-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
WSO reported Q1 EPS of $1.87, beating consensus by $0.19. Revenues remained flat at $1.53B and gross margins narrowed 20bps to 27.9%. The earnings beat reflected better-than-expected results amid challenging conditions, with U.S. sales rising 2% but international sales falling 11%. Mixed product performance showed HVAC equipment down 1%, other HVAC products up 4%, and commercial refrigeration up 11%, though the latter represents only 5% of sales. The ongoing A2L refrigerant transition, affecting 55% of Q1 products, drove 9% average selling price increases but was offset by lower unit volumes. WSO announced the acquisition of Jackson Supply Company ($230M annual revenues) expected to close in Q2, continuing its acquisition strategy with over 70 HVAC distributor purchases since 1989. Operating cash flow deficits improved dramatically to $19M from $178M in Q1 '25, aided by better working capital management and inventory optimization following significant A2L-related investments in 2025.