Slide 1: Watsco, Inc. 1Q25 Investor Presentation
Watsco, Inc. 1Q25 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor This Presentation contains or incorporates by reference statements We believe these forward-looking statements are reasonable; that are not historical in nature and that are intended to be, and are however, you should not place undue reliance on any forward-looking hereby identified as,
Slide 3: Investment Thesis
Investment Thesis Market leader in a highly fragmented industry Transforming customer experience with enhanced technology Unique ownership culture with long-term focus on value creation Deep ties to the industry’s leading OEMs and suppliers Proven track record of delivering superior shareholder retu
Slide 4: What is Watsco's Business Model?
What is Watsco’s Business Model? Contractor visits our Contractor visits store or e-commerce Contractor completes Broken or failing A/C homeowner to site to buy equipment, the repair or unit at home or diagnose problem parts and supplies replacement of business and recommend needed to remedy homeown
Slide 5: Strategic Locations
Strategic Locations United States 631 Canada 36 Latin America & Caribbean 26 TOTAL 693
Slide 6: Market Leader in a Fragmented Market
Market Leader in a Fragmented Market Why scale matters: $8.0 Watsco vs. Industry Competitors Rich product availability and dense branch network to support customers $7.0 Purchasing power from 1,400+ OEMs and suppliers $6.0 Greater share of wallet from customer spend Estimated Revenues in Billi
Slide 7: Attractive End-Markets and Products
Attractive End-Markets and Products Latin America 5% New Housing 10-15% Refrigeration 4% Canada 5% Other HVAC Commercial Products 26% 15-20% REVENUES REVENUES REVENUES BY GEOGRAPHY BY SEGMENT BY PRODUCT Commercial HVAC Equipment 15% Residential HVAC United States 90% Residential Equipment 55% 65-70%
Slide 8: Installed Base of Central A/C Units
Installed Base of Central A/C Units Installed Base 100,000,000 90,000,000 80,000,000 70,000,000 Large and Growing Installed Base Drives 60,000,000 Steady Replacement Business with 50,000,000 Residential Focus 40,000,000 30,000,000 Installed base has increased every year 20,000,000 Over 120 milli
Slide 9: Using Technology to Transform the HVAC Industry
Using Technology to Transform the HVAC Industry 1 2 3 Make it easier to do Make Watsco more Enable new profit business with Watsco efficient and streams that help through best-in-class profitable, while our customers grow 24/7 digital improving speed to faster experience market
Slide 10: Benefits of Technology
Benefits of Technology Traditional Digital Countless hours wasted on the Ordering and pickups done in phone and waiting in line minutes, not hours People and resources spend time Sales becomes more pro-active and away from customers VS consultative vs. being order takers Inefficiencies eat into busi
Slide 11: The Industry's Leading Digital Experience
The Industry’s Leading Digital Experience An intuitive and contemporary digital experience for $2.6B ~60% customers to do business with Watsco. Annualized e-commerce Less attrition for users revenue in 2024, an 8% of e-commerce versus Robust E-Commerce Platform increase traditional customers Drivi
Slide 12: Our ESG Framework
Our ESG Framework ENVIRONMENTAL SOCIAL GHG EMISSIONS REDUCTION CIRCULAR ECONOMY WORKFORCE TRAINING Accelerate the transition Propel refrigerant Train network of to non-fossil fuel & high reclaiming in the add-on technicians on sustainable efficiency systems replacement market products and sustainabl
Slide 13: ESG: Our Impact
ESG: Our Impact 23.7 Million Metric 12.2 Billion Gallons Tons of CO2e averted of Water Saved from the sale of high from the sale of Alert efficiency equipment from Labs water monitoring January 2020 – March 2025 products from August 2019 – March 2025 That’s the equivalent of: • Taking 5.5M vehicles
Slide 14: Ownership Culture Linked To Value Creation
Ownership Culture Linked To Value Creation Watsco’s unique equity programs attract and retain the industry’s best. 160+ Restricted Stock plan participants “Retirement age” cliff vesting Average vesting of approximately 12 years 55% of all shares granted since 1997 remain outstanding 37% vest
Slide 15: Watsco's Track Record
1989* LTM 3/31/25 CAGR Watsco’s Revenues $64M $7.6B 14% Track Record EBIT $2M $767M 17% Share Price $2.70 $508.30 16% Watsco’s culture is focused on Dividends $.5M $436M 20% long-term value creation for all Market Cap** $22M $20B 21% stakeholders. Market Share (est.) <1% 18-20% Over most time period
Slide 16: Solid Cash Flow Performance
Solid Cash Flow Performance 20 Year Cumulative Results Net Income: $5.3B Operating Cash Flow: $5.3B Dividends: $3.2B Acquisitions: $792M Capital Expenditures, net: $353M 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Company SEC filin
Slide 17: Robust Capital Position
12/31/23 12/31/24 03/31/25 Robust Capital Cash & Investments $210M $782M $432M Position Total Borrowings $15M $0 $0 Shareholders Equity $2,616M $3,064M $3,088M Debt to Capitalization 0.6% N/A N/A Consistent with a long-term focus, Watsco maintains a EBITDA (LTM) $830M $812M $809M conservative balanc
Slide 18: Delivering Exceptional Shareholder Value
Delivering Exceptional Shareholder Value Watsco’s TSR ranks #25 out of ~1,600 public companies for Total Shareholder Returns over 30 years. Only 30 companies have returned 19+% over the last 30 years. Source: FactSet as of 12/31/24 19