Q1 2026 Watsco Inc Earnings Call Transcript
Key Points
- Watsco Inc (WSO) announced the acquisition of Jackson Supply, a market-leading Sunbelt distributor, which will expand their presence by 25 locations and diversify their product offerings.
- E-commerce sales increased by 16% during the quarter, outpacing overall growth rates, indicating strong adoption of their digital platforms.
- OnCall Air, Watsco's digital platform, saw a 20% increase in customer sales, with expectations for gross merchandise value to exceed $2 billion this year.
- The company remains debt-free, maintaining a strong balance sheet, which provides financial stability and flexibility for future investments.
- Watsco Inc (WSO) continues to invest in technology and innovation, aiming to enhance their competitive position and achieve long-term growth and margin improvements.
- Sales growth in the US markets was modest at 2%, with lower unit sales offsetting gains from high-efficiency systems.
- Unit volumes have not fully recovered, indicating that the market is not yet fully healed from previous disruptions.
- The company faces challenges from ongoing regulatory changes and tariffs, which could impact pricing and margins.
- There is uncertainty about the impact of upcoming OEM price increases and their effect on market dynamics.
- The company is cautious about the upcoming selling season, as it is still early to predict market conditions and consumer behavior.
Good day, and welcome to the Watsco first-quarter 2026 earnings conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Mr. Albert Nahmad. Thank you, and over to you.
Welcome to our first-quarter earnings call. This is Al Nahmad, Chairman and CEO, and with me is A.J. Nahmad, the President; Paul Johnston, Barry Logan and Rick Gomez. Before we start our cautionary statement. This conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws.
Ultimate results may differ materially from the forward-looking statements. First-quarter results going to improving stability now that the transition to A2L products have matured. We expect a more simplified business environment this year, but it is still early in our summer season, but so far so good. We're also excited to announce our agreed to acquire
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
