HVAC distributor sales accelerate in April, data shows

HVAC distributors in April posted high-single-digit revenue growth, according to HARDI data released Monday, encompassing nearly 500 distributors with over 5,000 branches nationwide. 

Why it matters: The figure, a proxy for contractor sales, marks a positive start to Q2, following the first quarter, in which sales grew five percent a month, on average, when adjusted for the same number of billing days compared to 2024. 

What’s happening: HARDI distributors reported a 6.8 percent increase in revenue compared to last April, and saw contractor payments quicken to 38 days — down from around 41 over the past few years.

• What they’re saying: “Interest rates have been sticky despite three cuts to the fed funds rate… [and] the housing market data has been flat to weak,” HARDI wrote. “[B]ut HARDI distributor sales growth has been drifting higher.”

What to watch: While June’s sales data won’t be released until August, the month faces a tough weather comparison: Cooling demand in June 2024 jumped 44 percent compared to 2023 and ran 15 percent “above normal,” as Homepros recently reported. 

• But, but, but: Since the U.S. saw closer-to-normal cooling demand in July and August last year, paired with a warm summer forecast for this year, it “may be easier to attain unit growth” during those months, HARDI analyst Brian Loftus said in May. 

What’s next: May sales data will be released during the first week of July, followed by June’s in August, and July’s in September.