| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 2.1K | 37.3% | 2.1% |
| Total Income | 2.1K | 37.3% | 2.1% |
| Expenditure | 1.9K | 31.2% | 4.2% |
| PBT | 241.87 | 107.4% | 11.8% |
| Net Profit | 163.34 | 106.6% | 11.0% |
| OPM | 11.32% | 4.14pp | 1.86pp |
| NPM | 7.76% | 2.60pp | 1.14pp |
| EPS | 4.00 | 113.9% | 11.7% |
Watsco Reports Q2 2026 Results, Highlighting Industry Stabilization and E-Commerce Growth
29 Jul 2026 · 29 Jul, 5:01 pm
Summary
Watsco, Inc. announced its operating results for the second quarter ended June 30, 2026, reporting a 2% increase in revenue to $2.1 billion. The company experienced a decrease in gross profit to $579 million and operating income to $238 million, with earnings per share declining to $4.00. Management noted that the second quarter performance reflects improving end-market stability and highlighted the acquisition of Jackson Supply Company and strong e-commerce sales growth, which increased 13% year-to-date. The company continues to invest in technology platforms to enhance customer experience and operational efficiency.
Key Highlights
- 1
Watsco reported second quarter revenues of $2.1 billion, a 2% increase year-over-year.
- 2
Gross profit for the second quarter decreased 4% to $579 million, with a gross profit margin of 27.5% compared to 29.3% in the prior year.
- 3
Operating income for the second quarter decreased 12% to $238 million, resulting in an operating margin of 11.3%.
- 4
Earnings per share for the second quarter decreased 12% to $4.00.
- 5
Year-to-date revenues increased 1% to $3.6 billion, while year-to-date earnings per share decreased 9% to $5.92.
- 6
E-commerce sales grew 13% during the first six months of 2026, reaching $2.7 billion for the 12 months ended June 30, 2026, representing 37% of total sales.
- 7
The acquisition of Jackson Supply Company, with annualized sales of approximately $230 million, was closed in June 2026.
Management Comments
Albert H. Nahmad
Our performance during the second quarter is indicative of improving end-market stability after a busy period of regulatory transitions. We are now operating in a more conventional environment in which Watsco’s scale, OEM relationships, and technology investments can add even more value. We are excited that Jackson Supply is now officially a member of the Watsco family. It is a legendary company that diversifies and expands our presence in key Sunbelt markets. We look forward to supporting their growth. I am also excited about the recent launch of SupplySync, which we introduced at our investor day last year, and continued progress on the other initiatives that are now active. We believe that Watsco is uniquely positioned for continued growth and success in our industry.
A.J. Nahmad
Our technology platforms have continued to scale and deepen their impact for our customers. We believe that the growth in e-commerce, OnCallAir® and overall digital engagement across our network reflects the value these tools deliver to our customers every day. We have also progressed nicely with the various initiatives introduced at our investor day, including the formal launch of SupplySync and the scaling of the other initiatives announced. Our focus remains advancing these unique capabilities – with AI enabling better and faster speed to market – in ways that help our customers grow.
Informational and educational content only. Not investment advice.