WSO

• Gross profit decreased 4% to $579 million, with gross margin at 27.5% versus 29.3% last year.
• Operating income decreased 12% to $238 million, with operating margin at 11.3% versus 13.2% last year.
• Diluted earnings per share decreased 12% to $4.00 for the quarter.
• Acquired Jackson Supply Company, adding approximately $230 million in annualized sales across 25 Sunbelt locations.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• The filing includes Exhibit 5.1, an opinion of Greenberg Traurig, P.A., and Exhibit 23.1, the consent of Greenberg Traurig, P.A. (included in Exhibit 5.1).
• The report was filed solely to attach these exhibits, with no other material events disclosed.
• The exhibit relates to legal matters, likely in connection with a securities offering or registration statement.
• The filing was signed by Chief Financial Officer Ana M. Menendez.

9.01 Financial Statements and Exhibits

• Watsco, Inc. held its 2026 Annual Meeting of Shareholders on June 1, 2026.
• Class B common shareholders elected Cesar L. Alvarez and Denise Dickins as Class B Common stock directors, each with over 53 million votes for.
• A non-binding advisory resolution on named executive officer compensation passed with 80,839,936 votes for, 2,969,397 against, and 125,790 abstentions.
• Shareholders ratified the appointment of Deloitte & Touche LLP as independent registered public accounting firm for fiscal 2026 with 86,731,800 votes for.

5.07 Submission of Matters to a Vote of Security Holders

• Watsco will issue Consideration Shares of Common Stock valued at $198.0 million, net of debt and transaction expenses, based on a 10-day VWAP.
• $25.0 million of the Consideration Shares will be held in escrow for up to 12 months for purchase price adjustments and indemnification.
• Based on the VWAP through April 27, 2026, an estimated 458,985 shares would be issued, subject to closing adjustments.
• The shares are unregistered and issued under Section 4(a)(2) exemption; Seller represented accredited investor status and investment intent.

3.02 Unregistered Sales of Equity Securities

• Operating income decreased 2% to $110 million (operating margin 7.2% vs 7.3%), and diluted EPS decreased 3% to $1.87.
• Cash used in operations improved to $19 million from $178 million in the prior year quarter, a $159 million improvement.
• Watsco agreed to acquire Jackson Supply Company, a Sunbelt HVAC distributor with annual sales of $230 million, expected to close in Q2 2026.
• The company increased its annual cash dividend by 10% to $13.20 per share in April 2026.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Fourth quarter 2025 revenues decreased 10% to $1.58 billion, with operating income down 25% to $102 million.
• Full-year 2025 diluted EPS was $12.25, compared to $13.30 in 2024; fourth quarter diluted EPS was $1.68 versus $2.37.
• The company generated record fourth quarter operating cash flow of $400 million and $570 million for the full year.
• Watsco announced a 10% increase in its annual dividend to $13.20 per share, effective with the April 2026 payment.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Operating income decreased 6% to $235 million (11.4% margin); EPS was $3.98 versus $4.22 last year.
• Nine-month revenues decreased 3% to $5.66 billion; gross profit rose 2% to $1.60 billion with a record 28.3% margin; EPS fell 4% to $10.48.
• Record third-quarter operating cash flow of $355 million; nine-month operating cash flow was $170 million.
• Company expects Q4 2025 results to be affected by the same factors, including the A2L transition and strong prior-year comparisons.
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2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Operating income increased 1% to $272 million, operating margin expanded 60 basis points to 13.2%, and EPS was $4.52 versus $4.49 in the prior year.
• Six-month revenues decreased 3% to $3.59 billion, gross profit up 2% to $1.03 billion, operating income down 3% to $384 million, and EPS $6.50 versus $6.69.
• Sales declined 3% in domestic markets and 12% in non-US markets; HVAC equipment sales fell 6%, other HVAC products flat, and commercial refrigeration up 3%.
• The company reported $293 million cash, no debt, and $3 billion shareholders' equity as of June 30, 2025, and raised its annual dividend 11% to $12.00 per share in April 2025.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits