Exhibit 99.1

Watsco Reports Record Third Quarter Gross Profit, Gross Margin and

Operating Cash Flow in Challenging Market Conditions

______________________

Strong Balance Sheet and Market-Leading Technologies Enable Continued Investments in Growth

MIAMI, FLORIDA – (GLOBENEWSWIRE), October 29, 2025 – Watsco, Inc. (NYSE: WSO) announced its operating results for the third quarter and nine-month period ended September 30, 2025. The Company also provided updates related to innovation and technology, business trends and long-term growth opportunities.

Watsco is the largest distributor in the highly-fragmented $74 billion North American market for HVAC products. 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.

The Company maintains a solid financial position with currently more than $640 million in cash and investments and no debt, enabling sustained investments in growth, particularly the Company’s industry-leading technology platforms. Today, more than 72,000 contractors, installers and technicians engage with the Company’s various platforms, which contribute to customer growth and reduced attrition. The Company is now advancing AI-driven initiatives to further 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.

Industry Product Transition

2025 results reflect a significant regulatory transition to new HVAC systems that incorporates A2L refrigerants. The regulatory mandate impacted nearly 55% of all products and required the conversion of over $1 billion of inventory across more than 650 U.S. locations. The transition, which began in September 2024 and will conclude in early 2026, has created volatility in sales, industry shipments, distributor inventories and further compounded by overall weaker consumer spending and slower housing-related activities.

Recent industry shipment data published by AHRI show meaningful declines in unit shipments, while distributor volumes have been comparatively less volatile. Watsco third quarter revenues declined 4% (3% domestically) as the decline in units was substantially offset by double-digit pricing for A2L products, 2% sales growth of non-equipment products and 4% sales growth in commercial refrigeration products. Price realization for the new A2L products has averaged approximately 15% inclusive of mid-year OEM price actions.

Over the twelve-month period ended September 30, 2025, which encompasses the transition period, Watsco’s operating profit remained flat and operating margins improved 10 basis-points on a 1% decrease in sales and a 130 basis-point improvement in gross margin. The Company believes this relative performance in the context of the transition and other macroeconomic headwinds speaks well of its business model and overall execution.

Watsco made substantial investments in training, technology and logistics to effect the transition, the incremental costs of which are reflected in 2025 operating expenses. These costs are not expected to recur in 2026, offering anticipated improvements to operating efficiency moving forward. In addition, Watsco invested meaningfully in working capital to ramp-up inventory during the first half of 2025 in support of customers during the transition. Peak inventory investment reached $2.1 billion during 2025 and declined to $1.6 billion at September 30, 2025 (third quarter inventory reduction of $351 million). The Company is targeting further reductions during the fourth quarter and expects more conventional working capital trends going forward, providing the opportunity for improved inventory turns and enhanced returns on invested capital.

Albert H. Nahmad, Chairman and CEO, remarked: “We are in a wonderful industry, our balance sheet has never been stronger and our technology advantage remains immense. Although short-term market conditions remain fluid, we operate a resilient business in a resilient industry and our focus on the long-term has been, and will be, far more consequential as we build our network, scale our technologies to delight customers and partner with our OEMs to grow and gain share.”

Mr. Nahmad added: “This has been one of the most challenging business environments in recent memory, and I am gratified that we have largely sustained our profitability, improved margins, improved cash flow, and navigated the A2L transition successfully while continuing to invest in long-term growth. Gross profit, gross margin and operating cash flow for the quarter established new records, reflecting substantial progress toward optimizing inventories and positioning the Company to invest in growth alongside its OEM partners.”

Third Quarter Performance

Sales trends

Third quarter sales were impacted by the business and economic factors discussed above. Gross profit margin expanded 130 basis-points to a third-quarter record of 27.5%, driven by further scaling of Watsco’s pricing technologies, as well as OEM pricing actions implemented earlier in 2025. Operating expenses increased due to higher labor, facilities and transportation costs partially associated with the A2L product transition, as well as the acquisition of three businesses thus far in 2025. The Company expects that its fourth quarter 2025 results will be affected by the factors that impacted third quarter results, especially in light of the strong sales and earnings comparisons reported in 2024.

Nine-Month Performance

Sales trends

Innovation and Strategic Technology Initiatives

Watsco pioneered the HVAC/R industry’s most comprehensive digital ecosystem, which continues to reshape the industry landscape. The Company has invested more than $250 million in technology over the last five years (an annual current run rate of $60 million) and employs close to 300 technologists. Specific updates include:

A.J. Nahmad, Watsco's President, added: “As we work to further scale our core technology platforms among our customers, we constantly challenge ourselves to continue innovating and find new ways to delight our customers. Earlier this year, we set in motion incremental investments in new platforms that we think will enhance growth with existing customers, attract more new customers, and boost profitability in the years ahead. We believe these initiatives hold great promise and we feel that they will enhance Watsco’s already-sizeable competitive advantage in the fragmented HVAC/R industry. We look forward to sharing more about these initiatives at our investor day on December 11th.”

Buy & Build Acquisition Strategy

Watsco has partnered with more than 70 independent distributors who have chosen to join the Watsco family, contributing to the Company’s scale and, more importantly, its community of seasoned leaders. During 2025, the Company has acquired three distributors in key Sunbelt markets and, since 2019, has acquired 12 companies that today represent approximately $1.6 billion in annualized sales and 120 locations across our network. 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 HVAC/R distribution landscape in North America, which is estimated to be $74 billion in size, remains highly fragmented with approximately 2,100 independent distributors.

Cash Flow, Financial Strength and Liquidity

The Company’s objective is to maintain a healthy balance sheet that allows access to low-cost capital to fund strategic investments in growth. The Company’s strong financial position has been key to its ability to deliver sustained long-term returns, enabling investments regardless of macroeconomic or industry conditions. Operating cash flow was $170 million for the nine-months ended September 30, 2025 (a record $355 million for the third quarter). The Company’s stated goal is to generate annual operating cash flow in excess of net income consistent with its long-term track record.

Third Quarter Earnings Conference Call Information

Date and time: October 29, 2025 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 $74 billion North American HVAC/R market. Since entering distribution in 1989, Watsco has achieved an 18% compounded annual total-shareholder return through a combination of strong organic growth and the acquisition of more than 70 market-leading businesses. 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 72,000 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)

WATSCO, INC.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands)

WATSCO, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)