Revenue: As of FY2025, the actual value is USD 7.239 B.EPS: As of FY2025, the actual value is USD 12.25.EBIT: As of FY2025, the actual value is USD 720.35 M.<h4>Dividends</h4>Watsco, Inc. announced a 10% increase in its annual dividend, raising it to $13.20 per share on each outstanding share of its Common and Class B common stock . This increase will be reflected in the company’s next quarterly dividend payment in April 2026 . Watsco, Inc. has a history of paying dividends to shareholders for 52 consecutive years . The annual dividend rate was increased to $13.20 per share, effective February 17, 2026 . Dividends paid increased from $6.40 per share in 2019 to $11.70 per share in 2025, an 83% change with an 11% CAGR .<h4>Full-Year 2025 Performance</h4><ul><li>Revenues: Watsco, Inc. reported revenues of $7.24 billion in 2025, a 5% decrease compared to the previous year .</li><li>Gross Profit: Gross profit was $2.0 billion, a 1% decrease from the prior year .</li><li>Gross Profit Margin: The gross profit margin expanded by 120 basis points to a record 28.0% .</li><li>SG&amp;A Expenses: Selling, general and administrative (SG&amp;A) expenses increased by 3% .</li><li>Operating Income: Operating income decreased 8% to $720 million .</li><li>Operating Margin: The operating margin was 10.0% in 2025, down from 10.3% in the previous year .</li><li>Net Income: Net income was $587,588 thousand in 2025, compared to $635,740 thousand in 2024 . Net income attributable to Watsco, Inc. was $496,994 thousand in 2025, down from $536,286 thousand in 2024 .</li><li>Operating Cash Flow: Operating cash flow for the full year was $570 million, representing 97% of net income . Net cash provided by operating activities was $569,613 thousand in 2025, a decrease from $773,102 thousand in 2024 .</li></ul><h4>Fourth Quarter 2025 Performance</h4><ul><li>Revenues: Revenues decreased 10% to $1.58 billion .</li><li>Gross Profit: Gross profit was $428 million, an 8% decrease .</li><li>Gross Profit Margin: The gross profit margin expanded 40 basis points to 27.1% .</li><li>SG&amp;A Expenses: SG&amp;A expenses decreased by 2% .</li><li>Operating Income: Operating income declined 25% to $102 million, with operating margins at 6.4% .</li><li>Operating Cash Flow: Record operating cash flow of $400 million was generated during the fourth quarter .</li></ul><h4>Sales Trends (Full-Year 2025)</h4><ul><li>U.S. Markets: Overall sales declined 4% .</li><li>Non-U.S. Markets: Sales declined 10% .</li><li>HVAC Equipment: Sales of HVAC equipment (67% of sales) decreased 7% .</li><li>Other HVAC Products: Sales for other HVAC products (29% of sales) decreased 1% .</li><li>Commercial Refrigeration Products: Sales of commercial refrigeration products (4% of sales) remained flat .</li></ul><h4>Sales Trends (Fourth Quarter 2025)</h4><ul><li>HVAC Equipment: Sales of HVAC equipment (67% of sales) decreased 13% .</li><li>Other HVAC Products: Sales for other HVAC products (29% of sales) decreased 4% .</li><li>Commercial Refrigeration Products: Sales of commercial refrigeration products (4% of sales) increased 5% .</li><li>Average Selling Price: Average selling price domestically increased 11% .</li></ul><h4>Key Performance Metrics (2019 vs. 2025)</h4><ul><li>Revenues: Increased from $4.8 billion in 2019 to $7.2 billion in 2025, a 52% change with a 7% CAGR .</li><li>Operating Income: Increased from $367 million in 2019 to $720 million in 2025, a 96% change with a 12% CAGR .</li><li>Gross Margin: Expanded by 370 basis points from 24.3% in 2019 to 28.0% in 2025 .</li><li>Net (Debt) Cash: Shifted from -$81 million in 2019 to $733 million in 2025, an increase of $814 million .</li></ul><h4>Cash Flow and Financial Position</h4><ul><li>Cash and Investments: The company maintains $780 million in cash and investments and has no debt .</li><li>Inventory: Inventory peaked at $2.1 billion during 2025 and declined 30% to $1.4 billion by December 31, 2025 .</li><li>Net Cash Used in Investing Activities: - $98,122 thousand in 2025, compared to - $290,670 thousand in 2024 .</li><li>Net Cash Used in Financing Activities: - $568,116 thousand in 2025, compared to - $158,530 thousand in 2024 .</li><li>Cash and Cash Equivalents: Ended the year 2025 with $433,283 thousand, down from $526,271 thousand at the end of 2024 .</li></ul><h4>Unique Metrics and Operational Details</h4><ul><li>Technology Investment: Over the last five years, more than $250 million has been invested in technology, with a current annual run rate of approximately $60 million and nearly 300 technologists .</li><li>HVAC Pro+ Mobile Apps Users: The authenticated user community increased 15% to approximately 73,000 users . Approximately 73,000 contractors, installers, and technicians currently engage digitally with Watsco, Inc. .</li><li>E-commerce Sales: E-commerce sales totaled approximately $2.5 billion in 2025, comprising 35% of overall sales .</li><li>OnCallAir® Gross Merchandise Value (GMV): Products sold by customers through OnCallAir® generated approximately $400 million in GMV during Q4 2025 . For the full year 2025, GMV was $1.8 billion, a 20% increase over 2024, with contractors presenting quotes to approximately 329,000 households .</li><li>Acquisitions: The company acquired three distributors in 2025 . Since 2019, Watsco, Inc. has acquired 12 companies, representing approximately $1.6 billion in annualized sales and 120 locations .</li></ul><h4>Outlook / Guidance</h4>Watsco, Inc. anticipates a more conventional industry environment and improved growth prospects as 2026 unfolds . The company aims to further optimize inventory and enhance operating efficiency . It expects to generate annual operating cash flow in excess of net income, consistent with its long-term track record . Watsco, Inc. is advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies . These investments are intended to position Watsco, Inc. to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses .

Watsco - B | 8-K: FY2025 Revenue: USD 7.239 B