Recent Updates — WSO

Watsco Inc. entered into a merger agreement to acquire Granite Group Holdings, a diversified distributor of plumbing and HVAC products with approximately $500 million in sales across seven Northeastern states. The transaction involves an aggregate purchase price of $505.0 million, subject to customary post-closing adjustments. Consideration will be paid as 80% cash and 20% Watsco common stock, with an estimated issuance of 324,257 shares based on the ten-day volume-weighted average price ending September 16, 2026. Closing is contingent upon customary conditions, including Hart-Scott-Rodino antitrust clearance. Watsco Inc. operates in the wholesale distribution industry, supplying HVACR (heating, ventilation, air conditioning, and refrigeration) products.

Watsco reported second quarter results for the period ended June 30, 2026, with revenues increasing 2% to $2.1 billion and diluted earnings per share decreasing 12% to $4.00. The company closed its acquisition of Jackson Supply Company in June, adding approximately $230 million in annualized sales across 25 Sunbelt locations. Operating income fell 12% to $238 million as gross margins contracted due to normalized OEM pricing actions compared to the prior year's inflationary benefits. In April 2026, Watsco increased its annual cash dividend by 10% to $13.20 per share. The company operates in the North American HVAC distribution industry.