HVAC distributor revenues up 3.5% to start 2025

HVAC distributors posted single-digit revenue growth in January, according to HARDI’s latest Trends report, which includes data from nearly 500 distributors with over 5,000 branches nationwide. 

The big picture: The figure marks the second consecutive month of revenue growth, following December, in which distributors recorded the best monthly revenue growth of 2024. These figures generally serve as a proxy for contractor sales.

What’s happening: HARDI’s distributor members saw a 3.5 percent bump in January sales compared to 2024. 

• “More heating degree days year-to-year helped produce sales growth in all seven of our regions during January,” said HARDI economist Brian Loftus.

Zoom out: The report also notes that payment timelines have gotten shorter, with the ‘Days Sales Outstanding’ — a measure of how quickly contractors pay their bills — dropping from around 43 days over the past few Januarys to 38 days this January. 

• Additionally, Loftus noted that the 10-year bond yield is trending downward, and since mortgage rates typically follow suit, “this could have a positive impact on existing home sales and replacement demand,” he said, referring to this coming summer. 

What’s next: February’s sales figures will be released early next month.