Watsco Q1 EPS falls 3% to $1.87 as sales hold flat; agrees to buy Jackson Supply
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.
Key points
- 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
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:12 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on April 28, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.