The February growth “was a welcome sight after low single-digit sales declines during December and January,” said Brian Loftus, HARDI’s macroeconomic and residential market analyst. “January and February have not been good indicators of the year ahead because they are low-volume, seasonally insignificant months of the year.”

The monthly sales survey also calculates distributors' days sales outstanding, or DSO, a measure of how quickly customers pay their bills. The DSO for February was near 38 days, just like February 2025. “The modest annual sales growth may be a concern, but customers’ paying their bills without delay indicate the market challenges are contained,” Loftus said.

“Distributors had to accumulate extra inventory to accommodate the A2L transition. That was evident last spring when the sales-to-inventory ratio dipped below four times,” said Loftus. “It is tough to work off inventory in these low-volume months, but baseball season has started, so cooling season is almost here. The warmer temps will help trim the remaining excess inventory.”

HARDI members do not receive financial compensation in exchange for monthly sales data and can discontinue participation in the survey without prior notice or penalty. Participation is voluntary, and the depth of market coverage varies from region to region. An independent entity collects and compiles the data, which can include sales information about products not directly associated with the HVACR industry.