AcquisitionsJul 29, 2026, 07:35 AM
Watsco Acquires Jackson Supply; Q2 EPS Down 12% to $4.00
AI Summary
Watsco announced its Q2 and YTD 2026 operating results, highlighted by the acquisition of Jackson Supply Company, an HVAC distributor with approximately $230 million in annualized sales. For the second quarter, revenues rose 2% to $2.1 billion, but diluted EPS decreased 12% to $4.00. Year-to-date, revenues increased 1% to $3.6 billion, with diluted EPS down 9% to $5.92. The company emphasized its strong balance sheet with $464 million in cash and no debt, and a 10% increase in its annual dividend to $13.20 per share, alongside continued growth in its technology platforms.
Key Highlights
- Acquired Jackson Supply, an HVAC distributor with $230 million annualized sales across 25 Sunbelt locations.
- Second quarter revenues increased 2% to $2.1 billion (1% on a same-store basis).
- Second quarter diluted earnings per share decreased 12% to $4.00.
- Year-to-date revenues increased 1% to $3.6 billion; diluted EPS decreased 9% to $5.92.
- Maintains a strong balance sheet with $464 million in cash and cash investments and no debt.
- Increased annual cash dividend by 10% to $13.20 per share.
- E-commerce sales reached $2.7 billion for the 12 months ended June 30, 2026 (37% of sales).
- OnCallAir® Gross Merchandise Value grew 14% to $1 billion for the first six months of 2026.
Price Impact
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