Ecommerce remained a growth engine for Watsco Inc. sales in the first half of 2026, rising 13% as the heating, ventilation, and air conditioning (HVAC) distributor began stabilizing after several years of market disruption.
Watsco’s online growth far outpaced its overall sales performance. For the six months ended June 30, the company reported that total revenue inched up 1%, reaching $3.64 billion. In Q2 alone, revenue rose 2% to $2.10 billion, or 1% on a same-store basis.
Online sales reached $2.7 billion for the 12 months ended June 30, representing 37% of Watsco’s total sales.
“The last five years brought a pandemic, supply chain disruptions, regulatory transitions and tariff volatility,” chairman and CEO Albert Nahmad told investors on the company’s earnings call. “Now the operating environment is normalizing, revenue is growing and a digital ecosystem is producing measurable results.”
How Watsco is expanding its digital platforms
Watsco said it has invested more than $250 million in its digital platforms over the past five years. That spending is continuing at an annual rate of about $68 million. The company said investments include customer engagement tools, internal platforms and “AI capabilities that help customers grow and deliver technical know-how quicker.”
During Q2, Watsco launched SupplySync.com, a platform aimed at large institutional customers. A.J. Nahmad, the president at Watsco, called it an “incremental growth opportunity” that can leverage Watsco’s existing scale and infrastructure.
OnCallAir also continued to scale. The digital sales platform allows contractors to quote HVAC products to homeowners. Products sold through it generated $1 billion in gross merchandise value (GMV) during the first six months of 2026, up 14% year over year.
For the 12 months ended June 30, Watsco said contractors used OnCallAir to present proposals to roughly 342,000 households, generating $1.90 billion in GMV. That marked a 15% increase from the prior comparable period.
“Simply put, the contractors we serve digitally are growing faster, attrit less and we believe we can lower our cost to serve at scale over time,” A.J. Nahmad said.
Additionally, Watsco’s HVAC Pro+ mobile apps and ecommerce platform allow contractors to source products, check inventory and pricing, and access technical help. A.J. Nahmad said the apps now have more than 70,000 monthly active users.
Watsco Q2 financial results
Watsco’s U.S. residential HVAC equipment sales rose 5% in Q2, led by a 2% increase in unit volume and a 2% rise in average selling prices. Executives noted strong demand in northern states, while new construction softened in Florida and Texas.
Despite higher sales, gross profit declined 4% to $579 million. Gross margin fell to 27.5% from 29.3% a year earlier. Watsco attributed much of the decline to a difficult comparison with 2025.
Last year, HVAC manufacturers imposed aggressive price increases in response to inflation and tariffs, temporarily benefiting Watsco’s margins, Albert Nahmad said. Manufacturer pricing returned to more typical levels in 2026.
The transition to A2L refrigerants also affected the comparison. A2L refrigerants have lower toxicity and limited flammability.
Last year, federal restrictions on higher-impact refrigerants began taking effect, requiring Watsco to update its inventory and product catalog.
Watsco said the transition is now largely complete. So far in 2026, the company has added more than 10,000 SKUs related to the A2L product launch.
Watsco closes Jackson Supply acquisition
On June 1, Watsco also completed its acquisition of Jackson Supply Company.
The Texas-based HVAC distributor generated $230 million in sales in 2025. It serves roughly 5,000 contractor customers from 25 locations across seven Sunbelt states.
Jackson Supply Company contributed about $20 million to Watsco’s revenue during June, executive Rick Gomez told investors. He said Jackson’s existing management remains in place and aims to double the business.
“They have a very aggressive plan to do more of what they’ve been doing with our capital, our relationships, our technology, and a team that’s been together as a family and is staying together as a family moving forward,” Gomez said.
Watsco ended Q2 with $464 million in cash and cash investments and no debt, giving it room for additional technology investments and acquisitions. Since entering HVAC distribution in 1989, Watsco said, it has acquired more than 70 businesses.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s our last update on Watsco ecommerce sales.
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