Watsco (WSO) is higher today after releasing first-quarter 2026 results and pairing the update with a new acquisition announcement. The company said it signed an agreement to acquire Jackson Supply Company, describing it as a leading Sunbelt HVAC distributor with approximately $230 million in annual sales, with closing expected in the second quarter of 2026 subject to customary conditions. (sec.gov)

For the quarter ended March 31, 2026, Watsco reported revenue of $1.53 billion (flat year over year) and diluted EPS of $1.87 (down 3%). The update also pointed to a sharp improvement in working-capital-related cash use: cash used in operations was $19 million versus $178 million a year ago, a $159 million improvement. (sec.gov)

The Jackson Supply deal adds scale and diversification in Watsco’s Sunbelt footprint at a time when management said markets are stabilizing heading into the peak summer season. In the same release, Watsco highlighted improving industry conditions as the transition to A2L refrigerant products becomes more established, and said it expects a more conventional operating environment as 2026 unfolds. (sec.gov)

Investors will be focused on whether the transaction closes on the expected Q2 2026 timeline and how quickly Watsco can leverage its technology platforms across the acquired footprint. Management also reiterated ongoing technology adoption trends, including growth in e-commerce sales and usage of its contractor platforms, which could influence margin and share-gain expectations into the busier second and third quarters. (sec.gov)