Watsco, Inc. reported record sales and earnings for the fourth quarter and full year 2024, alongside an 11% increase in its annual dividend. Fourth quarter sales rose 9.4% year-over-year to $1.75 billion, driven by a 16% increase in residential equipment sales and a 9% increase in commercial equipment sales. Net income for the quarter was $96.8 million, with diluted earnings per share of $2.37.
For the full year 2024, Watsco's sales reached $7.62 billion, up 4.6% from 2023. The company generated record operating cash flow of $773 million, a 38% increase from the prior year, representing 122% of net income. Watsco concluded the year with a robust balance sheet, holding $782 million in cash and short-term investments and no outstanding debt.
The Board of Directors approved an 11% increase in the annual dividend to $12.00 per share, marking the 51st consecutive year of dividend payments. This increase will be reflected in the April 2025 quarterly payment. Management cited the strength of 2024 performance and confidence in future business prospects, supported by the company's strong balance sheet, as reasons for the dividend hike.
Watsco also highlighted its ongoing investment in technology, with approximately 64,000 contractors and technicians engaging with its digital platforms. The company has initiated AI-related initiatives to enhance technical support and internal content creation. The transition to A2L products is underway, expected to provide incremental growth opportunities, and sales of ductless HVAC systems continued to outpace conventional ducted systems in 2024.
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