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Watsco (WSO)
NYSE:WSO
Earnings Data
Report Date
Apr 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
1.73Last Year’s EPS
1.93Same Quarter Last Year
Based on 9 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong financial and operational achievements — sizable acquisitions, a 10% dividend increase, record Q4 cash flow, debt-free status, margin improvement (27.1% in Q4) and accelerating digital adoption (35% e-commerce, OnCallAir GMV $1.8B). Management acknowledged meaningful near-term weaknesses: a 17% decline in unit volumes for 2025, a 6% drop in aftermarket/replacement activity, international/commercial softness, and a soft start to 2026 (mid-single-digit declines in Jan/Feb). Leadership framed the situation as a transition from the recent multi-year volatility to a more normalized environment and highlighted ongoing margin and efficiency initiatives (pricing optimization, VCR purchasing, AI). Overall, the positives — cash generation, balance sheet strength, margin progress, digital traction and strategic investments — outweigh the near-term demand headwinds described.Company Guidance
Strategic Acquisitions and Scale Expansion
Added 12 business acquisitions representing over $1,600,000,000 in sales, expanding scale and market share.
Dividend Increase and Shareholder Return
Boosted annual dividend 10% to $13.20, marking the company's 52nd consecutive year of paying dividends and reflecting board confidence.
Strong Cash Flow and Balance Sheet
Debt-free for all of 2025, met a $500,000,000 inventory reduction goal, and generated record fourth-quarter cash flow of $400,000,000.
Gross Margin Improvement
Q4 gross margin increased 40 basis points to 27.1%; company reiterated a long-term gross margin target of ~30% and plans multiple initiatives (pricing optimization, VCR purchasing strategy) to reach it.
Pricing Gains from A2L Transition
Realized double-digit pricing gains on new A2L products; full-year price benefit was ~9% and Q4 price benefit ~11%, contributing materially to margin expansion.
Operating Efficiency and Cost Control
SG&A declined 2% year-over-year (including newly acquired locations), reflecting improved operating efficiency and rightsizing initiatives across business units.
Digital & Platform Growth
E-commerce accounted for 35% of sales (exceeding 60% in some U.S. markets); mobile app users rose 15% to 73,000; OnCallAir annual run rate of gross merchandise value increased 20% to $1,800,000,000.
Inventory Quality and Turn Goals
Inventory positioning improved (inventory ≈18–19% of prior 12-month sales), met a half-billion inventory reduction goal, and management targets a 'dream' plan of 5 inventory turns (pre-pandemic ~4).
WSO Earnings History
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
WSO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 17, 2026 | $417.92 | $422.83 | +1.17% |
Oct 29, 2025 | $355.56 | $365.38 | +2.76% |
Jul 30, 2025 | $457.30 | $435.48 | -4.77% |
Apr 23, 2025 | $491.88 | $436.40 | -11.28% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Watsco (WSO) report earnings?
Watsco (WSO) is schdueled to report earning on Apr 16, 2026, Before Open (Confirmed).
What is Watsco (WSO) earnings time?
Watsco (WSO) earnings time is at Apr 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is WSO EPS forecast?
WSO EPS forecast for the fiscal quarter 2026 (Q1) is 1.73.