Watsco (WSO) risk factors, FY2025 10-K

Watsco's FY2025 10-K, filed Feb 27, 2026, lists 10 risk factors in 5 groups. Against the prior year's 11: 1 dropped, 1 substantially reworded.

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Risk factors listed
105 groups
New this year
0vs 11 last year
Dropped
1since the prior 10-K
Substantially reworded
1of those kept
Section length
3k wordsItem 1A

What the changes say

  • Supplier concentration remains high with Carrier and Rheem accounting for 70% of purchases in 2025.
  • Rheem supply details were expanded to include Friedrich and AireVantage products.

What changed since the prior 10-K

Dropped

  • Dropped

    We maintain trade name and distribution agreements with Carrier and Rheem that provide us with distribution rights on an exclusive basis in specified territories. Such agreements are not subject to a stated term or expiration date

Reworded

  • 44% rewritten

    Supplier Concentration and Supply Chain Risks

    Rheem purchase concentration decreased from 9% to 8%, and the product description was updated to include Friedrich and AireVantage private label lines.

All 10 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Supplier Concentration and Supply Chain Risks44% rewritten
  2. 02Risks Inherent in Acquisitions
  3. 03possible loss of key employees and/or customer relationships of the acquired companies

Cybersecurity Risks

  1. 04Failure to successfully manage the operational challenges and risks associated with, or resulting from, upgrades and conversions to newer versions of our information technology systems core to our operations could adversely affect our results of operations, cash flows, and liquidity
  2. 05Foreign Currency Exchange Rate Fluctuations
  3. 06Dependence on Key Personnel
  4. 07Decline in Economic Conditions

International Risk

  1. 08Goodwill, Intangibles and Long-Lived Assets

Risks Related to our Common Stock

  1. 09Class B Common Stock and Insider Ownership
  2. 10Securities Analyst Research and Reports

Other Watsco 10-Ks

  • FY2024 10-K risk factors
    11 risks

    Watsco relies heavily on Carrier for 62 percent of its HVAC product purchases. Distribution agreements with major suppliers lack stated expiration dates. Insider ownership is concentrated in Class B common stock.

    Filed Feb 28, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.