Watsco Financials
This page shows Watsco (WSO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Watsco generated $7.6B in revenue in fiscal year 2024. This represents an increase of 21.3% from the prior year.
Watsco's EBITDA was $822.6M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 25.3% from the prior year.
Watsco generated $743.0M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 129.3% from the prior year.
Watsco reported $536.3M in net income in fiscal year 2024. This represents an increase of 28.0% from the prior year.
Watsco earned $13.30 per diluted share (EPS) in fiscal year 2024. This represents an increase of 23.4% from the prior year.
Watsco held $526.3M in cash against $337.2M in long-term debt as of fiscal year 2024.
Watsco paid $10.55 per share in dividends in fiscal year 2024. This represents an increase of 38.4% from the prior year.
Watsco's gross margin was 26.8% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 0.3 percentage points from the prior year.
Watsco's operating margin was 10.3% in fiscal year 2024, reflecting core business profitability. This is up 0.3 percentage points from the prior year.
Watsco's net profit margin was 7.0% in fiscal year 2024, showing the share of revenue converted to profit. This is up 0.4 percentage points from the prior year.
Watsco's ROE was 20.2% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is down 0.8 percentage points from the prior year.
Watsco invested $30.1M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 18.2% from the prior year.
WSO Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.1B+0.2% | $2.1B+34.7% | $1.5B-4.5% | $1.6B-24.6% | $2.1B+6.2% | $2.0B+29.2% | $1.6B-1.9% | $1.6B |
| Cost of Revenue | $1.5B+2.7% | $1.5B+32.5% | $1.1B-7.3% | $1.2B-23.8% | $1.6B+8.3% | $1.4B+30.7% | $1.1B-3.9% | $1.1B |
| Gross Profit | $568.9M-5.7% | $603.5M+40.5% | $429.6M+3.7% | $414.4M-26.9% | $566.9M+0.8% | $562.6M+25.5% | $448.2M+3.4% | $433.6M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $343.7M+1.4% | $339.0M+5.1% | $322.6M+3.2% | $312.5M-2.3% | $319.8M+5.2% | $304.2M+6.0% | $287.1M-4.9% | $301.8M |
| Operating Income | $234.8M-13.6% | $271.9M+142.3% | $112.2M+4.1% | $107.7M-58.0% | $256.6M-3.4% | $265.7M+61.3% | $164.7M+20.1% | $137.2M |
| Interest Expense | $3.7M+60.3% | $2.3M-57.0% | $5.4M+441.7% | $1.0M+152.9% | -$1.9M+44.7% | -$3.4M-455.3% | -$615K-4292.9% | -$14K |
| Income Tax | $49.3M-14.2% | $57.4M+149.0% | $23.1M+109.5% | $11.0M-79.7% | $54.1M-4.9% | $56.9M+68.5% | $33.8M+269.1% | -$20.0M |
| Net Income | $161.6M-25.5% | $216.8M+129.3% | $94.5M+219.3% | $29.6M-82.7% | $171.0M-16.8% | $205.4M+57.6% | $130.4M+56.8% | $83.1M |
| EPS (Diluted) | $3.98-11.9% | $4.52+134.2% | $1.93-6.8% | $2.07-52.4% | $4.35-1.6% | $4.42+56.2% | $2.83-20.3% | $3.55 |
WSO Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.6B-3.7% | $4.7B+6.2% | $4.5B+19.4% | $3.7B-7.7% | $4.0B-1.6% | $4.1B+8.0% | $3.8B+9.0% | $3.5B |
| Current Assets | $3.1B-5.6% | $3.3B+8.7% | $3.0B+26.9% | $2.4B-12.4% | $2.7B-5.3% | $2.9B+11.0% | $2.6B+13.0% | $2.3B |
| Cash & Equivalents | $324.3M+10.7% | $293.0M-32.2% | $431.8M+105.5% | $210.1M+20.0% | $175.0M+7.7% | $162.5M+15.3% | $141.0M-4.4% | $147.5M |
| Inventory | $1.6B-18.0% | $2.0B+10.0% | $1.8B+31.8% | $1.3B-13.1% | $1.5B-8.3% | $1.7B+4.6% | $1.6B+17.8% | $1.4B |
| Accounts Receivable | $941.9M-7.3% | $1.0B+27.9% | $794.3M-0.4% | $797.8M-16.0% | $949.3M-4.2% | $990.7M+22.1% | $811.3M+8.6% | $747.1M |
| Goodwill | $465.1M-0.2% | $466.2M+2.5% | $454.9M-0.5% | $457.1M-7.0% | $491.5M+13.9% | $431.6M+0.2% | $430.7M0.0% | $430.7M |
| Total Liabilities | $1.7B+15.4% | $1.5B+10.3% | $1.4B+22.8% | $1.1B-19.0% | $1.4B-16.8% | $1.7B+10.6% | $1.5B+20.4% | $1.2B |
| Current Liabilities | $812.1M-24.2% | $1.1B+15.8% | $925.1M+29.9% | $712.0M-19.8% | $887.6M-7.2% | $956.0M+0.3% | $953.1M+5.1% | $906.5M |
| Long-Term Debt | $340.8M+0.6% | $338.7M-2.2% | $346.4M+13.7% | $304.5M-22.0% | $390.3M-35.1% | $601.8M+34.3% | $448.1M+84.0% | $243.5M |
| Total Equity | $2.8B-12.6% | $3.2B+4.3% | $3.1B+18.0% | $2.6B-1.9% | $2.7B+8.7% | $2.5B+6.2% | $2.3B+2.7% | $2.2B |
| Retained Earnings | $1.4B+3.0% | $1.3B+4.9% | $1.3B+7.1% | $1.2B-1.2% | $1.2B+6.7% | $1.1B+7.4% | $1.0B+1.5% | $1.0B |
WSO Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | N/A | N/A | -$177.6M | N/A | N/A | N/A | -$47.4M | N/A |
| Capital Expenditures | N/A | N/A | $7.5M | N/A | N/A | N/A | $7.5M | N/A |
| Free Cash Flow | N/A | N/A | -$185.2M | N/A | N/A | N/A | -$54.9M | N/A |
| Investing Cash Flow | N/A | N/A | $244.6M | N/A | N/A | N/A | -$10.4M | N/A |
| Financing Cash Flow | N/A | N/A | -$161.7M | N/A | N/A | N/A | $51.3M | N/A |
| Dividends Paid | N/A | N/A | $109.0M | N/A | N/A | N/A | $95.0M | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
WSO Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | Q4'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.5%-1.7pp | 29.3%+1.2pp | 28.1%+2.2pp | 25.9%-0.8pp | 26.7%-1.4pp | 28.1%-0.8pp | 28.9%+1.5pp | 27.4% |
| Operating Margin | 11.4%-1.8pp | 13.2%+5.8pp | 7.3%+0.6pp | 6.7%-5.4pp | 12.1%-1.2pp | 13.3%+2.6pp | 10.6%+1.9pp | 8.7% |
| Net Margin | 7.8%-2.7pp | 10.5%+4.3pp | 6.2%+4.3pp | 1.8%-6.2pp | 8.0%-2.2pp | 10.3%+1.8pp | 8.4%+3.1pp | 5.3% |
| Return on Equity | 5.7%-1.0pp | 6.7%+3.7pp | 3.1%+1.9pp | 1.1%-5.3pp | 6.4%-2.0pp | 8.4%+2.7pp | 5.7%+2.0pp | 3.7% |
| Return on Assets | 3.5%-1.0pp | 4.6%+2.5pp | 2.1%+1.3pp | 0.8%-3.4pp | 4.2%-0.8pp | 5.0%+1.6pp | 3.4%+1.0pp | 2.4% |
| Current Ratio | 3.84+0.8 | 3.08-0.2 | 3.28-0.1 | 3.36+0.3 | 3.08+0.1 | 3.02+0.3 | 2.73+0.2 | 2.54 |
| Debt-to-Equity | 0.12+0.0 | 0.110.0 | 0.110.0 | 0.12-0.0 | 0.15-0.1 | 0.25+0.1 | 0.19+0.1 | 0.11 |
| FCF Margin | N/A | N/A | -12.1% | N/A | N/A | N/A | -3.5% | N/A |
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks.
Bankruptcy risk indicator. Above 2.99 = safe, below 1.81 = distress.
Financial strength trend (9 signals). 7-9 = strong, 0-3 = weak.
Operating cash flow vs net income. Above 1.0x = cash-backed earnings.
Operating income vs interest expense. Above 5x = safe, below 2x = risky.
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Frequently Asked Questions
What is Watsco's annual revenue?
Watsco (WSO) reported $7.6B in total revenue for fiscal year 2024. This represents a 21.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Watsco's revenue growing?
Watsco (WSO) revenue grew by 21.3% year-over-year, from $6.3B to $7.6B in fiscal year 2024.
Is Watsco profitable?
Yes, Watsco (WSO) reported a net income of $536.3M in fiscal year 2024, with a net profit margin of 7.0%.
What is Watsco's earnings per share (EPS)?
Watsco (WSO) reported diluted earnings per share of $13.30 for fiscal year 2024. This represents a 23.4% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Watsco's EBITDA?
Watsco (WSO) had EBITDA of $822.6M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Watsco have?
As of fiscal year 2024, Watsco (WSO) had $526.3M in cash and equivalents against $337.2M in long-term debt.
What is Watsco's gross margin?
Watsco (WSO) had a gross margin of 26.8% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Watsco's operating margin?
Watsco (WSO) had an operating margin of 10.3% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Watsco's net profit margin?
Watsco (WSO) had a net profit margin of 7.0% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
Does Watsco pay dividends?
Yes, Watsco (WSO) paid $10.55 per share in dividends during fiscal year 2024.
What is Watsco's return on equity (ROE)?
Watsco (WSO) has a return on equity of 20.2% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Watsco's free cash flow?
Watsco (WSO) generated $743.0M in free cash flow during fiscal year 2024. This represents a 129.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Watsco's operating cash flow?
Watsco (WSO) generated $773.1M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Watsco's total assets?
Watsco (WSO) had $4.5B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Watsco's capital expenditures?
Watsco (WSO) invested $30.1M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
What is Watsco's current ratio?
Watsco (WSO) had a current ratio of 3.13 as of fiscal year 2024, which is generally considered healthy.
What is Watsco's debt-to-equity ratio?
Watsco (WSO) had a debt-to-equity ratio of 0.13 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Watsco's return on assets (ROA)?
Watsco (WSO) had a return on assets of 12.0% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Watsco's Altman Z-Score?
Watsco (WSO) has an Altman Z-Score of 8.79, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress.
What is Watsco's Piotroski F-Score?
Watsco (WSO) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals.
Are Watsco's earnings high quality?
Watsco (WSO) has an earnings quality ratio of 1.44x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation.
Can Watsco cover its interest payments?
Watsco (WSO) has an interest coverage ratio of 37.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline.
How financially healthy is Watsco?
Watsco (WSO) scores 78 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks.