Watsco (NYSE: WSO) Q2 2026: EPS $4.00, new Jackson Supply acquisition
Watsco (NYSE: WSO) reported Q2 2026 revenue of $2,104,859 (thousand), up 2% YoY, but net income attributable to Watsco fell 11% to $163,336 (thousand). Diluted EPS was $4.00 for the quarter and $5.92 YTD. The company closed its Jackson Supply acquisition, issuing 517,884 shares valued at $186,164 (thousand).
How this was made
The 30-second read
Why it matters
Traders may reprice near-term earnings quality due to gross margin compression and net income decline, while also updating growth expectations from the Jackson Supply footprint expansion.
Market read
This is a company-specific earnings and deal update with explicit EPS, margin, and acquisition consideration details.
What to watch
Negative operating cash flow is driven by seasonal inventory and receivables build, which may not reflect underlying cash generation strength; also, the Gree distribution renewal dispute could be a future margin or volume swing factor.
Background
Watsco’s Q2 2026 results cover modest revenue growth, profitability decline, and a newly closed Jackson Supply acquisition.
Ticker impact
Watsco reported Q2 2026 diluted EPS of $4.00 and closed its Jackson Supply acquisition, issuing 517,884 shares.
Near-term volatility likely, with investors weighing margin pressure against acquisition-driven growth.
The article provides concrete earnings and acquisition terms, but lacks guidance, deal economics, or investor reaction details to size the move.
Market effects
Margin compression in HVAC distribution could raise scrutiny on pricing power and cost control across the channel.
Deal adds Sunbelt footprint, potentially shifting competitive intensity in those local markets.
Tariff uncertainty and climate-efficiency trends are cited, which can affect demand and input costs for building products broadly.
Counterpoint
The acquisition may offset near-term margin pressure if integration improves gross margin and SG&A leverage over subsequent quarters.
Key entities
- public_companyWatsco, Inc.
Reported Q2 2026 EPS of $4.00, net income down 11% YoY, and closed the Jackson Supply acquisition via share issuance.
- acquired_companyJackson Supply Company
Acquired business adding 25 Sunbelt locations and initial estimated goodwill of $99.612 million.
- counterpartyGree Electric Appliances
Contractual dispute disclosed regarding renewal of a distribution agreement; Gree-branded products were under 3% of consolidated revenues.
- customer_or_partnerCarrier
Company highlights purchasing concentration with Carrier as a risk factor.
