Quarterly ResultJul 29, 2026, 07:31 AM
Watsco Q2 EPS $4.00, Revenue $2.1B; Acquires Jackson Supply
AI Summary
Watsco Inc. reported its second-quarter 2026 financial results, with revenues increasing 2% to $2.1 billion, but earnings per share decreased 12% to $4.00 and operating income fell 12%. The company completed the acquisition of Jackson Supply Company, expanding its presence in key Sunbelt markets. Gross profit margin was impacted by normalized pricing actions compared to the previous year's outsized benefits. Watsco highlighted strong 13% year-to-date e-commerce sales growth and continued investments in technology, including AI-driven initiatives. The company also increased its annual cash dividend by 10% to $13.20 per share.
Key Highlights
- Acquired Jackson Supply Company, adding approximately $230 million in annualized sales across 25 Sunbelt locations.
- Q2 2026 Revenue increased 2% to $2.1 billion (1% on a same-store basis).
- Q2 2026 Earnings per share decreased 12% to $4.00.
- Q2 2026 Operating income decreased 12% to $238 million (operating margin 11.3% vs 13.2% last year).
- Q2 2026 Gross profit decreased 4% to $579 million (gross profit margin 27.5% vs 29.3% last year).
- Year-to-date E-commerce sales grew 13%, reaching $2.7 billion for the last 12 months.
- Annual cash dividend increased 10% to $13.20 per share in April 2026.
- Maintains a solid balance sheet with $464 million in cash and cash investments and no debt.
Price Impact
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