Watsco (WSO) financial statements
Watsco reported revenue of $7.2B in fiscal 2025, up 6.2% a year over 9 years.
Net income was $497M and the operating margin 10.0%, against 8.2% in 2016.
Free cash flow was $535M, and the company returned $474M in dividends.
The diluted share count rose 16% over the period (dilution).
Revenue and free cash flow
Fiscal years, $ billions.
Income statement
Fiscal years, from Watsco's 10-K filings with the SEC.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.2B | $4.3B | $4.5B | $4.8B | $5.1B | $6.3B | $7.3B | $7.3B | $7.6B | $7.2B |
| Cost of revenue | $3.2B | $3.3B | $3.4B | $3.6B | $3.8B | $4.6B | $5.2B | $5.3B | $5.6B | $5.2B |
| Gross profit | $1.0B | $1.1B | $1.1B | $1.2B | $1.2B | $1.7B | $2.0B | $2.0B | $2.0B | $2.0B |
| Selling, general and admin | $689M | $716M | $757M | $800M | $833M | $1.1B | $1.2B | $1.2B | $1.3B | $1.3B |
| Operating income | $346M | $354M | $372M | $367M | $401M | $629M | $832M | $795M | $782M | $720M |
| Pre-tax income | $342M | $348M | $369M | $363M | $400M | $628M | $829M | $790M | $803M | $738M |
| Income tax | $106M | $90M | $73M | $67M | $77M | $129M | $126M | $156M | $167M | $150M |
| Net income | $183M | $208M | $243M | $246M | $270M | $419M | $601M | $536M | $536M | $497M |
| EPS (diluted) | $5.15 | $5.81 | $6.49 | $6.50 | $7.01 | $10.78 | $15.41 | $13.67 | $13.30 | $12.25 |
| Diluted shares | 33M | 33M | 34M | 35M | 35M | 35M | — | 37M | 38M | 38M |
| Gross margin | 24.5% | 24.5% | 24.6% | 24.3% | 24.2% | 26.6% | 27.9% | 27.4% | 26.8% | 28.0% |
| Operating margin | 8.2% | 8.2% | 8.2% | 7.7% | 7.9% | 10.0% | 11.4% | 10.9% | 10.3% | 10.0% |
| Net margin | 4.3% | 4.8% | 5.3% | 5.2% | 5.3% | 6.7% | 8.3% | 7.4% | 7.0% | 6.9% |
Balance sheet
Fiscal years, from Watsco's 10-K filings with the SEC.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and short-term investments | $56M | $80M | $83M | $74M | $146M | $118M | $148M | $210M | $782M | $733M |
| Receivables | $476M | $478M | $502M | $534M | $535M | $698M | $747M | $798M | $878M | $796M |
| Inventory | $685M | $761M | $837M | $921M | $781M | $1.1B | $1.4B | $1.3B | $1.4B | $1.4B |
| Total current assets | $1.2B | $1.3B | $1.4B | $1.5B | $1.5B | $2.0B | $2.3B | $2.4B | $3.1B | $3.0B |
| Property, plant and equipment | $91M | $91M | $91M | $99M | $98M | $111M | $125M | $136M | $141M | $136M |
| Goodwill | $380M | $383M | $411M | $412M | $412M | $434M | $431M | $457M | $452M | $463M |
| Total assets | $1.9B | $2.0B | $2.2B | $2.6B | $2.5B | $3.1B | $3.5B | $3.7B | $4.5B | $4.4B |
| Total current liabilities | $315M | $416M | $358M | $462M | $487M | $727M | $907M | $712M | $984M | $718M |
| Long-term debt | $236M | $22M | $136M | $312M | $144M | $285M | $244M | $305M | $337M | $362M |
| 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 |
| Net debt | $180M | -$58M | $53M | $238M | -$2M | $167M | $96M | $94M | -$189M | -$72M |
Cash flow
Fiscal years, from Watsco's 10-K filings with the SEC.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating cash flow | $282M | $307M | $171M | $336M | $534M | $350M | $572M | $562M | $773M | $570M |
| Capital spending | $44M | $18M | $17M | $18M | $16M | $25M | $36M | $35M | $30M | $35M |
| Free cash flow | $238M | $289M | $153M | $318M | $518M | $324M | $536M | $526M | $743M | $535M |
| Stock-based compensation | $12M | $13M | $16M | $17M | $22M | $25M | $29M | $30M | $35M | $35M |
| Dividends paid | $128M | $164M | $209M | $241M | $266M | $295M | $332M | $383M | $424M | $474M |
| Free cash flow margin | 5.6% | 6.6% | 3.4% | 6.7% | 10.2% | 5.2% | 7.4% | 7.2% | 9.8% | 7.4% |
| Dividends per share | $3.91 | $4.99 | $6.09 | $6.96 | $7.56 | $8.31 | — | $10.47 | $11.29 | $12.50 |
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Open WSO in InvestinglyQuestions
What was Watsco's revenue in 2025?
$7.2B in fiscal 2025, from its 10-K filing.
How much free cash flow does Watsco generate?
$535M in fiscal 2025 (operating cash flow minus capital spending).
From Watsco's annual reports filed with the SEC (XBRL data), standardised by Investingly. Information only, not investment advice.