Financial Performance - First quarter 2025 reported net sales were $5,343.7 million, down 0.1% year-over-year, with organic sales growth of 5.6%[6] - Diluted earnings per share (EPS) for the first quarter was $2.10, reflecting a 7.7% increase year-over-year; adjusted diluted EPS was $2.21[6] - Net income for the three months ended March 31, 2025, was $118.3 million, a slight increase from $116.1 million in the same period of 2024[26] - Adjusted net income attributable to common stockholders for the three months ended March 31, 2025, was $109.6 million, a decrease of 7.9% from $119.2 million in the same period of 2024[35] - Net income attributable to common stockholders for the twelve months ended March 31, 2025, was $662.8 million, slightly up from $660.2 million for the previous year[42] Sales and Revenue - Data center sales experienced significant growth of 70% in the first quarter[6] - Organic sales growth for the total net sales was 5.6% for the three months ended March 31, 2025, despite a reported decline of 0.1%[30] - Preliminary sales per workday in April were up 7% compared to the prior year, indicating continued positive momentum[4] Cash Flow and Liquidity - Operating cash flow for the first quarter was $28 million, a decrease of 96.2% compared to the previous year[6] - Free cash flow generation in the first quarter was $9.4 million, a decline of 98.7% year-over-year[7] - The company reported a net cash provided by operating activities of $28.0 million for the three months ended March 31, 2025, a significant decrease from $746.3 million in the same period of 2024[26] - Free cash flow for the three months ended March 31, 2025, was $9.4 million, a significant decrease from $731.4 million for the same period in 2024, representing a decline of approximately 99%[45] - Cash flow provided by operations for the three months ended March 31, 2025, was $28.0 million, down from $746.3 million in the prior year[45] Expenses and Margins - Gross margin for the first quarter was 21.1%, down 10 basis points sequentially and 20 basis points year-over-year[6] - Adjusted selling, general and administrative expenses were $829.0 million for the three months ended March 31, 2025, representing 15.5% of net sales, compared to 15.1% in 2024[33] - Total Adjusted EBITDA for the three months ended March 31, 2025, was $310.7 million, compared to $340.4 million in Q1 2024, indicating a decrease of 8.7%[38] - Adjusted EBITDA margin for Q1 2025 was 5.8%, down from 6.4% in Q1 2024, showing a decline of 0.6 percentage points[38] - Adjusted earnings per diluted share for Q1 2025 was $2.21, down from $2.30 in Q1 2024, reflecting a decline of 3.9%[35] Debt and Financial Position - Long-term debt increased to $5,136.6 million as of March 31, 2025, compared to $5,045.5 million as of December 31, 2024, reflecting a rise of 1.8%[24] - Total debt as of March 31, 2025, increased to $5,215.5 million from $5,112.1 million as of December 31, 2024, reflecting a rise of about 2%[42] - The financial leverage ratio increased to 3.1 as of March 31, 2025, compared to 2.9 as of December 31, 2024, indicating a higher reliance on debt[42] - Interest expense, net for Q1 2025 was $86.3 million, a slight decrease from $94.4 million in Q1 2024, reflecting a reduction of 8.6%[35] - The company reported a net interest expense of $356.9 million for the twelve months ended March 31, 2025, down from $364.9 million in the previous year[42] Asset Management - Total assets increased to $15,515.1 million as of March 31, 2025, compared to $15,061.4 million as of December 31, 2024, reflecting a growth of 3.0%[24] - Total current liabilities rose to $4,035.5 million as of March 31, 2025, from $3,804.0 million as of December 31, 2024, indicating an increase of 6.1%[24] - The company experienced a change in trade receivables, net, of $(188.7) million for the three months ended March 31, 2025, compared to $(116.1) million in 2024, indicating a worsening in cash flow management[26] Corporate Actions - The company plans to redeem preferred stock in June using proceeds from $800 million of notes issued during the first quarter[5] - The company issued $800 million in Senior Notes due 2033, intending to use the proceeds to redeem outstanding preferred stock and repay a portion of its revolving credit facility[26] - Preferred stock dividends remained constant at $14.4 million for both Q1 2025 and Q1 2024[35] - The company experienced a restructuring cost of $1.1 million in Q1 2025, compared to $8.0 million in Q1 2024[38] - Restructuring costs for the twelve months ended March 31, 2025, decreased to $5.1 million from $12.1 million in the previous year, indicating a reduction of approximately 58%[42] Digital Transformation - Digital transformation costs included in the adjusted EBITDA for Q1 2025 amounted to $6.2 million[38] - Digital transformation costs for the twelve months ended March 31, 2025, amounted to $25.0 million, slightly up from $24.9 million in the previous year[42]

Core Insights - Wesco International reported a 6% organic growth in sales for Q1 2025, driven by a 70% increase in data center sales and high single-digit growth in Broadband and OEM businesses [2][10]. - The company reaffirmed its full-year outlook for 2025, citing positive momentum and a strong opportunity pipeline [3][10]. Financial Performance - Net sales for Q1 2025 were $5,343.7 million, a slight decrease of 0.1% compared to $5,350.0 million in Q1 2024 [4][10]. - Organic sales growth was reported at 5.6%, reflecting volume growth in the Communication and Security Solutions (CSS) segment, partially offset by a decline in the Utility Business Solutions (UBS) segment [5][24]. - Gross profit for Q1 2025 was $1,125.6 million, with a gross margin of 21.1%, down from 21.3% in the previous year [4][26]. - Net income attributable to common stockholders increased to $104.0 million, or $2.10 per diluted share, representing a 7.7% increase year-over-year [4][10]. Cash Flow and Capital Management - Free cash flow for Q1 2025 was significantly lower at $9.4 million compared to $731.4 million in Q1 2024, primarily due to changes in working capital [4][10]. - The company issued $800 million in notes to redeem preferred stock, which is expected to strengthen the balance sheet and improve cash flow and earnings per share [3][10]. Segment Performance - The CSS segment experienced an organic sales growth of 18.1%, while the UBS segment saw a decline of 4.9% [24]. - The Electrical and Electronic Solutions (EES) segment reported a 3.4% organic sales growth [24]. Operational Highlights - The company noted a stable gross margin on a sequential basis compared to Q4 2024, with initial improvements in Communication and Security Solutions [2][3]. - SG&A expenses increased to $836.3 million, reflecting higher operational and transportation costs [4][7]. Market Outlook - Wesco remains focused on cross-selling activities and operational improvements amid economic uncertainty, with confidence in outperforming market trends driven by AI-driven data centers and electrification [3][10].

Group 1 - Wesco International will hold its first quarter 2025 earnings conference call on May 1 at 9:00 a.m. ET [1] - The company reported approximately $22 billion in annual sales for 2024 [3] - Wesco operates over 700 sites in around 50 countries, providing a local presence and a global network for customers [3] Group 2 - Wesco will participate in several upcoming conferences, including the Oppenheimer Industrial Growth Conference on May 7 and the Goldman Sachs Leveraged Finance and Credit conference on May 29 [2] - The company employs approximately 20,000 people and partners with premier suppliers in the industry [3] - Wesco offers a diverse portfolio of products and services, including Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions [3]

Core Viewpoint - Wesco International, Inc. announced the pricing of an $800 million offering of 6.375% senior notes due 2033, increasing from a previously announced $600 million [1][2] Group 1: Offering Details - The offering will result in net proceeds of approximately $789.5 million after deducting discounts and estimated expenses [2] - The notes will be issued at a price of 100% of the aggregate principal amount and are scheduled to settle on March 6, 2025 [1][2] - The notes will be unsecured and rank equally with other existing and future unsecured obligations of Wesco Distribution [3] Group 2: Use of Proceeds - Wesco intends to use the net proceeds to redeem all outstanding 10.625% Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock and related depositary shares on June 22, 2025 [2] - Prior to the redemption, proceeds will also be used to repay a portion of outstanding borrowings under its accounts receivable securitization facility and asset-based revolving credit facility [2] Group 3: Company Overview - Wesco International is a leading provider of business-to-business distribution, logistics services, and supply chain solutions, with approximately $22 billion in annual sales in 2024 [6] - The company operates over 700 sites in approximately 50 countries, providing a local presence and global network for customers [6]

Core Viewpoint - Wesco International, Inc. plans to offer $600 million in senior notes due 2033 to eligible purchasers, aiming to use the proceeds for redeeming its Series A Preferred Stock and repaying outstanding borrowings under its credit facilities [1][2]. Group 1: Offering Details - The offering consists of $600 million aggregate principal amount of senior notes due 2033 [1]. - The notes will be unsecured and unsubordinated debt obligations, ranking equally with existing and future unsecured obligations of Wesco Distribution [3]. - The offering will be made only to qualified institutional buyers and non-U.S. persons under specific regulations [4]. Group 2: Use of Proceeds - Net proceeds from the offering will be used to redeem all outstanding Series A Preferred Stock and related depositary shares on June 22, 2025 [2]. - Prior to the redemption, proceeds will also be used to repay a portion of borrowings under the accounts receivable securitization facility and the asset-based revolving credit facility [2]. Group 3: Company Overview - Wesco International is a leading provider of business-to-business distribution, logistics services, and supply chain solutions, with approximately $22 billion in annual sales in 2024 [6]. - The company operates over 700 sites globally, providing a local presence and a global network to serve various industries [6].

Core Insights - Wesco International's international operations are crucial for assessing its financial resilience and growth prospects [1][2] - The company's total revenue for the quarter was $5.5 billion, reflecting a year-over-year increase of 0.5% [4] International Revenue Breakdown - Canada contributed 12.97% of total revenue, amounting to $713.5 million, which was a decline of 3.54% compared to expectations [5] - Other International generated $685.9 million, representing 12.47% of total revenue, exceeding Wall Street's expectations by 0.93% [6] Future Revenue Predictions - Analysts forecast total revenue of $5.23 billion for the current fiscal quarter, a decline of 2.3% year-over-year, with Canada and Other International expected to contribute 13.5% each [7] - For the full year, total revenue is projected at $22.28 billion, an increase of 2.1% from the previous year, with Canada and Other International expected to contribute 13.7% and 12.6%, respectively [8] Conclusion on International Operations - The reliance on international markets presents both opportunities and risks for Wesco International, making it essential to monitor international revenue trends for future forecasts [9][10]

PITTSBURGH, Feb. 20, 2025 /PRNewswire/ -- Wesco proudly announces its official partnership with the U.S. Department of Defense's Military Spouse Employment Partnership (MSEP), a program within the Department of Defense's Spouse Education and Career Opportunities initiative. The induction ceremony on Jan. 29, 2025, formally welcomed Wesco into the program. Wesco Senior Director of Talent Acquisition Dee Brogan (far right) attended the MSEP 2025 Induction Ceremony, seen here with Department of Defense’s M ...

Revenue and Market Exposure - The company derives approximately 26% of its revenues from sales outside of the U.S.[89] - The company operates a network of more than 700 sites across approximately 50 countries[89] - In 2024, the company's 10 largest suppliers accounted for approximately 30% of purchases by dollar volume, indicating a significant reliance on key suppliers[117] Economic and Geopolitical Risks - Adverse economic conditions and disruptions in financial markets could negatively impact revenues and operating results[87] - The ongoing geopolitical tensions, including the Russia-Ukraine conflict, contribute to market volatility and uncertainty[88] - The company faces risks from global economic conditions, which can adversely affect revenues and operating results due to customer business activity levels[87] - The company operates in a volatile global environment, with geopolitical issues and conflicts potentially impacting its operations and financial condition[90] COVID-19 Impact - The company has experienced significant disruptions due to the COVID-19 pandemic, affecting supply chains and customer demand[93] - Supply chain challenges since the COVID-19 pandemic have led to product delays, backlogged orders, and increased transportation costs, although improvements in supply chain resilience were noted in 2024[119] - The COVID-19 pandemic has caused significant disruptions to the company's business, impacting supply chains and customer demand[93] Supply Chain and Operational Challenges - The company faces risks related to global supply chain disruptions and natural disasters[90] - Supply chain disruptions and reliance on third-party service providers could impair the company's ability to deliver products timely, affecting overall operations[132] - Challenges in managing working capital and inventory due to evolving customer demands and supply chain disruptions could significantly impact cash flow and overall business performance[125] - Disruptions in logistics capabilities could impair the company's ability to deliver products timely, affecting customer satisfaction and operational efficiency[130] Digital Transformation and Technology - The company has invested significantly in expanding its digital solutions and digitalization initiatives, including e-commerce capabilities and IoT technology[99] - The company is engaged in digital transformation initiatives that may not realize anticipated benefits, potentially leading to operational inefficiencies[109] - The reliance on third-party cloud services increases operational complexity and vulnerability to service disruptions, which could adversely affect business operations[110] Regulatory and Compliance Risks - The company is subject to various global laws and regulations, which may increase compliance costs[95] - Regulatory uncertainties and potential tax increases could impact product pricing and supply chain stability, contributing to broader economic uncertainty[12] - The company is subject to complex and ambiguous tax laws, which can lead to unexpected volatility in its results of operations[142] - Legal and regulatory compliance regarding data security and privacy is evolving, with potential material adverse effects on the company's reputation and financial condition[115] Financial Performance and Debt - As of December 31, 2024, the company had $5.1 billion of consolidated indebtedness, which significantly impacts cash flow available for operations and growth[143] - The company incurred significant additional indebtedness in 2020 to finance the merger with Anixter, affecting its ability to invest in future opportunities[143] - Debt service obligations limit the company's ability to invest in operations and growth opportunities, potentially increasing vulnerability to adverse market conditions[144] - Future financial performance may not generate sufficient cash flows to service debt, necessitating refinancing or asset sales[145] Competition and Market Dynamics - Increased competition in the industry may lead to reduced sales, profit margins, and earnings, as competitors may lower prices or offer alternative business models[135] - A decline in project volume could adversely affect sales and earnings, as large capital projects significantly contribute to revenue[126] Environmental, Social, and Governance (ESG) Considerations - The company's ability to execute environmental, social, and governance (ESG) programs is critical, as failure to meet stakeholder expectations could adversely affect reputation and financial performance[137] - Higher operating expenses related to ESG compliance and initiatives could reduce profitability and cash flow, particularly if customers demand further emissions reductions[138] - The company is actively managing climate-related risks and has conducted a climate risk assessment to enhance sustainability reporting[122] Cybersecurity Risks - Cybersecurity threats have increased, posing risks to the confidentiality and integrity of proprietary information, which could lead to significant legal liabilities[114] - The company has implemented remote working arrangements, which may increase vulnerability to cybersecurity incidents[93]

WESCO International (WCC) reported fourth-quarter 2024 adjusted earnings of $3.16 per share, up 19.2% year over year. The bottom line missed the Zacks Consensus Estimate by 1.86%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales of $5.5 billion rose 0.5% year over year. The figure beat the Zacks Consensus Estimate by 1.52%. Organic sales increased 2.4% year over year.The company’s shares gained 0.57% in the pre-market trading. WCC shares have returned 4.1% year to date, outper ...

NYSE: WCC Fourth Quarter 2024 Webcast Presentation February 11, 2025 Non-GAAP Measures In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") above, this presentation includes certain non-GAAP financial measures. These financial measures include organic sales growth, gross profit, gross margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, financial leverage, free cash flow, adjust ...