> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Watsco's Chairman Says It Is Now 'Committed To Growing' In Plumbing After Granite Deal
- URL: https://www.bullished.co/watscos-chairman-says-it-is-now-committed-to-growing-in-plumbing-after-granite-deal-77e4fdeb/
- Published: 2026-10-27T16:46:27.000Z
- Updated: 2026-10-27T16:46:27.000Z
- Description: Management pitched plumbing as a second industry where Watsco can "get size," while its CFO said the move is not really a new entry.
- Author: Matteo Parrino
- Tags: Earnings, WSO, Industry: Industrials

[Watsco](https://www.bullished.co/tag/wso/), which distributes heating, cooling and refrigeration equipment and parts, is now "committed to growing in the plumbing market," Chairman and CEO Albert Nahmad said on the company's third-quarter earnings call, after [completing its purchase](https://www.benzinga.com/news/26/10/62625185/watsco-q3-2026-earnings-call-transcript?ref=bullished.co) of The Granite Group.

## Two industries to play in

Nahmad said Watsco now has "[two industries](https://www.benzinga.com/news/26/10/62625185/watsco-q3-2026-earnings-call-transcript?ref=bullished.co) that we can play and play hard and get size." He described the company's plumbing business as just beginning, with "a [few hundred million dollars](https://www.benzinga.com/news/26/10/62625185/watsco-q3-2026-earnings-call-transcript?ref=bullished.co) worth of sales in a much larger market."

He said two earlier business units had already shown that plumbing can add profitability. "[Big opportunity is](https://www.benzinga.com/news/26/10/62625185/watsco-q3-2026-earnings-call-transcript?ref=bullished.co) what I'm trying to say," he told analysts.

Granite has annual sales of about [$500 million](https://finance.yahoo.com/markets/stocks/articles/watsco-reports-record-third-quarter-113000930.html?ref=bullished.co) and serves more than 11,000 customers from 82 locations in the Northeast, management said. It is the fourth business Watsco has bought that serves both HVAC and plumbing contractors, and Watsco now has 112 locations selling both.

## Not a new entry, the CFO says

Executive Vice President and CFO Barry Logan pushed back on the idea that Watsco is entering a new business. Granite has done both HVAC and plumbing well for over 50 years, he said, and 20 of the top 50 plumbing distributors in the country also sell HVAC. "It's an ordinary thing," Logan said.

Executive Vice President Rick Gomez said plumbing margins are not "structurally different" from HVAC. Margins depend on how much equipment versus non-equipment a distributor sells, he said, as in HVAC.

What differs, Gomez said, is that plumbing contractors are somewhat less consolidated and less technology-enabled than HVAC contractors. He called it the "very early innings" of the same maturity curve HVAC contractors have gone through.

## Keeping acquired companies as they are

Granite follows Jackson Supply, which Watsco bought on June 1 and which has $230 million in annual sales across 25 Sunbelt locations. Logan said Jackson grew 16% in its first quarter under Watsco.

Logan said the word "synergy" does not exist in Watsco's mindset: it keeps the people, culture and infrastructure of the companies it buys. Nahmad said the M&A pipeline has always included companies that distribute both HVAC and plumbing, and that Watsco hopes more will join.

On the quarter, sales rose 7% to a record $2.22 billion, and Watsco ended it with $649 million in cash and no debt. Granite was funded partly from that cash in October.

Nahmad said he hopes more companies that sell both HVAC and plumbing will join Watsco.

### Sources

- [Watsco Q3 2026 Earnings Call Transcript - Watsco (NYSE:WSO)](https://www.benzinga.com/news/26/10/62625185/watsco-q3-2026-earnings-call-transcript?ref=bullished.co) — benzinga.com
- [Watsco Reports Record Third Quarter Sales, Strong Cash Flow and Improving Demand](https://finance.yahoo.com/markets/stocks/articles/watsco-reports-record-third-quarter-113000930.html?ref=bullished.co) — Yahoo Finance
- [Watsco: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/watsco-q3-earnings-snapshot-113646700.html?ref=bullished.co) — Associated Press
- [Watsco GAAP EPS of $3.77 misses by $0.32, revenue of $2.22B beats by $10M (WSO:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4657789-watsco-gaap-eps-of-3%5F77-misses-by-0%5F32-revenue-of-2%5F22b-beats-by-10m?ref=bullished.co) — seekingalpha.com
- [Watsco (WSO) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates](https://finance.yahoo.com/markets/stocks/articles/watsco-wso-q3-earnings-key-133001417.html?ref=bullished.co) — Yahoo Finance

### More on Watsco

- [Watsco Sales Hit A Record $2.22 Billion, But Margins Shrink And EPS Slips 5%](https://www.bullished.co/watsco-sales-hit-a-record-2-22-billion-but-margins-shrink-and-eps-slips-5-d4182c76/)
- [Watsco Says It Issued 338,176 Shares To Granite Group Sellers, Replacing Its Earlier Estimate](https://www.bullished.co/watsco-says-it-issued-338-176-shares-to-granite-group-sellers-replacing-its-earlier-1b610c6e/)

[All Watsco (WSO) coverage →](https://www.bullished.co/tag/wso/)