WATSCO INC — Form 8-K
Filed October 27, 2026 · analyzed by the 8-K Agent
8-K
— Neutral
significance 48/100
What the filing says
Watsco acquired Jackson Supply Company (≈$230M annual sales, June 2026) and The Granite Group (≈$500M annual sales, October 2026), adding 107 locations and $730M in annualized revenue. Q3 2026 revenues reached record $2.22B (+7% YoY), but gross margin compressed to 26.4% (vs. 27.5% prior year) and operating income declined 4% to $225M; EPS fell 5% to $3.77. Nine-month operating cash flow surged 79% to $304M, and the company secured a new $750M five-year credit facility.
Why this rating
Acquisitions add ~9.3% annualized revenue (730M ÷ 7.9B base), meaningful for scale but margin compression and EPS decline offset organic progress. Neutral near-term signal.
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