Watsco's defensive HVAC distribution model is demonstrating margin resilience, with gross margin expanding to 27.5% in Q2 2026 from 27.1% a year earlier despite a 5.0% revenue decline. The company's capital-light structure (CapEx averaging 0.5% of revenue) and...
Price trend, volume and key moving averages
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Revenue contracted 5.0% year-over-year in Q2 2026, yet gross margin improved to 27.5% and operating margin rebounded to 11.3% from 6.1% in Q4 2025, reflecting cost discipline and pricing power.
Watsco operates over 670 locations across the US, Canada, Mexico, and the Caribbean, providing a broad market reach and resilience against regional economic fluctuations.
As the largest distributor of HVAC/R equipment, Watsco holds a dominant position in the industry, supported by a 60-year legacy and wide moat.
The Nahmad Family and Founder Entities hold 25% of Watsco, indicating significant insider confidence and long-term commitment to the company's growth.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 29, 2026 | $4.00-9.3% vs $4.41 | $2.1B-1.8% vs $2.1B |
Q2 2026 Apr 28, 2026 | $1.87+8.1% vs $1.73 | $1.5B+3.1% vs $1.5B |
Q1 2026 Feb 17, 2026 | $1.68-10.6% vs $1.88 | $1.6B-2.4% vs $1.6B |
Q4 2025 Oct 29, 2025 | $3.98-10.4% vs $4.44 | $2.1B-4.5% vs $2.2B |
Watsco, Inc. WSO has entered into an agreement to acquire The Granite Group, a distributor of plumbing and HVAC products. The Granite Group generates approximately $500 million in sales across seven Northeast states.
MIAMI, Sept. 14, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has entered into an agreement to acquire The Granite Group, a diversified distributor of plumbing and HVAC products with approximately $500 million in sales throughout seven Northeast States.
Amundi increased its stake in shares of Watsco, Inc. (NYSE: WSO) by 5.4% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 50,125 shares of the construction company's stock after buying an additional 2,558 shares during the period.
MIAMI, Sept. 11, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that Barry S. Logan, Executive Vice President, and Rick Gomez, Vice President, are scheduled to present at the 14th Annual Morgan Stanley Laguna Conference being held at the Ritz Carlton, Laguna Niguel on Wednesday, September 16, 2025 at 4:05 p.m. (PDT). Internet users can listen to a live webcast of the presentation at the Investor Relations section of Watsco's website at http://www.watsco.com.
Benchmark WSO against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Watsco, Inc. (WSO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $325.37 | $13.4B | 26.56 | -4.98% | 6.87% | 15.81% | 3.84% | |
| $1270.67 | $59.99B | 35.89 | 4.51% | 9.92% | 44.11% | — | |
| $124.10 | $6.93B | 34.76 | -1.35% | 5.9% | 16.51% | — | |
| $50.99 | $58.51B | 46.78 | 8.67% | 15.46% | 34.03% | — | |
| $202.79 | $5.46B | 20.88 | 1% | 8.46% | 37.2% | — | |
| $59.16 | $6.36B | 15.21 | -7.38% | 0.71% | 2.46% | — |
Watsco, Inc. (WSO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Watsco, Inc. (WSO) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 29, 2026·SEC
Jun 4, 2026·SEC
Apr 29, 2026·SEC
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Watsco, Inc. (WSO) stock FAQ — growth, dividends, profitability & financials explained
Watsco, Inc. (WSO) reported $7.28B in revenue for fiscal year 2025. This represents a 1612% increase from $425.4M in 1996.
Watsco, Inc. (WSO) saw revenue decline by 5.0% over the past year.
Yes, Watsco, Inc. (WSO) is profitable, generating $475.7M in net income for fiscal year 2025 (6.9% net margin).
Yes, Watsco, Inc. (WSO) pays a dividend with a yield of 3.84%. This makes it attractive for income-focused investors.
Watsco, Inc. (WSO) has a return on equity (ROE) of 15.8%. This is reasonable for most industries.
Watsco, Inc. (WSO) generated $698.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
