Wesco International Stock Earnings Reports

WESCO reported an excellent start to 2026 with record Q1 sales of $6.1 billion (up 14% year-over-year, 12% organic) driven by very strong data center demand. Data center sales reached ~$1.4 billion (up ~70%) and represented 24% of company sales; on a trailing 12-month basis data center sales are ~$4.8 billion (20% of total). All three SBUs delivered volume growth and backlog ended the quarter at a company record (up ~22% YoY), giving visibility into near-term demand. Profitability improved materially: adjusted EBITDA rose 25% to $389 million, EBITDA margin expanded 60 bps to 6.4%, adjusted EPS increased 52% to $3.37, and free cash flow was $213 million (128% of adjusted net income). The company executed a $1.5 billion bond refinancing that improves the debt maturity profile, lowers interest costs (expected >$20 million annual savings), and ended the quarter at 3.2x net debt/adjusted EBITDA. Management raised full-year 2026 guidance: reported sales growth now 6–9% (organic 5–8%), adjusted EBITDA margin 6.6–7.0%, adjusted EPS $15–$17, and free cash flow $500–$800 million. Key priorities from the new CFO include driving operating leverage and margin expansion (especially in data centers) and improving working-capital efficiency. Risks noted include macro volatility, project-timing dynamics that affect quarter-to-quarter comparisons, certain supply lead-time pressures, and modest transportation/tariff impacts; management emphasized continued disciplined capital allocation and phased digital/ERP deployment to avoid disrupting current momentum.