Watsco
Distributes HVAC/R equipment and parts through locally managed contractor networks.
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Profile
Distributes air-conditioning, heating, and refrigeration equipment, replacement parts, and installation supplies to contractors, primarily through a US-centered branch network. Acquired regional distributors retain local identities while using shared digital tools; manufacturer relationships, contractor demand, construction, weather, and refrigerant rules shape the model.
Distributes residential and light-commercial air-conditioning, heating, and refrigeration equipment, plus replacement parts and installation supplies, through a contractor-focused network concentrated in the United States, with operations in Canada, Mexico, and Puerto Rico. One reportable segment covers equipment, other HVAC products, and commercial refrigeration.
Builds scale by acquiring established regional distributors while retaining their trade names, management teams, and customer relationships. Shared product data, e-commerce, quoting, financing, and supply-chain tools support locally managed operations.
Depends heavily on manufacturer relationships, especially Carrier, whose joint ventures also underpin much of the platform. Replacement demand, new construction, weather, and contractor activity shape sales, while refrigerant rules require the network to convert inventory and train contractors for lower-GWP A2L systems.
Company facts
Categories
Key statistics
Year to date −10.5% · Average volume (30d) 541.0K
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Rating | Prior target | Target |
|---|---|---|---|---|---|
| Jul 30, 2026 | DA Davidson | Reiterate | Neutral | $385 | $330 |
| Jul 30, 2026 | Robert W. Baird | Target | $420 | $400 | |
| Jul 28, 2026 | Robert W. Baird | Target | $540 | $420 | |
| Jul 10, 2026 | Morgan Stanley | Reiterate | Equal Weight | $370 | $405 |
| Jun 15, 2026 | D.A. Davidson | Target | $385 |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Jul 29, 2026Q2 FY26 | $4.41 | $4.00 | −9.3% | $2.14B | $2.10B | −1.8% | −2.90% |
| Apr 28, 2026Q1 FY26 | $1.73 | $1.87 | +8.1% | $1.49B | $1.53B | +3.1% | −2.27% |
| Feb 17, 2026Q4 FY25 | $1.88 | $1.68 | −10.6% | $1.62B | $1.58B | −2.4% | −0.83% |
| Oct 29, 2025Q3 FY25 | $4.44 | $3.98 | −10.4% | $2.17B | $2.07B | −4.5% | −2.70% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $1.53B | $2.06B | $2.07B | $1.58B | $1.53B | $2.10B | |
| Gross profit | $429.6M | $603.5M | $594.8M | $428.4M | $427.6M | $578.9M | |
| Operating income | $112.2M | $271.9M | $234.8M | $95.8M | $110.2M | $238.4M | |
| Net income | $80.1M | $183.6M | $161.6M | $71.7M | $79.1M | $163.3M | |
| Diluted EPS | $1.93 | $4.52 | $3.98 | $1.68 | $1.87 | $4.05 | |
| Gross margin | 28.1% | 29.3% | 28.8% | 27.1% | 27.9% | 27.5% | |
| Operating margin | 7.3% | 13.2% | 11.4% | 6.1% | 7.2% | 11.3% |
Fiscal years (4-quarter sums)FY21 $6.28B · FY22 $7.27B · FY23 $7.28B · FY24 $7.62B · FY25 $7.24B
Revenue by geography · Q2 FY26
Balance sheet, Jun 30, 2026Cash & short-term investments $464.2M · Total debt $535.3M · Total assets $5.08B · Shareholders' equity $2.99B
Dividends
Raised for 12 straight years — most recently to $3.30 from $3.00 in Apr 2026. To collect a payout, hold shares through the close before the ex-date.
History
| Ex-date | Record | Paid | Amount | Note |
|---|---|---|---|---|
| Jul 16, 2026 | Jul 16 | Jul 31 | $3.30 | |
| Apr 16, 2026 | Apr 16 | Apr 30 | $3.30 | raised from $3.00 |
| Jan 16, 2026 | Jan 16 | Jan 30 | $3.00 | |
| Oct 16, 2025 | Oct 16 | Oct 31 | $3.00 | |
| Jul 16, 2025 | Jul 16 | Jul 31 | $3.00 | |
| Apr 15, 2025 | Apr 15 | Apr 30 | $3.00 | raised from $2.70 |
| Jan 17, 2025 | Jan 17 | Jan 31 | $2.70 | |
| Oct 16, 2024 | Oct 16 | Oct 31 | $2.70 |
Ownership
A 13F quarter can total more than the shares outstanding — sub-advisers file the same block twice, and a filer's own share count can be a quarter stale. No split is drawn from it.
Shares outstanding 41.19M · Float 33.16M · 80.5% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| BlackRock, Inc. | 4.19M | 10.18% | 13F | Aug 7, 2026 |
| Capital International Investors | 3.49M | 8.46% | 13F | Aug 12, 2026 |
| Capital Research Global Investors | 1.90M | 4.62% | 13F | Aug 12, 2026 |
| Vanguard Portfolio Management LLC | 1.77M | 4.30% | 13F | Aug 13, 2026 |
| FMR LLC | 1.71M | 4.14% | 13F | Aug 13, 2026 |
Insider tradesForm 4
No open-market trades in the last 12 months.
View detailsPeers
- Ferguson
Closest public peer in scaled HVAC wholesale distribution
- Lennox International
Direct-to-dealer HVAC channel with company-owned parts stores
- Trane Technologies
Manufacturer-led HVAC sales through branches, distributors, and dealers
- Carrier Global
Supplier-partner with direct and non-aligned HVAC distribution channels
- Home Depot
New public-parent HVAC distributor through SRS and Mingledorff's
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Watsco | $310.76 | 0.00% | $12.80B | 26.8 | 25.0 | 1.8 | +2.1% |
| Ferguson | $228.49 | +0.03% | $44.31B | 21.9 | 19.0 | 1.4 | +3.0% |
| Lennox International | $393.40 | −0.01% | $13.60B | 17.8 | 15.8 | 2.6 | +3.0% |
| Trane Technologies | $445.75 | −0.75% | $98.78B | 34.0 | 27.3 | 4.4 | +10.6% |
| Carrier Global | $58.46 | −0.55% | $48.46B | 40.8 | 19.2 | 2.2 | +3.9% |
| Home Depot | $330.25 | +0.05% | $329.24B | 23.1 | 21.4 | 1.9 | +5.7% |
| Median | 23.1 | 19.2 | 2.2 | +3.9% |