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Watsco Broadens HVAC Reach With Strategic Jackson Supply Buyout
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Key Takeaways
Watsco acquired Jackson Supply, adding 25 Sunbelt locations and expanding market reach.
Jackson Supply generated $230M in 2025 sales and will operate independently under Watsco.
E-commerce sales rose 16% in Q1 2026, with digital sales reaching 36% of total revenues.
Watsco, Inc. (WSO - Free Report) has acquired Jackson Supply Company, which was reportedly announced on April 28, 2026.
WSO stock gained 1.2% during yesterday’s trading hours, post the acquisition announcement.
Watsco’s Bet on Jackson Supply
With sales worth $230 million (as of 2025), Jackson Supply is one of the prominent HVAC distributors in the Sunbelt region of the United States. Its diversified and well-balanced product portfolio features Goodman and Amana-branded HVAC equipment manufactured by Daikin Comfort Technologies North America, Inc., along with a wide range of supplies, accessories and replacement parts sourced from nearly 200 vendors.
Jackson Supply will retain its name, vendor relationships, market strategy, brand identity and cultural elements even after the acquisition. The company will be operating as an independent business under Watsco.
This strategic buyout is expected to meaningfully expand Watsco’s geographic footprint in 25 locations across the Sunbelt, including Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona. Besides, this transaction aligns with WSO’s ongoing efforts to expand its share of the estimated $74 billion North American HVAC/R distribution market.
WSO’s Efforts to Drive Performance
Apart from strategic acquisitions, Watsco indulges in organic business investments aimed at boosting its profitability and strengthening growth prospects. The company intends to continue emphasizing operating discipline through structural investments in pricing optimization, inventory management and technology. It is accelerating the deployment of pricing optimization tools, enhancing inventory efficiency through its Hydros system and expanding initiatives in the fragmented parts and supplies market.
Besides, digital adoption continues to deepen across Watsco’s contractor base, supporting both revenue capture and customer retention. In the first quarter of 2026, e-commerce sales increased 16% compared with the prior year, and e-commerce sales for the trailing 12 months were approximately $2.6 billion, representing 36% of total sales.
Shares of this HVAC/R distributor in North America have gained 8% in the year-to-date period, outperforming the Zacks Manufacturing - General Industrial industry. Its ongoing technology investment, pricing optimization and AI-driven tools inclusion support its long-term margin expansion and deepen contractor engagement.
Helios delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has climbed 56.1% year to date. The Zacks Consensus Estimate for Helios’ 2026 sales and earnings per share (EPS) indicates improvements of 2.9% and 12.9%, respectively, from a year ago.
Century Aluminum Company (CENX - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter negative earnings surprise of 75.7%, on average. Shares of Century Aluminum have surged 75.6% year to date.
The Zacks Consensus Estimate for Century Aluminum’s 2026 sales and EPS indicates growth of 39.2% and 2,876.2%, respectively, from the prior-year levels.
The Gorman-Rupp Company (GRC - Free Report) currently sports a Zacks Rank of 1. Gorman-Rupp delivered a trailing four-quarter earnings surprise of 17.6%, on average. The stock has gained 58.3% year to date.
The Zacks Consensus Estimate for Gorman-Rupp’s 2026 sales and EPS implies an increase of 6.5% and 21.5%, respectively, from a year ago.
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Watsco Broadens HVAC Reach With Strategic Jackson Supply Buyout
Key Takeaways
Watsco, Inc. (WSO - Free Report) has acquired Jackson Supply Company, which was reportedly announced on April 28, 2026.
WSO stock gained 1.2% during yesterday’s trading hours, post the acquisition announcement.
Watsco’s Bet on Jackson Supply
With sales worth $230 million (as of 2025), Jackson Supply is one of the prominent HVAC distributors in the Sunbelt region of the United States. Its diversified and well-balanced product portfolio features Goodman and Amana-branded HVAC equipment manufactured by Daikin Comfort Technologies North America, Inc., along with a wide range of supplies, accessories and replacement parts sourced from nearly 200 vendors.
Jackson Supply will retain its name, vendor relationships, market strategy, brand identity and cultural elements even after the acquisition. The company will be operating as an independent business under Watsco.
This strategic buyout is expected to meaningfully expand Watsco’s geographic footprint in 25 locations across the Sunbelt, including Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona. Besides, this transaction aligns with WSO’s ongoing efforts to expand its share of the estimated $74 billion North American HVAC/R distribution market.
WSO’s Efforts to Drive Performance
Apart from strategic acquisitions, Watsco indulges in organic business investments aimed at boosting its profitability and strengthening growth prospects. The company intends to continue emphasizing operating discipline through structural investments in pricing optimization, inventory management and technology. It is accelerating the deployment of pricing optimization tools, enhancing inventory efficiency through its Hydros system and expanding initiatives in the fragmented parts and supplies market.
Besides, digital adoption continues to deepen across Watsco’s contractor base, supporting both revenue capture and customer retention. In the first quarter of 2026, e-commerce sales increased 16% compared with the prior year, and e-commerce sales for the trailing 12 months were approximately $2.6 billion, representing 36% of total sales.
Shares of this HVAC/R distributor in North America have gained 8% in the year-to-date period, outperforming the Zacks Manufacturing - General Industrial industry. Its ongoing technology investment, pricing optimization and AI-driven tools inclusion support its long-term margin expansion and deepen contractor engagement.
Image Source: Zacks Investment Research
WSO Stock’s Zacks Rank & Key Picks
Watsco currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Industrial Products sector.
Helios Technologies, Inc. (HLIO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helios delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has climbed 56.1% year to date. The Zacks Consensus Estimate for Helios’ 2026 sales and earnings per share (EPS) indicates improvements of 2.9% and 12.9%, respectively, from a year ago.
Century Aluminum Company (CENX - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter negative earnings surprise of 75.7%, on average. Shares of Century Aluminum have surged 75.6% year to date.
The Zacks Consensus Estimate for Century Aluminum’s 2026 sales and EPS indicates growth of 39.2% and 2,876.2%, respectively, from the prior-year levels.
The Gorman-Rupp Company (GRC - Free Report) currently sports a Zacks Rank of 1. Gorman-Rupp delivered a trailing four-quarter earnings surprise of 17.6%, on average. The stock has gained 58.3% year to date.
The Zacks Consensus Estimate for Gorman-Rupp’s 2026 sales and EPS implies an increase of 6.5% and 21.5%, respectively, from a year ago.