Core Insights - Wesco International reported strong sales momentum in the first half of 2025, with organic sales growth accelerating to 7.2% in Q2 and preliminary July sales per workday up approximately 10% year-over-year [2][3][7] - The company achieved total data center sales exceeding $1 billion in Q2, marking a 65% increase compared to the previous year [2][7] - Wesco's adjusted EBITDA margin improved by 90 basis points sequentially to 6.7%, driven by strong operating leverage on higher sales [2][7] Financial Performance - Q2 2025 net sales reached $5,899.6 million, a 7.7% increase from $5,479.7 million in Q2 2024 [4][19] - For the first six months of 2025, net sales totaled $11,243.3 million, up 3.8% from $10,829.7 million in the same period of 2024 [4][20] - The company reported a net income attributable to common stockholders of $189.2 million in Q2 2025, down 13.1% from $217.7 million in Q2 2024 [4][19] Segment Performance - The CSS segment led the growth with 17% organic growth, while the EES segment saw a 6% organic growth in Q2 2025 [2][8] - Data center sales in Q2 2025 were a significant contributor, surpassing $1 billion and reflecting a 65% year-over-year increase [2][7] - The Utility business showed signs of recovery, with sales to investor-owned utilities returning to growth in Q2 [2][3] Cost and Margin Analysis - Gross profit for Q2 2025 was $1,242.7 million, with a gross margin of 21.1%, down from 21.9% in Q2 2024 [4][31] - Selling, general, and administrative (SG&A) expenses increased to $872.2 million in Q2 2025, a 5.3% rise from $828.4 million in Q2 2024 [4][19] - Adjusted EBITDA for Q2 2025 was $394.2 million, a decrease of 1.5% from $400.1 million in Q2 2024 [4][31] Cash Flow and Capital Management - Operating cash flow for Q2 2025 was $107.8 million, a significant recovery from a negative cash flow of $(223.8) million in Q2 2024 [4][19] - The company completed the redemption of its preferred stock in June 2025, enhancing cash flow and earnings per share [3][4] - Wesco's free cash flow for Q2 2025 was $86.5 million, compared to a negative free cash flow of $(234.1) million in Q2 2024 [4][19] Outlook and Strategic Initiatives - The company raised its full-year organic sales growth outlook based on positive momentum observed in the first seven months of 2025 [3][7] - Wesco is focused on executing cross-selling initiatives and improving enterprise-wide margins through technology-driven business transformation [3][7] - The company maintains a strong liquidity position with no significant debt maturities until 2028, allowing for strategic capital allocation [3][4]

Company Overview - Wesco International is a FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, with approximately $22 billion in annual sales in 2024 [2] - The company specializes in business-to-business distribution, logistics services, and supply chain solutions, offering a diverse portfolio including Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions [2] - Wesco employs around 20,000 people and operates more than 700 sites across approximately 50 countries, providing a local presence and a global network for its customers [2] Earnings Call Information - Wesco International will hold its second quarter 2025 earnings conference call on July 31, 2025, at 10:00 a.m. ET [1] - Dial-in details for live access include a North America toll-free number (1-877-443-5356) and an international number (1-412-902-6614) [2] - A replay of the earnings call will be available until August 7, 2025, with specific toll-free and international numbers provided for access [2]

Core Points - Wesco International's Board of Directors declared a quarterly cash dividend of $0.45375 per share, payable on June 30, 2025, to shareholders of record as of June 13, 2025 [1] Company Overview - Wesco International is a FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, with approximately $22 billion in annual sales for 2024 [2] - The company specializes in business-to-business distribution, logistics services, and supply chain solutions, offering a diverse portfolio that includes Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions [2] - Wesco employs around 20,000 people and operates over 700 sites, including distribution centers and sales offices in approximately 50 countries, providing a local presence and a global network for its customers [2]

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].