Watsco Targets 30% Gross Margin Following Granite Acquisition and A2L Transition Progress
Watsco (WSO) reported improving demand and normalizing market conditions during its Q3 earnings call. CEO Albert Nahmad noted that the company's digital ecosystem is driving measurable growth, specifically highlighting a 7% increase in residential HVAC equipment sales. The company is focused on long-term margin expansion, targeting a 30% gross margin. This goal is supported by the integration of Granite, which brings $500 million in sales to the portfolio, and the nearing completion of the A2L refrigerant transition, which management expects to be largely finalized by year-end.
Tickers: $WSO
Topics: digital ecosystem earnings HVAC demand residential growth