Earnings Releases·Oct 27, 2026, 7:30 AM ET

Watsco — Q3 2026 Earnings Summary

Q3 2026 revenues rose 7% to a record $2.22 billion, though diluted EPS declined 5% to $3.77 and operating income fell 4% to $225 million due to a gross margin contraction to 26.4% from 27.5% in the prior year.
Management reaffirmed long-range objectives for sales, margin, and cash flow, citing steady improvements in residential unit volumes and same-store sales growth with expected momentum in Q4.
Strategic expansion continued with the addition of 107 locations and $730 million in annualized revenue, including recent acquisitions of Jackson Supply and The Granite Group, while e-commerce sales reached $2.75 billion for the trailing 12 months.
Capital allocation and liquidity remain strong with a 10% dividend increase to $13.20 per share in April 2026, a new $750 million five-year credit facility signed in October 2026, and nine-month operating cash flow surging 79% to $304 million.