MIAMI, FLORIDA – (GLOBENEWSWIRE), June 8, 2023 – Watsco, Inc. (NYSE: WSO) today announced it was named to the Fortune 500 list of companies by Fortune Magazine. Watsco ranked 495 overall on the list marking an important milestone for the Company. The 2023 Fortune 500 list ranks the largest United States corporations based on 2022 fiscal year revenue. Watsco’s total revenues reached a record high of $7.3 billion in 2022.
Through its entrepreneurial and technology-driven culture, Watsco has established itself as the largest participant in the highly fragmented $50+ billion North American HVAC/R distribution market. Since entering distribution in 1989, sales and operating income have grown at compounded annual growth rates (CAGRs) of 15% and 19%, respectively, reflecting strong and consistent performance across various macroeconomic and industry cycles. Over this period, Watsco’s dividends have grown at a 21% CAGR while maintaining a healthy balance sheet and strong cash flow.
Albert H. Nahmad, Watsco’s Chairman and CEO said, “This is an important and gratifying achievement for the company and I salute the great teams of Watsco leaders and employees that made this happen. We remain restless entrepreneurs and believe we are still in the early stages of what’s possible in terms of growth, innovation and investment. Our proven culture, the necessity of HVAC products and scale, along with the many catalysts to address climate change, should provide significant opportunities over the long-term.”
Watsco is the largest distribution network for heating, air conditioning and refrigeration (HVAC/R) products with locations in the United States, Canada, Mexico and Puerto Rico, and on an export basis to Latin America and the Caribbean. Watsco estimates that over 350,000 contractors and technicians visit, call or digitally interact with one of its 673 locations each year to get information, obtain technical support and buy products. Watsco plays a crucial role in the fight against climate change, presenting a long-term opportunity to significantly reduce CO2e emissions in our markets. Research by the Department of Energy has revealed that HVAC systems account for approximately 50% of U.S. household energy consumption. Thus, replacing outdated HVAC systems with higher efficiency models is a critical step that homeowners can take to reduce consumption. Watsco is also aggressively expanding its sales of heat pumps, which allow homeowners to reduce their carbon footprint by switching from conventional, fossil fuel-based heating systems to electric ones. By investing in high-efficiency HVAC systems and heat pumps, homeowners can not only reduce their energy consumption and save costs, but also significantly reduce their carbon footprint over time. Based on estimates validated by independent sources, Watsco averted an estimated 15.8 million metric tons of CO2e emissions from January 1, 2020 to December 31, 2022 through the sale of replacement HVAC systems at higher-efficiency standards (an equivalent of removing 3.4 million gas powered vehicles off the road for a year). More information, including sources and assumptions used to support the Company’s estimates, can be found at www.watsco.com.