Recent Updates — WSO
On October 21, 2026, Watsco entered into a new unsecured five-year $750.0 million syndicated multicurrency credit agreement with Bank of America as administrative agent. The company borrowed $69.7 million under the facility to repay outstanding borrowings on its prior $600.0 million revolving credit line, which terminated simultaneously. The new facility includes a $125.0 million swing line sublimit and matures in October 2031. Watsco operates as a major distributor of air conditioning, heating, and refrigeration equipment and parts.
Watsco reported third-quarter revenues of $2.22 billion, a 7% increase from the prior year, driven by record same-store growth and contributions from recent acquisitions. Diluted earnings per share decreased 5% to $3.77, while operating income fell 4% to $225 million due to margin compression. Gross profit reached a record $586 million with a 26.4% margin. The company also highlighted strong cash flow generation and the integration of Jackson Supply Company and The Granite Group, which are expected to add approximately 10% to annual revenue. Watsco operates as the largest distributor in the North American HVAC/R market.
Watsco completed its merger with Granite Group Holdings on October 9, 2026. The company paid aggregate consideration of $505 million, consisting of 80% cash and 20% in common stock. Watsco issued 338,176 shares as part of the equity component. Granite Group is a diversified distributor of plumbing and HVAC products with approximately $500 million in sales across seven Northeast states. Watsco operates as a major distributor of air conditioning, heating, and refrigeration parts.
Watsco Inc. entered into a merger agreement to acquire Granite Group Holdings, a diversified distributor of plumbing and HVAC products with approximately $500 million in sales across seven Northeastern states. The transaction involves an aggregate purchase price of $505.0 million, subject to customary post-closing adjustments. Consideration will be paid as 80% cash and 20% Watsco common stock, with an estimated issuance of 324,257 shares based on the ten-day volume-weighted average price ending September 16, 2026. Closing is contingent upon customary conditions, including Hart-Scott-Rodino antitrust clearance. Watsco Inc. operates in the wholesale distribution industry, supplying HVACR (heating, ventilation, air conditioning, and refrigeration) products.
Watsco reported second quarter results for the period ended June 30, 2026, with revenues increasing 2% to $2.1 billion and diluted earnings per share decreasing 12% to $4.00. The company closed its acquisition of Jackson Supply Company in June, adding approximately $230 million in annualized sales across 25 Sunbelt locations. Operating income fell 12% to $238 million as gross margins contracted due to normalized OEM pricing actions compared to the prior year's inflationary benefits. In April 2026, Watsco increased its annual cash dividend by 10% to $13.20 per share. The company operates in the North American HVAC distribution industry.