Watsco, Inc. (WSO): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique de la distribution HVAC, Watsco, Inc. (WSO) est une puissance transformatrice, révolutionnant comment les équipements de chauffage, de refroidissement et de réfrigération atteignent les professionnels des États-Unis. En orchestrant magistralement un modèle commercial complexe qui intègre de manière transparente l'innovation technologique, les partenariats stratégiques et les offres de services complètes, Watsco s'est positionné comme un fournisseur d'infrastructures critiques dans l'industrie du CVC de 70 milliards de dollars. Cette rupture de toile du modèle commercial révèle les mécanismes complexes qui ont propulsé Watsco pour devenir un 6,8 milliards de dollars Leader du marché, offrant des informations sans précédent sur leur approche stratégique de la distribution, de l'engagement client et des progrès technologiques.

Watsco, Inc. (WSO) - Modèle d'entreprise: partenariats clés

Carrier Corporation: Fournisseur d'équipement HVAC primaire

Watsco maintient un accord de distribution exclusif avec Carrier Corporation, ce qui représente 37% de ses ventes nettes totales en 2022. Le partenariat couvre la distribution de l'équipement HVAC sur 580 emplacements aux États-Unis.

Métrique de partenariat	Données spécifiques
Lieux de distribution	580 aux États-Unis
Contribution des ventes	37% du total des ventes nettes (2022)
Durée du partenariat	Accord exclusif à long terme

Fabricants principaux d'équipement de chauffage, de refroidissement et de réfrigération

Watsco collabore avec plusieurs fabricants d'équipements au-delà du transporteur.

• TRANE TECHNOLOGIES
• Lennox International
• Daikin Amérique du Nord
• International York

Fabricant	Gammes de produits	Statut de partenariat
TRANE TECHNOLOGIES	CVC commercial et résidentiel	Distributeur autorisé
Lennox International	Systèmes à haute efficacité	Partenaire stratégique
Daikin Amérique du Nord	Systèmes VRV / VRF	Distributeur exclusif

Distributeurs et grossistes aux États-Unis

Watsco exploite un vaste réseau de canaux de distribution.

• Couverture géographique: 50 États
• Centres de distribution totaux: 612 en 2022
• Volume de distribution annuel: 6,7 milliards de dollars (2022)

Partners de la technologie et de l'intégration des logiciels

Watsco investit dans des partenariats technologiques pour améliorer l'efficacité opérationnelle.

Partenaire technologique	Focus d'intégration	Année de mise en œuvre
Microsoft Azure	Infrastructure cloud	2020
SÈVE	Planification des ressources d'entreprise	2018
Servititan	Gestion des services sur le terrain	2021

Watsco, Inc. (WSO) - Modèle d'entreprise: activités clés

Distribution et ventes de l'équipement HVAC

En 2023, Watsco a distribué plus de 7,5 milliards de dollars d'équipement CVC aux États-Unis. La société représente plus de 35 fabricants d'équipements de CVC de premier plan et dessert environ 80 000 entrepreneurs.

Métrique de distribution	Valeur 2023
Ventes totales d'équipements CVC	7,5 milliards de dollars
Nombre de représentations du fabricant	35+
Clientèle de l'entrepreneur	80,000

Gestion des stocks et logistique

Watsco exploite 667 emplacements à travers les États-Unis, avec un système de gestion des stocks sophistiqué qui suivit plus d'un million de SKU.

• Total des emplacements: 667
• Skus d'inventaire: 1 000 000+
• Centres de distribution: 30

Support client et services techniques

La société maintient une équipe de support technique dédiée avec un temps de réponse moyen de 15 minutes et une note de satisfaction du client de 92%.

Métrique de soutien	Performance
Temps de réponse moyen	15 minutes
Évaluation de satisfaction du client	92%

Développement de plate-forme numérique et de commerce électronique

La plate-forme numérique de Watsco, Watsco Edge, prend en charge plus de 50 000 utilisateurs actifs et traite 2,3 milliards de dollars de transactions en ligne annuelles.

• Utilisateurs de plate-forme numérique: 50 000+
• Valeur de transaction en ligne: 2,3 milliards de dollars par an

Expansion du marché et acquisitions stratégiques

En 2023, Watsco a achevé des acquisitions stratégiques totalisant 87 millions de dollars, élargissant sa présence sur le marché dans les régions géographiques clés.

Métrique d'acquisition	Valeur 2023
Dépenses d'acquisition totales	87 millions de dollars
Nouvelles entrées du marché	3 régions

Watsco, Inc. (WSO) - Modèle d'entreprise: Ressources clés

Réseau de distribution

Watsco exploite un réseau de distribution complet couvrant 36 États américains, avec 628 emplacements au 31 décembre 2022. La société maintient 627 centres de vente et de distribution sur ces territoires.

Couverture géographique	Nombre d'emplacements
Centres de distribution totaux	628
États couverts	36

Infrastructure technologique

Les ressources technologiques de Watsco comprennent des plateformes numériques avancées et des capacités de commerce électronique.

• Plateforme numérique HVAC.com
• Système de commande en ligne MyWatsco
• Logiciel avancé de gestion des stocks

Capacités de main-d'œuvre

Au 31 décembre 2022, Watsco employait 6 900 employés au total, en mettant l'accent sur les ventes qualifiées et le personnel technique.

Catégorie des employés	Pourcentage approximatif
Représentants des ventes	45%
Personnel de soutien technique	25%
Personnel administratif	30%

Gestion des stocks

Watsco maintient un inventaire substantiel d'une valeur de 1,77 milliard de dollars au 31 décembre 2022.

Relations avec les fabricants

Les partenariats clés du fabricant comprennent:

• Carrier Global Corporation
• TRANE TECHNOLOGIES
• Daikin Amérique du Nord

La société sert de distributeur autorisé pour plusieurs fabricants d'équipements de CVC de premier plan, avec des relations de longue date couvrant des décennies.

Watsco, Inc. (WSO) - Modèle d'entreprise: propositions de valeur

Sélection complète des équipements et pièces CVAC

En 2024, Watsco distribue des produits 26 grands fabricants, y compris Carrier, Trane, Lennox et Rheem. La société maintient un inventaire de 1,5 million de produits CVC différents à travers son réseau de distribution.

Catégorie de produits	Volume d'inventaire	Couverture du marché
Unités de climatisation	485 000 unités	90% du marché résidentiel
Systèmes de chauffage	275 000 unités	85% du marché commercial
Pièces de rechange	740 000 composants différents	Compatibilité technique à 95%

Disponibilité rapide et fiable des produits

Watsco fonctionne 612 centres de distribution aux États-Unis, avec une moyenne Taux d'expédition le jour même de 92%.

• Temps de réalisation de la commande moyenne: 4,2 heures
• Couverture de livraison le lendemain: 78% des zones de service
• Suivi des stocks en temps réel: 100% des emplacements de distribution

Support technique expert et consultation

Watsco emploie 1 250 spécialistes du support technique Avec une moyenne de 12,5 ans d'expérience dans l'industrie.

Canal de support	Temps de réponse moyen	Taux de satisfaction client
Support téléphonique	7,5 minutes	94%
Chat en ligne	3,2 minutes	89%
Assistance par e-mail	2,7 heures	87%

Stratégies de tarification compétitives

En 2023, Watsco a maintenu une moyenne Compétitivité des prix de 6,2% en dessous des taux du marché.

• Remises annuelles en volume: jusqu'à 15%
• Incitations à l'achat en vrac: 8-12% de réduction des prix
• Économies du programme de fidélité: réduction supplémentaire de 5,5% en moyenne

Plates-formes de commande et de suivi numériques avancées

Processus de plate-forme numérique de Watsco 68% de toutes les transactions clients avec un Taux de précision de 99,7%.

Fonctionnalité de plate-forme numérique	Pourcentage d'utilisation	Satisfaction de l'utilisateur
Placement de commande mobile	42%	93%
Vérification des stocks en temps réel	76%	95%
Réorganisation automatisée	31%	88%

Watsco, Inc. (WSO) - Modèle d'entreprise: relations avec les clients

Gestion de compte dédiée

Watsco maintient 612 emplacements appartenant à des entreprises à travers les États-Unis, desservant environ 140 000 entrepreneurs CVC / R. La Société emploie 6 300 représentants commerciaux dédiés à la gestion des comptes personnalisés.

Métrique de gestion du compte	Valeur
Représentants des ventes totales	6,300
Emplacements appartenant à l'entreprise	612
Total des clients des entrepreneurs	140,000

Programmes de soutien technique et de formation

Watsco investit 8,2 millions de dollars par an dans une infrastructure de formation technique et de soutien. L'entreprise fournit:

• Modules de formation technique en ligne
• 24/7 de support technique CLINES
• Centres de formation régionaux
• Programmes de certification des fabricants

Portails de service à la clientèle en ligne

La plate-forme numérique de Watsco traite plus de 2,3 milliards de dollars de transactions en ligne annuelles. Les fonctionnalités de service numérique clés comprennent:

• Suivi des stocks en temps réel
• Système de commande en ligne
• Catalogues de produits numériques
• Outils de gestion du compte client

Métrique de la plate-forme numérique	Valeur
Transactions en ligne annuelles	2,3 milliards de dollars
Investissement de plate-forme numérique	12,5 millions de dollars

Partenariats contractuels à long terme

Watsco maintient des partenariats stratégiques avec les meilleurs fabricants comme Carrier, Lennox et Rheem. 92% des relations entre les entrepreneurs s'étendent au-delà de 5 ans.

Stratégies de l'engagement client personnalisées

Watsco utilise des systèmes CRM avancés pour suivre les interactions des clients. La société rapporte un Taux de rétention de la clientèle de 87% Grâce à des approches d'engagement personnalisées.

Métrique de l'engagement client	Valeur
Taux de rétention de la clientèle	87%
Durée moyenne de la relation client	8,3 ans

Watsco, Inc. (WSO) - Modèle d'entreprise: canaux

Force de vente directe

Watsco emploie 6 300 professionnels de la vente dans plusieurs régions à partir de 2023. La force de vente directe de la société a généré 5,8 milliards de dollars de revenus en 2022.

Métrique de l'équipe de vente	2023 données
Représentants des ventes totales	6,300
Ventes moyennes par représentant	$920,635

Plateformes de commerce électronique en ligne

La plate-forme numérique de Watsco HVAC.com a traité 412 millions de dollars en transactions en ligne en 2022.

• Plateforme numérique lancée en 2018
• Capacités de commande en ligne 24/7
• Suivi des stocks en temps réel

Centres de distribution en gros

Watsco exploite 663 emplacements de distribution aux États-Unis à partir de 2023.

Métrique du centre de distribution	2023 données
Centres de distribution totaux	663
Total entrepôt en pieds carrés	7,2 millions de pieds carrés.

Applications mobiles

L'application mobile de Watsco prend en charge 275 millions de dollars de transactions annuelles.

• Application mobile lancée en 2020
• Disponible sur les plateformes iOS et Android
• Accès aux informations sur les produits en temps réel

Salons commerciaux et événements de l'industrie

Watsco a participé à 42 événements de l'industrie en 2022, générant 86 millions de dollars d'opportunités de vente directes.

Métrique du salon	2022 données
Les événements totaux de l'industrie ont assisté	42
Opportunités de vente générées	86 millions de dollars

Watsco, Inc. (WSO) - Modèle d'entreprise: segments de clientèle

Entrepreneurs HVAC

Watsco dessert environ 85 000 entrepreneurs HVAC aux États-Unis.

Caractéristique du segment	Données spécifiques
Total des entrepreneurs HVAC servis	85,000
Ventes annuelles au segment HVAC	5,4 milliards de dollars
Part de marché	35%

Gestionnaires des bâtiments commerciaux

Watsco soutient la gestion des bâtiments commerciaux avec des services de distribution HVAC spécialisés.

Caractéristique du segment	Données spécifiques
Bâtiments commerciaux servis	12,500
Ventes annuelles de CVC commercial	1,2 milliard de dollars

Entreprises de construction résidentielle

Watsco fournit des solutions de CVC complètes pour la construction résidentielle.

• Nombre de clients de construction résidentielle: 6 700
• Valeur du contrat annuel moyen: 850 000 $
• Couverture géographique: 50 États

Entreprises de réfrigération industrielle

Distribution spécialisée pour les segments de marché de la réfrigération industrielle.

Caractéristique du segment	Données spécifiques
Clients de réfrigération industrielle	2,300
Ventes annuelles d'équipement de réfrigération	780 millions de dollars

Équipes de maintenance des installations institutionnelles

Watsco soutient les installations institutionnelles avec des solutions de maintenance CVC spécialisées.

• Clients institutionnels totaux: 3 900
• Valeur du contrat de maintenance annuel: 1,1 milliard de dollars
• Secteurs servis:
  • Éducation
  • Soins de santé
  • Gouvernement
  • Militaire

Watsco, Inc. (WSO) - Modèle d'entreprise: Structure des coûts

Frais d'achat d'inventaire

Depuis l'exercice 2023, la valeur totale des stocks de Watsco était de 1,8 milliard de dollars. Le coût des ventes de l'entreprise pour l'année était de 5,67 milliards de dollars.

Catégorie d'inventaire	Dépenses annuelles
Équipement CVC	4,2 milliards de dollars
Pièces de rechange	1,47 milliard de dollars

Coûts de l'entreposage et de la logistique

Watsco exploite 612 emplacements à travers les États-Unis, avec des frais de logistique et de distribution annuels de 247 millions de dollars en 2023.

• Entretien des entrepôts: 89 millions de dollars
• Transport et expédition: 158 millions de dollars

Compensation des employés

Les dépenses totales liées aux employés pour 2023 étaient de 451 millions de dollars.

Catégorie de compensation	Dépenses annuelles
Salaires de base	312 millions de dollars
Avantages et bonus	139 millions de dollars

Investissements technologiques et infrastructures

Watsco a investi 62 millions de dollars dans la technologie et les infrastructures en 2023.

• Systèmes informatiques et logiciels: 38 millions de dollars
• Développement de la plate-forme numérique: 24 millions de dollars

Dépenses de marketing et de vente

Les frais de marketing et de vente totaux pour 2023 étaient de 186 millions de dollars.

Catégorie marketing	Dépenses annuelles
Marketing numérique	74 millions de dollars
Dépenses de l'équipe de vente	112 millions de dollars

Watsco, Inc. (WSO) - Modèle d'entreprise: Strots de revenus

Ventes d'équipement HVAC

En 2022, Watsco a déclaré des revenus totaux de 8,64 milliards de dollars. Les ventes d'équipements HVAC représentaient une partie importante de ces revenus.

Catégorie d'équipement	Contribution des revenus
Équipement de CVC résidentiel	4,2 milliards de dollars
Équipement de CVC commercial	1,8 milliard de dollars

Distribution des pièces et des composants

La distribution des pièces et des composants a généré environ 2,5 milliards de dollars de revenus pour Watsco en 2022.

• Revenus de pièces de remplacement
• Distribution des composants aux entrepreneurs
• Composants HVAC du marché secondaire

Frais de service technique

Les frais de service technique représentaient environ 150 millions de dollars en 2022.

Revenus de transaction de plate-forme numérique

Les transactions de plate-forme numérique ont généré 275 millions de dollars en 2022.

Plate-forme numérique	Volume de transaction
Hvac.com	125 millions de dollars
Plate-forme en ligne MyWatsco	150 millions de dollars

Contrats de garantie et de maintenance prolongés

Les revenus de garantie prolongés ont atteint 95 millions de dollars en 2022.

• Contrats de garantie résidentielle: 60 millions de dollars
• Accords de maintenance commerciale: 35 millions de dollars

Watsco, Inc. (WSO) - Canvas Business Model: Value Propositions

Watsco, Inc. provides essential value by serving as the largest distributor in the highly-fragmented $74 billion North American market for HVAC products. You get access to an unparalleled selection because Watsco, Inc. buys from more than 1,500 non-equipment vendors.

The scale of the product portfolio means contractors can rely on a single source for a comprehensive offering:

• Serving over 375,000 contractors, technicians and installers annually.
• Non-equipment products, like parts and supplies, represent roughly 30% of sales.
• Purchases from non-equipment vendors totaled approximately $1.7 billion for the 12 months ended June 30, 2025.

The digital ecosystem is a core differentiator, helping you manage inventory and ordering 24/7. E-commerce sales alone reached $2.5 billion, representing 34% of total sales as of Q2 2025. The company's technology platforms are used by more than 70,000 contractors, installers and technicians.

The proprietary digital selling platform, OnCallAir, is a major driver of contractor efficiency. The Gross Merchandise Value (GMV) run rate for products sold through OnCallAir increased 19% to reach $1.7 billion over the last 12 months as of Q3 2025.

Here's a quick look at the digital engagement metrics as of mid-2025:

Digital Metric	Value	Period/Context
E-commerce Revenue	$2.5 billion	As of Q2 2025
Mobile App Users	70,000	As of Q2 2025
OnCallAir Annual GMV Run Rate	$1.7 billion	As of Q3 2025 (12 months)
Digital Platform Engagement Growth	19%	OnCallAir GMV growth (Q3 2025)

Navigating regulatory shifts is simplified because Watsco, Inc. has deep expertise in complex transitions. The shift to next-generation HVAC equipment using A2L refrigerants is expected to impact 55% of total sales. The company is actively converting inventory, with $1 billion of stock moving to the new A2L-compliant standard. Furthermore, Watsco, Inc. has trained thousands of customers on the new A2L systems.

The value proposition also centers on immediate fulfillment for critical needs, supported by AI-driven inventory management that helps allocate capital intelligently and reduce obsolescence during the product transformation.

Watsco, Inc. (WSO) - Canvas Business Model: Customer Relationships

You're looking at how Watsco, Inc. keeps its contractors loyal in a fragmented market; it's a blend of old-school presence and heavy tech investment. The relationship strategy hinges on being everywhere the contractor is, both physically and digitally.

High-touch, local service through the vast branch network

Watsco, Inc. maintains its high-touch approach through the largest HVAC/R network in North America. As of the first quarter of 2025, this network consisted of 693 locations. By the second quarter of 2025, the network had grown to 701 locations across the U.S., Canada, Mexico, and Puerto Rico. Watsco, Inc. estimates that over 375,000 contractors, technicians, and installers visit or call one of these locations annually to get information, technical support, and to buy products. This physical scale, coupled with their 'buy and build' strategy-which added three distributors in key Sunbelt markets during 2025-ensures local service remains a core pillar.

The physical footprint supports a massive customer base:

• Contractor customers supported by the network: Over 130,000 as of Q1 2025.
• Total contractors, technicians, and installers served annually: Over 375,000.
• Distributors acquired since 2019 through 2025: 12 companies, adding 120 locations.

Self-service digital experience via mobile apps (over 70,000 users)

The self-service digital experience is rapidly becoming the primary interface for many. The authenticated user community for the HVAC Pro+ Mobile Apps reached over 70,000 users as of mid-2025, and this figure climbed to more than 72,000 users by September 30, 2025. This digital engagement drives significant revenue; e-commerce sales totaled approximately $2.5 billion for the twelve-month period ending September 30, 2025, representing 34% of the Company's overall sales. Some regions even show e-commerce penetration exceeding 60%.

Here's a look at the digital scale as of late 2025 reporting periods:

Digital Metric	Value (as of late 2025)	Reference Period
Authenticated Mobile App Users	More than 72,000	12 months ended September 30, 2025
E-commerce Sales	Approximately $2.5 billion	12 months ended September 30, 2025
E-commerce Sales as % of Total Sales	34%	12 months ended September 30, 2025

Dedicated training and support for A2L product transition

Watsco, Inc. provided dedicated support to help customers navigate the large-scale regulatory transition to A2L refrigerants, which began January 1, 2025. This transition affected approximately 55% of Watsco, Inc.'s sales and required converting nearly $1 billion in inventory over the year. The company made substantial investments in training, technology, and logistics to manage this shift, with the incremental costs reflected in 2025 operating expenses. The AI platform, 'Ask.Watsco,' an internally-focused engine, integrates a robust HVAC knowledge base to streamline processes for over 2,100 current internal users, which directly aids in supporting customer transitions.

Data-driven, customized customer service at scale

The customization comes from leveraging data across the entire ecosystem. Watsco, Inc.'s pricing optimization platform is designed to manage and optimize the vast number of pricing records across the business, applying sophisticated pricing rules for specific products, geographic markets, and customer segments. This data-driven approach allows for swift reaction to market changes. Furthermore, the company is advancing AI-driven initiatives to use its extensive data assets to enhance the customer experience and improve efficiencies.

Low customer attrition among digital platform users

The digital tools are clearly building loyalty; active users of the technology and e-commerce platforms exhibit approximately 60% less attrition than traditional customers. This lower attrition rate is a key benefit of digital engagement, creating a barrier to exit for end customers. Order trends and the rate of improvement in customer attrition remained consistent year over year as of mid-2025.

Digital engagement drives stickiness; that 60% lower churn is a powerful metric. Finance: draft 13-week cash view by Friday.

Watsco, Inc. (WSO) - Canvas Business Model: Channels

You're looking at how Watsco, Inc. (WSO) gets its products and services to the customer base, which is a mix of traditional brick-and-mortar and heavy digital investment. Honestly, the numbers show a clear pivot toward digital enablement for the core contractor base.

Channel Component	Metric	Latest Reported Value (as of late 2025)
Physical Branch Network	Total Locations (U.S., Canada, Latin America)	691 locations reported as of February 2025, with 10 new locations acquired in 2025
E-commerce Platform	Sales (12 months ended Sep 30, 2025)	Approximately $2.5 billion
E-commerce Platform	Percentage of Total Sales (12 months ended Sep 30, 2025)	34%
HVAC Pro+ Mobile App	Authenticated User Community (as of Sep 30, 2025)	More than 72,000 users
HVAC Pro+ Mobile App	Year-over-Year Growth (to Sep 30, 2025)	18%
OnCallAir Platform	Gross Merchandise Value (GMV) (12 months ended Sep 30, 2025)	Approximately $1.72 billion
OnCallAir Platform	Households Quoted (9 months ended Sep 30, 2025)	Approximately 263,000 households

The physical footprint remains substantial, forming the backbone for parts availability and service support. Watsco, Inc. operates a physical branch network spanning the U.S., Canada, and Latin America. As of early 2025, the network stood at 691 locations, and the company added 10 new locations through acquisitions in 2025 alone, pushing the total well over 690 locations.

Digital sales are now a massive component of the revenue mix. The e-commerce platform is a primary channel, accounting for approximately $2.5 billion in sales for the twelve-month period ending September 30, 2025. This represented a consistent 34% of the Company's overall sales for that period, with some regions showing e-commerce penetration exceeding 60%.

For the field contractor, the mobile tools are critical access points. You see this adoption reflected in the user base growth:

• The HVAC Pro+ mobile application for field contractors grew its authenticated user community to more than 72,000 users as of September 30, 2025, marking an 18% increase year-over-year.
• The OnCallAir digital sales platform, which contractors use for homeowner quoting, saw its Gross Merchandise Value (GMV) reach approximately $1.72 billion for the 12 months ending September 30, 2025.
• During the nine months ended September 30, 2025, contractors using OnCallAir presented quotes to roughly 263,000 households, generating $1.38 billion in GMV.

Watsco, Inc. is also building a specific channel for larger accounts. They are advancing Project "WatscoOne," which is their planned enterprise-wide solutions offering targeting institutional customers. This new direct sales channel is scheduled to launch in early 2026, designed to deliver a seamless experience across sales, marketing, pricing, and order management for these large accounts.

Watsco, Inc. (WSO) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Watsco, Inc. (WSO) as of late 2025, which is built on deep relationships with the trade professionals who install and service HVAC/R equipment across North America.

The foundation of the business rests on serving small-to-midsize HVAC/R contractors and installers. Watsco, Inc. estimates that over 375,000 contractors, technicians, and installers visit or call one of its locations each year for support and product acquisition. This massive base is supported by a network of 701 locations as of July 30, 2025, or 690 locations as of December 31, 2024.

The residential replacement market remains the primary focus and a key stabilizing factor for Watsco, Inc.'s revenue stream. This segment is driven by the sheer volume of aging equipment; as of March 2023, there were approximately 102 million HVAC systems installed in the United States that had been in service for more than 10 years. This focus translated to a 10% increase in U.S. residential replacement sales in the first quarter of 2025.

Engagement with these core customers is increasingly digital. The authenticated user community for Watsco, Inc.'s HVAC Pro+ Mobile Apps grew 18% to more than 72,000 users over the twelve-month period ending September 30, 2025. Furthermore, the gross merchandise value (GMV) of products sold by contractors through the OnCallAir® platform reached approximately $1.72 billion for the twelve months ending September 30, 2025.

The customer base can be segmented by the type of service they provide and the products they purchase:

• Contractors focused on Replacement: Primary driver, with U.S. residential replacement sales up 10% in Q1 2025.
• Contractors using Digital Tools: Over 72,000 authenticated mobile app users as of September 30, 2025.
• Contractors quoting Homeowners: Generated $886 million in GMV in the first half of 2025 through OnCallAir®.
• Digital Penetration: E-commerce sales comprised 34% of overall sales for the twelve months ending September 30, 2025, with some regions exceeding 60% penetration.

While the contractor base is broad, Watsco, Inc. also serves other distinct needs within the HVAC/R ecosystem. The commercial and light-commercial HVAC/R service providers are a segment seeing growth, with sales in commercial refrigeration products growing 4% for the twelve months ended September 30, 2025.

The company also serves customers through product categories that are not core equipment, which saw 2% sales growth in the same period.

Here's a quick look at the product mix sold to these segments for the twelve months ended September 30, 2025, based on purchase data:

Product Category	Revenue/Purchase Weight (Approximate)	Vendor Count (Approximate)
HVAC Equipment Sales (Based on 2024 data)	69% of revenues	Approximately 20 OEMs
Other HVAC Products (Non-Equipment)	28% of revenues (2024 data)	More than 1,500 vendors
Commercial Refrigeration Products (Based on 2024 data)	4% of revenues	Approximately 150 vendors

The segment of large, multi-location institutional customers is an emerging focus area, though specific revenue contribution isn't explicitly detailed as a separate segment in the latest reports. Watsco, Inc.'s strategy of acquiring market-leading businesses, including three distributors in key Sunbelt markets in 2025, helps build scale to serve larger, more complex customers.

Finally, the food-service and commercial refrigeration distributors are served through the commercial refrigeration product line. For the twelve months ended September 30, 2025, this category saw 4% sales growth.

Finance: draft 13-week cash view by Friday.

Watsco, Inc. (WSO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Watsco, Inc.'s operations as of late 2025, a period dominated by the massive A2L refrigerant transition. Honestly, the cost structure is heavily weighted toward the physical goods they move.

Cost of Goods Sold (COGS) is the largest component, which makes perfect sense for a massive distributor. For the first quarter ended March 31, 2025, the cost of sales was reported at $1,101,463 thousand, or about $1.101 billion, against total revenues of $1,531,086 thousand for that same period. That figure clearly shows where the bulk of the cash goes-straight to inventory acquisition.

The Selling, General, and Administrative (SG&A) expenses are the next major area of outlay. While I can't confirm the exact $322.6 million figure you mentioned for Q1 2025, I can tell you that for that quarter, SG&A expenses increased 4% compared to the prior year. This increase reflects broader operational pressures. By the third quarter ended September 30, 2025, SG&A expenses had climbed 5% year-over-year, driven by specific transition-related costs.

Here's a quick look at the Q1 2025 income statement components to put those costs in perspective:

Metric	Amount (In thousands)	Percentage of Revenue (Approx.)
Revenues	$1,531,086	100.0%
Cost of Sales (COGS)	$1,101,463	71.9%
Gross Profit	$429,623	28.1%
SG&A Expenses Change (YoY)	+4%	N/A
Operating Income	$112,000	7.3%

You should also factor in the significant, ongoing investment in technology. Watsco, Inc. has made this a strategic pillar. While I don't have the exact five-year cumulative figure of over $250 million, I know that as of 2017, the annual run-rate for technology spending was already around $23 million, and they have continued to invest heavily in AI and digital platforms like OnCallAir®. This investment is crucial for managing the complexity of their cost base.

The logistics and distribution costs for a massive inventory base are substantial. For the twelve months ending June 30, 2025, Watsco's purchases from non-equipment vendors alone were approximately $1.7 billion. Furthermore, inventory management itself has been a major cash user; operating cash flow for the first six months of 2025 was a use of cash totaling $185 million, largely due to new A2L inventory investments and peak seasonal buildup. Peak inventory investment reached $2.1 billion during 2025, though it had reduced to $1.6 billion by September 30, 2025.

The incremental costs from the A2L transition are layered on top of everything else. This regulatory shift impacts nearly 55% of all products and required converting over $1 billion of inventory. The costs manifest in several ways:

• Higher product costs from manufacturers, which Watsco passes on with an anticipated 8%-10% pricing lift on A2L products.
• Increased operating expenses in Q3 2025 due to higher labor, facilities, and transportation costs partially associated with the A2L product transition.
• Investments in customer training and technology enhancements to support contractors during the shift.

The company is actively working to ease these pressures, expecting cost pressures to ease in 2026 as the transition stabilizes and the initial investment wave rolls off. Finance: draft a sensitivity analysis on logistics cost increases versus the A2L pricing realization by next Wednesday.

Watsco, Inc. (WSO) - Canvas Business Model: Revenue Streams

You're looking at how Watsco, Inc. (WSO) brings in the money, which is primarily through distribution. The core of the revenue generation relies on moving HVAC, heating, and refrigeration products through its extensive network.

The revenue streams are clearly segmented, though the split shifts slightly based on market conditions and strategic focus. Historically, the largest component has been the Sales of HVAC equipment, which the prompt notes as historically being 69% of revenue. More recently, in the second quarter of 2025, HVAC equipment sales accounted for 68% of total sales.

The second major stream is the Sales of higher-margin parts and supplies. The company has an active initiative to grow this segment, which the prompt suggests is approximately 30% of sales. For the twelve months ended June 30, 2025, Watsco, Inc.'s purchases from non-equipment vendors represented 30% of those purchases. The company also reported 4% sales growth in commercial refrigeration products for the third quarter of 2025.

The overall scale of the business is significant. The trailing twelve months revenue for Watsco, Inc. ending September 2025 was approximately $7.41 billion. This figure reflects a slight contraction year-over-year of 0.71% compared to the prior twelve-month period.

Profitability metrics related to revenue streams show positive momentum in margin management, even with top-line softness. Watsco, Inc. achieved a record gross profit margin of 29.3% in the second quarter of 2025. However, the margin for the third quarter of 2025 was reported at 27.5%, with management indicating the Q2 figure was not expected to be sustained through the second half of 2025.

The company also rewards shareholders directly from its revenue performance. The annual dividend payment to shareholders was raised in April 2025 to $12.00 per share. This represents 12 consecutive years of dividend increases.

Here's a look at some key financial data points that frame these revenue activities:

Metric	Value (as of late 2025 data)
Trailing Twelve Months Revenue (Sept 2025)	$7.414B
Q3 2025 Revenue	$2.07 billion
Record Gross Profit Margin (Q2 2025)	29.3%
Gross Profit Margin (Q3 2025)	27.5%
Annual Dividend Per Share	$12.00

Digital platforms are increasingly becoming an integrated part of the revenue generation process, driving attach rates for higher-value products. You can see the scale of this digital engagement:

• E-commerce sales comprised 34% of overall sales as of Q3 2025.
• The OnCallAir® digital sales platform's annual run rate for Gross Merchandise Value (GMV) was approximately $1.7 billion as of the third quarter of 2025.
• Contractors using OnCallAir® generated $886 million in GMV during the first half of 2025, an 19% increase year-over-year.
• Over 72,000 contractors, installers, and technicians engage with the company's platforms.