Financial Data and Key Metrics Changes - The company reported record quarterly sales of $6.2 billion, marking an 18% organic growth in Communications and Security Solutions, 12% in Electrical and Electronic Solutions, and a return to growth in Utility and Broadband Solutions [7][36] - Adjusted EPS grew 9.5% year over year and 16% sequentially, with both gross margin and EBITDA margin improving sequentially [8][36] - Organic sales growth accelerated to 12% in Q3, following 6% in Q1 and 7% in Q2, indicating four consecutive quarters of accelerating momentum [6][36] Business Line Data and Key Metrics Changes - Electrical and Electronic Solutions (EES) saw organic sales up 12% year over year, driven by growth across all operating groups, particularly in construction and OEM [15][16] - Communications and Security Solutions (CSS) delivered organic sales growth of 18%, supported by strong demand in data center solutions [16][17] - Utility and Broadband Solutions (UBS) reported a 3% increase in organic sales, marking a return to growth after seven quarters of declines, driven by investor-owned utilities [23][36] Market Data and Key Metrics Changes - Total data center sales reached approximately $1.2 billion, up 60% year over year, representing 19% of total Q3 company sales on a trailing 12-month basis [7][19] - The broadband segment experienced over 20% year-over-year growth, indicating a significant improvement from previous quarters [23] - Backlog increased 11% year over year, reflecting stronger customer order rates across various segments [23] Company Strategy and Development Direction - The company is focused on accelerating cross-selling initiatives and driving enterprise-wide margin improvement through technology-driven business transformation [8][10] - The strategic outlook includes capitalizing on secular growth trends such as digitalization, electrification, and supply chain resiliency, with expectations for continued market-leading growth into 2026 [10][36] - The company raised its full-year outlook for organic sales growth and adjusted EBITDA based on increasing business momentum [8][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets due to strong portfolio strength and ongoing secular growth trends [10][36] - The outlook for 2026 includes expectations for mid-single-digit organic sales growth and continued strength in electrical markets, with a return to full-year growth in utility services [37] - Management acknowledged challenges related to working capital investments but emphasized the high quality of cash flow issues due to significant sales growth [71] Other Important Information - The company redeemed $540 million in Series A preferred stock, marking a significant milestone in capital structure optimization [27] - Free cash flow was a use of $89 million in Q3, attributed to increased working capital needs due to significant growth [24][25] - The company is experiencing a dynamic tariff environment, with supplier price increase notifications up over 100% in count, but the impact on results was limited [28] Q&A Session Summary Question: How much did price contribute to growth by segment? - Overall pricing benefit in Q3 was just under 3%, with EES at about 4%, CSS at about 2%, and UBS at about 1% [39] Question: Can you discuss the strength in EES outside of data centers? - EES saw growth across construction, industrial, and OEM sectors, with construction up mid-teens driven by infrastructure projects [42][44] Question: Is there a crowd-out effect from AI and tech spending? - There is no observed crowd-out effect; EES growth is attributed to overall market outperformance [51] Question: What is the outlook for public power in the utility segment? - Public power is expected to return to growth in 2026, with current softness attributed to inventory build issues [108]

Core Viewpoint - Solar Norge AS has signed an agreement to acquire 100% of Sonepar Norge AS for an enterprise value of DKK 315 million, with the transaction expected to enhance operational and commercial synergies, driving growth and earnings in the Norwegian market [1][2][5] Transaction Overview - The acquisition will be financed through a combination of 1/3 equity financing and 2/3 debt financing, with expected acquisition costs of DKK 5 million in 2025 [1][6] - The transaction is subject to regulatory approvals and is anticipated to be completed by early December 2025 [6][8] Strategic and Financial Rationale - The combination of Solar and Sonepar is seen as a unique opportunity to create a leading distributor in Norway, focusing on electrical, ventilation, climate, and energy solutions [5][6] - The acquisition is expected to generate a combined annual revenue of approximately DKK 2.5 billion and a portfolio of 25,000 stock keeping units (SKUs) [3][6] Company and Market Position - Sonepar Norge has a strong market presence with an annual revenue of approximately DKK 700 million, a loyal customer base of nearly 4,000, and a comprehensive portfolio of over 12,000 SKUs [2][3] - The integration of operations is expected to yield significant operational synergies, including consolidation of administration, logistics, and IT infrastructure [7][8] Sustainability Focus - Both companies emphasize sustainability, with Sonepar focusing on ESG-compliant sourcing, which aligns with Solar's commitment to driving the green transition [2][10]

Core Insights - Rexel reported Q1 2025 sales of €4,825 million, reflecting a year-on-year increase of +2.5% on a reported basis and +1.4% on a constant and same-day basis, marking a return to positive growth after a year of decline [1][6][12] - The sales growth was primarily driven by North America, which saw a +3.8% increase, while Europe experienced a slight decline of (0.7)% [4][11] - The company confirmed its full-year guidance for 2025 despite the uncertain macro-political environment and ongoing monitoring of tariff impacts on sales and profitability [1][4][16] Sales Performance - Q1 2025 sales figures: - Reported sales: €4,825 million, up +2.5% - Constant and same-day basis: +1.4% - Constant and actual-day basis: (0.4)% [1][6] - Regional breakdown: - North America: €2,151.2 million, +3.8% - Europe: €2,407.3 million, (0.7)% - Asia-Pacific: €266.6 million, +1.4% [11][13] Strategic Initiatives - The company engaged in active portfolio management, completing one acquisition in the US and disposing of its Finnish operations, aligning resources with high-value markets [1][19] - Digital sales penetration increased to 33% of total sales, up +241 basis points year-on-year, indicating a strong focus on digital transformation [1][9] Market Trends - North America showed strong sales growth driven by non-residential project execution and improved Proximity business momentum [4][12] - Europe demonstrated recovery from a previous decline, with positive trends across all countries despite an overall slight decrease [4][11] - Asia-Pacific sales were supported by a significant increase in China, which grew by +7.5% [13][15] Financial Outlook - The company maintains its FY 2025 guidance, emphasizing resilience amid a challenging economic landscape and ongoing tariff monitoring [4][16] - Free cash flow conversion is projected at approximately 65%, excluding a €124 million fine from the French Competition Authority [20]