Company Reports Q4 Revenue of $1.58B, Below Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy WSO?
Reports Q4 revenue $1.58B, consensus $1.62B. Albert Nahmad, Chairman and CEO remarked: "The recent business environment has been among the most complicated in memory. I am gratified at the results we achieved and the execution by our teams over the time horizon summarized above. We raised margins, nearly doubled our profitability, invested $300 million in technology, nearly doubled our dividend and fortified our balance sheet to allow investment in most any-sized growth opportunity. We expect a more conventional industry environment and better prospects for growth as 2026 unfolds, and we believe there is room to further optimize inventory and improve operating efficiency."
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Analyst Views on WSO
Wall Street analysts forecast WSO stock price to fall
9 Analyst Rating
1 Buy
7 Hold
1 Sell
Hold
Current: 407.120
Low
349.00
Averages
394.14
High
460.00
Current: 407.120
Low
349.00
Averages
394.14
High
460.00
About WSO
Watsco, Inc. is a distributor of heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico, and Puerto Rico, and on an export basis to Latin America and the Caribbean. The Company sells products to the commercial refrigeration market, which include condensing units, compressors, evaporators, valves, refrigerants, walk-in coolers, and ice machines for industrial and commercial applications. Additionally, it sells a variety of non-equipment products including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats, and air quality products. The Company distributes products manufactured by Flexible Technologies, Inc., a subsidiary of Smiths Group plc, Resideo Technologies, Inc., Southwark Metal Mfg. Co., Johns Manville, a subsidiary of Berkshire Hathaway, Inc., and Owens Corning Insulating Systems, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Watsco, Inc. Q4 2025 Earnings Call Highlights
- Market Share Growth: Watsco achieved over $1.6 billion in sales through 12 acquisitions in 2025, significantly increasing its market share, which reflects the company's strategic success during the A2L refrigerant transition.
- Dividend Increase: The company announced a 10% annual dividend increase to $13.20 per share, marking its 52nd consecutive year of dividend payments, demonstrating confidence in future business and stable cash flow.
- Operational Efficiency Improvement: Despite a decline in unit volumes, Watsco successfully met its $500 million inventory reduction goal and generated $400 million in cash flow in Q4, indicating ongoing improvements in cost control and operational efficiency.
- Increased Technology Investment: E-commerce sales accounted for 35% of total sales, with the OnCall Air platform achieving an annual gross merchandise value of $1.8 billion, showcasing the company's proactive approach in technology and market expansion aimed at enhancing customer experience and competitive positioning.
See More
Watsco Q4 Earnings Miss Expectations with Declining Revenue
- Disappointing Earnings: Watsco reported a Q4 GAAP EPS of $1.68, missing expectations by $0.21, indicating pressure on profitability that could affect investor confidence moving forward.
- Revenue Decline: The company generated $1.58 billion in revenue, a 9.7% year-over-year decrease that fell short of projections, reflecting weak market demand and potential future performance challenges.
- Slight Margin Improvement: Despite the revenue drop, gross profit margin expanded by 40 basis points to 27.1%, demonstrating the company's efforts in cost control, which may support future profitability.
- Record Cash Flow: Watsco achieved a record operating cash flow of $400 million, indicating strong cash management that can support future investments and operational needs.
See More
Watsco Announces 10% Increase in Annual Dividend
- Dividend Increase: Watsco's Board of Directors approved a 10% increase in its annual dividend to $13.20 per share, reflecting the company's confidence in its business prospects and will be reflected in the upcoming quarterly dividend payment in April 2026.
- Consistent Dividend Record: With 52 consecutive years of dividend payments, Watsco demonstrates strong cash flow and a conservative balance sheet, indicating a stable dividend policy that aligns with investment opportunities and overall financial health.
- Digital Transformation: Approximately 73,000 contractors, installers, and technicians engage digitally with Watsco, which not only enhances business growth but also reduces customer attrition, showcasing the company's competitive advantage in the fragmented HVAC/R market.
- AI-Driven Innovation: Watsco is advancing AI-driven initiatives to leverage its extensive data assets to enhance customer experience and operational efficiencies, positioning the company to capture greater market share as contractors increasingly adopt digital tools and data-driven solutions.
See More
Watsco Boosts Annual Dividend by 10% to $13.20 Per Share
- Dividend Increase: Watsco announced a 10% increase in its annual dividend to $13.20 per share, marking the company's 52nd consecutive year of dividend payments, reflecting its strong financial stability and commitment to shareholders.
- Financial Performance: In 2025, revenues totaled $7.24 billion, down 5% from 2024, yet gross margin expanded to a record 28%, showcasing the company's successful application of pricing optimization technologies that enhanced profitability.
- Technology Investment: Watsco invested over $250 million in technology over the past five years, driving the use of its HVAC Pro+ mobile app and e-commerce platform, with e-commerce sales reaching $2.5 billion in 2025, accounting for 35% of total sales, thereby improving customer satisfaction and loyalty.
- Market Dynamics: Despite challenges in the HVAC/R industry due to supply chain disruptions and product transitions, Watsco successfully supported customers in transitioning to new products through investments in technology and training, demonstrating resilience and adaptability in a complex market environment.
See More
Watsco Set to Announce Q4 Earnings on February 17
- Earnings Announcement: Watsco (WSO) is scheduled to release its Q4 earnings on February 17 before market open, with consensus EPS estimate at $1.89 and revenue estimate at $1.62 billion, reflecting a 7.4% year-over-year decline.
- Earnings Estimate Adjustments: Over the past three months, EPS estimates have seen one upward revision and five downward revisions, indicating a divergence in analyst expectations regarding the company's profitability.
- Revenue Estimate Changes: Revenue estimates have also experienced one upward revision and three downward revisions, reflecting market uncertainty about Watsco's future performance, which could impact investor confidence.
- Investor Movements: Giverny Capital Asset Management has added WSO and HWKN to its portfolio while exiting ALGN and KMX in Q4, indicating ongoing interest and confidence in Watsco's potential growth.
See More
WATSCO PLANS CONFERENCE CALL TO DISCUSS FOURTH QUARTER AND ANNUAL PERFORMANCE FOR 2025
- Conference Call Overview: The WATSCO conference call is scheduled to review the performance for the fourth quarter of 2025 and discuss annual results.
- Performance Review: The call will focus on analyzing the company's financial performance and results for the specified period.
See More
Watsco, Inc. Q4 2025 Earnings Call Highlights
- Market Share Growth: Watsco achieved over $1.6 billion in sales through 12 acquisitions in 2025, significantly increasing its market share, which reflects the company's strategic success during the A2L refrigerant transition.
- Dividend Increase: The company announced a 10% annual dividend increase to $13.20 per share, marking its 52nd consecutive year of dividend payments, demonstrating confidence in future business and stable cash flow.
- Operational Efficiency Improvement: Despite a decline in unit volumes, Watsco successfully met its $500 million inventory reduction goal and generated $400 million in cash flow in Q4, indicating ongoing improvements in cost control and operational efficiency.
- Increased Technology Investment: E-commerce sales accounted for 35% of total sales, with the OnCall Air platform achieving an annual gross merchandise value of $1.8 billion, showcasing the company's proactive approach in technology and market expansion aimed at enhancing customer experience and competitive positioning.
See More
Watsco Q4 Earnings Miss Expectations with Declining Revenue
- Disappointing Earnings: Watsco reported a Q4 GAAP EPS of $1.68, missing expectations by $0.21, indicating pressure on profitability that could affect investor confidence moving forward.
- Revenue Decline: The company generated $1.58 billion in revenue, a 9.7% year-over-year decrease that fell short of projections, reflecting weak market demand and potential future performance challenges.
- Slight Margin Improvement: Despite the revenue drop, gross profit margin expanded by 40 basis points to 27.1%, demonstrating the company's efforts in cost control, which may support future profitability.
- Record Cash Flow: Watsco achieved a record operating cash flow of $400 million, indicating strong cash management that can support future investments and operational needs.
See More
Watsco Announces 10% Increase in Annual Dividend
- Dividend Increase: Watsco's Board of Directors approved a 10% increase in its annual dividend to $13.20 per share, reflecting the company's confidence in its business prospects and will be reflected in the upcoming quarterly dividend payment in April 2026.
- Consistent Dividend Record: With 52 consecutive years of dividend payments, Watsco demonstrates strong cash flow and a conservative balance sheet, indicating a stable dividend policy that aligns with investment opportunities and overall financial health.
- Digital Transformation: Approximately 73,000 contractors, installers, and technicians engage digitally with Watsco, which not only enhances business growth but also reduces customer attrition, showcasing the company's competitive advantage in the fragmented HVAC/R market.
- AI-Driven Innovation: Watsco is advancing AI-driven initiatives to leverage its extensive data assets to enhance customer experience and operational efficiencies, positioning the company to capture greater market share as contractors increasingly adopt digital tools and data-driven solutions.
See More
Watsco Boosts Annual Dividend by 10% to $13.20 Per Share
- Dividend Increase: Watsco announced a 10% increase in its annual dividend to $13.20 per share, marking the company's 52nd consecutive year of dividend payments, reflecting its strong financial stability and commitment to shareholders.
- Financial Performance: In 2025, revenues totaled $7.24 billion, down 5% from 2024, yet gross margin expanded to a record 28%, showcasing the company's successful application of pricing optimization technologies that enhanced profitability.
- Technology Investment: Watsco invested over $250 million in technology over the past five years, driving the use of its HVAC Pro+ mobile app and e-commerce platform, with e-commerce sales reaching $2.5 billion in 2025, accounting for 35% of total sales, thereby improving customer satisfaction and loyalty.
- Market Dynamics: Despite challenges in the HVAC/R industry due to supply chain disruptions and product transitions, Watsco successfully supported customers in transitioning to new products through investments in technology and training, demonstrating resilience and adaptability in a complex market environment.
See More
Watsco Set to Announce Q4 Earnings on February 17
- Earnings Announcement: Watsco (WSO) is scheduled to release its Q4 earnings on February 17 before market open, with consensus EPS estimate at $1.89 and revenue estimate at $1.62 billion, reflecting a 7.4% year-over-year decline.
- Earnings Estimate Adjustments: Over the past three months, EPS estimates have seen one upward revision and five downward revisions, indicating a divergence in analyst expectations regarding the company's profitability.
- Revenue Estimate Changes: Revenue estimates have also experienced one upward revision and three downward revisions, reflecting market uncertainty about Watsco's future performance, which could impact investor confidence.
- Investor Movements: Giverny Capital Asset Management has added WSO and HWKN to its portfolio while exiting ALGN and KMX in Q4, indicating ongoing interest and confidence in Watsco's potential growth.
See More
WATSCO PLANS CONFERENCE CALL TO DISCUSS FOURTH QUARTER AND ANNUAL PERFORMANCE FOR 2025
- Conference Call Overview: The WATSCO conference call is scheduled to review the performance for the fourth quarter of 2025 and discuss annual results.
- Performance Review: The call will focus on analyzing the company's financial performance and results for the specified period.
See More
