Miami-based Watsco — one of North America’s largest HVACR distributor — reported its 2024 fourth quarter and full-year financial results on Feb. 18, showing an increase in its 4Q HVAC equipment and commercial refrigeration products segment sales.

4Q Results

Watsco posted total 4Q sales of $1.75 billion that were up approximately 9% year-over-year.

The company’s 4Q gross margin of 26.7% increased 90 basis-points year-over-year, likewise up 50 bps sequentially. Operating profit of $136 million on margin of 7.8% increased from the $107 million and 6.7% margin of a year prior.

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Net profit increased 13% year-over-year to a record $468 million, following 4Q23’s $414 million.

By Watsco product line during 4Q (excluding acquisition)

• HVAC equipment (69% of sales) increased 15% year-over-year
• Other HVAC products (27% of sales) remained flat year-over-year
• Commercial refrigeration products (4% of sales) increased 4% year-over-year

“Watsco had a terrific fourth quarter, achieving record sales and earnings, improved operating efficiency, expanded margins and record cash flow,” Watsco Chairman and CEO Albert Nahmad said in the company’s financial release. “Looking ahead, the transition to A2L products is well underway, providing incremental opportunities for growth and share gains as our technology platforms gain more adoption in the marketplace.”

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2024 Results

Watsco reported full-year sales of $7.62 billion that were up approximately 5% year-over-year and up 3% on a same-store basis.

The company’s full-year gross margin of 26.8% decreased 80 bps year-over-year. Operating profit of $782 million on margin of 10.3% decreased from 2023’s $794 million on 10.9% margin, while net profit increased 3% year-over-year to a record $2.04 billion.

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By Watsco product line during 2024:

• HVAC equipment (70% of sales) increased 5% year-over-year
• Other HVAC products (26% of sales) decreased 2% year-over-year
• Commercial refrigeration products (4% of sales) increased 1% year-over-year

Watsco’s 4Q and full-year report noted that the company continues to invest in its technology platforms. Highlights include:

• eCommerce (35% of annual sales) increased 8% to $2.6 billion year-over-year and grew 16% during 4Q24
• The company’s user community for HVAC Pro+ Mobile apps increase to roughly 64,000 users, up 15% year-over-year
• The digital sales platform for contractors increased 25% year-over-year to approximately $1.5 billion, while quotes to homeowners likewise increased 22% to about 313,000 households

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Nahmad added: “We have also opened two pathways for AI-related initiatives to leverage the substantial data streams that we have curated over the years related to products, technical know-how, customer information and a wealth of transactional data. The first path is focused on how to bring technical know-how and service to our contractor community faster, more completely and more productively, whether assisted by our technical support staff or through self-service. The second path is internally focused to derive more productive content creation across a variety of disciplines in our business. It is early stage, but we are excited and already witnessing productivity gains and an expansion of our historical capabilities.”

Watsco was No. 1 on MDM’s Top Distributor’s List for HVACR and No. 7 for Industrial Supplies.