Watsco Inc - Class A

Watsco, Inc. is the largest distributor in the highly fragmented North American HVAC/R (heating, ventilation, air conditioning and refrigeration) market. The company operates approximately 650 domestic locations and serves over 70,000 contractors, installers, and technicians. Watsco distributes HVAC equipment, parts, supplies, and commercial refrigeration products from major OEM manufacturers. Since entering distribution in 1989, the company has grown through a combination of organic expansion and the acquisition of more than 70 market-leading businesses. Watsco has built an industry-leading technology ecosystem including e-commerce platforms, mobile apps (HVAC Pro+), the OnCallAir digital sales platform for contractors, and emerging AI-driven capabilities. The company has invested more than $250 million in digital platforms over the past five years. E-commerce sales represent 37% of trailing twelve-month revenues, with over 70,000 digital users. The company maintains a debt-free balance sheet and has paid dividends for 52 consecutive years. Watsco's buy-and-build acquisition strategy targets the fragmented HVAC distribution market, which includes more than 2,100 distributors in North America. Updated Jul 29, 2026