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Watsco

WSO NYSE Trading Companies & Distributors Financials FY2016–FY2025

Watsco's revenue fell 5.0% to $7.2 billion in fiscal 2025. Its operating margin was 9.9%, down from 10.3% a year earlier. Free cash flow was $535 million, down 28.0%. It paid out $474 million in dividends and buybacks, 89% of free cash flow. The diluted share count rose 1.0%.

Last close · Oct 23, 2026

$322.98

1.2%
Value it Compare
Revenue Total sales reported in the income statement.
$7.2B
5.0% vs prior year
Operating margin Operating income as a share of revenue.
10.0%
0.3 pts
Net income Profit after all expenses, interest and tax.
$497M
7.3%
Free cash flow Cash from operations minus capital spending.
$535M
28.0%
Return on capital After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
20.1%
2.2 pts
Market cap Last close times the latest diluted share count, so it is approximate.
$12.3B
Oct 23 close
P/E Last close divided by diluted earnings per share over the last four quarters.
27.8x
On $11.62 EPS (TTM)

What Watsco does

No business description yet.

Legal name
WATSCO INC
Fiscal year ends
December 31, 2025
Latest annual report
—
Accession · CIK
0001193125-26-082486
0000105016

Revenue and margins

Watsco had $7.2B of revenue in fiscal 2025, down 5.0% on the year before.

Revenue
Revenue
Margins, % of revenue
Gross Operating Net FCF
Margins, % of revenue
Gross Operating Net FCF

Net income and earnings per share

From fiscal 2016 to 2025, diluted EPS grew 10.1% a year. Loss periods are shown in red.

Net income
Net income
Diluted EPS
Diluted EPS

Returns on capital

After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.

Return on capital, equity and assets (annual)
Return on capital Return on equity Return on assets

Cash flow

Free cash flow was $535M in fiscal 2025, 7.4% of revenue. Cash from operations minus capital spending.

Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations Capital spending
Cash from operations vs capital spending
Cash from operations Capital spending

Dividends, buybacks and share count

Watsco returned $474M to shareholders in fiscal 2025, 89% of free cash flow. The diluted share count rose 1.0%.

Dividends and buybacks
Dividends Buybacks
Dividends and buybacks
Dividends Buybacks
Diluted shares outstanding (annual)

Value Watsco yourself

Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.

Discounted cash flow

Value per share

—

Adds net cash of $254M and divides by 37.9M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.

Earnings multiple

Value per share

—

Reference multiples: today 27.8x · peers 28.9x · sector 26.0x.

Balance sheet

Cash, debt and the ratios that show how comfortably Watsco can carry it.

Cash vs debt (incl. leases)
Cash Debt
Fiscal year endFY21FY22FY23FY24FY25
Cash and short-term investments $118M$148M$210M$782M$733M
Debt incl. finance leases $370M$334M$405M$448M$479M
Net debt / EBITDA 0.4x0.2x0.2x−0.4x−0.3x
Debt / equity 0.2x0.2x0.2x0.2x0.2x
Interest coverage 688.4x237.3x78.6x806.8x1,033.5x
Current ratio 2.7x2.5x3.4x3.1x4.1x
Quick ratio 1.2x1.0x1.5x1.7x2.2x
Total assets $3.1B$3.5B$3.7B$4.5B$4.4B
Total liabilities $1.1B$1.2B$1.1B$1.4B$1.2B
Shareholders' equity $1.7B$1.9B$2.2B$2.7B$2.8B
Net debt (− = net cash) $251M$187M$195M−$334M−$254M

Insider trades

Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.

Bought, 12 months

$0.0M

0 insiders

Sold, 12 months

$0.0M

0 insiders

Of sales under plans

—

$0.0M

No open-market insider trades in the last 12 months.

Piotroski F-score

Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.

TestFY23FY24FY25
Net income is positive ✓ ✓ ✓
Cash from operations is positive ✓ ✓ ✓
Return on assets rose ✕ ✕ ✕
Cash from operations exceeds net income ✓ ✓ ✓
Debt fell relative to assets ✕ ✓ ✓
Current ratio rose ✓ ✕ ✓
Share count didn't rise — ✕ ✕
Gross margin rose ✕ ✕ ✓
Revenue rose relative to assets ✕ ✕ ✕
F-score — / 94 / 96 / 9
Accruals ratio −0.7%−5.8%−1.6%
Altman Z'' 7.897.468.23

Similar companies

Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.

CompanyMarket capGrowthOp. marginFCF marginROICP/EF-score
Watsco WSO $12.3B −5.0% 10.0% 7.4% 20.1% 27.8x 6
Core & Main CNM $8.1B 2.8% 9.4% 7.9% 13.7% 17.3x 7 Compare →
Fastenal FAST $59.7B 8.7% 20.2% 12.8% 34.3% 42.2x 7 Compare →
AerCap AER $25.7B 6.5% — — 8.5% — — Compare →
Applied Industrial Technologies AIT $12.0B 8.8% 11.1% 9.3% 20.8% 29.0x 7 Compare →

10 years of figures

US$ millions unless stated. Hover a ratio's name for its definition.

Download CSV
Fiscal yearFY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Income statement
Revenue $4.2B $4.3B $4.5B $4.8B $5.1B $6.3B $7.3B $7.3B $7.6B $7.2B
Gross profit $1.0B $1.1B $1.1B $1.2B $1.2B $1.7B $2.0B $2.0B $2.0B $2.0B
Operating income $346M $354M $372M $367M $401M $629M $832M $795M $782M $720M
Interest expense $3.4M $5.8M $3.1M $4.3M $1.8M $0.9M $3.5M $10.1M $1.0M $0.7M
Pretax income $342M $348M $369M $363M $400M $628M $829M $790M $803M $738M
Income tax $106M $90.2M $72.8M $67.1M $76.6M $129M $126M $156M $167M $150M
Net income $183M $208M $243M $246M $270M $419M $601M $536M $536M $497M
Diluted EPS $5.15 $5.81 $6.49 $6.50 $7.01 $10.78 $15.41 $13.67 $13.30 $12.25
Diluted shares 0.03B 0.03B 0.03B 0.03B 0.04B 0.04B — 0.04B 0.04B 0.04B
Cash flow
Cash from operations $282M $307M $171M $336M $534M $350M $572M $562M $773M $570M
Capital expenditure $43.6M $17.9M $17.2M $17.8M $16.4M $25.5M $35.7M $35.5M $30.1M $34.5M
Free cash flow $238M $289M $153M $318M $518M $324M $536M $526M $743M $535M
Depreciation and amortization $20.1M $22.0M $22.1M $24.5M $25.9M $28.1M $31.7M $35.1M $40.8M $43.8M
Stock-based compensation $12.3M $13.3M $15.5M $17.0M $22.1M $25.4M $28.8M $30.0M $35.0M $35.3M
Acquisitions $0.0M $0.0M $5.6M $59.7M $0.0M $130M $0.0M $3.8M $5.2M $19.2M
Share buybacks $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Dividends paid $128M $164M $209M $241M $266M $295M $332M $383M $424M $474M
Dividends and buybacks $128M $164M $209M $241M $266M $295M $332M $383M $424M $474M
Balance sheet
Cash and short-term investments $56.0M $80.5M $82.9M $74.5M $146M $118M $148M $210M $782M $733M
Total debt $236M $22.3M $136M $381M $216M $370M $334M $405M $448M $479M
Finance lease liabilities $0.0M $0.0M $0.0M $3.2M $6.4M $11.8M $14.9M $16.9M $21.8M $15.9M
Current assets $1.2B $1.3B $1.4B $1.5B $1.5B $2.0B $2.3B $2.4B $3.1B $3.0B
Current liabilities $315M $417M $358M $462M $487M $727M $907M $712M $984M $718M
Inventory $685M $761M $837M $921M $781M $1.1B $1.4B $1.3B $1.4B $1.4B
Property and equipment, net $90.5M $91.2M $91.0M $98.5M $98.2M $111M $125M $136M $141M $136M
Total assets $1.9B $2.0B $2.2B $2.6B $2.5B $3.1B $3.5B $3.7B $4.5B $4.4B
Total liabilities $623M $496M $559M $841M $705M $1.1B $1.2B $1.1B $1.4B $1.2B
Shareholders' equity $1.0B $1.3B $1.3B $1.4B $1.5B $1.7B $1.9B $2.2B $2.7B $2.8B
Margins
Gross margin 24.5% 24.5% 24.6% 24.3% 24.2% 26.6% 27.9% 27.4% 26.8% 28.1%
Operating margin 8.2% 8.2% 8.2% 7.7% 7.9% 10.0% 11.4% 10.9% 10.3% 10.0%
EBITDA margin 8.7% 8.7% 8.7% 8.2% 8.5% 10.5% 11.9% 11.4% 10.8% 10.6%
Net margin 4.3% 4.8% 5.3% 5.2% 5.3% 6.7% 8.3% 7.4% 7.0% 6.9%
FCF margin 5.6% 6.7% 3.4% 6.7% 10.3% 5.2% 7.4% 7.2% 9.8% 7.4%
Returns
Return on capital 16.8% 17.9% 19.0% 16.3% 16.8% 24.4% 30.1% 24.3% 22.4% 20.1%
Return on capital employed 22.5% 22.2% 21.7% 18.8% 19.6% 28.9% 33.7% 28.4% 24.0% 20.0%
Return on equity 18.6% 18.1% 18.4% 17.7% 18.5% 26.6% 33.8% 26.0% 22.0% 18.3%
Return on assets 10.0% 10.6% 11.6% 10.4% 10.7% 15.0% 18.3% 14.9% 13.1% 11.2%
Growth
Revenue growth 2.6% 2.9% 4.7% 4.9% 6.0% 24.2% 15.8% 0.1% 4.6% −5.0%
Net income growth 5.7% 13.9% 16.7% 1.2% 9.6% 55.4% 43.5% −10.8% −0.0% −7.3%
EPS growth 5.1% 12.8% 11.7% 0.2% 7.9% 53.8% 43.0% −11.3% −2.7% −7.9%
FCF growth 19.6% 21.2% −46.9% 107.3% 62.9% −37.4% 65.5% −1.8% 41.1% −28.0%
Share count change 0.4% 0.8% 4.6% 0.9% 1.4% 0.8% — — 2.7% 1.0%
Financial health
Net debt / EBITDA 0.5x −0.2x 0.1x 0.8x 0.2x 0.4x 0.2x 0.2x −0.4x −0.3x
Debt / equity 0.2x 0.0x 0.1x 0.3x 0.2x 0.2x 0.2x 0.2x 0.2x 0.2x
Interest coverage 102.8x 61.3x 121.4x 84.5x 217.5x 688.4x 237.3x 78.6x 806.8x 1,033.5x
Current ratio 3.9x 3.2x 4.0x 3.4x 3.1x 2.7x 2.5x 3.4x 3.1x 4.1x
Quick ratio 1.8x 1.4x 1.7x 1.4x 1.4x 1.2x 1.0x 1.5x 1.7x 2.2x
Capital allocation
Capex / revenue 1.0% 0.4% 0.4% 0.4% 0.3% 0.4% 0.5% 0.5% 0.4% 0.5%
Stock comp / revenue 0.3% 0.3% 0.3% 0.4% 0.4% 0.4% 0.4% 0.4% 0.5% 0.5%
Payouts / FCF 53.6% 56.9% 136.4% 75.9% 51.3% 90.9% 62.0% 72.7% 57.0% 88.5%
Quality scores
Piotroski F-score 7.0 6.0 5.0 3.0 4.0 5.0 — — 4.0 6.0
Altman Z'' 7.5 8.3 8.4 6.7 7.2 6.7 7.1 7.9 7.5 8.2
Accruals ratio −5.4% −5.0% 3.4% −3.8% −10.5% 2.5% 0.9% −0.7% −5.8% −1.6%

Source: SEC EDGAR XBRL filings (CIK 0000105016). Data updated October 18, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.

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