Watsco Inc (WSO) FinancialsWSOWatsco Inc

Watsco, Inc. (WSO) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is HVAC equipment, accounting for 68.0% of total sales, equivalent to $1.40B. Other significant revenue streams include Other HVAC products and Commercial refrigeration products. Understanding this composition is critical for investors evaluating how WSO navigates market cycles within the Electrical Components & Equipment industry.

Evaluating the bottom line, Watsco, Inc. maintains a gross margin of 27.50%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 10.92%, while the net margin is 9.09%. These profitability ratios, combined with a Return on Equity (ROE) of 15.41%, provide a clear picture of how effectively WSO converts its operational activities into shareholder value.

In the context of the broader market, WSO competes directly with industry leaders such as CSL and MAS. With a market capitalization of $12.91B, it holds a significant position in the sector. When comparing efficiency, WSO's gross margin of 27.50% stands against CSL's 36.20% and MAS's 43.57%. Such benchmarking helps identify whether Watsco, Inc. is trading at a premium or discount relative to its financial performance.

Watsco's total revenue for Q2 2026 was $2.1 billion, a 2% increase year-over-year, but it fell short of the $2.15 billion consensus estimate. The net income for the same period was $163.3 million, or $4.00 per share, missing the expected $4.39 per share. Gross margin decreased to 27.5%, down from 29.3% last year, reflecting pressures on profitability.