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Watsco WSO Operating margin

Operating margin at other companies

Lennox International logo
Lennox InternationalLII
19.7%+0.3pp
Trane Technologies logo
Trane TechnologiesTT
18.2%0.0pp
Ferguson Enterprises logo
Ferguson EnterprisesFERG
8.7%-0.1pp
Carrier Global logo
Carrier GlobalCARR
8.2%-4.7pp
EMCOR Group logo
EMCOR GroupEME
10.1%+0.8pp
Comfort Systems USA logo
Comfort Systems USAFIX
13.4%+3.5pp

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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Gross margin28%+1.1pp
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 operating margin?
Watsco (WSO) reported operating margin of 9.9% in Q1 2026.
How has Watsco's operating margin changed year-over-year?
Watsco's operating margin decreased by 2.0% year-over-year, from 10.1% to 9.9%.
What is the long-term trend for Watsco's operating margin?
Over 4 years (2021 to 2025), Watsco's operating margin has grown at a 2.0% compound annual growth rate (CAGR), from 37.4% to 40.5%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.