Monitor Q2 same-store sales and A2L transition impact; Q2 and Q3 are seasonally strongest. Integration of Jackson Supply should close in the next quarter; look for updates on financing and accretion. Dividend hike signals confidence but earnings need to stabilize.
Price Chart
Executive Summary
Watsco reported flat Q1 2026 revenues ($1.53B) with a 3% decline in EPS to $1.87 and 2% decline in operating income. Separately, it announced the acquisition of Jackson Supply Company ($230M annual sales), a Sunbelt HVAC distributor expected to close in Q2. The dividend was raised 10% to $13.20 annually. Operating cash flow improved significantly to -$19M vs -$178M last year.
Key Financial Metrics
Key Facts
- Q1 revenue flat at $1.53B; EPS down 3% to $1.87; operating income down 2% to $110M
- Acquired Jackson Supply Company (~$230M annual sales); deal value undisclosed; expected close Q2 2026
- Annual dividend increased 10% to $13.20 per share; 52 consecutive years
- Operating cash flow improved to -$19M vs -$178M year-over-year
- Cash and short-term investments of $593M; no debt
Financial Impact
Acquisition of $230M revenue distributor; slight EPS decline of 3% from $1.93 to $1.87; dividend increase adds ~$55M annual payout
Risk Factors
- M&A integration may disrupt operations or fail to deliver expected synergies
- HVAC seasonality and A2L regulatory transition could pressure margins
- Flat top-line growth with declining EPS suggests competitive pressure or cost inflation
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3282484 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 9w ago | 8-K | $320.02 $313.22 | ▲ +2.12% | ▲ +7.14% | $299.21 (+6.50%) |
Jul 16, 2026 11w ago | Press Release | $371.91 $313.06 | ▼ −15.82% | ▼ −20.27% | $299.21 (−19.55%) |
Jun 2, 2026 17w ago | Press Release | $361.67 $407.62 | ▲ +12.70% | ▲ +14.52% | $299.21 (−17.27%) |
Apr 28, 2026 22w ago | Press Release | $436.60 $378.85 | ▼ −13.23% | ▼ −18.68% | $299.21 (−31.47%) |
Apr 10, 2026 25w ago | Press Release | $408.87 $429.24 | ▲ +4.98% | ▼ −3.55% | $299.21 (−26.82%) |
Apr 1, 2026 26w ago | Press Release | $373.10 $428.51 | ▲ +14.85% | ▲ +5.13% | $299.21 (−19.81%) |
Feb 28, 2026 30w ago | Institutional Cluster | $408.84 $346.14 | ▼ −15.34% | ▼ −7.40% | $299.21 (−26.82%) |
US Market Status
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