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Can Watsco, Inc. Sustain $1.8 Billion OnCall Momentum?

Watsco, Inc.’s latest financial report reveals a mixed picture with both positive achievements and areas for scrutiny. For the fourth quarter of 2025, Watsco showcased resilience and strategic growth amid regulatory changes and past disruptions. The company managed to boost its gross margins by 40 basis points to 27.1%, an indicator of its successful adaptation to pricing strategies in the changing landscape of A2L refrigerants. However, unit volumes declined, which can be attributed to past high comparisons rather than current underperformance. A key highlight of Watsco’s strategy is its focus on technology and innovation, notably its expansion in e-commerce, which now accounts for 35% of sales. The annual run rate of sales through its OnCall Air platform increased by 20% to $1.8 billion, demonstrating effectiveness in digital adoption.