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Watsco WSO Operating margin

Operating margin at other companies

Lennox International logo
Lennox InternationalLII
19.7%0.0pp
Trane Technologies logo
Trane TechnologiesTT
17.9%-0.4pp
Ferguson Enterprises logo
Ferguson EnterprisesFERG
8.7%-0.1pp
SPX Technologies logo
SPX TechnologiesSPXC
15.8%+0.3pp
Aaon logo
AaonAAON
10.4%-5.2pp
Carrier Global logo
Carrier GlobalCARR
7.8%-5.9pp

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
Net margin6.5%-0.5pp
FCF margin9.6%+4.3pp

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 operating margin?
Watsco (WSO) reported operating margin of 9.4% in Q2 2026.
How has Watsco's operating margin changed year-over-year?
Watsco's operating margin decreased by 8.4% year-over-year, from 10.3% to 9.4%.
What is the long-term trend for Watsco's operating margin?
Over 5 years (2020 to 2025), Watsco's operating margin has grown at a 4.6% compound annual growth rate (CAGR), from 7.9% to 10%.
What does operating margin mean?
Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.

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