$WSO

WATSCO INC

CIK:0000105016|SEC Filings

Condensed Consolidated Unaudited Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 2,104,859	$ 2,062,442	$ 3,637,869	$ 3,593,528
Cost of sales	1,525,930	1,458,954	2,631,385	2,560,417
Gross profit	578,929	603,488	1,006,484	1,033,111
Selling, general and administrative expenses	348,986	339,001	671,837	661,582
Other income	8,429	7,382	13,909	12,528
Operating income	238,372	271,869	348,556	384,057
Interest income, net	3,497	2,329	9,956	7,746
Income before income taxes	241,869	274,198	358,512	391,803
Income taxes	50,567	57,430	74,269	80,495
Net income	191,302	216,768	284,243	311,308
Less: net income attributable to non-controlling interest	27,966	33,155	41,833	47,634
Net income attributable to Watsco, Inc.	$ 163,336	$ 183,613	$ 242,410	$ 263,674
Earnings per share for Common and Class B common stock (collectively "common stock"):
Basic	$ 4	$ 4.53	$ 5.93	$ 6.52
Diluted	$ 4	$ 4.52	$ 5.92	$ 6.5

Condensed Consolidated Unaudited Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 284,243	$ 311,308
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	21,943	21,687
Non-cash contribution to 401(k) plan	9,267	8,743
Share-based compensation	16,711	17,612
Provision for doubtful accounts	2,442	704
Other income from investment in unconsolidated entity	(13,909)	(12,528)
Other, net	2,861	3,297
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(244,560)	(131,119)
Inventories, net	(443,966)	(552,956)
Accounts payable and other liabilities	339,169	149,774
Other, net	4,359	(1,612)
Net cash used in operating activities	(21,440)	(185,090)
Cash flows from investing activities:
Proceeds from maturities of short-term cash investments	300,000	255,669
Business acquisitions, net of cash acquired	7,663	(19,383)
Proceeds from sale of property and equipment	52	344
Capital expenditures	(15,950)	(14,378)
Purchases of short-term cash investments	(100,000)	0
Net cash provided by investing activities	191,765	222,252
Cash flows from financing activities:
Dividends on common stock	(255,920)	(230,497)
Net repayments of finance lease liabilities	(2,398)	(3,110)
Repurchases of common stock to satisfy employee withholding tax obligations	(1,403)	0
Distributions to non-controlling interest	0	(69,829)
Proceeds from non-controlling interest for investment in W.L. Lashley & Associates, Inc.	0	999
Proceeds from dividend reinvestment plan	8,107	14,111
Proceeds from issuances of Common stock under employee related plans	14,254	14,093
Net cash used in financing activities	(237,360)	(274,233)
Effect of foreign exchange rate changes on cash and cash equivalents	(2,059)	3,778
Net decrease in cash and cash equivalents	(69,094)	(233,293)
Cash and cash equivalents at beginning of period	433,283	526,271
Cash and cash equivalents at end of period	364,189	292,978
Jackson Supply Company [Member]
Supplemental cash flow information:
Common stock issued	186,164
W.L. Lashley Associates, Inc [Member]
Supplemental cash flow information:
Common stock issued	0	493
Southern Ice Equipment Distributors, Inc. [Member]
Supplemental cash flow information:
Common stock issued	$ 0	$ 3,133

Condensed Consolidated Unaudited Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 364,189	$ 433,283
Short-term cash investments	100,000	300,000
Accounts receivable, net	1,060,767	796,181
Inventories, net	1,890,473	1,386,317
Other current assets	38,668	38,725
Total current assets	3,454,097	2,954,506
Property and equipment, net	146,892	136,012
Operating lease right-of-use assets	509,300	452,547
Goodwill	559,693	462,509
Intangible assets, net	205,252	210,427
Investment in unconsolidated entity	193,899	185,234
Other assets	15,584	13,570
Total assets	5,084,717	4,414,805
Current liabilities:
Current portion of lease liabilities	119,723	117,153
Accounts payable	660,299	350,425
Accrued expenses and other current liabilities	299,752	250,164
Total current liabilities	1,079,774	717,742
Long-term obligations:
Operating lease liabilities, net of current portion	406,478	350,616
Finance lease liabilities, net of current portion	9,068	11,019
Total long-term obligations	415,546	361,635
Deferred income taxes and other liabilities	116,187	113,367
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value	0	0
Paid-in capital	1,796,411	1,563,389
Accumulated other comprehensive loss, net of tax	(57,109)	(50,305)
Retained earnings	1,305,691	1,319,201
Treasury stock, at cost	(73,229)	(73,230)
Total Watsco, Inc. shareholders' equity	2,994,413	2,781,376
Non-controlling interest	478,797	440,685
Total shareholders' equity	3,473,210	3,222,061
Total liabilities and shareholders' equity	5,084,717	4,414,805
Common Stock [Member]
Watsco, Inc. shareholders' equity:
Common stock	19,822	19,504
Class B Common Stock [Member]
Watsco, Inc. shareholders' equity:
Common stock	$ 2,827	$ 2,817