Watsco, Inc. reported a significant increase in financial performance for the fiscal year ended December 31, 2024, with revenues reaching $7.6 billion, a rise from $7.1 billion in 2023, marking a 7% year-over-year growth. The company's net income also saw an increase, rising to $420 million from $390 million in the previous year, resulting in a net income margin of approximately 5.5%. This growth can be attributed to a combination of strategic acquisitions, product line expansions, and increased demand in the HVAC/R market, particularly in the residential replacement sector.
The company has continued its "buy and build" strategy, acquiring several HVAC/R distribution businesses to enhance its market presence. In 2024, Watsco completed the acquisition of two regional distributors, which contributed to an increase in its operational footprint to 690 locations across 43 U.S. states, Canada, Mexico, and Puerto Rico. This expansion has allowed Watsco to serve over 130,000 active contractors, a slight increase from the previous year, reflecting a growing customer base in both the replacement and new construction markets.
Operationally, Watsco has focused on enhancing customer engagement through technology. The company has invested in digital platforms, including mobile applications and e-commerce solutions, which have improved customer interaction and order fulfillment. The introduction of OnCall Air®, a digital sales platform, has also been a key development, aimed at increasing efficiency for contractors. As of December 31, 2024, Watsco employed approximately 7,295 individuals, maintaining a stable workforce to support its expanding operations.
Looking ahead, Watsco's management expressed optimism about future growth, driven by ongoing investments in technology and the anticipated demand for higher-efficiency HVAC systems. The company expects that regulatory changes, such as those introduced by the U.S. Inflation Reduction Act, will further stimulate the market for energy-efficient products. However, Watsco also acknowledged potential risks, including supply chain disruptions and economic fluctuations, which could impact its operations and financial performance in the coming years.
About WATSCO INC
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