WATSCO INC financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data WATSCO INC files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	4,221	4,342	4,547	4,770	5,055	6,280	7,274	7,284	7,618	7,239
Cost of revenue	3,186	3,276	3,426	3,613	3,832	4,613	5,244	5,292	5,574	5,209
Gross profit	1,035	1,066	1,120	1,157	1,223	1,668	2,030	1,992	2,045	2,030
Selling, general and administrative	689	716	757	800	833	1,058	1,221	1,224	1,293	1,338
Operating income	346	354	372	367	401	629	832	795	782	720
Pre-tax income	342	348	369	363	400	628	829	790	803	738
Income tax	106	90.2	72.8	67.1	76.6	129	126	156	167	150
Net income to minority interests	53.2	49.1	53.6	49.8	53.6	79.8	103	97.8	99.5	90.6
Net income	183	208	243	246	270	419	601	536	536	497
EBITDA	366	376	394	391	427	657	863	830	823	764
EPS, basic	5.16	5.81	6.50	6.51	7.03	10.83	15.46	13.72	13.34	12.27
EPS, diluted	5.15	5.81	6.49	6.50	7.01	10.78	15.41	13.67	13.30	12.25
Shares, basic (weighted)	32.6	32.8	34.3	34.6	35.1	35.2		36.4	37.4	37.8
Shares, diluted (weighted)	32.6	32.9	34.4	34.7	35.2	35.4		36.5	37.5	37.9
Dividend per share	3.60	4.60	5.60	6.40	6.93	7.63	8.55	9.80	10.55	11.70

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	56	80.5	82.9	74.5	146	118	148	210	526	433
Short-term investments								0	256	300
Receivables	476	478	502	534	535	698	747	798	878	796
Inventory	685	761	837	921	781	1,115	1,370	1,347	1,385	1,386
Other current assets	23.2	17.5	19.9	17.7	21.8	29.2	34	36.7	34.7	38.7
Total current assets	1,240	1,337	1,442	1,547	1,484	1,961	2,299	2,392	3,080	2,955
Property, plant and equipment	90.5	91.2	91	98.5	98.2	111	125	136	141	136
Lease right-of-use assets				223	209	269	317	369	419	453
Goodwill	380	383	411	412	412	434	431	457	452	463
Intangible assets	159	161	148	172	170	187	175	218	208	210
Other non-current assets	5.69	74.5	8.18	9.49	12.2	9.19	8.03	10.7	10.9	13.6
Total assets	1,875	2,047	2,161	2,556	2,484	3,086	3,488	3,729	4,480	4,415
Accounts payable	185	230	200	240	252	364	456	369	491	350
Accrued liabilities	129	186	157	153	164	278	303	242	383	250
Deferred revenue		13
Short-term debt	0.2	0.24	0.25	69.4	71.8	84.5	90.6	100	110	117
Total current liabilities	315	416	358	462	487	727	907	712	984	718
Long-term debt	236	22.1	136	312	144	285	244	305	337	362
Lease liabilities				154		187	232	277	322	351
Total liabilities	623	496	559	841	705	1,088	1,240	1,113	1,415	1,193
Total debt	236	22.3	136	381	216	370	334	405	447	479
Paid-in capital	592	804	832	908	951	1,004	973	1,153	1,472	1,563
Retained earnings	550	595	628	633	636	761	1,030	1,183	1,296	1,319
Treasury stock	-114	-87.4	-87.4	-87.4	-87.4	-87.4	-87.4	-86.6	-73.5	-73.2
Other comprehensive income	-43.5	-34.2	-46	-39.1	-34.9	-34.2	-47.7	-42.3	-59.9	-50.3
Shareholders' equity	1,006	1,298	1,348	1,435	1,487	1,665	1,889	2,230	2,657	2,781
Minority interests	246	253	254	279	293	332	359	386	407	441
Total equity	1,252	1,551	1,602	1,715	1,780	1,997	2,248	2,616	3,064	3,222
Total liabilities and equity	1,875	2,047	2,161	2,556	2,484	3,086	3,488	3,729	4,480	4,415

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	236	257	297	296	323	499	704	634	636	588
Depreciation and amortization	20.1	22	22.1	24.5	25.9	28.1	31.7	35.1	40.8	43.8
Stock-based compensation	12.3	13.3	15.5	17	22.1	25.4	28.8	30	35	35.3
Deferred income tax	2.72	-10.7	8.29	1.28	0.04	5.94	13.5	-7.18	0.23	18.4
Change in receivables	-26.9	-1.68	-28.8	8.46	-3.56	-130	-60.2	-36	-85.6	83.4
Change in inventory	-9.73	-73.4	-79	-15.5	140	-244	-260	64.6	-41.7	12
Change in payables	43.7	100	-57.4	12.7	33.9	183	122	-162	198	-203
Cash from operations	282	307	171	336	534	350	572	562	773	570
Capital expenditures	-43.6	-17.9	-17.2	-17.8	-16.4	-25.5	-35.7	-35.5	-30.1	-34.6
Acquisitions			-5.63	-59.7	0	-129	-0.05	-3.82	-5.17	-19.2
Purchases of investments							0	0	-256	-300
Cash from investing	-42.8	-81.3	-26.3	-81	-16.3	-149	-33.8	-41.3	-291	-98.1
Stock issued	5.65	5.24	6.59	13.3	19.3	21	20.4
Dividends paid	-128	-164	-209	-241	-266	-295	-332	-383	-424	-474
Cash from financing	-218	-202	-140	-264	-448	-229	-504	-460	-159	-568
Exchange rate effect	-0.23	1.42	-2.25	0.85	2.07	-0.19
Net change in cash	20.8	24.5	2.4	-8.44	71.6	-27.8	29.2	62.6	316	-93
Free cash flow	238	289	153	318	518	324	536	526	743	535
Interest paid	3.36	5.77	3.07	4.34	1.84	0.91	3.51	10.1	0.97	0.7
Income taxes paid	99	48.1	115	70.1	70.9	125	106	188	125	165

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $317.23 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	27.5%	Gross profit / revenue.
Operating margin	9.4%	Operating income / revenue.
EBITDA margin	10.0%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	9.7%	Pre-tax income / revenue.
Net margin	6.5%	Net income / revenue.
FCF margin	9.6%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	10.1%	Cash from operations / revenue.
Effective tax rate	20.4%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	15.9%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	9.4%	Net income / average total assets.
Return on invested capital (ROIC)	19.8%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
SG&A / revenue	18.5%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	0.5%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	0.5%	Capital expenditures / revenue.
D&A / revenue	0.6%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	-5.0%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	-0.2%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	7.4%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	-0.7%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	0.0%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	10.7%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	-7.9%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	-4.7%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income CAGR, 5y	12.4%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA growth, 1y	-7.1%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	-4.0%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	12.3%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	-7.3%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	-6.1%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	13.0%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	-7.9%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	-7.4%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	11.8%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	-26.3%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	-0.1%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	1.3%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	-28.0%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	-0.1%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	0.7%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Dividend per share growth, 1y	10.9%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	11.0%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share CAGR, 5y	11.1%	Compound annual growth of dividend per share over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	4.7%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	13.8%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	13.3%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	-1.4%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	8.2%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	12.2%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	1.0%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	1.5%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	3.20x	Current assets / current liabilities.
Quick ratio	1.41x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.43x	(Cash + short-term investments) / current liabilities.
Debt / equity	0.04x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	2.4%	Total debt / total assets.
Liabilities / assets	31.7%	Total liabilities / total assets.
Net debt	-$344.5M	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	-0.47x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Working capital	$2.37B	Current assets - current liabilities.
Goodwill and intangibles / assets	15.0%	(Goodwill + intangible assets) / total assets.
Tangible book value	$2.23B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	1.43x	Revenue / average total assets.
Fixed asset turnover	49.6x	Revenue / average property, plant and equipment.
Inventory turnover	2.79x	Cost of revenue / average inventory.
Days inventory	131 days	365 x average inventory / cost of revenue.
Receivables turnover	6.87x	Revenue / average receivables.
Days sales outstanding	53 days	365 x average receivables / revenue.
Days payables	46 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	138 days	Days inventory + days sales outstanding - days payables.
FCF conversion	146.5%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	4.9%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$12.46	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$190.71	Revenue / diluted weighted shares.
FCF per share	$18.25	Free cash flow / diluted weighted shares.
Operating cash flow per share	$19.20	Cash from operations / diluted weighted shares.
Book value per share	$78.40	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$58.37	Tangible book value / shares outstanding.
Cash per share	$12.15	(Cash + short-term investments) / shares outstanding.
Payout ratio	104.9%	Dividends paid / net income, when net income is positive.
Dividends / FCF	71.6%	Dividends paid / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$13.09B	Share price x shares outstanding.
Enterprise value	$12.74B	Market cap + total debt - cash - short-term investments.
P/E	27.5x	Market cap / net income. Only when net income is positive.
P/S	1.80x	Market cap / revenue.
P/B	4.37x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	5.87x	Market cap / tangible book value, when positive.
P/FCF	18.8x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	17.8x	Market cap / cash from operations, when positive.
EV/Sales	1.75x	Enterprise value / revenue.
EV/EBIT	18.6x	Enterprise value / operating income, when both are positive.
EV/EBITDA	17.5x	Enterprise value / EBITDA, when both are positive.
EV/FCF	18.3x	Enterprise value / free cash flow, when both are positive.
FCF yield	5.3%	Free cash flow / market cap.
Earnings yield	3.6%	Net income / market cap (the inverse of P/E).
Dividend yield	3.8%	Dividends paid over the period / market cap.
Shareholder yield	3.8%	(Dividends paid + share buybacks) / market cap.

What was WATSCO INC's revenue in fiscal 2025?

WATSCO INC reported revenue of $7.24B for fiscal 2025, 5% lower than the year before.

Was WATSCO INC profitable in fiscal 2025?

Yes. Net income was $497.0M, a net margin of 6.9%.

How much free cash flow did WATSCO INC generate in fiscal 2025?

Cash from operations of $569.6M minus capital expenditures of $34.6M left free cash flow of $535.1M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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