Watsco

Conestoga Capital highlighted Watsco as a leading contributor after the stock outperformed in Q1 2026, driven by margin resilience and strong cash flow despite a softer demand environment. The HVAC sector experienced a 2025 refrigerant transition that caused destocking in 2026 and a consumer shift toward repairs rather than replacing equipment. Watsco closed at $420.68 on May 5, 2026, with a one-month return of 10.35% and a 52-week loss of 8.17%. » More on finance.yahoo.com

Watsco reported Q1 2026 EPS of $1.87 versus $1.70 expected and revenue of $1.53 billion vs. $1.49 billion forecast. E‑commerce grew 16% and the balance sheet remained debt‑free. Despite the results, the stock fell about 6% premarket, while management highlighted further technology investments (including OnCall Air) and a positive long‑term growth outlook. » More on de.investing.com

Watsco has signed a definitive agreement to acquire Jackson Supply Company for $230 million. Jackson Supply generated $230 million in revenue in 2025, operates 25 locations in seven states and serves about 5,000 customers; the company is to be continued as a standalone business under existing management. Closing is expected in the second quarter and is subject to customary closing conditions and regulatory approvals. The deal adds to Watsco’s $7.2 billion revenue base; the company remains acquisition-driven and is seeking further acquisition opportunities in the North American HVAC/R distribution market. » More on de.investing.com

Watsco presented its strategy at the JPMorgan industry conference, focusing on investments in AI, digital platforms and price optimization to reach a target gross margin of 30%. The company reported positive revenue momentum in March after a weaker start to the year and aims to increase inventory turnover from the low threes to five, which could free up more than $500 million in cash flow. Watsco emphasizes its strong market position in the HVAC and refrigeration distribution market (10–15% market share) and plans to drive growth in new product categories like heat pumps by expanding its technology stack. » More on de.investing.com

Giverny Capital Asset Management disclosed a new 3.5% position in Watsco, the largest US distributor of HVAC equipment, in its Q4 2025 investor letter. The firm highlighted Watsco’s key vendor relationships and market position but said certain AI stocks offer greater upside and lower downside risk. Watsco shares had a one-month gain of 9.51% but were down 19.05% over three months and trade near a $15.7 billion market cap. » More on finance.yahoo.com