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Watsco WSO Free cash flow margin

Free cash flow margin at other companies

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16.2%+2.6pp
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5.1%-0.3pp
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11.5%-0.1pp
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-9%-0.3pp
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8.7%

Other financials

Income statement

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Revenue$2.1B+2.1%
Gross profit$578.9M-4.1%
Operating income$238.4M-12.3%
Net income$163.3M-11.0%
EPS (diluted)$4.00-11.5%

Balance sheet

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Cash & equivalents$364.2M+24.3%
Total debt$496.3M+4.8%
Total equity$3.5B+25.8%
Total assets$5.1B+7.5%

Cash flow

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Operating cash flow-$2.5M+66.0%
CapEx$8.9M+30.7%
Free cash flow-$11.5M+19.7%

Valuation

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Market cap$13.8B-19.0%
P/E29×-3.0×
P/S1.9×-0.4×

Profitability

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Gross margin27.5%0.0pp
Operating margin9.4%-0.9pp
Net margin6.5%-0.5pp

Returns & leverage

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Return on equity15.3%-4.5pp
Debt / equity0.2×0.0×
Current ratio3.2×+0.1×

Where this comes from

Calculated from Watsco’s reported figures.

Based on trailing twelve months.

The source filing: Watsco’s 8-K, filed July 29, 2026. Open the filing →

Filed
Jul 29, 2026, 7:30 AM EDT
Accession
0001193125-26-322168

FAQ

What is Watsco's free cash flow margin?
Watsco (WSO) reported free cash flow margin of 9.6% in Q2 2026.
How has Watsco's free cash flow margin changed year-over-year?
Watsco's free cash flow margin increased by 82.2% year-over-year, from 5.3% to 9.6%.
What is the long-term trend for Watsco's free cash flow margin?
Over 5 years (2020 to 2025), Watsco's free cash flow margin has grown at a -6.3% compound annual growth rate (CAGR), from 10.2% to 7.4%.
What does free cash flow margin mean?
Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

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