Watsco Inc 10-K for FY2024

Watsco Inc 10-K for FY2024

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Watsco Inc (WSO)

10-K 2025-02-28 For: 2024-12-31

Added on April 09, 2026

Watsco Inc filed this 10-K on February 28, 2025, covering the fiscal year ended December 31, 2024 (FY2024).

Fiscal year ended December 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $7.62B; up 4.6% from $7.28B a year earlier
Net income: $536.29M; unchanged from net income of $536.34M a year earlier
Diluted EPS: $13.30; down 2.7% from $13.67 a year earlier

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FLORIDA		59-0778222
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


2665 South Bayshore Drive, Suite 901 Miami, FL		33133
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.50 par value	WSO	New York Stock Exchange
Class B common stock, $0.50 par value	WSOB	New York Stock Exchange


		Page

PART I

Item 1.	Business		3

Item 1A.	Risk Factors		13

Item 1B.	Unresolved Staff Comments		18

Item 1C.	Cybersecurity		19

Item 2.	Properties		20

Item 3.	Legal Proceedings		21

Item 4.	Mine Safety Disclosures		21

PART II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		21

Item 6.	[Reserved]		23

Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		23

Item 8.	Financial Statements and Supplementary Data		23

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		23

Item 9A.	Controls and Procedures		23

Item 9B.	Other Information		25

Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		25

PART III

PART IV

Item 15.	Exhibits, Financial Statement Schedules		26

Item 16.	Form 10-K Summary		30

SIGNATURES			31

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company


The markets we serve are as follows:	% of Revenues for the Year Ended December 31, 2024			Number of Locations as of December 31, 2024
United States		90	%		628
Canada		5	%		36
Latin America and the Caribbean		5	%		26

Total		100	%		690


Florida			102
Texas			88
North Carolina			52
South Carolina			50
California			35
Georgia			34
Louisiana			33
Virginia			28
Tennessee			23
New York			20
Pennsylvania			20
Illinois			14
New Jersey			14
Alabama			10
Massachusetts			9
Mississippi			9
Missouri			9
Arizona			8
Connecticut			7
Kansas			7
Maryland			6
Indiana			5
Oklahoma			5
Utah			5
Arkansas			4
Kentucky			3
Minnesota			3
Nevada			3
Iowa			2
Maine			2
Nebraska			2
New Hampshire			2
South Dakota			2
West Virginia			2
Wisconsin			2
Colorado			1
Delaware			1
Michigan			1
New Mexico			1
North Dakota			1
Ohio			1
Rhode Island			1
Vermont			1

United States			628
Canada			36
Puerto Rico			16
Mexico			10

Total			690


	12/31/19		12/31/20		12/31/21		12/31/22		12/31/23		12/31/24
Watsco, Inc.		100.00		130.51		185.42		152.56		270.02		305.64
Watsco, Inc. Class B		100.00		133.31		180.68		153.34		264.15		343.14
Russell 2000 Index		100.00		119.96		137.74		109.59		128.14		142.93
S&P MidCap 400 Index		100.00		113.66		141.80		123.28		143.54		163.54
S&P 500 Index		100.00		118.40		152.39		124.79		157.59		197.02
S&P 400 Industrials Index		100.00		116.49		149.62		132.42		174.04		197.51


Period	Total Number of Shares Purchased ⁽¹⁾		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs ⁽¹⁾		Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs ⁽¹⁾
October 1, 2024 to October 31, 2024		—	$	—		—	$	—
November 1, 2024 to November 30, 2024		517		535.00		—		—
December 1, 2024 to December 31, 2024		71,702		509.75		—		—

Total		72,219	$	509.93		—	$	—


(a)(1)		Financial Statements. Our consolidated financial statements are incorporated by reference from our 2024 Annual Report.

(2)		Financial Statement Schedules. The schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes thereto.

(3)		Exhibits. The following exhibits are submitted with this Annual Report on Form 10-K or, where indicated, incorporated by reference to other filings.


3.1		Composite Articles of Incorporation of Watsco, Inc. (filed as Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and incorporated herein by reference).

3.2		Watsco, Inc. Second Amended and Restated Bylaws effective August 1, 2016 (filed as Exhibit 3.1 to the Current Report on Form 8-K on August 5, 2016 and incorporated herein by reference).

4.1		Specimen form of Class B Common Stock Certificate (filed as Exhibit 4.6 to the Registration Statement on Form S-1 (No. 33-56646) and incorporated herein by reference). (P)

4.2		Specimen form of Common Stock Certificate (filed as Exhibit 4.4 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1994 and incorporated herein by reference). (P)


4.3		Description of Capital Stock (filed as Exhibit 4.3 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and incorporated herein by reference).

10.1(a)		Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.20 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 1996 and incorporated herein by reference). *

10.1(b)		First Amendment dated January 1, 2001 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.13 to the Annual Report on Form 10-K for the year ended December 31, 2000 and incorporated herein by reference). *

10.1(c)		Second Amendment dated January 1, 2002 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.15 to the Annual Report on Form 10-K for the year ended December 31, 2001 and incorporated herein by reference). *

10.1(d)		Third Amendment dated January 1, 2003 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.11 to the Annual Report on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference). *

10.1(e)		Fourth Amendment dated January 1, 2004 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). *

10.1(f)		Fifth Amendment dated January 1, 2005 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 and incorporated herein by reference). *

10.1(g)		Sixth Amendment dated January 1, 2006 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.16 to the Annual Report on Form 10-K for the year ended December 31, 2005 and incorporated herein by reference). *

10.1(h)		Seventh Amendment dated January 1, 2007 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.18 to the Annual Report on Form 10-K for the year ended December 31, 2006 and incorporated herein by reference). *

10.1(i)		Eighth Amendment dated January 1, 2008 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by reference). *

10.1(j)		Ninth Amendment dated December 10, 2008 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.19 to the Annual Report on Form 10-K for the year ended December 31, 2008 and incorporated herein by reference). *

10.1(k)		Tenth Amendment dated January 1, 2009 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 and incorporated herein by reference). *

10.1(l)		Eleventh Amendment dated January 1, 2010 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference). *

10.1(m)		Twelfth Amendment dated January 1, 2011 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference). *

10.1(n)		Thirteenth Amendment dated January 1, 2012 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 and incorporated herein by reference). *

10.1(o)		Fourteenth Amendment dated January 1, 2013 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and incorporated herein by reference). *


10.1(p)		Fifteenth Amendment dated January 1, 2014 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 and incorporated herein by reference). *

10.1(q)		Sixteenth Amendment dated January 1, 2015 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and incorporated herein by reference). *

10.1(r)		Seventeenth Amendment dated January 1, 2016 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and incorporated herein by reference). *

10.1(s)		Eighteenth Amendment dated January 1, 2017 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and incorporated herein by reference). *

10.1(t)		Nineteenth Amendment dated January 1, 2018 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and incorporated herein by reference). *

10.1(u)		Twentieth Amendment dated January 1, 2019 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and incorporated herein by reference). *

10.1(v)		Twenty-first Amendment dated January 1, 2020 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and incorporated herein by reference). *

10.1(w)		Twenty-second Amendment dated January 1, 2021 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1(w) to the Annual Report on Form 10-K for the year ended December 31, 2020 and incorporated herein by reference).*

10.1(x)		Twenty-third Amendment dated January 1, 2022 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1(x) to the Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference).*

10.1(y)		Twenty-fourth Amendment dated January 1, 2023 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 and incorporated herein by reference).*

10.1(z)		Twenty-fifth Amendment dated January 1, 2024 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1(z) to the Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference).*

10.1(aa)		Amended and Restated Twenty-fifth Amendment to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad (filed as Exhibit 10.1 to the Report on Form 8-K filed on November 15, 2024 and incorporated herein by reference).*

10.1(bb)		Twenty-sixth Amendment dated January 1, 2025 to Employment Agreement and Incentive Plan dated January 31, 1996 by and between Watsco, Inc. and Albert H. Nahmad. *#

10.2(a)		Watsco, Inc. 2014 Incentive Compensation Plan (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2014 Annual Meeting of Shareholders and incorporated herein by reference). *


10.2(b)		Watsco, Inc. 2021 Incentive Compensation Plan (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2021 Annual Meeting of Shareholders and incorporated herein by reference). *

10.3		Fourth Amended and Restated 1996 Qualified Employee Stock Purchase Plan dated April 18, 2011 (filed as Appendix A to the Definitive Proxy Statement on Schedule 14A in respect of our 2011 Annual Meeting of Shareholders and incorporated herein by reference). *

10.4		Credit Agreement, dated as of March 16, 2023, by and among Watsco, Inc., Watsco Canada, Inc. and Carrier Enterprise Mexico, S. de R.L. de C.V., as Borrowers, the Other Lenders From Time to Time Party Thereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A. as Syndication Agent and U.S. Bank National Association and Wells Fargo Bank, National Association as Co-Documentation Agents (filed as Exhibit 10.1 to the Current Report on Form 8-K filed on March 22, 2023 and incorporated herein by reference).

10.5		Third Amended and Restated Sales Agreement dated May 3, 2024 by and between Watsco, Inc. and Robert W. Baird & Co. Incorporated (filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference).

13		2024 Annual Report to Shareholders (with the exception of the information incorporated by reference into Items 7, 8 and 9 of this Annual Report on Form 10-K, the 2024 Annual Report to Shareholders is provided solely for the information of the SEC and is not deemed “filed” as part of this Form 10-K). #

19		Insider Trading Policy. #

21.1		Subsidiaries of the Registrant. #

23.1		Consent of Independent Registered Public Accounting Firm – Deloitte & Touche LLP. #

23.2		Consent of Independent Registered Public Accounting Firm – KPMG LLP. #

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

31.2		Certification of Executive Vice President pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

31.3		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. #

32.1		Certification of Chief Executive Officer, Executive Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. +

97.1		Policy Relating to Recovery of Erroneously Awarded Compensation (filed as Exhibit 97.1 to the Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference).

101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. #

101.SCH		Inline XBRL Taxonomy Extension Schema Document. #

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document. #

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document. #

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document. #

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document. #

104		The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, formatted in Inline XBRL.


	WATSCO, INC.

February 28, 2025	By:	/s/ Albert H. Nahmad
		Albert H. Nahmad, Chief Executive Officer

February 28, 2025	By:	/s/ Ana M. Menendez
		Ana M. Menendez, Chief Financial Officer


SIGNATURE	TITLE	DATE

/S/ ALBERT H. NAHMAD Albert H. Nahmad	Chairman of the Board and Chief Executive Officer (principal executive officer)	February 28, 2025

/S/ ANA M. MENENDEZ Ana M. Menendez	Chief Financial Officer (principal accounting officer and principal financial officer)	February 28, 2025

/S/ CESAR L. ALVAREZ Cesar L. Alvarez	Director	February 28, 2025

/S/ J. MICHAEL CUSTER J. Michael Custer	Director	February 28, 2025

/S/ DENISE DICKINS Denise Dickins	Director	February 28, 2025

/S/ Barry S. Logan Barry S. Logan	Director and Executive Vice President	February 28, 2025

/S/ ANA LOPEZ-BLAZQUEZ Ana Lopez-Blazquez	Director	February 28, 2025

/S/ AARON J. NAHMAD Aaron J. Nahmad	Director and President	February 28, 2025

/S/ VALERIE F. SCHIMEL Valerie F. Schimel	Director	February 28, 2025

Gary L. Tapella	Director	February 28, 2025


WATSCO, INC.

By:		/s/ Barry S. Logan
		Barry S. Logan, Executive Vice President

EMPLOYEE

By:		/s/ Albert H. Nahmad
		Albert H. Nahmad


	Amount of Restricted Stock Award
A. Earnings Per Share (EPS)
For each $.01 increase if growth is below 5%	$	43,500
For each $.01 increase if growth is at or above 5%	$	65,000
B. Increase in Common Stock Price
If the closing price of a share of Common Stock on 12/31/25 does not exceed $473.89	$	0
If the closing price of a share of Common Stock on 12/31/25 exceeds $473.89 but does not equal or exceed $568.67, for each $0.01 increase in per share price of a share of Common Stock above $473.89	$	1,200
If the closing price of a share of Common Stock on 12/31/25 equals or exceeds $568.67, for each $0.01 increase in per share price of a share of Common Stock above $473.89	$	1,800


Effective as of January 1, 2025

COMPENSATION COMMITTEE

By:		/s/ Denise Dickins
		Denise Dickins, Chair

ACKNOWLEDGED AND ACCEPTED

By:		/s/ Albert H. Nahmad
		Albert H. Nahmad


	2024			2023			2022
Revenues		100.0	%		100.0	%		100.0	%
Cost of sales		73.2			72.6			72.1

Gross profit		26.8			27.4			27.9
Selling, general and administrative expenses		17.0			16.8			16.8
Other income		0.4			0.4			0.3

Operating income		10.3			10.9			11.4
Interest (income) expense, net		(0.3	)		0.1			0.0

Income before income taxes		10.5			10.8			11.4
Income taxes		2.2			2.1			1.7

Net income		8.3			8.7			9.7
Less: net income attributable to non-controlling interest		1.3			1.3			1.4

Net income attributable to Watsco, Inc.		7.0	%		7.4	%		8.3	%


	Number of Locations
December 31, 2022		673
Opened		6
Acquired		19
Closed		(8	)

December 31, 2023		690
Opened		9
Acquired		2
Closed		(11	)

December 31, 2024		690


	Years Ended December 31,
(in millions)	2024		2023		Change
Revenues	$	7,618.3	$	7,283.8	$	334.5	5	%


	% of Sales
	2024			2023			% Change
HVAC equipment		70	%		69	%		5	%
Other HVAC products		26	%		27	%		(2	)%
Commercial refrigeration products		4	%		4	%		1	%


	Years Ended December 31,
(In thousands, except per share data)	2024			2023		2022
Revenues	$	7,618,317		$	7,283,767	$	7,274,344
Cost of sales		5,573,604			5,291,627		5,244,055

Gross profit		2,044,713			1,992,140		2,030,289
Selling, general and administrative expenses		1,293,439			1,223,507		1,221,382
Other income		30,501			26,177		22,671

Operating income		781,775			794,810		831,578
Interest (income) expense, net		(20,869	)		4,920		2,165

Income before income taxes		802,644			789,890		829,413
Income taxes		166,904			155,751		125,717

Net income		635,740			634,139		703,696
Less: net income attributable to non-controlling interest		99,454			97,802		102,529

Net income attributable to Watsco, Inc.	$	536,286		$	536,337	$	601,167

Earnings per share for Common and Class B common stock (collectively “common stock”):
Basic	$	13.34		$	13.72	$	15.46

Diluted	$	13.30		$	13.67	$	15.41


	Years Ended December 31,
(In thousands)	2024			2023		2022
Net income	$	635,740		$	634,139	$	703,696
Other comprehensive (loss) income, net of tax Foreign currency translation adjustment		(26,290	)		7,906		(20,305	)

Other comprehensive (loss) income		(26,290	)		7,906		(20,305	)
Comprehensive income		609,450			642,045		683,391
Less: comprehensive income attributable to non-controlling interest		90,726			100,329		95,758

Comprehensive income attributable to Watsco, Inc.	$	518,724		$	541,716	$	587,633


	December 31,
(In thousands, except share and per share data)	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	526,271		$	210,112
Short-term cash investments		255,669			—
Accounts receivable, net		877,935			797,832
Inventories, net		1,385,436			1,347,289
Other current assets		34,670			36,698

Total current assets		3,079,981			2,391,931

Property and equipment, net		140,535			136,230
Operating lease right-of-use assets		419,138			368,748
Goodwill		451,858			457,148
Intangible assets, net		208,472			218,146
Investment in unconsolidated entity		168,611			146,238
Other assets		10,928			10,741

	$	4,479,523		$	3,729,182

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of lease liabilities	$	110,273		$	100,265
Accounts payable		490,879			369,396
Accrued expenses and other current liabilities		382,749			242,351

Total current liabilities		983,901			712,012

Long-term obligations:
Borrowings under revolving credit agreement		—			15,400
Operating lease liabilities, net of current portion		321,715			276,913
Finance lease liabilities, net of current portion		15,475			12,214

Total long-term obligations		337,190			304,527

Deferred income taxes and other liabilities		94,194			96,453

Commitments and contingencies
Watsco, Inc. shareholders’ equity:
Common stock, $0.50 par value, 60,000,000 shares authorized; 38,861,032 and 38,705,586 shares outstanding at December 31, 2024 and 2023, respectively		19,431			19,353
Class B common stock, $0.50 par value, 10,000,000 shares authorized; 5,578,921 and 5,562,945 shares outstanding at December 31, 2024 and 2023, respectively		2,789			2,781
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued		—			—
Paid-in capital		1,472,170			1,153,459
Accumulated other comprehensive loss, net of tax		(59,893	)		(42,331	)
Retained earnings		1,295,972			1,183,207
Treasury stock, at cost, 4,066,978 and 4,778,988 shares of Common stock and 20,712 and 48,263 shares of Class B common stock at December 31, 2024 and 2023, respectively		(73,479	)		(86,630	)

Total Watsco, Inc. shareholders’ equity		2,656,990			2,229,839
Non-controlling interest		407,248			386,351

Total shareholders’ equity		3,064,238			2,616,190

	$4,479,523			$3,729,182


(In thousands, except share and per share data)	Common Stock, Class B Common Stock and Preferred Stock Shares			Common Stock, Class B Common Stock and Preferred Stock Amount			Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Non-controlling Interest			Total
Balance at December 31, 2021		38,799,632		$	21,836		$	1,003,932		$	(34,176	)	$	760,796		$	(87,440	)	$	332,467		$	1,997,415
Net income														601,167						102,529			703,696
Other comprehensive loss											(13,534	)								(6,771	)		(20,305	)
Issuances of restricted shares of common stock		143,059			72			(72	)														—
Forfeitures of restricted shares of common stock		(13,000	)		(7	)		7															—
Common stock contribution to 401(k) plan		21,560			11			6,735															6,746
Stock issuances from exercise of stock options and employee stock purchase plan		120,696			60			20,742															20,802
Retirement of common stock		(322,060	)		(161	)		(87,327	)														(87,488	)
Share-based compensation								29,043															29,043
Dividends declared and paid on common stock, $8.55 per share														(332,447	)								(332,447	)
Distributions to non-controlling interest																				(69,184	)		(69,184	)

Balance at December 31, 2022		38,749,887			21,811			973,060			(47,710	)		1,029,516			(87,440	)		359,041			2,248,278


Level 1		Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2		Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3		Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability.


2025	$	124,420
2026		109,127
2027		82,552
2028		62,721
2029		43,834
Thereafter		66,159

Total lease payments		488,813
Less imputed interest		63,120

Total lease liability	$	425,693


Allocation of earnings for Basic:
Common stock	$	454,680	$	455,186	$	499,792
Class B common stock		44,214		44,185		50,010

	$	498,894	$	499,371	$	549,802

Diluted Earnings per Share:
Net income attributable to Watsco, Inc. shareholders	$	536,286	$	536,337	$	601,167
Less: distributed and undistributed earnings allocated to restricted common stock		37,369		36,932		51,294

Earnings allocated to Watsco, Inc. shareholders	$	498,917	$	499,405	$	549,873

Weighted-average common shares outstanding - Basic		37,391,461		36,406,148		35,564,203
Effect of dilutive stock options		118,871		125,535		119,431

Weighted-average common shares outstanding - Diluted		37,510,332		36,531,683		35,683,634

Diluted earnings per share for common stock	$	13.30	$	13.67	$	15.41


Balance at December 31, 2021	$	6,727
Additions based on tax positions related to the current year		1,867
Reductions due to lapse of applicable statute of limitations		(842	)

Balance at December 31, 2022		7,752
Additions based on tax positions related to the current year		1,215
Reductions due to lapse of applicable statute of limitations		(1,093	)

Balance at December 31, 2023		7,874
Additions based on tax positions related to the current year		1,439
Reductions due to lapse of applicable statute of limitations		(1,530	)

Balance at December 31, 2024	$	7,783


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value

Options outstanding at December 31, 2023		410,865		$	260.82
Granted		41,200			431.36
Exercised		(137,320	)		222.78
Forfeited		(11,250	)		288.67
Expired		(3,000	)		164.30

Options outstanding at December 31, 2024		300,495		$	301.50		2.50	$	51,907

Options exercisable at December 31, 2024		78,102		$	249.19		1.36	$	17,560


	Shares			Weighted- Average Grant Date Fair Value
Restricted stock outstanding at December 31, 2023		2,736,681		$	124.56
Granted		110,160			428.46
Vested		(199,329	)		33.18
Forfeited		(21,215	)		261.60

Restricted stock outstanding at December 31, 2024		2,626,297		$	143.14


Accounts receivable	$	21,159
Inventories		37,098
Other current assets		319
Property and equipment		3,213
Operating lease ROU assets		15,737
Goodwill		25,086
Intangibles		44,000
Other assets		86
Current portion of lease liabilities		(3,633	)
Accounts payable		(8,306	)
Accrued expenses and other current liabilities		(4,934	)
Operating lease liabilities, net of current portion		(12,434	)
Finance lease liabilities, net of current portion		(1,431	)
Other liabilities		(13,417	)

Total	$	102,543


Balance at December 31, 2022	$	430,711
Acquired goodwill		25,547
Foreign currency translation adjustment		890

Balance at December 31, 2023		457,148
Acquired goodwill		2,469
Adjustment to goodwill related to 2023 acquisition		(12	)
Foreign currency translation adjustment		(7,747	)

Balance at December 31, 2024	$	451,858