Watsco, eyeing growth, leans on data

At J.P. Morgan’s 2026 Industrials Conference in Washington, D.C. last week, executives from distribution giant Watsco discussed how they’re relying on tech tools to increase sales — and better serve contractors. 

What’s happening: Vice President Rick Gomez specifically touted the company’s Product Information Management (PIM) system as “the most important asset that’s not on our balance sheet,” adding that Watsco leverages a “very sophisticated” business intelligence platform to share real-time market data with 4,000 to 5,000 users across the company. 

• “There’s not a decision or a thought or a debate had around the company that doesn’t involve a critical evaluation of the data behind all of it and all of which augments the intuition of the leadership that is there,” he explained. 

The big picture: While Watsco is the U.S.’s largest HVAC distributor, generating more than $7 billion in annual revenue, it serves just 10 to 15 percent of the industry, Executive Vice President Barry Logan said, and hasn’t yet reached all 50 states. 

• Meanwhile, contractors sold $1.8 billion of products through OnCallAir, Watsco’s digital sales platform, in 2025, with its “digital ecosystem” seeing roughly 75,000 average weekly contractor users, according to Gomez.

Of note: Touching on broader aspects of the business, Logan acknowledged that January and February are an “inconsequential” time of year; however, “We’re seeing absolute progress” in March, he said. 

• “The key ingredient is what is the unit environment going to be — a usual market year or the valley of death?” he added. “Well, it’s not the valley of death. Whether it’s a conventional growth market… I’ve told you there’s progress.” 
• He noted that ductless systems have grown in market share over the past 10 years, adding that side-discharge hybrid systems coming from several OEMs will be a “good ingredient in the industry.”

What they’re saying: “The contractor is the central theme in this industry,” Logan said, “and our job is to help them every single minute of the day” through product knowledge, convenient locations, and technology, as well as friendship and “taking them on fishing trips.”

• Full conference transcript