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Watsco WSO Gross margin

Gross margin at other companies

Lennox International logo
Lennox InternationalLII
33.2%+0.1pp
Ferguson Enterprises logo
Ferguson EnterprisesFERG
30.7%+0.1pp
Carrier Global logo
Carrier GlobalCARR
26.6%-0.6pp
EMCOR Group logo
EMCOR GroupEME
19.3%0.0pp
Comfort Systems USA logo
Comfort Systems USAFIX
23.5%+3.2pp
IR
Ingersoll RandIR
43.2%-0.6pp

Other financials

Income statement

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Revenue$1.5B+0.1%
Gross profit$427.6M-0.5%
Operating income$110.2M-1.8%
Net income$79.1M-1.2%
EPS (diluted)$1.87-3.1%

Balance sheet

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Cash & equivalents$392.7M-9.1%
Total debt$496.3M+4.8%
Total equity$2.8B+3.6%
Total assets$4.6B+4.4%

Cash flow

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Operating cash flow-$18.9M+89.4%
CapEx$7.0M-7.7%
Free cash flow-$25.9M+86.0%

Valuation

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Market cap$16.52B-28.1%
Enterprise value$16.62B-27.7%
P/E33.3×-10.1×
P/S2.3×-0.7×

Profitability

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Operating margin9.9%-0.2pp
Net margin6.8%-0.1pp

Returns & leverage

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Return on equity18.3%-2.1pp
Debt / equity0.2×0.0×
Current ratio3.3×+0.1×

Where this comes from

Calculated from Watsco’s reported figures.

Based on trailing twelve months.

The official record: Watsco’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Watsco's gross margin?
Watsco (WSO) reported gross margin of 28% in Q1 2026.
How has Watsco's gross margin changed year-over-year?
Watsco's gross margin increased by 4.0% year-over-year, from 26.9% to 28%.
What is the long-term trend for Watsco's gross margin?
Over 4 years (2021 to 2025), Watsco's gross margin has grown at a 2.0% compound annual growth rate (CAGR), from 102.2% to 110.5%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.