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Watsco’s continued investment in technology has played a crucial role in its expansion, with ecommerce sales reaching $2.6 billion in 2024, accounting for 35% of total revenue.

Watsco, Inc. reported strong Q4 and full-year 2024 results, driven by strong digital adoption and ecommerce sales growth.

Watsco’s continued investment in technology has played a crucial role in its expansion, with ecommerce sales reaching $2.6 billion in 2024, accounting for 35% of total revenue. During Q4 alone, Watsco ecommerce sales surged by 16%, outpacing the overall revenue growth rate. Watsco is one of the largest distributors of heating, ventilation, and air conditioning (HVAC) equipment.

The company’s technology platforms, including its HVAC Pro+ Mobile App and OnCallAir digital sales platform, have significantly enhanced customer engagement, with 64,000 authenticated users and a 25% increase in gross merchandise value.

“Innovative digital tools continue to drive higher sales, improve customer loyalty, and provide new growth opportunities,” said Watsco president A.J. Nahmad. “We are also leveraging AI to enhance technical support and internal efficiencies, further solidifying our leadership in the HVAC distribution market.”

Watsco ecommerce sales in Q4

Watsco’s digital-first strategy has resulted in record total and ecommerce sales as well as profitability.

Key highlights include:

  • Total sales increased 9% to $1.75 billion.
  • Ecommerce sales grew 16%, surpassing the overall sales growth rate.
  • Operating income surged 26% to $136 million.
  • Net income rose 17% to $97 million.
  • Operating cash flow increased 27% to a record $379 million.

Residential HVAC sales were particularly strong, increasing by 16%, driven by digital adoption, new customer acquisitions, and increased market share.

For the full year, Watsco achieved $7.62 billion in revenue, a 5% increase from the previous year when sales totaled $7.28 billion. Net income was $635.7 million compared to $634.1 million in 2023.

Digital sales continued to be a primary growth engine, with increased adoption across its customer base. The company is also expanding AI-driven initiatives, using its extensive data to enhance both customer interactions and internal efficiency.

“We are excited to explore AI-driven solutions that improve customer experience and optimize operations,” Nahmad said. “These investments will further enhance our ability to provide superior service while strengthening our competitive advantage.”

Looking ahead, Watsco remains well-positioned to expand its leadership in the HVAC distribution sector through its digital ecosystem, the company said.

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