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WSOWatsco, Inc.
$399.06$16.2B
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WSO logoWatsco, Inc.(WSO)Earnings, Financials & Key Ratios

WSO•NYSE
$399.06
32.6× P/E·Price updated Jul 6, 2026
SectorIndustrialsIndustryIndustrial DistributionSub-IndustryConstruction and Building Products Distribution
AboutWatsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. As of December 31, 2021, it operated from 671 locations in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.Show more
  • Revenue$7.24B-5.0%
  • EBITDA$736M-10.5%
  • Net Income$497M-7.3%
  • EPS (Diluted)12.25-7.9%
  • Gross Margin28.05%+4.5%
  • EBITDA Margin10.17%-5.8%
  • Operating Margin9.57%-6.8%
  • Net Margin6.87%-2.5%
  • ROE15.81%-16.3%

WSO Price & Volume

Watsco, Inc. (WSO) stock price & volume — 10-year historical chart

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Seasonal Cyclicality Masks Long-Term Distribution Resilience

Investment Thesis • Updated 2026Q1

VerdictNeutral
Growth:Decelerating
Profitability:Moderate
Financial:Fortress
Cash Flow:Mixed
Primary Risk:Regulatory Refrigerant Transition Complexity

Key Thesis Takeaways

  • Watsco maintains a fortress balance sheet with a 0.15 debt-to-equity ratio, providing significant optionality to navigate the current HVAC demand normalization.
  • While revenue growth has decelerated into negative territory, the company's ability to sustain gross margins near 28% suggests structural pricing power despite regulatory-driven inventory transition risks.
  • Investors should monitor the impact of A2L refrigerant shifts on inventory obsolescence and the volatility of free cash flow, which has fluctuated between -12.1% and 24.6% over the last ten quarters.

Verdict Logic

while the company's 3.0% dividend yield and conservative leverage are attractive, the current 33.53 P/E ratio and volatile free cash flow margins warrant caution until demand stabilizes.

WSO Growth Metrics

Watsco, Inc. (WSO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years5.82%
5 Years7.45%
3 Years-0.16%
TTM-4.52%

Profit CAGR

10 Years11.13%
5 Years13.01%
3 Years-6.15%
TTM-6.3%

EPS CAGR

10 Years10.51%
5 Years11.81%
3 Years-7.36%
TTM-7.52%

Return on Capital

10 Years23.85%
5 Years26.75%
3 Years23.74%
Last Year19.01%

WSO Recent Earnings

Watsco, Inc. (WSO) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 3/12 qtrs (25%)●Beat Revenue 3/12 qtrs (25%)
Q2 2026Latest
Apr 28, 2026
Metric
Actual
Est
EPS
$1.87+8.1%
$1.73
Rev
$1.5B+3.1%
$1.5B
Q1 2026
Feb 17, 2026
Metric
Actual
Est
EPS
$1.68-10.6%
$1.88
Rev
$1.6B-2.4%
$1.6B
Q4 2025
Oct 29, 2025
Metric
Actual
Est
EPS
$3.98-10.4%
$4.44
Rev
$2.1B-4.5%
$2.2B
Q3 2025
Jul 30, 2025
Metric
Actual
Est
EPS
$4.52-5.4%
$4.78
Rev
$2.1B-7.3%
$2.2B
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestApr 28, 2026
$1.87vs $1.73+8.1%
$1.5Bvs $1.5B+3.1%
Q1 2026Feb 17, 2026
$1.68vs $1.88-10.6%
$1.6Bvs $1.6B-2.4%
Q4 2025Oct 29, 2025
$3.98vs $4.44-10.4%
$2.1Bvs $2.2B-4.5%
Q3 2025Jul 30, 2025
$4.52vs $4.78-5.4%
$2.1Bvs $2.2B-7.3%
Based on last 12 quarters of dataView full earnings history →

Latest WSO News

Recent stock market news and headlines for Watsco, Inc. (WSO)

GlobeNewsWire·6 days ago
Watsco Declares $3.30 Quarterly Dividend

MIAMI, July 01, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.'s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.30 on each outstanding share of its Common and Class B common stock payable on July 31, 2026 to shareholders of record at the close of business on July 16, 2026.

Peers Comparison

Key metrics vs top competitors for Watsco, Inc. (WSO)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
WSO logoWSOWatsco, Inc.Current
$399.06$16.22B32.58-4.98%6.87%15.81%3.13%
GWW logoGWWW.W. Grainger, Inc.
$1370.16$64.69B38.714.51%9.7%43.13%—
MSM logoMSMMSC Industrial Direct Co., Inc.
$121.14$6.77B33.93-1.35%5.9%16.51%—
FAST logoFASTFastenal Company
$48.31$55.46B44.328.67%15.39%33.25%—
IBP logoIBPInstalled Building Products, Inc.
$225.74$6.08B23.251%8.65%37.46%—
BLDR logoBLDRBuilders FirstSource, Inc.
$82.33$9.11B21.16-7.38%1.97%6.92%—

Compare WSO vs Peers

Watsco, Inc. (WSO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs GWW

Most directly comparable listed peer for WSO.

Scale Benchmark

vs HD

Larger-name benchmark to compare WSO against a more recognizable public peer.

Peer Set

Compare Top 5

vs GWW, MSM, FAST, IBP

WSO SEC Filings & Documents

Watsco, Inc. (WSO) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Apr 29, 2026·SEC

Material company update

Apr 28, 2026·SEC

Material company update

Feb 17, 2026·SEC

10-K Annual Reports

5
FY 2026

Feb 27, 2026·SEC

FY 2025

Feb 28, 2025·SEC

FY 2024

Feb 23, 2024·SEC

10-Q Quarterly Reports

6
FY 2025

Nov 7, 2025·SEC

FY 2025

Aug 8, 2025·SEC

FY 2025

May 9, 2025·SEC

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WSO Frequently Asked Questions

Watsco, Inc. (WSO) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Watsco, Inc.'s revenue?

Watsco, Inc. (WSO) reported $7.24B in revenue for fiscal year 2025. This represents a 1602% increase from $425.4M in 1996.

How fast is Watsco, Inc. growing?

Watsco, Inc. (WSO) saw revenue decline by 5.0% over the past year.

Is WSO profitable?

Yes, Watsco, Inc. (WSO) is profitable, generating $496.0M in net income for fiscal year 2025 (6.9% net margin).

Dividend & Returns
Does WSO pay dividends?

Yes, Watsco, Inc. (WSO) pays a dividend with a yield of 3.13%. This makes it attractive for income-focused investors.

What is WSO's return on equity?

Watsco, Inc. (WSO) has a return on equity (ROE) of 15.8%. This is reasonable for most industries.

What is Watsco, Inc.'s free cash flow?

Watsco, Inc. (WSO) generated $702.2M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in WSO back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →