Watsco, Inc. (WSO) is a public company. Watsco Inc. is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC/R distribution industry. We serve over 125,000 contractor-customers through our 692 locations where more than 7,400 team members bring essential, sustainable comfort to families and businesses across the Americas.

At Watsco, we recognize our responsibility to help drive the transition to a lower carbon future. That’s why we are committed to providing high efficiency, low carbon HVAC equipment and energy-saving parts and supplies to households and businesses across the Americas. Since January 2020, Watsco’s sales of high efficiency equipment has reduced future CO2e emissions by over 19.2 M MT.

Learn more about our impact and how you can become part of this transformation at www.watsco.com/environment. Founded in 1956. It has 257 employees. IPO 1984.

Transcript

Operator

Good day, and welcome to the Watsco, Inc. second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Al Nahmad, Chairman. Please go ahead.

Al Nahmad — Chairman and CEO

Good morning, everyone. Welcome to our second quarter earnings call. This is Al Nahmad, Chairman and CEO, and with me is A.J. Nahmad, President, also Paul Johnston and Barry Logan and Rick Gomez. Before we start, our cautionary statement. This conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws. Ultimate results may differ materially from the forward-looking statements. I am happy to report that our second quarter results reflect stabilizing markets under far more conventional operating conditions. The last five years brought a pandemic, supply chain disruptions, regulatory transitions, and tariff volatility. Through it all, we stayed the course and invested in our business. Now the operating environment is normalizing, revenue is growing, and a digital