Wesco International, Inc. · NYSE:WCC
Wesco International — Q2 2025 Earnings Presentation
35 slides from Wesco International's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter Webcast Presentation
NYSE: WCC Second Quarter Webcast Presentation July 31, 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: Second Quarter Highlights and Full Year Outlook
Second Quarter Highlights and Full Year Outlook • Q2 organic sales growth led by CSS up 17% and EES up 6% Three consecutive quarters of • Data center sales eclipsed $1B, up 65% YOY accelerating sales momentum • Continued Utility declines with a return to growth for Investor- with organic sales Owned
Slide 4: Second Quarter YOY Results
Second Quarter YOY Results Improved topline momentum with organic sales up 7% Net Sales¹ Adjusted EBITDA ($Millions) $5,900 $5,480 $400 $394 7.3% 6.7% of sales of sales 2 Q2 2024 Price Volume M&A, Fx, and Q2 2025 Q2 2024 Reported Gross SG&A $ Q2 2025 Sales Workdays Sales Adjusted EBITDA Sales Margin
Slide 5: Electrical & Electronic Solutions (EES)
Electrical & Electronic Solutions (EES) Organic sales up 6% with growth across Construction, Industrial and OEM Second Quarter Drivers Q2 Results Organic sales up 6%, reported sales up 6% YOY1 $ Millions Q2 2025 Q1 2025 Q2 2024 YOY SEQ • Construction up MSD driven by strong wire and cable demand for
Slide 6: Communications & Security Solutions (CSS)
Communications & Security Solutions (CSS) Double-digit growth driven by strong data center sales Second Quarter Drivers Q2 Results Organic sales up 17%, reported sales up 19%¹ YOY • Wesco Data Center Solutions (WDCS) up over 60% driven by large $ Millions Q2 2025 Q1 2025 Q2 2024 YOY SEQ project acti
Slide 7: Data Center Sales Surpassed $1B in Q2 2025
Data Center Sales Surpassed $1B in Q2 2025 Total data center sales now 16% of TTM sales and 18% of Q2 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 Mechanical, plumbing Transm
Slide 8: Utility & Broadband Solutions (UBS)
Utility & Broadband Solutions (UBS) Return to sales growth for Investor-Owned Utilities (IOU) Second Quarter Drivers Q2 Results Organic sales down 4%, reported sales down 4% $ Millions Q2 2025 Q1 2025 Q2 2024 YOY SEQ • Utility down MSD driven by continued customer destocking and cautious spending re
Slide 9: Free Cash Flow
Free Cash Flow On track to deliver $600 to $800M in FY25 2025 TTM Net Working Capital (NWC)¹ ($Millions as of June 30) % of TTM Sales as of June 30 20.9% $170 $(223) $(96) 20.5% $670 $(440) $562 $644 19.9% 96% of Adjusted Net Income Adjusted D&A Accounts Inventory Accounts Capex Free Net Income and
Slide 10: Redeemed the Preferred Stock in June
Redeemed the Preferred Stock in June Refinancing creates substantial earnings and cash flow benefits Facility Maturity Schedule Financial Benefits of Redemption ($ Millions) • Redeemed high-cost $540 million preferred stock (10.625% dividend rate) $1,325 • Used a portion of net proceeds from our new
Slide 11: Tariff Impact, Response and Updates
Tariff Impact, Response and Updates Executing our proven playbook to effectively manage supplier price increases Potential Areas of Impact Wesco Response Tariff Updates Through Q2 • Significant number of supplier price • Pass through price increases • Limited impact to Q2 results based on increases
Slide 12: 2025 Strategic Business Unit Sales Growth Drivers
2025 Strategic Business Unit Sales Growth Drivers Increasing expected organic growth to 5% to 7%; reported growth of 4% to 6% % of Wesco 2025 SBU Sales 2024 2025 2024 Sales² Outlook Breakdown¹ Actual Outlook (Reported Sales Growth) (Reported Sales Growth) Construction Construction Electrical & Elect
Slide 13: Revised Full-Year 2025 Outlook
Revised Full-Year 2025 Outlook Increasing organic sales growth while maintaining EPS mid-point 2025 Outlook 2025 Modeling Assumptions (millions, except effective tax rate) May July FY 2025 May July Organic sales growth 2.5% - 6.5% 5% - 7% Depreciation and Amortization ~$185–195 ~$185–195 Cloud Compu
Slide 14: Third Quarter Outlook
Third Quarter Outlook Sales momentum increased in July with preliminary sales per workday up ~10% Q3 Outlook YOY Organic Sales Trends YOY Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 (1)% (1)% +2% +6% +7% 10% Reported Sales Up MSD to HSD 0% EBITDA % Down ~40 bps (10)% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Ma
Slide 15: Second Quarter Highlights and Full Year Outlook
Second Quarter Highlights and Full Year Outlook • Q2 organic sales growth led by CSS up 17% and EES up 6% Three consecutive quarters of • Data center sales eclipsed $1B, up 65% YOY accelerating sales momentum • Continued Utility declines with a return to growth for Investor- with organic sales Owned
Slide 16: Appendix
Appendix wesco
Slide 17: Workdays
Workdays Q1 Q2 Q3 Q4 FY 2023 63 64 63 62 252 2024 63 64 64 63 254 2025 62 64 64 63 253 2026 62 64 64 63 253 17
Slide 18: Organic Sales Growth
Organic Sales Growth ($ Millions) Three Months Ended Growth/(Decline) June 30, 2025 June 30, 2024 Reported Sales Acquisition Foreign Exchange Workday Organic Sales EES $2,257.8 $2,134.5 5.8 % — % (0.2) % —% 6.0 % CSS 2,265.2 1,904.3 19.0 % 1.5 % 0.2 % —% 17.3 % UBS 1,376.6 1,440.9 (4.5) % — % (0.1)
Slide 19: Gross Profit
Gross Profit ($ Millions) Three Months Ended ($ Millions) Three Months Ended June 30, 2025 June 30, 2024 March 31, 2025 Net sales $5,899.6 $5,479.7 Net sales $5,343.7 Cost of goods sold Cost of goods sold (excluding depreciation 4,656.9 4,281.7 (excluding depreciation 4,218.1 and amortization) and a
Slide 20: Free Cash Flow
Free Cash Flow ($ Millions) Six Months Ended June 30, 2025 June 30, 2024 Cash flow provided by operations $135.8 $522.5 Less: Capital expenditures (42.2) (41.2) Add: Other adjustments 2.3 16.0 Free cash flow $95.9 $497.3 Percentage of adjusted net income 31.5 % 159.1 % Free cash flow is a non-GAAP f
Slide 21: Free Cash Flow – Trailing Twelve Months
Free Cash Flow – Trailing Twelve Months ($ Millions) Twelve Months Ended Q3 2024 Q4 2024 Q1 2025 Q2 2025 June 30, 2025 Cash flow provided by operations $302.1 $276.6 $28.0 $107.8 $714.5 Less: Capital expenditures (29.2) (24.3) (20.4) (21.8) (95.7) Add: Other adjustments 6.6 16.1 1.8 0.5 25.0 Free ca
Slide 22: Net Working Capital - June 30, 2025
Net Working Capital - June 30, 2025 ($ Millions) As of Four-quarter Average as of September 30, December 31, March 31, 2025 June 30, 2025 June 30, 2025 2024 2024 Trade accounts receivable, net $3,629.1 $3,454.4 $3,641.3 $3,942.8 Inventories 3,630.1 3,501.7 3,740.2 3,971.2 Accounts payable 2,839.1 2,
Slide 23: Net Working Capital - June 30, 2024
Net Working Capital - June 30, 2024 ($ Millions) As of Four-quarter Average as of September 30, December 31, March 31, 2025 June 30, 2025 June 30, 2025 2024 2024 Trade accounts receivable, net $3,629.1 $3,454.4 $3,641.3 $3,942.8 Inventories 3,630.1 3,501.7 3,740.2 3,971.2 Accounts payable 2,839.1 2,
Slide 24: Net Working Capital - June 30, 2023
Net Working Capital - June 30, 2023 ($ Millions) As of Four-quarter Average as of September 30, December 31, March 31, 2023 June 30, 2023 June 30, 2023 2022 2022 Trade accounts receivable, net $3,622.1 $3,662.7 $3,807.4 $3,850.7 Inventories 3,490.1 3,498.8 3,729.5 3,584.3 Accounts payable 2,578.7 2,
Slide 25: Business Unit Gross Profit and Gross Margin
Business Unit Gross Profit and Gross Margin ($ Millions) Electrical & Electronic Solutions (EES) Three Months Ended Gross Profit: June 30, 2025 March 31, 2025 June 30, 2024 Net sales $2,257.8 $2,065.3 $2,134.5 Cost of goods sold (excluding depreciation and amortization) 1,739.3 1,594.1 1,623.1 Gross
Slide 26: EBITDA and Adjusted EBITDA by Segment – 2Q 2025
EBITDA and Adjusted EBITDA by Segment – 2Q 2025 ($ Millions) Three Months Ended June 30, 2025 (1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate EES CSS UBS Corporate Total tax and treasury functions. Net income at
Slide 27: EBITDA and Adjusted EBITDA by Segment – 2Q 2024
EBITDA and Adjusted EBITDA by Segment – 2Q 2024 ($ Millions) Three Months Ended June 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, the r
Slide 28: EBITDA and Adjusted EBITDA by Segment – 1Q 2025
EBITDA and Adjusted EBITDA by Segment – 1Q 2025 ($ Millions) Three Months Ended March 31, 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 income a
Slide 29: Adjusted SG&A, Income from Operations, Other Expense, and Income Taxes
Adjusted SG&A, Income from Operations, Other (Income) Expense, and Provision for Income Taxes ($ Millions) Three Months Ended (1) Digital transformation costs include costs associated with certain June 30, 2025 June 30, 2024 digital transformation initiatives. Adjusted SG&A Expenses: (2) Restructuri
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. June 30, 2025 June 30, 2024 Adjusted Net Income Attributable to Common Stockholders: (2) Restructuring co
Slide 31: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share ($ Millions) Three Months Ended June 30, 2025 June 30, 2024 Adjusted income from operations $330.3 $348.3 Interest expense, net 92.9 98.8 Adjusted other (income) expense, net (7.3) 3.2 Adjusted income before income taxes 244.7 246.3 Adjusted provision for income t
Slide 32: Financial Leverage
Financial Leverage ($ Millions) Twelve Months Ended (1) Digital transformation costs include costs associated with certain June 30, 2025 December 31, 2024 digital transformation initiatives. Net income attributable to common stockholders $634.2 $660.2 (2) Restructuring costs include severance costs
Slide 33: Inter-Segment Business Transfer – 1Q24 and 2Q24
Inter-Segment Business Transfer – 1Q24 and 2Q24 Recast results for EES and CSS ($ 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