HVACR distributors that are members of heating, Air-conditioning & Refrigeration Distributors International (HARDI) reported a continued increase in sales, logging a 6.8% increase in July after a 6.9% increase in June.

The annual sales growth for the 12 months through July 2025 is an increase of 3.3%.

“Five of our regions achieved double-digit sales growth during July 2025,” said Brian Loftus, Macroeconomic and Residential Market Analyst at HARDI.  “The outlier was the Western region, where cooling degree days were 12% below normal this month, versus July of 2024, which had 14% more cooling degree days than normal.”

The monthly sales survey also calculates distributor’s Days Sales Outstanding, which is a measure of how quickly customers pay their bills.

“The DSO for June was tracking in the 39 to 40 day area for July during 2021, July 2022 and July 2023. This was trimmed to 37 during July 2024, where it remained for July of 2025,” Loftus said.

The annual sales growth of HARDI distributors has been in the 3.3% to 4.3% range this year.

“The economy has not been a demand catalyst so far this year, but higher prices being passed through could push distributor’s annual sales growth beyond this upper edge during the balance of 2025,” Loftus said.