Why This Matters to Distributors: The February rebound underscores that distributors are relying on the cooling season to clear excess inventory and improve sales momentum while maintaining pricing discipline in a still-soft demand environment.
HVAC distributors returned to growth in February, though results continue to reflect a slow start to 2026, according to the Heating, Air-conditioning & Refrigeration Distributors International (HARDI).
Distributor sales increased 4.6% year over year in February, reversing declines in December and January, HARDI said in its monthly TRENDS report released April 1.
For the 12 months ending February, sales rose 2.4%, indicating steady but subdued demand across residential and commercial HVAC channels.
“4.6% sales growth was a welcome sight after low single-digit sales declines during December and January,” said Brian Loftus, macroeconomic and residential market analyst at HARDI. He added that early-year results are not a reliable indicator of full-year performance because January and February are typically low-volume months.
Customer payment trends remained stable. Days sales outstanding was about 38 days in February, in line with a year earlier, suggesting customers continue to pay on time despite uneven demand.
Inventory remains a key pressure point. Distributors built up stock ahead of the transition to A2L refrigerants, pushing the sales-to-inventory ratio below four times last spring, and that excess inventory has been difficult to reduce during slower winter months.
“It is tough to work off inventory in these low volume months,” Loftus said. “Cooling season is here. The warmer temps will help trim the remaining excess inventory.”
HARDI represents more than 570 distributors operating in more than 5,000 branch locations, along with 600 suppliers and service providers. Participation in its monthly survey is voluntary and compiled by an independent third party.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
