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Mar 31
WESCO Q1 2025 Earnings Report
WESCO International Reports First Quarter 2025 Results
Key Takeaways
WESCO International reported flat net sales growth in the first quarter of 2025 compared to the prior year, reaching $5.34 billion. However, organic sales grew by 5.6%, driven by strong performance in Data Center sales (up 70%), Broadband, and OEM businesses, which offset weakness in the utility business. Diluted EPS increased by 7.7% to $2.10, while adjusted diluted EPS saw a slight decrease of 3.9% to $2.21. Gross margin was stable sequentially but down slightly year-over-year. Operating cash flow was $28 million in the quarter. The company reaffirmed its full-year 2025 outlook.
Reported net sales were down 0.1% year-over-year in the first quarter of 2025.
Organic sales increased by 5.6% in the first quarter, excluding M&A, FX, and workday impacts.
Data center sales experienced significant growth of 70% in the first quarter.
Diluted EPS grew by 7.7% to $2.10, while adjusted diluted EPS decreased by 3.9% to $2.21.
Gross margin for the quarter was 21.1%, a slight decrease from the prior year.
Operating cash flow was $28 million in the first quarter.
WESCO
WESCO
WESCO Revenue by Segment
Revenue by Segment
Electrical & Electronic Solutions Revenue
CapyFin.comCommunications & Security Solutions Revenue
CapyFin.comUtility & Broadband Solutions Revenue
CapyFin.com Forward Guidance
WESCO is maintaining its full year 2025 outlook based on positive momentum from the first four months of the year, including preliminary April sales per workday up 7% versus prior year. The company highlights a record opportunity pipeline, strong bid activity, and growing backlog. Management is focused on cross-selling, enterprise-wide margin improvement, and operational improvements from digital transformation.
Positive Outlook
- Full year 2025 outlook reaffirmed based on positive momentum.
- Preliminary April sales per workday up 7% versus prior year.
- Opportunity pipeline continues at a record level.
- Bid activity levels remain very strong.
- Backlog is growing.
- Preferred stock redemption in June will strengthen the balance sheet and improve cash flow and EPS run-rates.
- No significant debt maturities until 2028 with strong liquidity.
- Over 75% of free cash flow generation provides optionality for capital allocation priorities.
Challenges Ahead
- Continued weakness is expected in the utility business.
- Increased uncertainty and volatility in the economic backdrop.
- Potential supply chain impact of global tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income