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MIAMI, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced that it has signed a $750 million unsecured senior revolving credit facility led by Bank of America, N.A. as Joint Lead Arranger, Sole Bookrunner and Administrative Agent and JPMorgan Chase Bank, N.A., PNC Bank, N.A., Wells Fargo Bank, N.A., and U.S. Bank N.A. as Joint Lead Arrangers and Co-Syndication Agents, along with five other banks. The new facility amends and extends Watsco’s existing unsecured revolving credit facility.

Borrowings under the five-year $750 million unsecured credit facility were used to repay outstanding borrowings of $69.7 million under the prior credit facility. Any additional borrowings will be used for working capital, acquisitions, dividends and other general purposes and bear interest at different rates depending on the types of advances or loans the Company selects. Terms of the agreement include increased borrowing capacity, covenant flexibility and greater sensitivity to the seasonal nature of our working capital requirements. 

Barry S. Logan, Watsco’s Executive Vice President said: “A committed source of low-cost debt is an important building block of our growth strategy. We appreciate the strong support and commitment from our relationship banks.” 

About Watsco 

Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved a 17% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

Watsco maintains a solid balance sheet, enabling sustained investments in growth, including the Company’s industry-leading technologies. Today, more than 73,000 contractors and technicians engage digitally, empowering them to adopt and integrate Watsco’s tools into their daily operations. The Company is also introducing AI-driven initiatives to leverage its extensive data assets and enrich the customer experience. The Company believes its technology ecosystem represents a durable and widening competitive advantage in its highly fragmented industry.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Barry S. LoganWatsco, Inc.Executive Vice President2665 S. Bayshore Drive, Suite 901(305) 714-4102Miami, FL 33133, USAe-mail: [email protected](305) 714-4100 www.watsco.com

MIAMI, Oct. 09, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) announced today that it has scheduled a conference call to discuss its 2026 third quarter results on Tuesday, October 27, 2026 at 10:00 a.m. (EDT). Prepared remarks regarding the results will be followed by a question-and-answer session with the senior management team.

The conference call will be webcast by CCBN's StreetEvents and can be found under the link highlighted on our website at www.watsco.com. The earnings results will be released before the market opens on October 27, 2026. A replay of the conference call will be available on our website.

Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to the call start time.

To pre-register, go to: https://dpregister.com/sreg/10212625/10511ca8502

Participants that would like to join, but have not pre-registered, can do so by dialing (844) 883-3908 within the United States or (412) 317-9254 internationally and asking for the “Watsco” call. Please call five to ten minutes prior to the scheduled start time as the number of telephone connections is limited.

Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

Watsco maintains a solid balance sheet, enabling sustained investments in growth, including the Company’s industry-leading technologies. Today, more than 70,000 contractors and technicians engage digitally, empowering them to adopt and integrate Watsco’s tools into their daily operations. The Company is also introducing AI-driven initiatives to leverage its extensive data assets and enrich the customer experience. The Company believes its technology ecosystem represents a durable and widening competitive advantage in its highly fragmented industry.

Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]

MIAMI, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc.’s (NYSE: WSO) Board of Directors has declared a regular quarterly cash dividend of $3.30 on each outstanding share of its Common and Class B common stock payable on October 30, 2026 to shareholders of record at the close of business on October 16, 2026.

Watsco has paid dividends to shareholders for 52 consecutive years. The Company’s philosophy is to share cash flow through dividends while keeping a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends will be considered in light of investment opportunities, cash flow, general economic conditions, and Watsco’s overall financial condition.

About Watsco

Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

Watsco maintains a solid balance sheet, enabling sustained investments in growth, including the Company’s industry-leading technologies. Today, more than 70,000 contractors and technicians engage digitally, empowering them to adopt and integrate Watsco’s tools into their daily operations. The Company is also introducing AI-driven initiatives to leverage its extensive data assets and enrich the customer experience. The Company believes its technology ecosystem represents a durable and widening competitive advantage in its highly fragmented industry.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Barry S. Logan
Executive Vice President 
(305) 714-4102
e-mail: [email protected]

It has been about a month since the last earnings report for Watsco (WSO - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Watsco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Watsco Q2 Earnings & Revenues Miss Estimates as Margins ContractWatsco reported second-quarter 2026 results with earnings and revenues missing the Zacks Consensus Estimate.  Revenues increased year over year, while earnings declined.

The earnings shortfall primarily reflected lower gross margins, as unusually favorable OEM pricing actions in the prior-year period created a difficult comparison. Nonetheless, same-store sales improved, supported by better residential HVAC equipment demand.

Inside WSO’s Q2 HeadlinesThe company reported earnings of $4 per share, down 11.5% from $4.52 a year ago. The figure missed the Zacks Consensus Estimate of $4.38 by 8.7%.

Revenues rose 2.1% year over year to $2.10 billion but missed the $2.16 billion consensus by 2.6%.

WSO's Residential HVAC Sales Gain GroundHVAC equipment sales, excluding acquisitions, increased 3% and represented 68% of second-quarter sales. Residential product sales advanced 5%, including a 5% increase in U.S. markets and a 1% gain in international markets. Domestic residential compressor-bearing system volumes rose 2%, while average selling prices increased 2%.

Commercial HVAC product sales declined 8%. Other HVAC products, representing 28% of sales, decreased 1%, while commercial refrigeration products, accounting for 4%, increased 19%. Management said the refrigeration increase reflected customer wins at one of its business units, while commercial HVAC weakness was concentrated in variable refrigerant flow products.

Watsco Faces a Tough Gross Margin ComparisonGross profit fell 4% year over year to $578.9 million. Gross margin contracted 180 basis points to 27.5% from 29.3%, primarily because 2025 benefited from significant inflationary manufacturer pricing actions, while 2026 pricing returned closer to historical levels.

Management described the recent margin range as more consistent with the company's longer-term trend. It maintained its long-term goal of reaching a 30% gross profit margin through operating and technology initiatives.

WSO's Higher Costs Weigh on Operating ProfitSelling, general and administrative expenses increased 3% to $349 million and rose to 16.6% of revenues from 16.4%. On a same-store basis, SG&A expenses increased 2%, mainly because of higher facilities and transportation costs, partly offset by lower salaries.

Operating income declined 12% to $238.4 million, while operating margin fell to 11.3% from 13.2%. The combination of lower gross profit and higher operating expenses outweighed the benefit of lower income taxes.

Watsco Adds Jackson Supply to Its Sunbelt FootprintWatsco completed the acquisition of Jackson Supply on June 1. Jackson generated approximately $230.0 million in annual sales in 2025 and operates 25 locations across Texas, Louisiana, Tennessee, Alabama, Mississippi, Oklahoma and Arizona.

The transaction helped lift Watsco's network to 723 locations as of June 30, 2026. Management said Jackson's profitability is consistent with Watsco's overall profile and highlighted the acquired company's plans to expand using Watsco's capital, technology and supplier relationships.

WSO's Cash Use Improves and Balance Sheet Stays CleanWatsco ended June 2026 with $364.2 million in cash and cash equivalents, up 24.3% from $293 million a year earlier. The company also held $100 million in short-term cash investments and had no outstanding balance under its $600 million revolving credit agreement.

Cash used in operating activities narrowed to $21.4 million in the first half of 2026 from $185.1 million a year earlier. The improvement primarily reflected the timing of vendor payments and a lower increase in inventory, partly offset by higher accounts receivable. Working capital reached $2.37 billion at quarter-end.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -6.58% due to these changes.

VGM ScoresAt this time, Watsco has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Watsco has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Jackson Supply Acquisition Adds Density to Key Sunbelt Markets;
Entrepreneurial Culture and Debt-Free Balance Sheet Positions Company for Growth

MIAMI, July 29, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced its operating results for the quarter and six months ended June 30, 2026.

Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

During the second quarter, Watsco closed on the acquisition of Jackson Supply Company, a market-leading HVAC distributor with annualized sales of approximately $230 million across 25 Sunbelt locations. Jackson Supply offers a balanced product offering of HVAC equipment, parts and supplies. Just as importantly, Jackson Supply adds to Watsco’s community of leaders.

Watsco maintains a solid balance sheet with $464 million in cash and cash investments and no debt, enabling sustained investments in growth, including the Company’s industry-leading technologies. Today, more than 70,000 contractors and technicians engage digitally, empowering them to adopt and integrate Watsco’s tools into their daily operations. The Company is also introducing AI-driven initiatives to leverage Watsco’s extensive data assets and enrich the customer experience. The Company believes its technology ecosystem represents a durable and widening competitive advantage in the highly fragmented HVAC industry.

Second Quarter Operating Performance

Revenues increased 2% to $2.1 billion (1% on a same-store basis)Gross profit decreased 4% to $579 million (gross profit margin of 27.5% versus 29.3% last year)SG&A increased 3% to $349 million (16.6% as a percentage of sales versus 16.4% last year)Operating income decreased 12% to $238 million (operating margin of 11.3% versus 13.2% last year)Earnings per share decreased 12% to $4.00 Second Quarter Sales Trends (excluding acquisitions)

3% increase in HVAC equipment sales (68% of sales)1% decrease in sales of other HVAC products (28% of sales)19% increase in commercial refrigeration products (4% of sales) Second quarter sales reflect stabilizing end-market demand following last year’s transition to next generation HVAC systems containing A2L refrigerants, which affected virtually all domestic HVAC equipment products sold across 650 domestic locations and impacted our customers’ business as well. Domestic residential HVAC equipment sales increased 5% during the quarter, including 2% growth in unit volume and a 2% increase in average selling prices. With the A2L transition largely complete, the Company is focused on growth with existing customers, acquisition of new customers, improved operating efficiencies and optimizing inventory given a simpler operating environment.

Second quarter gross margin was impacted by the timing and magnitude of pricing actions implemented by our primary OEMs in 2025 versus 2026. Pricing actions in 2025 captured substantial inflation and tariffs, resulting in outsized benefits to last year’s gross margin. In contrast, pricing actions for 2026 have normalized, returning to levels more in line with historical trends. The comparative benefit to 2025’s gross margin, along with other A2L transition-related impacts, was approximately 130 basis-points. The Company believes that gross margin thus far in 2026, which were largely consistent with gross margin achieved for the last 12 months ended June 30, 2026, are more representative of underlying market conditions.

Albert H. Nahmad, Chairman and CEO said: “Our performance during the second quarter is indicative of improving end-market stability after a busy period of regulatory transitions. We are now operating in a more conventional environment in which Watsco’s scale, OEM relationships, and technology investments can add even more value.”

Mr. Nahmad added: “We are excited that Jackson Supply is now officially a member of the Watsco family. It is a legendary company that diversifies and expands our presence in key Sunbelt markets. We look forward to supporting their growth. I am also excited about the recent launch of SupplySync, which we introduced at our investor day last year, and continued progress on the other initiatives that are now active. We believe that Watsco is uniquely positioned for continued growth and success in our industry.”

Year to Date Operating Performance

Revenues increased 1% to $3.6 billionGross profit decreased 3% to $1 billion (gross profit margin of 27.7% versus 28.7% last year)SG&A increased 2% to $672 million (18.5% as a percentage of sales versus 18.4% last year)Operating income decreased 9% to $349 million (operating margin of 9.6% versus 10.7 % last year)Earnings per share decreased 9% to $5.92Cash used in operations of $21 million versus $185 million last year, a $164 million improvement Year to Date Sales Trends (excluding acquisitions)

1% increase in HVAC equipment sales (67% of sales)1% increase in sales of other HVAC products (29% of sales)16% increase in commercial refrigeration products (4% of sales) Innovation and Strategic Technology Initiatives
The Company’s continued investment in technology reflects a long-term strategic commitment to building capabilities that strengthen customer relationships, improve operating efficiency and support sustainable growth. Watsco has invested more than $250 million in its digital platforms over the last five years, at a current annual run rate of approximately $68 million, and the breadth of that investment spans across the customer-engagement, internal platforms to increase the speed and efficiency of our locations and emerging AI capabilities that help customers grow and deliver technical know-how quicker.

Watsco’s HVAC Pro+ Mobile Apps and E-Commerce platform have transformed the customer-experience by providing contractors with a seamless digital experience, including sourcing products, accessing technical help, real-time inventory, pricing, product information and more. These tools empower 24/7 self-service that benefit from advanced analytics, AI, technical knowledge and product recommendations. The result is a frictionless buying journey, increased convenience and higher customer satisfaction, which drives greater loyalty and repeat business with lower costs to serve.Thus far in 2026:

E-commerce sales grew 13% during the first six months of 2026, far outpacing overall revenue growth, and reached $2.7 billion for the 12 months ended June 30, 2026 (37% of sales), with outperforming regions exceeding 70% in e-commerce sales.The addition of more than 10,000 new SKUs related to the A2L product launch, including all relevant data concerning features, dimensions, capacities, consumer literature and technical information such as bills of material, warranty information, regulatory match ups and more. OnCallAir® is Watsco’s digital sales platform enabling contractors to engage, present and quote solutions to homeowners. The gross merchandise value (GMV) of products sold through OnCallAir® reached $1 billion for the first six months of 2026, a 14% increase over the same period last year. For the twelve months ended June 30, 2026, contractors presented quotes to approximately 342,000 households and generated $1.9 billion GMV, a 15% increase versus the prior comparable twelve-month period.
A.J. Nahmad, Watsco’s President, added: “Our technology platforms have continued to scale and deepen their impact for our customers. We believe that the growth in e-commerce, OnCallAir® and overall digital engagement across our network reflects the value these tools deliver to our customers every day. We have also progressed nicely with the various initiatives introduced at our investor day, including the formal launch of SupplySync and the scaling of the other initiatives announced. Our focus remains advancing these unique capabilities – with AI enabling better and faster speed to market – in ways that help our customers grow.”

Buy & Build Acquisition Strategy
The Company acquired Jackson Supply in June 2026. Jackson Supply is among largest Sunbelt HVAC distributors, serving approximately 5,000 customers from 25 locations in several high-growth Sunbelt markets.

The Company continues to actively seek new businesses that will join the Watsco family. Watsco has acquired 13 companies in recent years that today represent approximately $1.8 billion in annualized sales and 145 locations. Our “buy and build” strategy builds upon their long-standing legacies through investment in new locations, new products and by leveraging Watsco’s technology platforms. The North American distribution market remains highly fragmented with more than 2,100 HVAC distributors.

Cash Flow, Dividends, Financial Strength and Liquidity
Operating cash flow was a cash-use of $21 million for the six-month period ended June 30, 2026, reflecting the customary seasonal buildup of working capital, compared to a cash-use of $185 million for the same period in 2025, a $164 million improvement. The Company expects more conventional supply-chain trends for the remainder of 2026, providing the opportunity for better inventory turns and enhanced returns on invested capital.

In April 2026, the Company increased its annual cash dividend by 10% to $13.20 per share. Watsco has paid dividends to shareholders for 52 consecutive years. The Company’s philosophy is to share cash flow through dividends while maintaining a conservative balance sheet with continued capacity to build its distribution network. Future changes in dividends are considered in light of investment opportunities, cash flow, general economic conditions and Watsco’s overall financial condition.

The Company’s objective is to maintain a healthy balance sheet that provides low-cost capital to fund strategic growth investments. This strong financial position has been key to our ability to deliver sustained long-term returns, enabling investments regardless of macroeconomic or industry conditions. The Company’s stated goal is to generate annual operating cash flow in excess of net income.

Use of Non-GAAP Financial Information
In this release, the Company discloses non-GAAP measures on a “same-store basis”, which exclude the effects of locations closed, acquired, or locations opened, in each case during the immediately preceding 12 months, unless such locations are within close geographical proximity to existing locations. The Company believes that this information provides greater comparability regarding its ongoing operating performance. These measures should not be considered an alternative to measurements presented in accordance with U.S. GAAP.

Second Quarter Earnings Conference Call Information
Date and time: July 29, 2026 at 10:00 a.m. (EDT)
Webcast: http://investors.watsco.com (a replay will be available on the Company’s website)
Dial-in number: United States (844) 883-3908 / International (412) 317-9254

About Watsco
Watsco is the largest distributor in the highly fragmented North American HVAC/R market. Watsco’s solid financial position and culture of innovation has enabled investments in long-term growth, including the Company’s industry-leading technology platforms. Today, more than 70,000 contractors, installers and technicians engage digitally with the Company, resulting in improved growth and lower attrition. The Company is now advancing AI-driven initiatives to leverage its extensive data assets to enhance the customer experience and improve efficiencies. These investments position Watsco to capture market share as contractors increasingly adopt digital tools and incorporate data-driven solutions in their businesses.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

WATSCO, INC.
Condensed Consolidated Results of Operations
(In thousands, except share and per share data)
(Unaudited)  Quarters Ended June 30, Six Months Ended June 30,   2026   2025   2026   2025 Revenues $2,104,859  $2,062,442  $3,637,869  $3,593,528 Cost of sales  1,525,930   1,458,954   2,631,385   2,560,417 Gross profit  578,929   603,488   1,006,484   1,033,111 Gross profit margin  27.5%  29.3%  27.7%  28.7%Selling, general and administrative expenses  348,986   339,001   671,837   661,582 Other income  8,429   7,382   13,909   12,528 Operating income  238,372   271,869   348,556   384,057 Operating margin  11.3%  13.2%  9.6%  10.7%Interest income, net  3,497   2,329   9,956   7,746 Income before income taxes  241,869   274,198   358,512   391,803 Income taxes  50,567   57,430   74,269   80,495 Net income  191,302   216,768   284,243   311,308 Less: net income attributable to non-controlling interest  27,966   33,155   41,833   47,634 Net income attributable to Watsco, Inc. $163,336  $183,613  $242,410  $263,674 Diluted earnings per share:        Net income attributable to Watsco, Inc. shareholders $163,336  $183,613  $242,410  $263,674 Less: distributed and undistributed earnings allocated to restricted common stock  10,733   12,159   16,855   17,409 Earnings allocated to Watsco, Inc. shareholders $152,603  $171,454  $225,555  $246,265 Weighted-average Common and Class B common shares and equivalent shares used to calculate diluted earnings per share  38,192,692   37,899,430   38,079,266   37,876,470 Diluted earnings per share for Common and Class B common stock $4.00  $4.52  $5.92  $6.50  WATSCO, INC.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

  June 30,
2026
 December 31,
2025
Cash and cash equivalents $364,189  $433,283 Short-term cash investments  100,000   300,000 Accounts receivable, net  1,060,767   796,181 Inventories, net  1,890,473   1,386,317 Other current assets  38,668   38,725 Total current assets  3,454,097   2,954,506 Property and equipment, net  146,892   136,012 Operating lease right-of-use assets  509,300   452,547 Goodwill, intangibles, net and other  974,428   871,740 Total assets $5,084,717  $4,414,805 Accounts payable and accrued expenses $960,051  $600,589 Current portion of lease liabilities  119,723   117,153 Total current liabilities  1,079,774   717,742 Operating lease liabilities, net of current portion  406,478   350,616 Deferred income taxes and other liabilities  125,255   124,386 Total liabilities  1,611,507   1,192,744 Watsco, Inc. shareholders' equity  2,994,413   2,781,376 Non-controlling interest  478,797   440,685 Total shareholders' equity  3,473,210   3,222,061 Total liabilities and shareholders' equity $5,084,717  $4,414,805  WATSCO, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)  Six Months Ended June 30,   2026   2025 Cash flows from operating activities:    Net income $284,243  $311,308 Adjustments to reconcile net income to net cash used in operating activities:    Depreciation and amortization  21,943   21,687 Non-cash contribution to 401(k) plan  9,267   8,743 Share-based compensation  16,711   17,612 Provision for doubtful accounts  2,442   704 Other income from investment in unconsolidated entity  (13,909)  (12,528)Other, net  2,861   3,297 Changes in operating assets and liabilities, net of effects of acquisitions:    Accounts receivable, net  (244,560)  (131,119)Inventories, net  (443,966)  (552,956)Accounts payable and other liabilities  339,169   149,774 Other, net  4,359   (1,612)Net cash used in operating activities  (21,440)  (185,090)Cash flows from investing activities:    Net proceeds from short-term investments  200,000   255,669 Business acquisitions, net of cash acquired  7,663   (19,383)Capital expenditures, net  (15,898)  (14,034)Net cash provided by investing activities  191,765   222,252 Cash flows from financing activities:    Dividends on common stock  (255,920)  (230,497)Distributions to non-controlling interest  -   (69,829)Proceeds from dividend reinvestment plan  8,107   14,111 Other, net  10,453   11,982 Net cash used in financing activities  (237,360)  (274,233)Effect of foreign exchange rate changes on cash and cash equivalents  (2,059)  3,778 Net decrease in cash and cash equivalents  (69,094)  (233,293)Cash and cash equivalents at beginning of period  433,283   526,271 Cash and cash equivalents at end of period $364,189  $292,978  Barry S. Logan
Executive Vice President
(305) 714-4102
e-mail: [email protected]