Watsco
22 named things its latest annual report says its results depend on, each in the company's own words. 17 of them are also named by other companies we've read.
Suppliers
Carrier Global Corporation (Carrier)
depends on · 62% from Carriernamed as a riskThe Company’s top ten suppliers accounted for 85% of our purchases during 2025, including 62% from Carrier and 8% from Rheem.Risk factors (Item 1A)
Rheem Manufacturing Company (Rheem)
depends on · 8% from Rheemnamed as a riskGiven the significant concentration of our supply chain, particularly with Carrier and Rheem, any significant interruption by any of the key manufacturers or suppliers or a termination of a relationship could temporarily disrupt the operations of certain of our subsidiaries.Risk factors (Item 1A)
Mitsubishi Electric Trane HVAC US LLC (Mitsubishi)
depends onWe maintain trade name and distribution agreements with Carrier, Rheem, and Mitsubishi that provide us with distribution rights on an exclusive basis in specified territories.Risk factors (Item 1A)
Partners and platforms
Other companies
Russell Sigler, Inc. (RSI)
38.4% ownership interestCarrier Enterprise I also has a 38.4% ownership interest in Russell Sigler, Inc. (“RSI”), an HVAC distributor operating from 36 locations in the Western U.S.Business (Item 1)
Places
Canada
earns from · 5%named as a riskThe functional currency of our operations in Canada is the Canadian dollar, and the functional currency of our operations in Mexico is the U.S. dollar because the majority of our Mexican transactions are denominated in U.S. dollars.Risk factors (Item 1A)
Also named by AAP, AJG, ALL, AMRC, AOS, ARE, BBY, BF/B and 97 more
Florida
concentrated in · 102Accordingly, most of our distribution locations and sales are in the Sun Belt, with the highest concentration in Florida and Texas.Business (Item 1)
Also named by ABR, ALLY, AN, AXP, AZO, BBY, BJ, BRO and 54 more
Texas
concentrated in · 89Accordingly, most of our distribution locations and sales are in the Sun Belt, with the highest concentration in Florida and Texas.Business (Item 1)
Also named by ABR, AFRM, ALLY, AN, ASO, ASTS, ATO, AXP and 70 more
United States
earns from · 90%The largest market we serve is the United States, in which the most significant markets for HVAC/R products are in the Sun Belt states where HVAC equipment tends to experience above-average usage and therefore a shorter average useful life.Business (Item 1)
Also named by ABBV, ADP, AJG, AMGN, APA, AXGN, AXP, BALL and 139 more
Puerto Rico
operates in · 16In 2009, we formed a joint venture with Carrier, which we refer to as Carrier Enterprise I, in which Carrier contributed company-owned locations in various Sun Belt states and Puerto Rico, and its export division in Miami, Florida, and we contributed certain locations that distributed Carrier products.Business (Item 1)
Also named by AMGN, BMY, BPOP, CCI, COO, GMED, HPE, LLY and 2 more
Latin America and the Caribbean
earns from · 5%At December 31, 2025, we operated from 695 locations in 43 U.S. States, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean, through which we serve more than 130,000 active contractors that service the replacement and new construction markets.Business (Item 1)
Mexico
depends onnamed as a riskMany HVAC equipment and component manufacturers, including Carrier and Rheem, source component parts from China and Mexico and/or assemble a significant number of products for residential and light-commercial applications in Mexico.Risk factors (Item 1A)
Also named by AAP, AME, AMRC, ANET, AOS, ARES, AYI, AZO and 83 more
China
depends onnamed as a riskIf any restrictions, including as a result of overall trade relations or a potential increase in tariffs (which the Trump administration has proposed), are imposed related to such products sourced from, or assembled in, Mexico and China, including as a result of amendments to existing trade agreements, and our product costs consequently increase, we would be required to raise our prices, which may result in cost inflation, the loss of customers, and harm to our business.Risk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
Hazards
Weather (summer and winter seasons)
exposed to its pricenamed as a riskFurthermore, profitability can be impacted favorably or unfavorably based on the severity or mildness of weather patterns during Summer or Winter selling seasons.Risk factors (Item 1A)
Also named by AAP, CLX, CPRT, DASH, DECK, ENB, GVA, LII and 4 more
Commodities and inputs
HFC refrigerants (410A Systems)
subject tonamed as a riskOur inability to obtain products from one or more of these manufacturers or a decline in market acceptance of these manufacturers’ products, including new HVAC systems that use refrigerants with a lower GWP, could have a material adverse effect on our results of operations, cash flows, and liquidity.Risk factors (Item 1A)
Regulators
U.S. Environmental Protection Agency (EPA)
subject tonamed as a riskThe American Innovation and Manufacturing Act of 2020 granted the U.S. Environmental Protection Agency (the “EPA”) the authority to regulate HFC refrigerants.Business (Item 1)
Also named by AAON, AAP, ALSN, AMRC, APA, APD, APG, AROC and 78 more
U.S. Department of Energy (DOE)
subject toOur industry and business are also subject to United States Department of Energy (“DOE”) standards related to the minimum required efficiency levels of residential central air conditioning systems and heat pumps.Business (Item 1)
Also named by AAON, AMRC, AOS, BWXT, CDE, CDRE, CEG, CLF and 16 more
Laws and programs
American Innovation and Manufacturing Act of 2020
subject to · 85% phasedownnamed as a riskConsequently, a required 85% phasedown of HFC production and consumption over a 15-year period commenced on January 1, 2022 (40% of which was completed in 2024).Business (Item 1)
Also named by CARR
One Big Beautiful Bill Act
subject tonamed as a riskHowever, the act commonly referred to as the One Big Beautiful Bill, which was signed into law on July 4, 2025, eliminated the IRA’s previously enacted tax credits for HVAC systems, making such credits unavailable after December 31, 2025.Business (Item 1)
Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more
Inflation Reduction Act of 2022
subject tonamed as a riskHowever, the act commonly referred to as the One Big Beautiful Bill, which was signed into law on July 4, 2025, eliminated the IRA’s previously enacted tax credits for HVAC systems, making such credits unavailable after December 31, 2025.Business (Item 1)
Also named by ABBV, APD, ARE, BKH, DD, DHR, ELV, ENPH and 30 more
United States-Mexico-Canada Agreement (USMCA)
subject tonamed as a riskHowever, if additional restrictions, amendments to existing trade agreements, such as the United States-Mexico-Canada Agreement, or further tariff increases on goods sourced from or assembled in Mexico and China, significantly raise our product costs, then we may need to increase our prices further, which could lead to reduced sales, customer loss, and potential harm to our business.Business (Item 1)
Also named by AYI, BMI, BWA, CLF, CMI, CP, CW, DCH and 29 more
Kigali Amendment to the Montreal Protocol
subject toThese laws and regulations include the Clean Air Act, relating to minimum energy efficiency standards of HVAC systems, and the production, servicing, and disposal of more environmentally friendly refrigerants used in such systems, including those established by the Kigali Amendment to the Montreal Protocol concerning the phase-down of the production of hydrofluorocarbon (“HFC”)-based refrigerants for use in new equipment.Business (Item 1)