Watsco Reports Stable First Quarter 2026 Performance Amid Market Transition
- brg_news_room
- 3 days ago
- 1 min read
US: Watsco Inc. reported revenue of US$1.53 billion for the first quarter of 2026, remaining broadly flat compared to the previous year, reflecting stabilising conditions in the HVAC distribution market. Gross profit stood at US$428 million, with operating income declining slightly to US$110 million, while net income reached approximately US$79 million. Earnings per share decreased to US$1.87, indicating marginal pressure on profitability despite steady pricing gains. The performance was influenced by a transition toward A2L refrigerant products, which impacted product mix and volumes across the industry.
Sales trends showed a 2% increase in the United States market, offset by an 11% decline in international markets, highlighting regional demand differences. HVAC equipment sales declined slightly, while growth was recorded in other HVAC products and commercial refrigeration segments. The company also announced the planned acquisition of a distributor with annual sales of US$230 million, aimed at strengthening its presence in core markets. Improved operating efficiency and reduced working capital requirements contributed to better cash flow performance, with management indicating expectations of more stable market conditions and gradual growth through the remainder of 2026.
Source: Watsco Media
