Watsco Sees Stabilizing Market as Q2 Sales Increase

Watsco, one of the largest distributors of home heating and cooling equipment in the country, reported that its business is settling into a more normal pattern after last year's industry-wide shift to new refrigerants. That shift, tied to environmental rules, pushed manufacturers to raise prices in 2025 to cover higher costs. This year those price jumps have leveled off, which the company says better reflects what's actually happening in the market.

For homeowners, this is mostly a signal about pricing trends rather than a program you can use directly. Watsco reported that residential equipment sales rose 5% for the quarter, with both unit sales and average prices up slightly, suggesting demand for new furnaces, air conditioners, and heat pumps is holding steady without the price spikes seen last year during the refrigerant changeover.

The company also highlighted its digital tools that contractors use to quote and sell HVAC jobs to homeowners. One of these, called OnCallAir, was used to present quotes to about 342,000 households over the past year, with $1.9 billion in equipment sold through the platform. This points to more contractors using online tools for quotes and scheduling, which may show up as instant estimates or digital scheduling options when you get bids for a new system. Watsco also grew its distribution network by acquiring Jackson Supply Co., adding 25 locations across the South and Southwest, giving the company more than 700 locations across North America.