, refrigerants and installation supplies. Watsco began its HVAC/R distribution strategy in 1989 and has expanded through acquisitions and development of its distribution businesses.[1][2][3][4]
Watsco’s stated operating focus is to help contractors obtain products and technical support through convenient locations, available inventory and customer service. At the end of 2024, it operated 690 distribution facilities across 43 U.S. states, Canada, Mexico and Puerto Rico, with additional coverage of export markets in Latin America and the Caribbean. It reported $7.62 billion in 2024 revenue and employed approximately 7,300 people at year-end.[5][6][7][8][9] [1][2][3][4][5][6][7][8][9]
Products & services
Watsco’s products span HVAC equipment, replacement parts, installation supplies and commercial refrigeration products. Its equipment includes residential ducted and ductless air conditioners rated at 1–5 tons; gas, electric and oil furnaces rated at 50,000–150,000 BTUs; and commercial air-conditioning and heating systems rated at 1½–25 tons. Replacement parts include compressors, evaporator coils and motors. Supplies include thermostats, refrigerants, insulation, ductwork, copper tubing, sheet metal, tools and other installation materials. A limited number of stores also carry plumbing and bathroom-remodeling supplies.[10]
Watsco supports contractors with stocked inventories, point-of-sale technical expertise and phone or on-site technical support. Its mobile apps and e-commerce tools let customers search products, check inventory and pricing, place and track orders, arrange pickup or delivery, and pay. OnCall Air is a digital sales platform, accompanied by the OnCall Air Finance+ consumer-financing platform.[11][12][13] In 2025, HVAC equipment accounted for 67% of revenue, other HVAC products for 29%, and commercial refrigeration products for 4%; the corresponding 2024 shares were 69%, 27% and 4%.[14] [10][11][12][13][14]
Geographic presence
Watsco’s distribution network spans 43 U.S. states, Canada, Mexico and Puerto Rico, with export coverage in parts of Latin America and the Caribbean. At year-end 2025, it had 695 locations: 637 in the United States, 34 in Canada, 16 in Puerto Rico and 8 in Mexico. Florida and Texas had the largest U.S. concentrations, with 102 and 89 locations, respectively.[15][16]
The United States accounted for 90% of 2025 revenue, Canada for 5%, and Latin America and the Caribbean for 5%. Watsco’s principal executive office is in Miami, Florida. Approximately 8% of its employees were based in Canada and Mexico at year-end 2025.[17][18][19] [15][16][16][16][16][16][16][17][17][17][18][19]
Business segments
Watsco’s sole line of business is the distribution of air-conditioning, heating and refrigeration equipment and related parts and supplies. It does not present its product categories as separate business segments; HVAC/R distribution therefore accounts for effectively 100% of its sales.[20][15]
Within that business, HVAC equipment contributed approximately 67% of 2025 sales. This category includes residential air conditioners and furnaces as well as commercial heating and cooling systems. Other HVAC products, including replacement parts and supplies, contributed 29%; commercial refrigeration products contributed 4%. These percentages describe product mix, not separately reported segments.[14][10] Geographically, 90% of 2025 sales came from the United States, with Canada and Latin America and the Caribbean each contributing 5%.[17] [20][15][14][10][17][17][17]
Company history
Watsco was incorporated in Florida in 1956. In 1989, it began building an HVAC and refrigeration distribution business through a strategy of acquiring distributors and expanding their operations.[1][4]
A major expansion began in 2009, when Watsco formed a joint venture with Carrier that combined distribution locations and included Carrier’s Miami export business. The companies formed a second venture serving the northeastern United States in 2011 and a third, covering Canada, in 2012. Watsco continued to expand through acquisitions, including three distributor purchases in 2019: DASCO, Peirce-Phelps and N&S Supply.[21][22][23][24] [1][4][21][22][23][24]
Sources
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