Watsco, Inc. reports on its role as a North American distributor of HVAC/R products for residential and light-commercial replacement and new-construction markets. Company updates commonly address operating results, gross margin, inventory levels, pricing, customer demand, and the effects of refrigerant product transitions such as A2L on equipment, SKUs, logistics, and contractor support.
Recurring developments also include dividend actions on its Common and Class B common stock, acquisition activity within its distribution network, investor conference participation, and investments in digital platforms and AI-driven tools used by contractors, installers, and technicians.
Watsco (WSO) reported record third-quarter revenue of $2.22 billion, while earnings and margins declined from the prior year. Revenue rose 7%, including 4% growth on a same-store basis, which excludes certain location changes. Earnings per share fell 5% to $3.77, and operating income declined 4% to $225 million. Gross margin fell to 26.4% from 27.5%.
Residential equipment sales excluding acquisitions increased 7%, with unit growth of 5%. Nine-month revenue rose 3% to $5.86 billion, while earnings per share fell 7% to $9.72. Nine-month operating cash flow increased 79% to $304 million. Watsco acquired Jackson Supply in June and The Granite Group in October; it expects the businesses to bolster annual revenue by approximately 10%. In October, it signed a five-year $750 million unsecured senior revolving credit facility. Its annual cash dividend increased 10% to $13.20 per share in April.
Watsco (WSO) signed a $750 million unsecured senior revolving credit facility that amends and extends its existing credit facility. The new facility has a five-year term. Borrowings were used to repay $69.7 million outstanding under the prior facility.
Bank of America leads the bank group as administrative agent and sole bookrunner. Terms include increased borrowing capacity, covenant flexibility and greater sensitivity to seasonal working capital requirements. Additional borrowings will support working capital, acquisitions, dividends and other general purposes. Interest rates depend on the types of advances or loans selected.
BBH Capital Partners Private Equity announced its investment exit from The Granite Group in connection with an acquisition agreement with Watsco (NYSE: WSO).
Granite is a family-led distributor of plumbing and HVAC products headquartered in Concord, New Hampshire. It serves approximately 11,000 customers across 82 locations in seven states. During BBHCP’s partnership, Granite added more than 35 net new branches through organic growth and acquisitions. BBHCP was Granite’s first outside equity partner. Houlihan Lokey served as Granite’s exclusive financial advisor, and Ropes & Gray served as legal counsel.
Watsco (NYSE: WSO) has completed its acquisition of The Granite Group, a plumbing and HVAC distributor with approximately $500 million in sales. The business serves seven Northeast states: New Hampshire, Vermont, Maine, Massachusetts, Connecticut, Rhode Island and New York. The acquisition expands Watsco’s plumbing distribution presence by 82 locations.
The Granite Group will operate independently, with its existing management team continuing under Bill Condron. Watsco plans to support its growth with capital, scale and technology. This is Watsco’s second large acquisition completed in 2026. In June, it acquired Jackson Supply Company, an HVAC distributor with annualized sales of approximately $230 million across 25 Sunbelt locations. Watsco’s acquisition strategy includes motivating teams through long-term equity ownership.
Watsco (NYSE: WSO) scheduled its third-quarter 2026 results conference call for October 27, 2026, at 10:00 a.m. EDT. Earnings results will be released before the market opens that day. Prepared remarks will be followed by questions and answers with senior management. A webcast and a replay will be available on the company website.
Watsco (NYSE: WSO) declared a $3.30 quarterly cash dividend per share, payable October 30, 2026, on both common stock classes.
The regular dividend covers outstanding Common and Class B common shares held by shareholders of record at the close of business on October 16, 2026. Watsco has paid dividends for 52 consecutive years.
Watsco (WSO) has agreed to acquire The Granite Group, a diversified plumbing and HVAC distributor with approximately $500 million in annual sales across seven Northeast states.
The Granite Group, founded in 1971 and based in Concord, New Hampshire, serves about 11,000 customers through 82 locations, offering roughly 29,000 SKUs from more than 450 vendors, and has delivered a 10% compounded annual sales growth rate since 2010 via bolt-on acquisitions and over 30 new store openings. The business will remain independent under CEO Bill Condron and the existing management team following closing, consistent with Watsco’s buy-and-build approach. The transaction is expected to close after customary conditions and regulatory approvals. Watsco has completed 73 HVAC and plumbing acquisitions since 1989, including Jackson Supply Company, acquired June 1, 2026, with approximately $230 million in sales across 25 Sunbelt locations, as it seeks a larger share of the estimated $74 billion North American distribution market.
Watsco (WSO) will present at the 14th Annual Morgan Stanley Laguna Conference at the Ritz Carlton, Laguna Niguel on September 16 at 4:05 p.m. PDT.
A live audio webcast of the presentation will be available through the Investor Relations section of Watsco’s website. Watsco is described as the largest distributor in the North American HVAC/R market, serving more than 70,000 contractors and advancing AI-driven, data-focused digital initiatives.
Watsco (NYSE: WSO) reported second-quarter 2026 revenues up 2% to $2.1 billion (1% same-store), while operating income declined 12% to $238 million and diluted EPS fell 12% to $4.00, reflecting lower gross margins of 27.5% versus 29.3%.
The company acquired Jackson Supply Company, a Sunbelt HVAC distributor with approximately $230 million in annualized sales across 25 locations serving 5,000 customers, adding density in high-growth markets. Year-to-date, revenues rose 1% to $3.6 billion, operating income declined 9%, and EPS decreased 9% to $5.92.
According to Watsco, e-commerce sales grew 13% in the first half of 2026 and reached $2.7 billion, or 37% of sales, over the last 12 months. The company ended the period with $464 million in cash, no debt, operating cash use improved by $164 million year-over-year, and the annual dividend was raised 10% to $13.20 per share.
Watsco (NYSE: WSO) will hold a conference call to discuss its 2026 second quarter results on Wednesday, July 29, 2026 at 10:00 a.m. (EDT). Earnings results will be released before the market opens the same day, and the call will include prepared remarks and a senior management Q&A.
The conference will be webcast via CCBN's StreetEvents and accessible through a highlighted link on watsco.com, with a replay available on the site. Investors and analysts are encouraged to pre-register at the provided URL to receive a unique PIN for immediate access. Those not pre-registered may join by dialing (844) 883-3908 in the U.S. or (412) 317-9254 internationally and requesting the “Watsco” call, preferably 5–10 minutes before start time due to limited phone connections.