Watsco is North America's largest distributor of HVAC/R (heating, air conditioning, and refrigeration) equipment, parts, and supplies to over 130,000 licensed contractors across North America and selective international markets. The company operates through a network of 695 locations and distributes residential and commercial air conditioning units, furnaces, compressors, refrigerants, thermostats, and related supplies from approximately 1,300 OEM and component vendors, with equipment sales representing the majority of revenues and commercial refrigeration products constituting a smaller segment. Watsco generates revenue by purchasing products from suppliers and selling them at wholesale prices to contractors in both the equipment replacement market—driven by aging installed systems and regulatory efficiency standards—and the new construction market, while leveraging warehouse density, e-commerce platforms, and technology tools to provide customer convenience and operational efficiency.