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WESCO International(WCC) - 2025 Q2 - Earnings Call Presentation
2025-07-31 14:00
Financial Performance - Wesco's Q2 2025 reported sales increased by 8% year-over-year, with organic sales up by 7%[10, 9] - Adjusted EBITDA for Q2 2025 was $394 million, representing 6.7% of sales[11] - Data center sales surpassed $1 billion in Q2 2025, showing a 65% year-over-year increase[8] - The company is on track to deliver free cash flow between $600 million and $800 million for the full year 2025[32] Segment Performance - Electrical & Electronic Solutions (EES) organic sales increased by 6% year-over-year in Q2 2025, with an adjusted EBITDA margin of 8.1%[15, 16, 17] - Communications & Security Solutions (CSS) organic sales increased by 17% year-over-year in Q2 2025, with an adjusted EBITDA margin of 8.8%[21, 22, 23] - Utility & Broadband Solutions (UBS) organic sales decreased by 4% year-over-year in Q2 2025, but maintained an adjusted EBITDA margin above 10%[28, 29] Strategic Initiatives and Outlook - Wesco is increasing its full-year 2025 organic sales growth outlook to 5%-7% and reported growth of 4%-6%[8, 41] - The company redeemed $540 million of preferred stock, resulting in an estimated $32 million annualized benefit to net income and cash flow, and approximately $0.65 annualized benefit to EPS[38] - Preliminary July sales per workday are up approximately 10%, indicating increasing sales momentum[8, 46]