revenue $2.10B, net income $163.3M. Watsco Q2 2026: Revenue +2.1%, net income -11.0% as gross margin compresses

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~1 min read

Key Changes

• high

  Gross margin fell 180 basis points to 27.5% as the company absorbed OEM pricing actions from 2025; operating income declined while net income dropped.

  MD&A: Gross Profit Margin verify on EDGAR →
• high

  EPA eliminated the December 31, 2025 deadline for 410A HVAC system sales, allowing Watsco to continue selling matching 410A systems indefinitely; June 2026 tariff changes reduced residential HVAC tariffs from 25% to 15% temporarily.

  MD&A: Regulatory Developments verify on EDGAR →
• high

  Acquired Jackson Supply Company on June 1, 2026 for in stock, adding 25 locations across seven Sunbelt states and in annual sales; recognized in non-deductible goodwill.

  Notes: Business Combinations view on EDGAR →