Watsco Revenue Rises 7.4% to $2.22 Billion
The HVAC distributor reported third-quarter results and completed its acquisition of The Granite Group.
Updated on Nov. 9, 2026 in Economic Indicators
Watsco reported third-quarter revenue of $2.22 billion, up 7.4% year over year, with same-store sales rising 4%. The company also completed its acquisition of The Granite Group, an HVAC and plumbing products distributor with 82 locations in the Northeast.
Why it matters
Watsco's results show residential HVAC demand and pricing holding up across its distribution network, with gross profit reaching a record $586 million for the quarter. The Granite Group acquisition expands the company's footprint in the Northeast.
Watsco's third-quarter residential HVAC sales grew 7% and unit sales rose 5%, with average selling price up 2%, all year over year. The extraction does not specify the total universe of residential HVAC units sold in the period, and the company's full-year outlook is not addressed.
The players
Watsco
Watsco is a large U.S. distributor of heating, ventilation and air conditioning equipment and related products, operating through a broad network of branches.
The Granite Group
The Granite Group is an HVAC and plumbing products distributor that operates 82 locations in the Northeast United States.
The details
Watsco attributed the gross margin decline to customer and market mix, differences in equipment versus other product sales growth, and smaller, differently timed manufacturer price increases than last year. The company also completed its purchase of Jackson Supply Co. in June.
Timeline
June: Watsco completed its purchase of Jackson Supply Co.
October 27: Company executives discussed the quarter on the earnings call.
Third quarter: Revenue growth was reported and The Granite Group acquisition was completed.
Market Landscape
Watsco's margin commentary indicates a return to more typical manufacturer pricing practices after last year's pattern. The extraction does not describe competitor positioning or broader industry consolidation beyond the company's own acquisitions.
Households planning HVAC replacements may see pricing shaped by manufacturer price increases and average selling price moves, which rose 2% in Watsco's latest quarter. The extraction does not indicate specific retail price changes for consumers.
The takeaway
Watsco's quarter shows that revenue growth can coexist with margin compression when product mix and manufacturer pricing shift. Readers tracking HVAC costs should watch whether pricing normalizes as the company describes.
Further reading
For broader context on the national data behind this quarter, see Economic Indicators coverage.
Source note: This article includes information reported by The ACHR NEWS.
