By Rob Curran
Watsco's first-quarter net income fell and revenue levelled off during a seasonally weak period for air-conditioner sales but the company forecast improvement later in the year.
The Miami-based distributor of heating, ventilation and air conditioning machinery posted earnings of $71 million, or $1.87 a share, down from $72.9 million, or $1.93 a share, a year earlier, but higher than the average analyst target of $1.71 a share, according to a FactSet tally.
Sales were more or less flat at $1.53 billion, surpassing the average Wall Street estimate of $1.49 billion, as per FactSet.
A stagnant housing market has slowed new housing construction, which hurts Watsco's business supplying HVAC systems for new homes.
Separately, Watsco said it agreed to buy smaller distributor Jackson Supply, which has 25 locations in Texas, Tennessee and other Sunbelt states.
Market conditions gradually improved during the first quarter, Watsco said, as pressure from the transition to new refrigerant standards eased. The company expects a more normalized environment later in the year.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
April 28, 2026 08:00 ET (12:00 GMT)
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