HVACR equipment and supplies distributor announced a considerable acquisition alongside reporting its 1Q26 financial results on April 28, with the company noting stabilizing market conditions that align with recent comments from numerous other publicly traded distributors and sentiment in the latest Baird-MDM quarterly survey.

Jackson Supply Company

Watsco said it reached a deal to acquire Jackson Supply Company, which is one of the largest HVAC distributors in the U.S. Sunbelt region. The company serves about 5,000 customers from its 25 locations across Texas, Louisiana, Mississippi, Oklahoma, Tennessee, Alabama and Arizona. Based in Spring, TX and founded in 1972, Jackson had 2025 revenue of $230 million.

Jackson’s product offering includes Goodman and Amana brand HVAC equipment manufactured by Daikin Comfort Technologies North America, along with a broad range of supplies, accessories and parts sourced from about 200 vendors.

Watsco said Jackson will operate as an independent business and maintain its current management team led by Jim Durrett and Jennifer Ballsiepier.

Terms were not disclosed for the deal, which is set to close in 2Q26.

“Jackson Supply is one of the most iconic, entrepreneurial businesses in our industry,” said Albert Nahmad, Watsco Chairman and CEO. “Jim Durret and his next generation team of leaders will continue to guide the company in their next chapter of growth, while sustaining their name, identity and unique culture. We look forward to supporting their growth with our capital, technology, industry relationships, and more to build on their impressive track record of success.”

Watsco has acquired 72 businesses since 1989 — pushing the company’s HVACR distribution market share to an estimated $74 billion, according to the company. 

1Q26 Financials

Watsco’s 1Q26 financial figures were led by a sequential improvement in revenue trajectory, with sales of $1.53 billion flat year-over-year after decreased of 10% in 4Q25 and 4% in 3Q25. Sales increased 2% YoY in U.S. markets while international fell 11%. Sales of HVAC equipment (65% of total) dipped 1%; sales of other HVAC products (30% of total) increased 4%; and sales of commercial refrigeration products (5% of total) increased 11%.

Meanwhile, 1Q26 results reflected a 9% increased in average selling price for HVAC equipment from a higher sales mix of A2L products and higher-efficiency HVAC equipment, offset by lower volumes. But, Watsco said that market conditions generally improved during 1Q26 as the transition to A2L refrigerant products continued to mature. That transition began in early 2025 and impacted about 55% of the company’s product mix.

“Our markets are experiencing improved stability as we approach the Summer selling season for our products,” Nahmad added. “Our teams are collaborating well with our contractor customers, who also have a more simplified, focused business environment in which to offer and sell their products and services. Our technology, our seasoned leadership team, our capital and our deep relationships in this wonderful industry serve us well and position us favorably to grow share.”

Other figures from Watsco’s 1Q26

• Gross profit was flat YoY at $428 million while gross margin of 27.9% dipped 20 basis points
• SG&A was also flat and consistent as a percentage of sales
• Operating profit fell 2% YoY to $110 million as margin of 7.2% dipped 10 bps
• Net profit of $93 million fell 1.7% YoY
• eCommerce sales grew 16% YoY and were approximately $2.6 billion for the 12 months ended March 31, representing 36% of total sales, with outperforming regions exceeding 60%.