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MIAMI - Watsco, Inc. (NYSE:WSO), a leading HVAC/R distribution company with a market capitalization of $17.7 billion and strong financial health according to InvestingPro, has announced the completion of the acquisition of Southern Ice Equipment Distributors, marking its third transaction in 2025. Southern Ice, a distributor of food-service and commercial refrigeration equipment, operates seven locations across the Sunbelt region. The acquired company will continue to operate under its current name and leadership, ensuring continuity for customers and employees.
Earlier this year, Watsco also acquired Lashley & Associates in January and Hawkins HVAC Distributors in April. These strategic moves have added 10 new locations and approximately $47 million in annualized sales to Watsco’s portfolio. The company’s Chairman and CEO, Albert H. Nahmad, expressed enthusiasm for the integration of the new businesses and the potential for growth, emphasizing Watsco’s commitment to investing in their expansion and supporting them with advanced technology.
Watsco’s strategy focuses on partnering with established businesses in the HVAC/R industry, supporting their growth plans, and fostering a culture of innovation. With these acquisitions, Watsco aims to strengthen its distribution network and enhance product offerings in high-growth markets.
The company, which has conducted 72 acquisitions since entering distribution in 1989, is actively seeking further investment opportunities to expand its reach. With a healthy current ratio of 3.28 and moderate debt levels, Watsco maintains strong financial flexibility for future acquisitions. Watsco’s network caters to a vast number of owner-operators, technicians, and installers, focusing on the replacement market—a sector poised for growth due to aging HVAC systems and the push for energy efficiency. InvestingPro analysis reveals 12 additional key insights about Watsco’s growth potential and market position.
Watsco’s role in contributing to climate change mitigation is highlighted by its efforts to replace older, less efficient HVAC systems. The company estimates that from January 1, 2020, to March 31, 2025, it has helped avert approximately 23.7 million metric tons of CO2e emissions through the sale of high-efficiency replacement systems. This environmental commitment, combined with a strong return on invested capital of 17% and steady revenue growth of 3.92%, positions Watsco as a leader in sustainable HVAC distribution.
The information presented in this article is based on a press release statement from Watsco, Inc.
In other recent news, Watsco Inc. reported its financial results for the first quarter of 2025, revealing a notable miss in both earnings and revenue. The company announced earnings per share (EPS) of $1.93, which fell short of the expected $2.26. Additionally, Watsco’s revenue was reported at $1.53 billion, missing the anticipated $1.66 billion. The earnings miss is attributed in part to the company’s ongoing transition to A2L refrigerant systems, which has impacted sales. Despite these challenges, Watsco increased its annual dividend by 11% to $12 per share. Analysts have been closely monitoring the company’s pricing strategies and supply chain challenges, particularly concerning potential shortages in refrigerant containers. Watsco’s CEO, Al Nahmad, emphasized the company’s strategic direction and its goal of achieving a 30% gross profit margin. The company remains vigilant about the potential impact of tariffs on its operations, especially considering that 91% of its sales are domestic.
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