Wesco International, Inc. · NYSE:WCC
Wesco International — Q1 2025 Earnings Presentation
29 slides from Wesco International's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Webcast Presentation
NYSE: WCC First Quarter 2025 Webcast Presentation May 1, 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: First Quarter Highlights and Outlook
First Quarter Highlights and Outlook Positive sales momentum from fourth quarter continued in first quarter with organic sales up 6% YOY ― Growth driven by data center which was up ~70%, along with strong growth in Broadband and OEM ― Continued weakness in our utility business as expected ― Sequenti
Slide 4: First Quarter YOY Results
First Quarter YOY Results Organic sales up 6%, sequential sales better than normal seasonality Net Sales1 $ millions $5,350 $5,344 • Reported sales flat, organic sales up 6% • Price and volume offset the divestiture of Integrated Supply, impact of one fewer workdays and foreign exchange headwinds •
Slide 5: Electrical & Electronic Solutions (EES)
Electrical & Electronic Solutions (EES) Organic sales up 3% led by growth in OEM $ millions / margin % First Quarter Drivers Q1 2025 Q1 2024 YOY • Organic sales up 3%, reported sales flat YOY1 Sales $2,065 $2,064 3%2 – Construction down LSD reflecting lower sales in the U.S. offset by growth in Cana
Slide 6: Communications & Security Solutions (CSS)
Communications & Security Solutions (CSS) Strong data center sales drove double-digit growth for CSS $ millions / margin % First Quarter Drivers Q1 2025 Q1 2024 YOY • Organic sales up 18%, reported sales up 17%1 YOY Sales $2,000 $1,705 18%2 – Wesco Data Center Solutions (WDCS) up over 65% driven by
Slide 7: AI-Driven Data Centers Delivering Strong Growth for Wesco
AI-Driven Data Centers Delivering Strong Growth for Wesco Total data center sales now 14% of TTM sales and 16% of Q1 Wesco company sales 3-5 Years Time to Power 1-2 Year Construction Period Total Data Center (all SBUs) YOY Growth Land acquisition Transmission lines Generator sets to Transformers Civ
Slide 8: Utility & Broadband Solutions (UBS)
Utility & Broadband Solutions (UBS) Continued weakness in utility partially offset by strong broadband growth $ millions / margin % First Quarter Drivers Q1 2025 Q1 2024 YOY • Organic sales down 5%, reported sales down 19% due to WIS divestiture Sales $1,278 $1,581 (5)%1 – Utility down HSD due to on
Slide 9: Free Cash Flow
Free Cash Flow 2025 YTD $ millions $124 $(23) $(20) $9 Net Working Capital1 $(189) % of TTM Sales 8% of 20.6% $344 Adjusted 50 basis point Net improvement $(227) Income 20.1% TTM TTM Adjusted D&A Accounts Inventory Accounts Capex Free March 31, 2024 March 31, 2025 Net Income and Other Receivable Pay
Slide 10: Redeeming the Preferred Stock in June
Redeeming the Preferred Stock in June Strengthens balance sheet; no significant maturities until 2028 Summary and Financial Benefits Facility Maturity Schedule $ millions • Announced redemption of high-cost $540 million preferred stock (10.625% dividend rate) 1,325 • Will use a portion of our new 6.
Slide 11: Tariff Impact and Response
Tariff Impact and Response Wesco is experienced at successfully navigating global supply chain challenges Potential Areas of Impact Tariff Response • Significant number of supplier price • Pass through price increases increases to reflect tariffs • Timing between price increase • Potential changes t
Slide 12: 2025 Strategic Business Unit Sales Growth Drivers
2025 Strategic Business Unit Sales Growth Drivers Expect organic growth of 2.5% to 6.5%; reported growth to be flat to up 4% % of Wesco 2025 SBU Sales 2024 2025 2024 Sales2 Outlook Breakdown 1 Actual Outlook (Reported Sales Growth) (Reported Sales Growth) Construction Electrical & Electronic Solutio
Slide 13: Reaffirming 2025 Outlook
Reaffirming 2025 Outlook 2025 Outlook Organic sales growth 2.5% - 6.5% Estimated Fx impact (1.5)% Sales M&A and Workday impact (1)% • Sales above the mid- Reported sales growth 0% - 4% Reported sales $21.8 – $22.7 billion point of the range Adjusted EBITDA Adjusted EBITDA margin 6.7% - 7.2% • EBITDA
Slide 14: Second Quarter Outlook
Second Quarter Outlook Positive sales growth momentum continued in April YOY Organic Sales Trends Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 (3)% (1)% (1)% +2% +6% 10% Q2 Outlook YOY Reported Sales Up MSD to HSD 0% EBITDA % Down ~50 bps (10)% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 24 24 24 2
Slide 15: First Quarter Highlights and Outlook
First Quarter Highlights and Outlook Positive sales momentum from fourth quarter continued in first quarter with organic sales up 6% YOY ― Growth driven by data center which was up ~70%, along with strong growth in Broadband and OEM ― Continued weakness in our utility business as expected ― Sequenti
Slide 16: Appendix
APPENDIX
Slide 17: Glossary
Glossary 1H: First half of fiscal year MTDC: Multi-tenant data center 2H: Second half of fiscal year PF: Pro Forma A/V: Audio/visual PY: Prior Year B2B: Business-to-Business OEM: Original equipment manufacturer COGS: Cost of goods sold OPEX: Operating expenses CIG: Commercial, Institutional and Gove
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) Acquisitions Foreign Organic March 31, 2025 March 31, 2024 Reported /Divestiture Exchange Workday Sales EES $ 2,065.3 $ 2,064.3 — % — % (1.8) % (1.6) % 3.4 % CSS 2,000.3 1,704.8 17.3 % 2.3 % (1.5) % (1.6) % 18.1 % UBS 1,278.1 1,580.
Slide 20: Gross Profit and Free Cash Flow
Gross Profit and Free Cash Flow $ millions Three Months Ended March 31, March 31, Gross Profit: 2025 2024 Net sales $ 5,343.7 $ 5,350.0 Cost of goods sold (excluding depreciation and amortization) 4,218.1 4,212.1 Gross profit $ 1,125.6 $ 1,137.9 Gross margin 21.1 % 21.3 % Three Months Ended March 31
Slide 21: Business Unit Gross Profit and Gross Margin
Business Unit Gross Profit and Gross Margin Electrical & Electronic Solutions (EES) Three Months Ended Gross Profit: March 31, 2025 March 31, 2024 Net Sales $ 2,065.3 $ 2,064.3 Cost of goods sold (excluding depreciation and 1,594.1 1,580.9 amortization) Gross Profit $ 471.2 $ 483.4 Gross Margin 22.8
Slide 22: Adjusted EBITDA – 1Q 2025
Adjusted EBITDA – 1Q 2025 $ millions Three Months Ended March 31, 2025 EBITDA and Adjusted EBITDA by Segment: EES CSS UBS Corporate Total Net income attributable to common stockholders $ 125.1 $ 127.2 $ 130.3 $ (278.6) $ 104.0 Net (loss) income attributable to noncontrolling interests (0.1) 0.1 — (0
Slide 23: Adjusted EBITDA – 1Q 2024
Adjusted EBITDA – 1Q 2024 $ millions Three Months Ended March 31, 2024 EBITDA and Adjusted EBITDA by Segment: EES(1) CSS(1) UBS Corporate Total Net income attributable to common stockholders $ 144.9 $ 91.7 $ 160.8 $ (296.0) $ 101.4 Net (loss) income attributable to noncontrolling interests (0.4) 0.4
Slide 24: Adjusted SG&A and Income from Operations
Adjusted SG&A and Income from Operations $ millions Three Months Ended March 31, 2025 March 31, 2024 (1) Digital transformation costs include costs associated with certain digital Adjusted SG&A Expenses: Selling, general and administrative expenses $ 836.3 $ 829.4 transformation initiatives. (2) Res
Slide 25: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $ millions Three Months Ended March 31, March 31, Adjusted Earnings per Diluted Share: 2025 2024 Adjusted income from operations $ 248.2 $ 281.9 Interest expense, net 86.3 94.4 Adjusted other (income) expense, net (0.1) 16.1 Adjusted income before income taxes 162
Slide 26: Financial Leverage
Financial Leverage $ millions Twelve Months Ended March 31, December 31, Financial Leverage: 2025 2024 (1) Digital transformation costs include costs associated with certain digital transformation initiatives. Net income attributable to common stockholders $ 662.8 $ 660.2 Net income attributable to
Slide 27: Inter-Segment Business Transfer – 1Q24 and 2Q24
Inter-Segment Business Transfer – 1Q24 and 2Q24 $ millions Three Months Ended March 31, 2024 Three Months Ended June 30, 2024 Reportable Reportable (In millions) EES CSS UBS Segments (In millions) EES CSS UBS Segments Total Total Net sales $ 2,064.3 $ 1,704.8 $ 1,580.9 $ 5,350.0 Net sales $ 2,134.5
Slide 28: Inter-Segment Business Transfer – 3Q24 and 4Q24
Inter-Segment Business Transfer – 3Q24 and 4Q24 $ millions Three Months Ended September 30, 2024 Three Months Ended December 31, 2024 Reportable Reportable (In millions) EES CSS UBS Segments (In millions) EES CSS UBS Segments Total Total Net sales $ 2,110.4 $ 1,995.9 $ 1,383.1 $ 5,489.4 Net sales $
Slide 29: Inter-Segment Business Transfer – FY23 and FY24
Inter-Segment Business Transfer – FY23 and FY24 $ millions Year Ended December 31, 2023 Year Ended December 31, 2024 Reportable Reportable (In millions) EES CSS UBS Segments (In millions) EES CSS UBS Segments Total Total Net sales $ 8,449.8 $ 7,312.7 $ 6,622.7 $ 22,385.2 Net sales $ 8,391.7 $ 7,692.