📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding WSO

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	216.4K	$78.7M	0.12%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Mixed ↓ Deteriorating 4 quarters analysed

Q2 2025

Confident Specific

Management repeatedly acknowledged soft market conditions and volume declines, but emphasized record gross margins, successful pricing technology, and strategic investments in AI and new platforms. Specific figures (e.g., gross margin 29%, Price FX contributing 50-60 bps, 80% A2L sell-through in June) demonstrate detailed command of operations.

Q3 2025

Mixed

Management struck a tone of cautious optimism, repeatedly calling the market 'very challenging' and the year 'noisy,' yet they emphasized that earnings are 'largely intact,' gross margins expanded 130 bps, and cash flow hit a record $355 million. They express confidence in long-term fundamentals and technology investments while acknowledging near-term volume softness, especially in Q4.

Q4 2025

Confident Specific

Management leads with concrete achievements: double-digit pricing gains, 40 bps margin improvement, 2% SG&A drop, record $400M cash flow. They state 'we look forward to a simpler operating environment' and express optimism about long-term growth, though acknowledge 'too early to call' the season.

Q1 2026 latest

Mixed

Management expressed cautious optimism, stating 'improving stability' and 'so far so good' but repeatedly cautioned 'it is still early in our summer season'. They were specific on e-commerce (up 16%) and OnCall Air (up 20%) but vague on volume trends, describing March as 'high single digits' on a same-day basis without breaking out unit growth.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears largely unchanged but with modest strengthening from self-help initiatives. Management's message of 'improving stability' and specific e-commerce and OnCall Air growth provide tangible evidence of execution. The Jackson Supply acquisition expands geographic reach and diversifies brands. However, the lack of concrete volume recovery and cautious tone on market recovery temper enthusiasm. Key next-quarter watchpoints: unit sell-through progress during the peak summer season, margin trajectory in light of potential OEM price increases from tariffs, and whether inventory turns improve as supply chain normalizes.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Mixed ↓ Deteriorating 4 quarters Full tone analysis in Intelligence →

📊 MIXED Watsco sees improved stability as A2L transition matures; acquires Jackson Supply.

Revenue & Profitability

Sales increased 2% in U.S. markets. Gross margins remained largely intact. SG&A was flat. No specific net income or operating income figures were provided. The company reported being debt-free and expects inventory turns to increase, contributing to cash flow.

Outlook

Management sees improved stability as the A2L product transition has matured, leading to a more simplified business environment. Unit volume stabilized as Q1 progressed, with March up high single digits and April sustaining momentum. However, they remain cautious as the summer selling season is still early. Tariffs and price increases are expected but not yet quantified.

Growth Drivers

Growth drivers include e-commerce (16% increase), OnCall Air (20% increase), and the new parts and supplies initiative targeting the fragmented 50% market share. The Jackson Supply acquisition ($230M sales) expands Sunbelt presence. Commercial HVAC and commercial refrigeration also contributed to broad-based non-equipment growth.

Balance Sheet & CapEx

The company is making incremental investments in innovation and technology, including new initiatives for institutional customers, pricing optimization tools, and artificial intelligence. Specific CapEx figures were not disclosed. Investments are funded from a strong debt-free balance sheet.

Margins

Gross margins remained largely intact in Q1 despite lower unit volumes. The long-term goal is to achieve 30% gross profit margin through pricing technology and purchase consolidation. SG&A was flat as operational efficiencies offset technology investments and new locations. Seasonal margin patterns are expected, but new initiatives like Supply Sync and Hydros may provide upside.

Key Risks

Risks flagged include tariffs (Section 232) leading to price increases and potential price elasticity. Inventory levels remain elevated due to A2L product mix, though unit count is lower. Northern markets saw winter disruption. Contractor inventory levels and consumer confidence are also monitored. The company is cautious about the early selling season.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-29

Revenue rose 2% to $2.1B in Q2 2026, led by 5% growth in residential HVAC and strong digital adoption. Gross margin normalized to 27.5% as OEM pricing stabilized, and the Jackson Supply acquisition contributed to growth. Organic growth of 4%-5% is expected to continue into Q3.

Q1 2026 Q1 2026 2026-04-28

First quarter showed improving stability and 2% U.S. sales growth, with e-commerce and digital platforms outpacing overall performance. The Jackson Supply acquisition expands Sunbelt presence, while ongoing investments in technology and pricing tools support long-term margin goals.

Q4 2025 Q4 2025 2026-02-17

Double-digit pricing gains and improved gross margins offset a 17% decline in residential unit volumes, while record cash flow and a 10% dividend increase highlight strong capital discipline. Ongoing investments in technology and efficiency position the business for gradual margin improvement as the industry normalizes.

Q3 2025 Q3 2025 2025-10-29

Earnings and cash flow remained strong despite a 4% sales decline and industry volatility. Gross margins expanded to 27.5%, aided by pricing and digital initiatives, while inventory and cash flow improved. Management expects volatility to ease and is focused on long-term growth and innovation.

Q2 2025 Q2 2025 2025-07-30

Q2 saw a 4% sales decline year-over-year, but record gross margins and higher EBIT, driven by pricing actions and technology. The A2L refrigerant transition increased costs and inventory, but margin expansion and digital growth offset volume weakness.

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