| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.5K | 0.1% |
| Total Income | 1.5K | 0.1% |
| Expenditure | 1.4K | 0.3% |
| PBT | 116.64 | 0.8% |
| Net Profit | 79.07 | 1.2% |
| OPM | 7.19% | 0.14pp |
| NPM | 5.16% | 0.07pp |
| EPS | 1.87 | 3.1% |
Watsco Reports Q1 2026 Results, Revenue Flat at $1.53 Billion Amid Stabilizing Markets
28 Apr 2026 · 28 Apr, 5:02 pm
Summary
Watsco, Inc. reported flat revenues of $1.53 billion for the first quarter ended March 31, 2026, reflecting stabilizing market conditions. Gross profit remained flat at $428 million, while operating income decreased by 2% to $110 million, with earnings per share down 3% to $1.87. Despite the slight decline in profitability metrics, the company demonstrated a significant $159 million improvement in cash used in operations. Watsco also announced a strategic agreement to acquire Jackson Supply Company, a move expected to add $230 million in annual sales and further strengthen its presence in Sunbelt markets.
Key Highlights
- 1
Watsco's first quarter revenues remained flat at $1.53 billion.
- 2
Gross profit also remained flat at $428 million, with a gross profit margin of 27.9% for the quarter.
- 3
Operating income decreased by 2% to $110 million, resulting in an operating margin of 7.2%.
- 4
Earnings per share saw a 3% decrease, settling at $1.87 for the first quarter.
- 5
Cash used in operations significantly improved by $159 million, totaling $19 million compared to $178 million in the prior year.
- 6
The company announced an agreement to acquire Jackson Supply Company, a leading Sunbelt distributor with annual sales of $230 million.
- 7
E-commerce sales grew by 16% in the first quarter, contributing approximately $2.6 billion to sales for the trailing twelve months.
Management Comments
Albert H. Nahmad
We are extremely honored to welcome Jim Durrett and the entire Jackson Supply team to the Watsco family. Our relationship dates back more than 20 years, and we are grateful for the relationship and the commitment to entrust us with the next chapter of its 50-year legacy. This transaction adds meaningful scale and diversification to Watsco’s core Sunbelt markets. The Jackson Supply team possesses a strong track record of organic growth and an entrepreneurial spirit that closely aligns with our own. We look forward to learning from them and supporting their ambitious growth plans for years to come.
Albert H. Nahmad
Our markets are experiencing improved stability as we approach the Summer selling season for our products. Our teams are collaborating well with our contractor customers, who also have a more simplified, focused business environment in which to offer and sell their products and services. Our technology, our seasoned leadership team, our capital and our deep relationships in this wonderful industry serve us well and position us favorably to grow share.
A.J. Nahmad
Our core technology platforms have continued to scale among customers, and we continue to innovate new ways to delight our customers. Last year, we set in motion incremental investments in new platforms that we believe will enhance growth with existing customers, attract new customers and boost profitability in the years ahead. These initiatives should provide great potential and enhance Watsco’s already-sizeable competitive advantage in the fragmented HVAC/R industry.
Informational and educational content only. Not investment advice.