WSO Watsco margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 54

Gross margin

27.2%

Operating margin

9.1%

EBITDA margin

8.6%

Net margin

6.3%

Current Watsco reports a gross margin of 27.2%, an operating margin of 9.1%, an EBITDA margin of 8.6%, and a net margin of 6.3%. Operating margin headed the decline across the available margins, falling by 1.1 percentage points.

WSO margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Watsco's margins averaged 27.32% gross, 10.08% operating, 9.4% EBITDA, and 6.92% net. Each of the four current margins is below its three-year average.

WSO margin expansion

Year-over-year margin changes in percentage points

Compared with last year, gross, operating, EBITDA, and net margins all declined, with operating margin showing the largest decrease at 1.1 percentage points.

Gross margin expansion

-0.7pp

Operating margin expansion

-1.1pp

EBITDA margin expansion

-0.9pp

Net margin expansion

-0.7pp

WSO Gross margin

Watsco recorded an average gross margin of 27.32% across the last 3 years. Currently, the current gross margin for Watsco is 27.2%, 0.1 percentage points below its three-year average. The gross margin for Watsco moved between 26.7% in Sep 2024 and 28% in Mar 2026.

WSO Operating margin

The average operating margin for Watsco was 10.08% during the last 3 years. As of the latest period, Watsco's current operating margin is 9.1%, which is 1 percentage points below its three-year average. The operating margin for Watsco moved between 9.1% in Sep 2026 and 10.9% in Dec 2023.

WSO EBITDA margin

Looking back over the last 3 years, Watsco recorded an average EBITDA margin of 9.4%. Against its three-year average, Watsco's EBITDA margin is currently 8.6%, 0.8 percentage points below its three-year average. The highest EBITDA margin for Watsco was 10.1% in Dec 2023, while the lowest was 8.6% in Sep 2026.

WSO Net margin

The average net margin for Watsco was 6.92% across the past 3 years. Right now, the current net margin for Watsco is 6.3%, 0.6 percentage points below its three-year average. The net margin for Watsco moved between 6.3% in Sep 2026 and 7.4% in Dec 2023.

WSO margin group comparison

Margins compared with peer-group, industry and sector averages

Watsco's gross margin of 27.2% is lower than the Industrials sector, the industry and its peers average. In comparison with the Industrials sector average of 32.5%, Watsco's gross margin is 16% lower.

WSO margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Watsco's gross margin?

As of Sep 30, 2026, WSO has a gross margin of 27.2%.

What is Watsco's operating margin?

For the period ending Sep 30, 2026, WSO recorded an operating margin of 9.1%.

What is Watsco's EBITDA margin?

The current EBITDA margin for WSO is 8.6% as of Sep 30, 2026.

What is Watsco's net margin?

For the period ending Sep 30, 2026, WSO recorded a net margin of 6.3%.

What are the average margins of WSO?

Across the last 3 years, WSO averaged 27.3% gross, 10.1% operating, 9.4% EBITDA, and 6.9% net.

What are the highest historical margins of WSO?

Watsco's highest recorded margins during the past 5 years were 28% gross in Mar 2026, 11.4% operating in Sep 2023, 10.5% EBITDA in Dec 2022, and 8.3% net in Dec 2022.

What are the lowest historical margins of WSO?

Looking back across 5 years, WSO reached its lowest margins at 26.6% gross in Dec 2021, 9.1% operating in Sep 2026, 8.6% EBITDA in Sep 2026, and 6.3% net in Sep 2026.