Every material Form 8-K Watsco has filed with the SEC since August 01, 2023, read and summarized by AI: what happened, the key figures, whether it reads positive or negative for shareholders, and how big a deal it is (impact 1-5). Newest first; each brief links to its own page and to the filing on SEC.gov.
Watsco entered an unsecured five-year, $750.0 million syndicated multicurrency credit agreement on October 21, 2026, replacing its $600.0 million revolving credit facility from March 2023. The company borrowed $69.7 million at closing to repay the prior facility, and the new facility matures on October 21, 2031. The filing describes the new terms, including pricing, sublimits and financial covenants, but does not state how the company plans to use the added capacity.
New $750.0 million unsecured credit facility dated October 21, 2026, replaces the $600.0 million facility entered into March 16, 2023
$69.7 million borrowed at closing; proceeds used to repay the prior facility, with $69.7 million outstanding as of the closing date
Interest at Term SOFR or Daily Simple SOFR plus 100.0 to 137.5 basis points (100.0 basis points at closing); unused commitment fee 10.0 to 17.5 basis points
Facility matures October 21, 2031; a $150,000 letter of credit from the prior facility remains outstanding and reduces availability
Watsco reported record third-quarter revenue of $2.22 billion, up 7%, helped by acquisitions, but diluted earnings per share fell 5% to $3.77 as gross margin and operating income declined. For the nine months, revenue rose 3% while earnings per share fell 7% to $9.72, and the company said residential unit volumes returned to growth.
Q3 operating income fell 4% to $225 million; operating margin was 10.1% versus 11.4% a year earlier
Q3 gross profit margin was 26.4% versus 27.5% last year; same-store sales rose 4%
Nine-month operating cash flow rose 79% to $304 million
Acquisitions of Jackson Supply (June 2026) and The Granite Group (October 2026) add 107 locations and $730 million in annualized revenue
Watsco reported second-quarter 2026 revenue up 2% to $2.1 billion, with growth of 1% on a same-store basis. Profit fell, with operating income down 12% to $238 million and diluted earnings per share down 12% to $4.00, as gross margin narrowed to 27.5% from 29.3% a year earlier. The company also closed its Jackson Supply acquisition in June 2026, which it says has annualized sales of about $230 million.
Q2 revenue rose 2% to $2.1 billion; gross profit fell 4% to $579 million
Q2 diluted EPS fell 12% to $4.00, versus $4.52 a year earlier
Year-to-date operating cash flow was a use of $21 million, a $164 million improvement from a $185 million use in 2025
Jackson Supply, with about $230 million in annualized sales across 25 Sunbelt locations, was acquired in June 2026
Watsco reported first-quarter 2026 revenue flat at $1.53 billion, with operating income down 2% to $110 million and diluted EPS down 3% to $1.87. The company also agreed to acquire Jackson Supply Company, a Sunbelt HVAC distributor with $230 million in annual sales, with closing expected in the second quarter of 2026.
Revenues were flat at $1.53 billion; gross profit was flat at $428 million, with gross margin at 27.9% versus 28.1% a year earlier
Diluted EPS was $1.87 versus $1.93 in the first quarter of 2025; operating income was $110 million versus $112 million
Jackson Supply Company has annual sales of $230 million and is expected to close in the second quarter of 2026, pending customary closing conditions
Cash used in operations was $19 million versus $178 million a year earlier; the annual dividend was raised 10% to $13.20 per share in April 2026
Watsco reported full-year 2025 revenue of $7.24 billion, down 5%, and diluted earnings per share of $12.25 versus $13.30 in 2024. Fourth-quarter revenue fell 10% to $1.58 billion and quarterly EPS was $1.68 versus $2.37. The board also approved a 10% increase in the annual dividend to $13.20 per share, payable starting with the April 2026 payment.
Full-year 2025 revenue $7.24 billion, down 5%; operating income $720 million, down 8%
Full-year gross profit margin rose to a record 28.0%, up 120 basis points
Fourth-quarter EPS $1.68 versus $2.37 a year earlier; operating cash flow for the quarter was a record $400 million
Annual dividend raised 10% to $13.20 per share, reflected in the April 2026 payment
Watsco reported third-quarter 2025 revenue of $2.07 billion, down 4%, and diluted earnings per share of $3.98 versus $4.22 a year earlier. The company attributed the decline to a regulatory transition to new HVAC systems with A2L refrigerants, which it says is expected to conclude in early 2026, along with weaker consumer spending and slower housing activity.
Q3 operating income fell 6% to $235 million; gross profit was flat at $569 million while gross margin rose 130 basis points to 27.5%
Nine-month revenue decreased 3% to $5.66 billion and diluted EPS decreased 4% to $10.48
Inventory was reduced to $1.6 billion at September 30, 2025, down $351 million in the quarter from the peak; Q3 operating cash flow was $355 million
Watsco plans to hold an investor day on December 11, 2025
Watsco reported second-quarter 2025 results with revenue down 4% to $2.06 billion, while gross profit rose 4% to $603 million and diluted earnings per share edged up to $4.52 from $4.49. The company attributed the sales decline to softer market conditions and the transition to new A2L refrigerant equipment, and it expects these impacts to diminish over the second half of 2025.
Quarterly revenue decreased 4% to $2.06 billion; diluted EPS was $4.52 versus $4.49 a year earlier.
Gross profit margin expanded 220 basis points to 29.3%, with gross profit up 4% to $603 million.
Six-month EPS was $6.50 versus $6.69; operating cash flow was a use of $185 million for the period.
The annual dividend was raised 11% to $12.00 per share in April 2025.
Watsco reported first-quarter 2025 results for the quarter ended March 31, 2025, with revenues down 2% to $1.53 billion and diluted EPS of $1.93 versus $2.17 a year earlier. The company said the decline reflects early stages of a large-scale product transition to A2L refrigerant systems, and operating cash flow was a use of $178 million, which the company attributed to inventory investments and the timing of vendor payments.
Revenues decreased 2% to $1.53 billion; gross profit of $430 million was flat versus last year
Gross profit margin improved 60 basis points to 28.1%; operating income was $112 million versus $127 million a year earlier
Diluted EPS was $1.93 versus $2.17 for the prior year
Operating cash flow was a use of $178 million; the company held $432 million of cash and no outstanding debt at March 31, 2025
Watsco reported fourth-quarter 2024 sales of $1.75 billion, up 9%, and diluted EPS of $2.37, up from $2.06 a year earlier. For full-year 2024, sales rose 5% to a record $7.62 billion, but diluted EPS fell to $13.30 from $13.67. The board also raised the annual dividend 11% to $12.00 per share, effective with the April 2025 payment.
Q4 net income attributable to Watsco rose 17% to $97 million; Q4 diluted EPS was $2.37 versus $2.06.
Full-year net income attributable to Watsco was $536 million, flat with 2023; full-year diluted EPS was $13.30 versus $13.67.
Full-year operating cash flow rose 38% to a record $773 million.
Annual dividend increased to $12.00 per share from the April 2025 payment; the company has paid dividends for 51 consecutive years.
Watsco's board-approved amendment to Chairman and CEO Albert H. Nahmad's employment agreement raises the maximum potential performance-based stock award for 2024 from $10.0 million to $20.0 million. The award is payable only as restricted stock with cliff vesting on October 15, 2032, and the filing says no other terms changed.
Maximum 2024 performance-based stock award for CEO Albert H. Nahmad increased from $10.0 million to $20.0 million
Award is payable solely as restricted stock with cliff vesting on October 15, 2032
Amendment entered into November 14, 2024; the filing states no other changes to the employment agreement
Watsco reported third-quarter 2024 sales up 2% to a record $2.16 billion, while operating income fell 2% to $250 million and diluted EPS declined 3% to $4.22. Nine-month EPS was $10.92 versus $11.60 a year earlier, though operating cash flow rose 50% to a record $394 million.
Q3 sales $2.16 billion, up 2% (flat on a same-store basis); net income attributable to Watsco $171 million, flat year over year
Q3 diluted EPS $4.22 versus $4.35 a year earlier, down 3%
Nine-month EPS $10.92 versus $11.60; operating cash flow up 50% to a record $394 million
Annual dividend rate raised 10% to $10.80 per share, effective April 2024
Watsco reported second-quarter 2024 revenue of $2.1 billion, up 7%, and diluted earnings per share of $4.49, up from $4.42 a year earlier. For the first half, EPS fell to $6.69 from $7.25, while revenue rose 4% to $3.7 billion. The company also raised its annual dividend rate 10% to $10.80 per share and reported $425 million in cash and short-term investments with no borrowings under its $600 million credit facility.
Q2 revenue rose 7% to $2.1 billion (4% on a same-store basis); gross margin was 27.1%.
Q2 diluted EPS was $4.49 versus $4.42; first-half EPS was $6.69 versus $7.25.
Annual dividend rate increased 10% to $10.80 per share, effective April 2024.
As of June 30, 2024, cash and short-term investments totaled $425 million, with no borrowings under the $600 million credit facility.
Watsco reported first-quarter 2024 results for the period ended March 31, 2024. Revenue rose 1% to a record $1.56 billion, but same-store revenue fell 2%, operating income dropped to $127 million from $165 million, and diluted earnings per share were $2.17 versus $2.83 a year earlier. The company also reported no debt, $479 million in cash and investments, and a 10% dividend increase to $10.80 per share annually.
Revenue rose 1% to $1.56 billion; same-store revenue declined 2%.
Operating income was $127 million (8.1% margin) versus $165 million (10.6% margin) a year earlier.
Diluted EPS was $2.17 versus $2.83; operating cash flow was a record $104 million for a first quarter.
Annual dividend rate increased 10% to $10.80 per share, effective April 2024.
Watsco director Steven (Slava) Rubin resigned from the board effective March 10, 2024, and will join the company's Advisory Board effective March 11, 2024. The board appointed Barry S. Logan, the company's Executive Vice President & Secretary, to fill the vacancy, and the filing says the resignation was not due to any disagreement with the company.
Steven (Slava) Rubin resigned from the Board effective March 10, 2024; notice delivered February 15, 2024.
Rubin joins the Company's Advisory Board effective March 11, 2024.
Barry S. Logan, who joined Watsco in 1992, was appointed a director on February 19, 2024.
Logan entered into no new compensation arrangement in connection with his board appointment.
Watsco reported fourth-quarter and full-year 2023 results. Sales were at record levels, but diluted earnings per share declined from 2022, which included a one-time tax benefit. The company also raised its annual dividend 10% to $10.80 per share, effective with the April 2024 payment.
Q4 sales rose 1% to a record $1.60 billion; Q4 diluted EPS was $2.06 versus $3.55 a year earlier, which included a $1.20 net benefit from 2022 stock vesting
Full-year sales were $7.28 billion versus $7.27 billion; full-year diluted EPS was $13.67 versus $15.41 ($14.20 adjusted for 2022)
Annual dividend rate increased 10% to $10.80 per share, reflected in the April 2024 quarterly payment
Full-year operating cash flow was $562 million versus $572 million in 2022
Watsco reported third-quarter 2023 revenue of $2.13 billion, up 4%, and diluted earnings per share of $4.35, up from $4.03 a year earlier, with operating income up 9% to $257 million. For the nine months, sales were flat at $5.68 billion and EPS fell to $11.60 from $11.86, so shareholders see stronger quarterly results but a flat year to date.
Q3 2023 revenue $2.13 billion, up 4%; gross margin 26.7% versus 27.1% a year earlier
Q3 operating income $257 million, up 9%; diluted EPS $4.35 versus $4.03
Nine-month EPS $11.60 versus $11.86; nine-month sales $5.68 billion, flat year over year
Watsco acquired Gateway Supply Company, with annual sales of approximately $180 million
Watsco reported second-quarter 2023 results on August 1, 2023, with sales down 6% to $2.0 billion and diluted EPS down 10% to $4.42 from $4.93. The company attributed part of the decline to a product transition under new efficiency regulations and to OEM production and availability delays, which it estimated reduced quarterly sales by $75 to $80 million. For the six months, sales fell 3% to $3.55 billion and EPS fell 7% to $7.25.
Second-quarter sales of $2.0 billion, down 6%; operating income of $266 million, down 7%
Second-quarter diluted EPS of $4.42, versus $4.93 a year earlier
Company estimated OEM-related delays reduced quarterly sales by $75 to $80 million ($115 to $125 million for six months)
Operating cash flow was a $89 million use of cash for the six months ended June 30, 2023; annual dividend rate is $9.80 per share
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