Watsco, Inc. · NYSE:WSO
Watsco — Investor Day (December 2025)
54 slides from Watsco's investor day presentation, Dec 11, 2025
Slide 1: Watsco Investor Day
Watsco Investor Day Conference Entrepreneurship + Innovation | Fueling Growth and Industry Leadership December 11, 2025
Slide 2: Safe Harbor Statement
Safe Harbor This Presentation contains or incorporates by reference statements that We believe these forward-looking statements are reasonable; however, are not historical in nature and that are intended to be, and are hereby you should not place undue reliance on any forward-looking statements, ide
Slide 3: Digital Ecosystem & E-commerce
Digital Ecosystem & E-commerce Ed Gaffney, SVP Digital Transformation and Marketing, CE North America Kelly Harvey, President, Sunshine Air Conditioning, Belleview, FL Chad Wetzel, President & GM, CE Florida & Texas Regions
Slide 4: Where We Started
Where We Started 8:28AM on March 3rd, 2015 It was at this point where CE started our digital journey and continued across the other Watsco business units.
Slide 5: Where We Are Today
Where We Are Today $2.5B Watsco E-commerce Sales 900,000+ SKUs in PIM ▪ $1.6B in E-commerce Sales at CE ▪ 80% in some regions ▪ The product information database (PIM) has attributes for every item; 350-450 orders per hour images, descriptions, specifications, representing 30 million attributes ▪ App
Slide 6: B2B Requires a Suite of Digital Solutions
B2B Requires a Suite of Digital Solutions CE’s Digital Ecosystem for our HVAC Contractors
Slide 7: The Future Is Bright
The Future Is Bright Everyday we push the boundaries of digital in the HVAC space. ▪ Continue to innovate and launch new digital products and solutions for different journeys ▪ Continue to identify ways to leverage AI ▪ Our competitive advantage is the Watsco v ecosystem ▪ Watsco/Watsco Ventures are
Slide 8: Innovations in Pricing
Innovations in Pricing Kristin Daniels, VP Pricing Strategy, Watsco Inc. Brian O’Mahony, President, CE North America
Slide 9: Managing billions of potential price points
Managing billions of potential price points 1,600+ 200,000+ 130,000+ Over 2.6 Billion Suppliers Products Customers Combinations
Slide 10: Pricing Optimization
Pricing Optimization Prior to Investment Today Countless hours spent on adhoc Analytical tools and rules-based mass analysis and tedious price maintenance readily available maintenance Leadership lacked key performance Performance metrics available to indicators to understand pricing measure the imp
Slide 11: Dynamic Customer Pricing
Sample data for one product family Dynamic High Customers Customer Pricing We tailor our customer pricing based on many Price factors, including: • Customer size & type • Geography Low • Product purchase Few Many frequency and volume Units Sold Without segmentation and optimization • Competition Reg
Slide 12: Dynamic Customer Pricing
Focus on one customer segment Dynamic High Customer Pricing Priced out of market We tailor our customer pricing based on many Price factors, including: • Customer size & type • Geography Low • Product purchase Few Many frequency and volume Units Sold Customer’s purchase volume does • Competition not
Slide 13: Pricing Technology: What Has It Meant
Pricing Technology: What Has It Meant Streamlined Pricing Maintenance 266k ▪ Quickly and efficiently administer customer price changes Supplier product cost changes processed in 2025 Expedited Pricing Response 3.8M ▪ Manage supplier cost change activity, providing customers with rational price level
Slide 14: Pricing Optimization - What's Next?
Pricing Optimization - What’s Next? Pricing Agents Agentic AI Bots designed to Expand use of Agents to constantly scan our data automate routine price for price outliers, risks, maintenance within and opportunities guardrails; freeing time for more value-add analytics Target Pricing Quoting Engine M
Slide 15: OnCall Air: The Ultimate Sales Engine
OnCall Air: The Ultimate Sales Engine Patrick Ruhland, Head of Sales and Customer Success, Watsco Ventures Rob Rusniaczech, Vice President of Sales and Training, Legacy Service Partners
Slide 16: OnCall Air Powered Sales
OnCall Air Powered Sales $6.3B in OnCall Air Contractor sales to homeowners since inception $1.7B in TTM Sales Through OnCall Air 1.1M units sold by Customers in OnCall Air to consumers since inception 225,000 units sold in OnCall Air 2025 600K Jobs closed in OnCall Air since inception 115,000 jobs
Slide 17: The OnCallAir Advantage
The OnCallAir Advantage Real Time Pricing Built in AHRI Integrated and Inventory Matchups Finance Tools for Sales Repeatable Sales Order Enablement Process Fulfillment
Slide 18: Discover OnCall Air
John Smith OnCall Air GROVE WORLD CLASS ‘SOLID CHOICE v 3 Ton 18 SEER Variable 3 7on 16 SEER 2-Stage 7 tem rs as en ae 3 Ton 15 SEER Air Contioner HVAC Electrical System Repair Savings Potential 1S Yer o 15 Yar Savings Potent Gao eee. sae ||| ao ve ee Ste Lia" : = + auality Replacement Components *
Slide 19: Contractors Grow Faster
Contractors Grow Faster In 2025 (vs 2024): 20% increase in total Gross Margin Value through OnCall Air 18% increase in quotes presented 14% increase in jobs closed *Year to Date (YTD): Represents the period from January 1, 2025 through the end of the third quarter, September 30, 2025.
Slide 20: OnCall Air Contractors Sell More
OnCall Air Contractors Sell More ▪ 2X volume of higher-efficiency equipment vs analog ▪ 25% attachment rate of recommended add-on accessories ▪ 44% close rate ▪ 17% increase in Ticket Size when presenting with Financing *Since Inception: Represents the cumulative period from October 1, 2016, through
Slide 21: Innovations in Purchasing and Distribution
Innovations in Purchasing and Distribution Jim Brady, VP Supply Chain and Logistics, Watsco Inc.
Slide 22: New Collaboration on Purchasing (VCR)
New Collaboration on Purchasing (VCR) Continued With a Focus on Builds Upon the Laser Focused Evolution into Greater Foundations built Communication an Era of Deeper Optimization of over the years in and more what we do and Technology and Meaningful how we do it Data Collaboration Advancement
Slide 23: What is VCR Focused on?
What is VCR Focused on? Parts & Supplies OEM Equipment 30% 70% Highly Fragmented Highly Concentrated
Slide 24: The What and Why?
The What and Why? Supplies – Phase 1 ▪ Extremely Fragmented ▪ Mostly handled by Non-Equipment OEM’s ▪ Vast Sales Growth Opportunities ▪ Greater Gross Margins – Less Price Sensitivity ▪ Less Brand Specific/Allegiance ▪ Better Inventory Turns ▪ Less Capital Investment Opportunity Set is ~$1.5 Billion
Slide 25: Hydros: A World Class Distribution Platform
Hydros: A World Class Distribution Platform Technology-driven Distribution Network SALES GROWTH Flexible and scalable Parts and Supplies Growth GROSS MARGIN Augment private label growth Fast, consistent replenishment PRODUCTIVITY GAINS Drive margins, turns and cash flow A Technology-Driven Supply Ch
Slide 26: Hydros Today
Hydros Today Transforming Our Scale Into Competitive Advantage Current State Early Findings ✓ Launch Date Jan 2025 ▪ Simplified Branch Operations ▪ Reduction in POs and receipts ✓ Locations Served 550+ ▪ Increased On-Time-In-Full rates ✓ YTD Turns 6 ▪ Complete process digitization ▪ Streamlined retu
Slide 27: Hydros - Future Vision and Capabilities
Hydros - Future Vision and Capabilities More SKU’s, More Customers, More Sales ▪ Expand SKU Assortment ▪ Accelerate Non-Equipment Sales and Mix ▪ Increase from Today’s 70/30 ▪ More Density, More SKU’s, More Efficient Footprint ▪ Nimble New Product Introductions ▪ Faster “go-to-market” Capabilities ▪
Slide 28: Customer Experience in the AI World
Customer Experience in the AI World Rich Martin, Director of Salesforce Platform, Watsco Inc. Zac Linde, President, Gemaire
Slide 29: AI Shaping Every Aspect of our Business
AI Shaping Every Aspect of our Business
Slide 30: AI + Operations
AI + Operations Credible, Reliable & Guiding Customers Time Saving Instantaneous And Associates Efficiency for More sales Information Customers opportunities To the right outcomes Leveraging Watsco’s rich data assets Efficiency for Improved Associates productivity
Slide 31: AI Influencing Customer Onboarding
AI Influencing Customer Onboarding 18,000 3,000 New accounts Customers onboarded annually Researched by AI (since June launch) Activation from Weeks to Minutes
Slide 32: AI Impact – Data Synthesis
Al Impact - Data Synthesis f CAWTechSipprt ene BD incuane Ask Summary Ask Chat @ Key Wins & Opportunities + Online sales skyrocketed +350% YoY ($5,411.97 to $24,401.51) + Total sales up 20% ($28,733 to $34,377) Account Health: Excellent + No open cases or outstanding issues + Recent interactions: 2
Slide 33: Technical Support
Customer efficiency Process efficiency Technical Support Self-service tools Digital case management Today 170,000 Cases Annually
Slide 34: Wingman
Wingman Current Sate Inbound Data Generate Provide Issue Case Created Request Gathering Solution Resolution Resolved AI Influenced All Steps Handled by AI
Slide 35: AI Impact – Customer Interactions
AI Impact – Customer Interactions
Slide 36: AI - Direct Customer Engagement
AI - Direct Customer Engagement 5M+ phone calls annually >60% routine inquiries
Slide 37: AI - Direct Customer Engagement
Technical AI - Direct Customer Documents Engagement Real-Time Product Pricing & Details ▪ New level of service - Inventory immediate answers, 24/7 AI ▪ Reduced troubleshooting time ▪ Faster resolutions Installation Historical Information resolutions ▪ Increased routing capabilities Diagrams
Slide 38: SupplySync.com: The Future of B2B Distribution
SupplySync.com: The Future of B2B Distribution Steve Rupp, SVP and CTO, Watsco Inc. Brian O’Mahony, President, CE North America
Slide 39: Introducing SupplySync.com
Seamless Procurement One marketplace digitally unifying all Watsco companies Introducing Preserves our Entrepreneurial Culture SupplySync.com Maintains the decentralized distribution at the core of our business Project: Watsco One An enterprise procurement marketplace Customer Focused that unifies W
Slide 40: Enterprise Customer Segments
Enterprise Customer Segments Contractor Institutional Home Warranty Property consolidators organizations companies Management groups High-volume operational needs and specialized workflows
Slide 41: Enterprise Customers Spoke. We Listened.
The Challenges facing Enterprise Customers Enterprise Customers Spoke. We Listened. ▪ Inconsistent pricing across their locations ▪ Limited ability to influence product and vendor selection "Help us improve efficiency, visibility and ▪ Fragmented billing and credit consistency to grow faster." ▪ Inc
Slide 42: SupplySync.com: The Solution
SupplySync.com: The Solution Consistent Procurement Unified Reliable Pricing Control Billing Logistics National/regional Enterprise-level Consolidated Digital optimization + rates across 600+ visibility and curated invoicing and flexible fulfillment Watsco locations catalog selection payments option
Slide 43: Voice of the Customer
Voice of the Customer Exciting Impactful Valuable Early signal: SupplySync.com solves many of the challenges voiced by enterprise customers
Slide 44: Built Leveraging Watsco Digital Capabilities
Built Leveraging Watsco Digital Capabilities The first Watsco platform planned, designed & developed leveraging AI Technology ▪ PIM Digital Product Catalog (900k+ SKUs) ▪ Modernized logistics – WMS, Hydros, VCR ▪ E-commerce – 34% sales; $2.6b ▪ Conduit – Enterprise Messaging Bus ▪ Enterprise Pricing
Slide 45: Timeline
Timeline Q4 2025 Q1 2026 Q2 2026 • Voice of the Customer • Pilot customer • 1st wave • Tech architecture design launch customer onboarding • Establishing tech partnerships • Implementation • Software development • Business process development • Customer feedback • Transaction testing • System testin
Slide 46: SupplySync.com
SupplySync.com Designed for enterprise customers, by enterprise customers, built by Watsco One seamless enterprise grade platform Enterprise transforming the Design/Spec → Procure → Pay → Support Customers lifecycle with visibility, confidence, efficiency and control • Deeper partnerships with enter
Slide 47: Bringing It All Together
Bringing It All Together watsce. ists
Slide 48: Our Goals and Ambitions
Our Goals and Ambitions $10B 30 % 5x Sales Gross Margins Inventory Turns
Slide 49: Dream Plan 2.0
Dream Plan 2.0 $10B in Sales | 30% Gross Margins | 5x Inventory Turns Digital Adoption & E-Commerce OnCall Air Sales Engine SupplySync.com Shared Purchasing & Distribution Pricing Optimization AI Innovation
Slide 50: Return on Technology Investments So Far
Return on Technology Investments So Far Adoption Today • 30% of WSO Customers Are Using Core Technology Platforms • Greater Utilization → Better Outcomes • Long tail of customers remain – and benefits compound along the way
Slide 51: Return on Technology Investments So Far
Return on Technology Investments So Far Digital Adoption OnCall Air Sales Engine Sustained Sales Outperformance OnCall Air customers win more ~60% Reduced Attrition Enabling customer growth ambitions $500M - $750M Estimated Benefit 2X Richer Mix of High Efficiency E-commerce Pricing Optimization 20%
Slide 52: New Growth Investments – Purchasing and Distribution
New Growth Investments –Purchasing and Simplify and Focus Purchasing Drive Inventory Efficiency and Quality ✓ Increased Customer Service Levels ✓ Incremental Non-Equipment Sales Broaden SKU Assortment ✓ Higher Gross Margins ✓ Higher Inventory Turns ✓ Increased Cash Flow Increase Attachment Rates Acc
Slide 53: New Growth Investments
New Growth Investments Grow Institutional Customer Segment Broaden Product and Service Capability ✓ Increased Market Share Leverage Scale and Density ✓ Incremental Non-Equipment Sales ✓ Drive Higher Gross Margins ✓ Lower Cost to Serve ✓ Increased Loyalty and Retention Intuitive Digital Buying Experi
Slide 54: Let's Dream Together
Let’s Dream Together ▪ Double Digital Adoption ▪ Scale Pricing Optimization ▪ Unique ownership culture ▪ 50% + E-commerce ▪ Expand Non-Equipment Share ▪ 4,000+ employee owners ▪ Launch and Grow SupplySync.com ▪ Shared Purchasing Upside ▪ $500M+ in employee wealth ▪ Double-down on OnCall Air ▪ Levera