Watsco Reports Mixed Q4 & Full-Year 2025 Results, Boosts Annual Dividend 10% to $13.20
WSO sits 27% above its 52-week low of $323.05.
Summary
Watsco Inc. reported a decline in Q4 and full-year 2025 revenues and earnings amidst challenging market conditions, but achieved record gross profit margins and strong cash flow, leading to a 10% increase in its annual dividend.
Key Events · Earnings and Guidance · WSO
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Annual Dividend Increased 10%
Watsco's Board of Directors approved a 10% increase in its annual dividend rate to $13.20 per share, effective with the next quarterly payment in April 2026, marking 52 consecutive years of dividend payments.
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Record Full-Year Gross Profit Margin
The company achieved a record full-year gross profit margin of 28.0% in 2025, an expansion of 120 basis points, driven by pricing optimization technologies and OEM pricing actions.
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Mixed Q4 and Full-Year Financial Results
Full-year 2025 revenues decreased 5% to $7.24 billion and EPS declined to $12.25. Q4 2025 revenues decreased 10% to $1.58 billion and EPS declined to $1.68, attributed to challenging market conditions and regulatory transitions.
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Strong Cash Flow and Debt-Free Balance Sheet
Watsco generated $570 million in operating cash flow for the full year, including a record $400 million in Q4 2025. The company maintains a strong financial position with $780 million in cash and investments and no debt.
Analysis · WSO · Trade & Services
Watsco Inc. announced a 10% increase in its annual dividend, marking its 52nd consecutive year of payments, signaling strong management confidence and financial health despite a challenging market. While the company reported declines in Q4 and full-year 2025 revenues and earnings, it achieved a record full-year gross profit margin of 28.0% and generated record operating cash flow in the fourth quarter. This performance, coupled with a debt-free balance sheet and substantial cash reserves, demonstrates the company's resilience and ability to navigate industry headwinds, including regulatory transitions and slower housing activity. The dividend increase is a significant positive for shareholders, reinforcing the company's commitment to returning capital.
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In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, WSO was trading at $411.01 on NYSE in the Trade & Services sector, with a market capitalization of approximately $17B. The 52-week trading range was $323.05 to $535.40. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.