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Watsco (MX:WSO)
:WSO
Mexico Market
EarningsQ2 2026 Earnings Report

Watsco (WSO) Q2 2026 Earnings Report

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MX:WSO Q2 2026 EPS Results

Actual EPS$72.71
Consensus EPS$80.17
Beat/MissMissed by -$7.45
One Year Ago EPS$82.17

MX:WSO Q2 2026 Revenue Results

Actual Revenue$38.26B
Expected Revenue$38.95B
Beat/MissMissed by -$690.26M
YoY Revenue Growth+2.06%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
MX:WSO Upcoming Earnings
Watsco's next earnings date is estimated for October 15, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:WSO Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call portrays a company returning to more conventional operating conditions with stabilized end markets, notable digital and e-commerce momentum, strong cash/no-debt balance sheet and a strategic acquisition (Jackson Supply). Offsetting these positives are a meaningful year-over-year gross margin contraction (~180 bps) driven largely by prior-year pricing and A2L comparisons, softness in commercial/VRF, some regional new-build weakness, and inventory timing considerations. Management emphasizes stabilization, long-term margin targets (30%), and technology-driven growth opportunities, suggesting confidence in future recovery.
Company Guidance
Watsco did not give formal forward guidance but provided directional metrics: Q2 sales +2% to $2.1B, gross profit $579M (gross margin 27.5% vs 29.3% a year ago; 12‑month margin ~27.5%), operating income $238M (operating margin 11.3%), EPS $4.00, cash $464M and no debt, and operating cash flow for the six months improved by $168M; segment and operational callouts included residential HVAC +5% (equipment +3%, commercial -8% with VRF down most, international down single digits), unit pricing ~+2% (AHRI units), field stock down ~ $200M, e‑commerce +13% (37% LTM penetration, 50–70% in some markets) with >70,000 monthly app users, OnCallAir 340k proposals driving $1.9B GMV (+15% YoY), Jackson Supply acquisition (25 locations, $230M annual sales; ~ $20M revenue in June; ~$60M inventory acquired), dividend up 10% to $13.20 (52nd consecutive year), and management reiterated a long‑term gross‑profit target of 30%, July YTD (through July 28) organic growth of ~4–5%, and ongoing plans to improve inventory efficiency as A2L transition and lead‑time normalization continue.
Modest Revenue Growth
Sales increased 2% year-over-year to $2.1 billion in Q2 2026.
Residential HVAC Strength
Residential HVAC equipment, the company's largest segment, grew 5% in the quarter with gains in both unit volume and pricing.
Solid Profitability Metrics
Gross profit was $579 million and operating income was $238 million, yielding an operating margin of 11.3% and GAAP earnings per share of $4.00.
Improved Cash and Cash Flow
Ended the quarter with $464 million in cash and no debt; operating cash flow for the 6-month period improved by $168 million driven by a lower ramp-up of seasonal inventory.
Dividend Increase and Shareholder Return
Annual dividend was increased 10% to $13.20 per share; 2026 marks the 52nd consecutive year of paying dividends.
Strategic Acquisition — Jackson Supply
Closed on Jackson Supply June 1; Jackson brings approximately $230 million in annual sales across 25 Sunbelt locations and contributed roughly $20 million of revenue in June, with management highlighting aggressive growth plans.
Technology and Digital Traction
E-commerce sales grew 13% and comprised 37% of total sales over the last 12 months (certain markets 50–70% penetration); mobile apps have >70,000 active monthly users.
OnCallAir Growth
OnCallAir produced more than 340,000 proposals over the last year generating $1.9 billion of gross merchandise value, a 15% increase year-over-year.
New Platforms and Operational Initiatives
Launched SupplySync.com (Q2) targeting institutional customers; expanded VCR (vendor consolidation) and matured Hydros shared logistics, plus ongoing AI investments to improve customer experience and supply chain efficiency.
Early July Momentum
Through July 28, management reported roughly 4%–5% organic growth (July performance) and noted unit growth in Q2 and July, indicating stabilization.

MX:WSO Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 15, 2026
2026 (Q3)
75.08 / -
72.349―
2026 (Q2)
80.17 / 72.71
82.165-11.50% (-9.45)
2026 (Q1)
30.78 / 33.99
35.084-3.11% (-1.09)
2025 (Q4)
34.16 / 30.54
43.082-29.11% (-12.54)
2025 (Q3)
76.75 / 72.35
76.712-5.69% (-4.36)
2025 (Q2)
86.91 / 82.17
81.620.67% (+0.55)
2025 (Q1)
41.17 / 35.08
39.447-11.06% (-4.36)
2024 (Q4)
39.08 / 43.08
37.44715.05% (+5.64)
2024 (Q3)
85.89 / 76.71
79.075-2.99% (-2.36)
2024 (Q2)
85.36 / 81.62
80.3481.58% (+1.27)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed