Watsco, Inc.

WSO

$308.92

-1.92%

2026-09-02 16:00:02 EDT-$6.06

Industrials

Industrial - Distribution

NYSE

Active Trading

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies ...

Price Action of WSO

$308.92

-1.92%-$6.06

High—

Low—

52W High-32.1%

Rel. vol—

Interval

Range6.4h

Volume—SMA5SMA10

—

Watsco, Inc., headquartered in Miami, Florida, is the largest distributor of HVAC/R equipment and supplies in the Americas, operating over 670 locations across the United States, Canada, Latin America, and the Caribbean. Founded in 1956 as Wagner Tool & Supply Corp., the company transitioned from manufacturing to distribution in 1989, ...Watsco, Inc., headquartered in Miami, Florida, is the largest distributor of HVAC/R equipment and supplies in the Americas, operating over 670 locations across the United States, Canada, Latin America, and the Caribbean. Founded in 1956 as Wagner Tool & Supply Corp., the company transitioned from manufacturing to distribution in 1989, focusing on the highly fragmented $50+ billion North American HVAC/R market. Watsco distributes residential and commercial air conditioners, heating systems, refrigeration equipment, and a wide range of parts and supplies, including compressors, coils, motors, thermostats, refrigerants, ductwork, and tools. The company serves approximately 300,000 contractors and dealers, primarily in the replacement and new construction markets. With a workforce of about 7,000 employees, Watsco emphasizes technological innovation, offering digital tools like the Watsco App and e-commerce platforms to enhance customer experience and operational efficiency. Financially, the company reported a market capitalization of $13.6 billion, revenue per share of $191.28, and a gross profit margin of 27.9% as of the TTM. It has consistently paid dividends, with a recent dividend of $12.6 per share, reflecting a payout ratio of 130.5%. Under the leadership of CEO Albert H. Nahmad, who has been CEO since 1972, Watsco has achieved a compounded total shareholder return of 18% over 35 years, ranking among the leaders in the public market. The company's strategic focus includes expanding its HVAC/R distribution network, leveraging technology for growth, and capitalizing on the increasing demand for energy-efficient and environmentally friendly cooling and heating solutions, aligning with its reputation as 'The Coolest Green Company.'ExpandCollapse

Founded

1956

Employees

7000

CEO

Albert H. Nahmad

Full Name

Watsco, Inc.

Sector

Industrials

Industry

Industrial - Distribution

ROE

16.76%

Market Cap

$12.72B

Current Ratio

3.20

WACC

9.19%

ROIC

14.77%

Contact Information

https://www.watsco.com

305 714 4100

2665 South Bayshore Drive, Miami, FL 33133

Key Metrics of WSO

Snapshot

Latest / TTM · 6 periods

Market Cap

$12.72B

ROCE

17.0%

EV / EBITDA

17.85x

-1.6% YoY

FCF Yield

5.4%

+1.2% YoY

Cash Conversion Cycle

138.6d

Current Ratio

3.20

Quick take

TTM —

Positive CCC

Financial Highlights of WSO

Profitability trend

Latest / TTM · 6 periods

Gross Margin

27.9%

Net Margin

6.5%

P/E Ratio

27.23x

n/a

Debt / Equity

0.18

n/a

Current Ratio

3.20

Dividend Yield

4.0%

Understanding

TTM —

Interest coverage is weak

Calendar of WSO

Upcoming

Sep 30, 2026In 26 days
Q3 FY2026 · Estimated results
Est. EPS $4.13 · Revenue $2.20B · 7 analysts
Dec 30, 2026
Q4 FY2026 · Estimated results
Est. EPS $1.98 · Revenue $1.70B · 7 analysts
Dec 31, 2026
FY2026 · Estimated annual results
Est. EPS $12.08 · Revenue $7.56B · 10 analysts
Mar 30, 2027
Q1 FY2027 · Estimated results
Est. EPS $1.98 · Revenue $1.64B · 2 analysts

Recent history

Aug 7, 2026
Q2 FY2026 · Results reported
EPS $4.05 · Revenue $2.10B
View filing
Jul 31, 2026
Dividend payment
$12.30 per share
Jul 16, 2026
Ex-dividend date
$12.30 per share
May 8, 2026
Q1 FY2026 · Results reported
EPS $1.87 · Revenue $1.53B
View filing
Feb 27, 2026
FY2025 · Annual results
EPS $12.25 · Revenue $7.24B
View filing
Nov 7, 2025
Q3 FY2025 · Results reported
EPS $3.98 · Revenue $2.07B
View filing

Financial Statements of WSO

5Y Trend (Revenue, Earnings, FCF)

Metric	Latest	YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.	QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).	$7.2B	-5.0%	+37.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.	$497.0M	-7.3%	+106.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.	+28.0%	+4.5%	-1.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).	+9.6%	-6.8%	+57.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.	+6.9%	-2.5%	+50.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.	$535.1M	-28.0%	+55.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.	+7.4%	-24.2%	+67.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.	17.2%	+2.2%	+3.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.	4.12x	+31.5%	-4.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.	$4.5B	-1.7%	+9.4%

Actual vs Estimate

A Dec 31Q Sep 30

Metric	Annual (A vs E)	Annual Surprise	Quarter (A vs E)	Quarter Surprise
EPS Surprise	12.25 vs 12.32	-0.5%	4.05 vs 4.13	-1.9%
Revenue Surprise	$7.2B vs $7.3B	-0.4%	$2.1B vs $2.2B	-4.4%

Insider Transactions of WSO

Acquisitions (A)

Since Dec 31, 2025

Disposals (D)

Since Dec 31, 2025

Monthly shares of acquisitions/disposals with close price trend (shared daily price source)

Insider Trading Snapshot

Date	Executive	Title	Security	Side	Shares	Price
Mar 11, 2026	MENENDEZ ANA M	officer: CFO / Treasurer	Common stock	A	25	$336.95
Mar 11, 2026	LOGAN BARRY S	director, officer: Executive Vice President	Common stock	A	19	$336.95
Mar 11, 2026	Nahmad Aaron J	director, officer: President	Common stock	A	25	$336.95
Mar 11, 2026	NAHMAD ALBERT H	director, officer: Chairman and CEO	Common stock	A	25	$336.95
Jan 7, 2026	Nahmad Aaron J	director, officer: President	Class B Common stock	A	13,955	—

Earnings Call Transcript of WSO

1 transcript segments

Q2 2026

Unknown Speaker

Operator: Good day, and welcome to the Watsco, Inc. Second Quarter 2026 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Al Nahmad, Chairman. Please go ahead. Albert Nahmad: Good morning, everyone. Welcome to our second quarter earnings call. This is Al Nahmad, Chairman and CEO; and with me is A.J. Nahmad, President; also Paul Johnston and Barry Logan and Rick Gomez. Before we start, our cautionary statement. This conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws. Ultimate results may differ materially from the forward-looking statements. I'm happy to report that our second quarter results reflect stabilizing markets under far more conventional operating conditions. The last 5 years brought a pandemic, supply chain disruptions, regulatory transitions and tariff volatility. Through it all, we stayed the course and invested in our business. Now the operating environment is normalizing, revenue is growing and our digital ecosystem is producing measurable results. Our largest and most impacted product segment, residential HVAC equipment grew 5% during the quarter with gains in both unit volume and pricing. We closed on Jackson Supply on June 1, and we are thrilled to welcome their team to the Watsco family. Jackson is a legend in our industry with $230 million in annual sales, operating from 25 Sunbelt locations. As in our culture, the Jackson team will continue to operate and grow their business with our full support. They have big ambitions, and we will gladly support their leadership team in any way we can. Turning to second quarter results. Sales increased 2% to $2.1 billion. Gross profit was $579 million with gross margin of 27.5% versus 29.3% last year. SG&A increased 2%, excluding acquisitions. Operating income was $238 million and had an operating margin of 11.3%. Earnings per share came in at $4 per share. My earlier comment regarding volatility and disruption had the greatest short-term impact on the gross margins. Let me say that again. My earlier comment regarding volatility and disruption had the greatest short-term impact on our gross margins in '26 versus '25. During 2025, OEMs instituted aggressive pricing action in response to inflation and tariffs, benefiting gross margin in 2025. By comparison, 2026 OEM pricing actions were more moderate and consistent with historical levels. Looking beyond the onetime impact from a year ago, gross margins over the last month has been in a narrow range and more consistent with historical gross margins. Now this is important. Having said that, we remain focused on reaching our long-term goal of 30% in gross profit margin. As for SG&A, we have become a more efficient company as business conditions have simplified. The modest increase in SG&A reflects continued technology investments along with the addition of Jackson …

Leadership Team of WSO

7 executives

Name	Title	Compensation	Gender	Year Born	Status
Albert H. Nahmad	Chairman & Chief Executive Officer	USD 833,620	Male	1941	Active
Aaron J. Nahmad	Co-Vice Chairman & President	USD 740,513	Male	1981	Active
Paul W. Johnston	Executive Vice President	USD 553,825	Male	1953	Active
Barry S. Logan	Executive Vice President of Planning & Strategy, Secretary and Director	USD 449,025	Male	1963	Active
Ana Menendez	Chief Financial Officer & Treasurer	USD 358,750	Female	1965	Active
Rick Gomez	Vice President of Corporate Development	—	Male	—	Active
Steven Rupp	Chief Technology Officer	—	Male	—	Active

Recent News of WSO

Zacks Investment Research8/10/2026Neutral

Why Watsco (WSO) International Revenue Trends Deserve Your Attention

Explore Watsco's (WSO) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.

Seeking Alpha8/5/2026Neutral

Watsco: Transient Headwinds, Good Long Term Opportunity

Watsco, Inc. (WSO) is rated a buy after a post-earnings pullback, with normalization post-A2L transition expected to drive recovery. Watsco's gross margin contraction is seen as transient, with mix improvement and pricing initiatives targeting medium-term margin expansion. Digital ecosystem adoption and underpenetrated high-margin parts/supplies sales provide a runway for market share gains and margin upside.

Defense World8/5/2026Neutral

Watsco, Inc. $WSO Shares Sold by Amundi

Amundi lowered its stake in shares of Watsco, Inc. (NYSE: WSO) by 14.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 47,567 shares of the construction company's stock after selling 7,785 shares during the quarter. Amundi owned about 0.12%

24/7 Wall Street8/2/2026Neutral

4 Industrial Dividend Growers That Fly Under the Radar and Look Like Buys in August

Industrial dividend growers rarely make headlines the way REITs or telecoms do, yet they quietly compound income year after year through cycles most investors ignore.

MarketBeat8/1/2026Neutral

Watsco Q2 Earnings Call Highlights

Watsco NYSE: WSO reported second-quarter sales growth as residential HVAC equipment demand improved, while gross margin declined from an unusually strong prior-year comparison tied to earlier manufacturer pricing actions and product-transition effects.

Historical Employee Count of WSO

Current

6,950

Change

-3.74%

Minimum

6,850

Maximum

7,350

Recent Filings

Report Date	Employees	Form Type	Filing Date	SEC Filing
Dec 31, 2025	6,950	10-K	Feb 27, 2026	View
Dec 31, 2024	7,220	10-K	Feb 28, 2025	View
Dec 31, 2023	7,350	10-K	Feb 23, 2024	View
Dec 31, 2022	7,200	10-K	Feb 24, 2023	View
Dec 31, 2021	6,850	10-K	Feb 25, 2022	View

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Watsco, Inc.