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Sep 30
WESCO Q3 2025 Earnings Report
Wesco International reported strong third quarter 2025 results with record net sales and accelerated organic growth.
Key Takeaways
Wesco International delivered very strong results in the third quarter of 2025, outperforming the market with record net sales of $6.2 billion, a 12.9% increase year-over-year. Organic sales growth accelerated to 12.1%, driven by strong performance across all segments, particularly data center sales which surged by approximately 60%. The company also saw improvements in gross margin and operating margin sequentially, and adjusted diluted EPS increased by 9.5% year-over-year.
Record third quarter net sales reached $6.2 billion, marking a 12.9% increase year-over-year.
Organic sales growth accelerated to 12.1% year-over-year, with sequential growth of 4.8%.
Data center sales hit a new quarterly record of $1.2 billion, growing approximately 60% year-over-year.
Adjusted diluted EPS rose by 9.5% year-over-year to $3.92, with sequential improvements in gross and operating margins.
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 raising its full-year 2025 outlook for organic sales growth, adjusted EBITDA, and adjusted EPS, reflecting increasing business momentum. However, the full-year free cash flow outlook is being reduced due to an increase in working capital associated with rising demand and sales growth.
Positive Outlook
- Full-year organic sales growth outlook raised to 8% to 9% from the previous 5% to 7%.
- Adjusted EPS outlook raised to a range of $13.10 to $13.60.
- Expects to generate significant positive cash flow in the fourth quarter, consistent with normal seasonal patterns.
- Continued focus on executing cross-selling initiatives and enterprise-wide margin improvement programs.
- Anticipates continued market-leading growth in 2026 and beyond, fueled by secular trends like AI-driven data centers, increased power generation, electrification, automation, and reshoring.
Challenges Ahead
- Full-year free cash flow outlook is being reduced.
- Reduction in free cash flow reflects an increase in working capital dollars.
- Increased working capital is associated with rising demand curve and increased sales growth rate.
- No other specific negative forward guidance points were explicitly stated beyond the free cash flow adjustment.
- Potential risks from increased interest rates, currency fluctuations, and supply chain disruptions could impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income