Watsco
WSO · NYSEWholesale-Hardware & Plumbing & Heating Equipment & Supplies · Fiscal year ends Dec 31
Watsco reported revenue of $7.2B in the fiscal year ended Dec 2025, down 5.0% from the year before. Operating income was $720M, an operating margin of 10.0%, and net income was $497M. Operating cash flow of $570M less capital expenditure of $35M left free cash flow of $535M. It held more cash than debt (net cash $72M).
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $6.3B | $7.3B | $7.3B | $7.6B | $7.2B |
| Cost of revenue | $4.6B | $5.2B | $5.3B | $5.6B | $5.2B |
| Gross profit | $1.7B | $2B | $2B | $2B | $2B |
| Selling, general & admin | $1.1B | $1.2B | $1.2B | $1.3B | $1.3B |
| Operating income | $629M | $832M | $795M | $782M | $720M |
| Net interest incomeBanks | −$996,000 | −$2M | −$5M | $21M | $17M |
| Pre-tax income | $628M | $829M | $790M | $803M | $738M |
| Income tax | $129M | $126M | $156M | $167M | $150M |
| Net income | $419M | $601M | $536M | $536M | $497M |
| Diluted EPS | 10.78 | 15.41 | 13.67 | 13.30 | 12.25 |
| Diluted shares | 35M | – | 37M | 38M | 38M |
Balance sheet
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $118M | $148M | $210M | $526M | $433M |
| Receivables | $698M | $747M | $798M | $878M | $796M |
| Inventory | $1.1B | $1.4B | $1.3B | $1.4B | $1.4B |
| Current assets | $2B | $2.3B | $2.4B | $3.1B | $3B |
| Net PP&E | $111M | $125M | $136M | $141M | $136M |
| Goodwill | $434M | $431M | $457M | $452M | $463M |
| Total assets | $3.1B | $3.5B | $3.7B | $4.5B | $4.4B |
| Payables | $364M | $456M | $369M | $491M | $350M |
| Current liabilities | $727M | $907M | $712M | $984M | $718M |
| Long-term debt | $285M | $244M | $305M | $337M | $362M |
| Shareholders' equity | $1.7B | $1.9B | $2.2B | $2.7B | $2.8B |
Cash flow
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $350M | $572M | $562M | $773M | $570M |
| Capital expenditure | $25M | $36M | $35M | $30M | $35M |
| Free cash flow | $324M | $536M | $526M | $743M | $535M |
| Depreciation & amortisation | $28M | $32M | $35M | $41M | $44M |
| Stock-based compensation | $25M | $29M | $30M | $35M | $35M |
| Acquisitions | $129M | $47,000 | $4M | $5M | $19M |
| Dividends paid | $295M | $332M | $383M | $424M | $474M |
| Dividend per share | 7.63 | 8.55 | 9.80 | 10.55 | 11.70 |
Key ratios
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 15.8% | 0.1% | 4.6% | −5.0% |
| Operating income growth (YoY) | – | 32.3% | −4.4% | −1.6% | −7.9% |
| EPS growth (YoY) | – | 42.9% | −11.3% | −2.7% | −7.9% |
| Gross margin | 26.6% | 27.9% | 27.4% | 26.8% | 28.0% |
| Operating margin | 10.0% | 11.4% | 10.9% | 10.3% | 10.0% |
| Net margin | 6.7% | 8.3% | 7.4% | 7.0% | 6.9% |
| Return on equityBlank when equity is negative | 25.2% | 31.8% | 24.1% | 20.2% | 17.9% |
| ROCEEBIT ÷ (assets − current liabilities) | 26.6% | 32.2% | 26.3% | 22.4% | 19.5% |
| Free cash flow margin | 5.2% | 7.4% | 7.2% | 9.8% | 7.4% |
| Cash conversion (CFO ÷ net income) | 0.83x | 0.95x | 1.05x | 1.44x | 1.15x |
| Receivable days | 41 | 37 | 40 | 42 | 40 |
| Inventory days | 88 | 95 | 93 | 91 | 97 |
| Payable days | 29 | 32 | 25 | 32 | 25 |
| Debt ÷ equity | 0.17x | 0.13x | 0.14x | 0.13x | 0.13x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | $167M | $96M | $94M | −$189M | −$72M |
| Current ratio | 2.70x | 2.54x | 3.36x | 3.13x | 4.12x |
Recent filings
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Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.