Watsco (WSO) is trading higher today as the market continues to reprice the name following its late-April earnings update and a new acquisition agreement that expands its presence in fast-growing Sunbelt HVAC distribution markets. The rally appears tied to investors leaning into the combination of stabilizing end-markets, improved efficiency, and incremental growth from M&A.

On April 28, 2026, Watsco reported first-quarter performance framed around stabilizing markets, improved operating efficiency, and expanded technology adoption. The update helped reinforce the view that HVAC distribution is emerging from a choppier demand environment, while internal execution and digital tools can defend margins and service levels even when unit growth is muted.

Watsco also said it entered an agreement to acquire Jackson Supply Company, described as one of the largest Sunbelt HVAC distributors, with annual sales of about $230 million. The transaction is expected to add 25 locations and deepen Watsco’s scale in regions that have been growing faster than the national average, a strategic fit that can also support procurement leverage and network density over time.

Key next steps include timing and closing details for the Jackson Supply transaction, integration execution, and any updates on demand trends as the industry enters the seasonally stronger period for HVAC. Investors will also be watching whether Watsco can sustain margin discipline and conversion of technology investments into measurable productivity gains as 2026 progresses.