Wesco International Stock Earnings Reports

WESCO reported a very strong Q3 2025 with record quarterly sales of $6.2B, driven by broad-based organic growth of 12% (reported +13%). Growth accelerated across the year (Q1 +6%, Q2 +7%, Q3 +12%) and continued into October (preliminary month-to-date sales per workday ~+9%). All three Strategic Business Units (SBUs) grew: Communications & Security Solutions (CSS) +18% organic, Electrical & Electronic Solutions (EES) +12% organic, and Utility & Broadband Solutions (UBS) +3% organic. Data center sales were a standout at ~$1.2B (up ~60% YoY) and now represent ~19% of Q3 sales and nearly $4B on a trailing-12-month basis. Adjusted EPS increased 9.5% YoY; adjusted EBITDA margin was 6.8% (down 50 bps YoY but up 10 bps sequentially) and gross margin contracted 80 bps YoY but improved sequentially. Management raised full-year 2025 guidance: organic sales now expected +8% to +9% (previously +5% to +7%), adjusted EBITDA and adjusted EPS ranges were increased (EPS midpoint +$0.10 to $13.10–$13.60), while free cash flow guidance was lowered to $400M–$500M to reflect higher working capital needs due to rapid top-line growth. WESCO redeemed its 10.5% preferred in June and refinanced with senior notes, improving capital structure and reducing financing costs (~$32M annualized benefit). Management highlighted ongoing investments in digital transformation, margin-improvement programs and cross-selling execution, and reiterated secular tailwinds (AI/data centers, electrification, reshoring). Key near-term risks: tariff/price volatility and timing of supplier price increases, which management is actively managing and did not bake further pricing benefits into the 2025 outlook.