WATSCO INC (WSO) Form 8-K — Oct 27, 2026
Watsco reported record third quarter 2026 revenue of $2.22 billion, up 7% (4% same-store), driven by residential HVAC equipment growth and $78 million of sales from newly acquired Jackson Supply locations. However, earnings per share fell 5% to $3.77, with gross margin compressing to 26.4% from 27.5% and operating margin to 10.1% from 11.4%. The quarter was overshadowed strategically by two acquisitions — Jackson Supply (~$230M annual sales) and The Granite Group (~$500M annual sales) — which together add roughly $730 million in annualized revenue and 107 locations, expanding Watsco into dual-trade HVAC/plumbing and Northeast markets.
Key figures
- Eps
- 3.77
- Revenue
- 2220358000
- Net Income
- 155369000
- Revenue Yoy
- 7%
- Total Assets
- 5233812000
- Cash Position
- 498698000
- Nine month eps
- $9.72 (-7%)
- Annual dividend
- $13.20 per share (+10%, 52 consecutive years of dividends)
- Q3 gross profit
- $586 million (+3%), margin 26.4% vs 27.5% last year
- Nine month revenue
- $5.86 billion (+3%)
- Ecommerce sales ttm
- $2.75 billion (37% of revenues, +12% nine-month)
- Q3 operating income
- $225 million (-4%), margin 10.1% vs 11.4%
- Annualized revenue added
- $730 million via 107 added locations
- Oncallair gmv nine months
- $1.6 billion (+14%)
- Revolving credit facility
- $750 million five-year unsecured
- Same store revenue growth
- 4%
- Granite group annual sales
- ~$500 million (acquired October 2026)
- Jackson supply annual sales
- ~$230 million (acquired June 2026)
- Operating cash flow nine months
- $304 million (+79%)
AI analysis
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