Watsco, Inc. (WSO)

Watsco's stock (WSO) has experienced a notable decline in the past year. In July 2025, Watsco declared a quarterly cash dividend of $3.00 per share, following an 11% increase in its annual dividend. Several analysts have trimmed their price targets on Watsco recently, with a consensus rating of "Hold". On November 26, 2025, Watsco shares gapped down approximately 7.5% premarket. Watsco released its quarterly earnings data on November 7, 2025, reporting $3.98 earnings per share (EPS) on $2.07 billion in revenue for the quarter.

Demand for Watsco's products and services, particularly HVAC systems, is highly seasonal. The second and third calendar quarters experience the highest demand for replacement HVAC systems due to warmer weather and increased cooling needs. The first and fourth quarters are considered the low-season for product sales. Seasonal demand can also vary by region due to different climate conditions and efficiency requirements.

Watsco, Inc. is the largest distributor of air conditioning, heating, and refrigeration (HVAC/R) equipment and related parts and supplies in the Americas. Founded in 1945 and headquartered in Miami, Florida, the company connects HVAC/R equipment and parts manufacturers with contractors, technicians, and other end-users. The company distributes residential and commercial air conditioning and heating systems, provides commercial and industrial refrigeration systems and components, offers a comprehensive range of replacement parts and supplies for HVAC/R systems, and invests in digital tools, e-commerce platforms, and mobile apps to enhance customer experience and operational efficiency.

Watsco, Inc. operates primarily in the United States, Canada, Mexico, and the Caribbean, with a network of over 670 locations. The company also exports its products to Latin America and its headquarters are located in Coconut Grove, Florida.

Watsco maintains a strong brand reputation, largely driven by its market leadership, focus on technology, sustainability initiatives, and customer service. Watsco has expanded its portfolio of high-efficiency HVAC systems and environmentally friendly refrigerants. The company has invested in digital transformation, including e-commerce platforms and mobile apps, to enhance customer experience and operational efficiency. Watsco's business model emphasizes providing technical support, training, inventory management solutions, and financing options for contractors and end-users. The company continues to pursue strategic acquisitions to expand its geographic footprint and product offerings.

Watsco, Inc.'s ownership structure is a mix of institutional, retail, and individual investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., and Fmr Llc. Raytheon Technologies Corp is noted as the largest individual Watsco shareholder, owning 14.96% of the company's shares. Insiders own approximately 0.38% of the stock.