WATSCO INC

Watsco, Inc. is the largest distributor of air conditioning, heating, and refrigeration equipment and related parts and supplies (HVAC/R) in North America. Incorporated in Florida in 1956, the company operates from 695 locations across 43 U.S. States, Canada, Mexico, and Puerto Rico as of December 31, 2025. Watsco also provides market coverage on an export basis to parts of Latin America and the Caribbean. The company serves over 130,000 active contractors in both the replacement and new construction markets. Watsco's revenues in HVAC/R distribution grew from $64.1 million in 1989 to $7.2 billion in 2025. This growth has been driven by strategically acquiring companies with established market positions and subsequently increasing revenues and profit through additional locations, new product introductions, expansion with industry Original Equipment Manufacturers (OEMs) and vendors, technology innovation, and other initiatives. The HVAC/R distribution industry is highly fragmented, with over 2,100 distribution companies and an estimated annual market size of $74.0 billion, according to the November 2024 IBIS World Industry Report. The estimated annual market for residential HVAC/R products, including contractor value, is approximately $156.0 billion, as per the April 2025 IBIS World Industry Report.