Wesco International, Inc. · NYSE:WCC
Wesco International — Q3 2025 Earnings Presentation
35 slides from Wesco International's earnings presentation, Oct 30, 2025
Slide 1: Third Quarter Webcast Presentation
NYSE: WCC Third Quarter Webcast Presentation October 30, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures All statements made herein that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties an
Slide 3: Third Quarter Highlights and Full Year Outlook
Third Quarter Highlights and Full Year Outlook • Record quarterly sales of $6.2B with organic growth in all three business units, led by CSS up 18%, EES up 12% and UBS up 3% Four consecutive quarters of • Total data center sales ~$1.2B, up ~60% YOY accelerating sales momentum Raising our • Utility r
Slide 4: Third Quarter YOY Results
Third Quarter YOY Results Improved business momentum with organic sales up 12% Net Sales¹ Adjusted EBITDA ($Millions) $6,199 $5,489 $423 $398 7.3% 6.8% of sales of sales 2 Q3 2024 Price Volume M&A, Fx, and Q3 2025 Q3 2024 Reported Gross SG&A Q3 2025 Sales Workdays Sales Adjusted EBITDA Sales Margin
Slide 5: Electrical & Electronic Solutions (EES)
Electrical & Electronic Solutions (EES) Organic sales up 12% with continued growth across Construction, Industrial and OEM Third Quarter Drivers Q3 Results Organic and reported sales up 12% YOY1 • Construction up mid-teens driven by strong wire and cable demand and $ Millions Q3 2025 Q2 2025 Q3 2024
Slide 6: Communications & Security Solutions (CSS)
Communications & Security Solutions (CSS) Organic sales up 18% with continued strong growth in data centers Third Quarter Drivers Q3 Results Organic sales up 18%, reported sales up 21% YOY¹ $ Millions Q3 2025 Q2 2025 Q3 2024 YOY SEQ • Wesco Data Center Solutions (WDCS) up over 50% driven by large pr
Slide 7: Accelerating Data Center Sales of $1.2B
Accelerating Data Center Sales of $1.2B in Q3 and $4.0B on TTM basis Total data center sales now 17% of TTM sales and 19% of Q3 Wesco company sales 3-5 Years Site 1-2 Year Data Center Substation Time to Power Construction Period Land acquisition with access to power Civil construction Transformers M
Slide 8: Data Center Product, Services and Solutions Offering
Data Center Product, Services and Solutions Offering Providing holistic services and solutions for every phase of the data center lifecycle Gray Space Data Center White Space End-to-end electrical, automation and MRO capabilities Extensive next-generation infrastructure and services for always-on co
Slide 9: Utility & Broadband Solutions (UBS)
Utility & Broadband Solutions (UBS) Returned to sales growth in Q3 Third Quarter Drivers Q3 Results Organic and reported sales up 3% $ Millions Q3 2025 Q2 2025 Q3 2024 YOY SEQ • Utility returned to growth in Q3, led by HSD growth with IOU customers, partially offset by continued softness with public
Slide 10: Free Cash Flow
Free Cash Flow Continued working capital efficiency improvement 2025 TTM Net Working Capital (NWC)¹ ($Millions as of September 30) % of TTM Sales as of September 30 $133 Increased A/R drove 20.9% Q3 free cash flow $(536) 20.4% $672 $(80) $526 $275 $(439) 19.8% 41% of Adjusted Net Income Adjusted D&A
Slide 11: Redeemed the Preferred Stock in June
Redeemed the Preferred Stock in June Refinancing creates substantial earnings and cash flow benefits Facility Maturity Schedule Financial Benefits of Redemption ($ Millions) • Redeemed high-cost $540 million preferred stock (10.625% dividend rate) $1,325 • Used a portion of net proceeds from our new
Slide 12: Tariff Impact, Response and Updates
Tariff Impact, Response and Updates Executing our proven playbook to effectively manage supplier price increases Areas of Impact Wesco Response Tariff Updates Through Q3 • Significant number of supplier price • Pass through price increases • Limited impact to Q3 results based on increases to reflect
Slide 13: 2025 Strategic Business Unit Sales Growth Drivers
2025 Strategic Business Unit Sales Growth Drivers Increasing expected organic growth to 8% to 9%; reported growth of 7% to 8% % of Wesco 2025 SBU Sales 2024 2025 2024 Sales1 Outlook Breakdown2 Actual Outlook Reported Sales Growth Reported Sales Growth Construction Construction Electrical & Electroni
Slide 14: Revised Full-Year 2025 Outlook
Revised Full-Year 2025 Outlook Increasing organic sales growth, adjusted EBITDA and adjusted EPS 2025 Outlook 2025 Modeling Assumptions (millions, except effective tax rate) July October FY 2025 July October Organic sales growth 5% - 7% 8% - 9% Depreciation and Amortization ~$185–195 ~$195 Cloud Com
Slide 15: Fourth Quarter Outlook
Fourth Quarter Outlook Positive momentum continued in October with preliminary sales per workday up ~9% Q4 Outlook YOY Organic Sales Trends YOY Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 (1)% +2% +6% +7% +12% 15% Reported Sales Up HSD+ 5% Adjusted EBITDA % Up ~30 bps (5)% Jul 24 Aug 24 Sep 24 Oct 24 Nov 24 Dec 2
Slide 16: Third Quarter Highlights and Full Year Outlook
Third Quarter Highlights and Full Year Outlook • Record quarterly sales of $6.2B with organic growth in all three business units, led by CSS up 18%, EES up 12% and UBS up 3% Four consecutive quarters of • Total data center sales ~$1.2B, up ~60% YOY accelerating sales momentum Raising our • Utility r
Slide 17: Appendix
Appendix 17
Slide 18: Workdays
Workdays Q1 Q2 Q3 Q4 FY 2023 63 64 63 62 252 2024 63 64 64 63 254 2025 62 64 64 63 253 2026 62 64 64 63 253 18
Slide 19: Organic Sales Growth
Organic Sales Growth ($ Millions) Three Months Ended Growth/(Decline) September 30, September 30, Reported Sales Acquisition Foreign Exchange Workday Organic Sales 2025 2024 EES(1) $2,359.6 $2,110.4 11.8 % — % (0.1) % —% 11.9 % CSS(1) 2,410.9 1,995.9 20.8 % 2.1 % 0.4 % —% 18.3 % UBS 1,428.6 1,383.1
Slide 20: Gross Profit
Gross Profit ($ Millions) Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024 Net sales $6,199.1 $5,899.6 $5,489.4 Cost of goods sold (excluding depreciation 4,881.7 4,656.9 4,276.7 and amortization) Gross profit $1,317.4 $1,242.7 $1,212.7 Gross margin 21.3 % 21.1 % 22.1 % Gross p
Slide 21: Business Unit Gross Profit and Gross Margin
Business Unit Gross Profit and Gross Margin ($ Millions) Electrical & Electronic Solutions (EES)(1) Three Months Ended Gross profit: September 30, 2025 June 30, 2025 September 30, 2024 Net sales $2,359.6 $2,257.8 $2,110.4 Cost of goods sold (excluding depreciation and amortization) 1,808.9 1,739.3 1
Slide 22: Free Cash Flow – Trailing Twelve Months
Free Cash Flow – Trailing Twelve Months ($ Millions) Twelve Months Ended Q4 2024 Q1 2025 Q2 2025 Q3 2025 September 30, 2025 Cash flow provided by operations $276.6 $28.0 $107.8 (82.7) $329.7 Less: capital expenditures (24.3) (20.4) (21.8) (13.2) (79.7) Add: other adjustments 16.1 1.8 0.5 6.6 25.0 Fr
Slide 23: Net Working Capital - September 30, 2025
Net Working Capital - September 30, 2025 ($ Millions) As of Four-Quarter Average as of December 31, March 31, June 30, September 30, September 30, 2024 2025 2025 2025 2025 Trade accounts receivable, net $3,454.4 $3,641.3 $3,942.8 $4,204.2 Inventories 3,501.7 3,740.2 3,971.2 4,059.1 Accounts payable
Slide 24: Net Working Capital - September 30, 2024
Net Working Capital - September 30, 2024 ($ Millions) As of Four-quarter Average as of December 31, March 31, June 30, September 30, September 30, 2023 2024 2024 2024 2024 Trade accounts receivable, net $3,639.5 $3,526.7 $3,654.6 $3,629.1 Inventories 3,572.1 3,525.4 3,505.8 3,630.1 Accounts payable
Slide 25: Net Working Capital - September 30, 2023
Net Working Capital - September 30, 2023 ($ Millions) As of Four-quarter Average as of December 31, March 31, June 30, September 30, September 30, 2022 2023 2023 2023 2023 Trade accounts receivable, net $3,662.7 $3,807.4 $3,850.7 $3,795.0 Inventories 3,498.8 3,729.5 3,584.3 3,541.4 Accounts payable
Slide 26: EBITDA and Adjusted EBITDA by Segment – 3Q 2025
EBITDA and Adjusted EBITDA by Segment – 3Q 2025 ($ Millions) Three Months Ended September 30, 2025 (1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate EES CSS UBS Corporate Total tax and treasury functions. Net inco
Slide 27: EBITDA and Adjusted EBITDA by Segment – 2Q 2025
EBITDA and Adjusted EBITDA by Segment – 2Q 2025 ($ Millions) Three Months Ended June 30, 2025 (1) The reportable segments do not incur income taxes and interest EES CSS UBS Corporate Total expense as these costs are centrally controlled through the Corporate tax and treasury functions. Net income at
Slide 28: EBITDA and Adjusted EBITDA by Segment – 3Q 2024
EBITDA and Adjusted EBITDA by Segment – 3Q 2024 ($ Millions) Three Months Ended September 30, 2024 (1) In the first quarter of 2025, a portion of the EES reportable EES(1) CSS(1) UBS Corporate Total segment was moved to the CSS reportable segment as a result of operational realignment. As a result,
Slide 29: Adjusted SG&A, Income from Operations, Other Expense, and Provision for Income Taxes
Adjusted SG&A, Income from Operations, Other Expense (Income), and Provision for Income Taxes ($ Millions) Three Months Ended (1) Digital transformation costs include costs associated with certain September 30, 2025 September 30, 2024 digital transformation initiatives. Adjusted SG&A Expenses: (2) R
Slide 30: Adjusted Net Income Attributable to Common Stockholders
Adjusted Net Income Attributable to Common Stockholders ($ Millions) Three Months Ended (1) Digital transformation costs include costs associated with certain digital transformation initiatives. September 30, 2025 September 30, 2024 Adjusted Net Income Attributable to Common Stockholders: (2) Restru
Slide 31: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share ($ Millions, except for per share data) Three Months Ended September 30, 2025 September 30, 2024 Adjusted income from operations $354.2 $341.5 Interest expense, net 99.0 86.5 Adjusted other expense (income), net — (3.4) Adjusted income before income taxes 255.2 25
Slide 32: Financial Leverage
Financial Leverage ($ Millions, except ratios) Twelve Months Ended (1) Digital transformation costs include costs associated with certain September 30, 2025 December 31, 2024 digital transformation initiatives. Net income attributable to common stockholders $631.7 $660.2 (2) Restructuring costs incl
Slide 33: Inter-Segment Business Transfer – 1Q24 and 2Q24
Inter-Segment Business Transfer – 1Q24 and 2Q24 Recast results for EES and CSS ($ Millions) Three Months Ended March 31, 2024 ($ Millions) Three Months Ended June 30, 2024 Reportable Reportable EES CSS UBS Segments EES CSS UBS Segments Total Total Net sales $2,064.3 $1,704.8 $1,580.9 $5,350.0 Net sa
Slide 34: Inter-Segment Business Transfer – 3Q24 and 4Q24
Inter-Segment Business Transfer – 3Q24 and 4Q24 Recast results for EES and CSS ($ Millions) Three Months Ended September 30, 2024 ($ Millions) Three Months Ended December 31, 2024 Reportable Reportable EES CSS UBS Segments EES CSS UBS Segments Total Total Net sales $2,110.4 $1,995.9 $1,383.1 $5,489.
Slide 35: Inter-Segment Business Transfer – FY23 and FY24
Inter-Segment Business Transfer – FY23 and FY24 Recast results for EES and CSS ($ Millions) Year Ended December 31, 2023 ($ Millions) Year Ended December 31, 2024 Reportable Reportable EES CSS UBS Segments EES CSS UBS Segments Total Total Net sales $8,449.8 $7,312.7 $6,622.7 $22,385.2 Net sales $8,3