01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
WESCO International, Inc. reported net sales of $23.5 billiona for 2025, up 7.8% from $21.8 billion in 2024, with organic sales growth of 8.6%.
Management attributed growth mainly to the CSS segment, where net sales rose 18.3% to $9.1 billionb on data center demand, and to the EES segment, where net sales rose 6.7% to $9.0 billion. The UBS segment declined 4.9% to $5.5 billion, reflecting reduced public power activity, partly offset by Broadband growth. Gross margin pressure was evident: cost of goods sold was 78.9% of net sales versus 78.4% in 2024, which management linked to competitive pressure in public power and large, lower-margin data center projects.
Profitability was broadly flat on a GAAP basis. Net income attributable to common stockholders was $645.8 millionc, compared with $660.2 million, and diluted earnings per share was $13.05 in both years. Adjusted EBITDA rose 1.8% to $1,536.5 million, and adjusted diluted earnings per share increased to $12.91 from $12.23, aided by the June 2025 redemption of the Series A Preferred Stock, which was funded with $800 million of 6.375% Senior Notes due 2033.
Operating cash flow fell sharply to $125.0 milliond from $1,101.2 million, driven mainly by a $507.3 million increase in trade receivables and a $428.1 million increase in inventories tied to growth in large projects. Balance sheet and capital allocation are central investor considerations. Total debt was $5.8 billion at year-end and the financial leverage ratio rose to 3.4x from 2.9x.
Liquidity was approximately $1.6 billion, and the company stated it has no significant debt maturities until 2028. Management expects 2026 capital expenditures of approximately $100 million, and the Board's $1 billion repurchase authorization had approximately $413.9 million remaining, with no shares repurchased under it in the fourth quarter of 2025. The company reported that tariffs did not have a material effect on 2025 results, while noting that the longer-term impact remains uncertain.
02—Key points
Key Highlights
- Net sales of $23.5 billion in 2025, up 7.8% reported and 8.6% organic, with approximately 6% volume growth and approximately 2% price benefit.
- CSS segment net sales rose 18.3% to $9.1 billion, with organic growth of 16.7% driven by data center solutions; adjusted EBITDA increased 25.1% to $799.4 million.
- UBS segment net sales declined 4.9% to $5.5 billion, with organic sales down 1.0% due to reduced public power activity; adjusted EBITDA fell 12.5% to $562.8 million.
- Cost of goods sold rose to 78.9% of net sales from 78.4%, reflecting lower gross margins across all three segments, most notably in UBS.
- Operating cash flow dropped to $125.0 million from $1,101.2 million, mainly due to higher receivables and inventory investment.
- Total debt of $5.8 billion, financial leverage ratio of 3.4x versus 2.9x in 2024, and liquidity of approximately $1.6 billion; no significant debt maturities until 2028.
- Series A Preferred Stock was fully redeemed for $540.3 million in June 2025, and quarterly common dividends remained at $0.454 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Wesco International kept $0.03.
- Revenue$23.51B100.0%
- Cost of revenue−$18.54B78.9%
- Gross profit$4.97B21.1%
- Operating costs−$3.74B15.9%
- Operating income$1.23B5.2%
- Interest, other & tax−$592.8M2.5%
- Net income$640.2M2.7%
Where FY2025 revenue went
$23.51B- Cost of revenue: $18.54B, 79% of revenue
- SG&A: $3.54B, 15% of revenue
- Net income: $640.2M, 2.7% of revenue
- Other operating costs: $197.6M, 0.8% of revenue
- Interest, other & tax: $592.8M, 2.5% of revenue
Kept 2.7% as net incomeNet income $640.2M · 2.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $23.51B$21.82B | +7.8% |
| Cost of Revenue | $18.54B$17.11B | +8.4% |
| Gross Profit | $4.97B$4.71B | +5.5% |
| SG&A Expenses | $3.54B$3.31B | +7.1% |
| Operating Income | $1.23B$1.22B | +0.8% |
| Net Income | $640.20M$717.60M | −10.8% |
| EPS (Basic) | $13.26$13.26 | 0.0% |
| EPS (Diluted) | $13.05$13.05 | 0.0% |
| Shares Outstanding (Basic) | 48.70M49.80M | −2.2% |
| Shares Outstanding (Diluted) | 49.50M50.60M | −2.2% |
05—Questions
Frequently Asked Questions
What drove WESCO's sales growth in 2025?
Net sales grew 7.8% to $23.5 billion, and organic sales grew 8.6%. The company said growth was primarily driven by the CSS segment's data center business and by EES growth in its OEM and construction businesses, fueled in part by data center projects and infrastructure activity. UBS sales declined due to reduced public power activity.
Why did operating cash flow decline so much?
Operating cash flow was $125.0 million in 2025 compared with $1,101.2 million in 2024. The filing attributes the $976.2 million decrease mainly to a $507.3 million impact from trade accounts receivable, driven by sales growth in CSS and EES and the timing of customer receipts, and a $428.1 million impact from inventories, driven by volume growth in large projects.
How did the company's leverage and liquidity change?
Total debt was $5.8 billion at December 31, 2025, and the financial leverage ratio was 3.4x, up from 2.9x a year earlier. The company had $604.8 million of cash, $581.5 million outstanding on its Revolving Credit Facility with $1,107.9 million available, and $1,300.0 million outstanding under its Receivables Facility. Management said liquidity was approximately $1.6 billion and that it has no significant debt maturities until 2028.
How did the Series A Preferred Stock redemption affect per-share results?
The company redeemed all 21,612 outstanding Series A Preferred shares for $540.3 million in June 2025, funded by the March 2025 issuance of $800 million of 6.375% Senior Notes due 2033. GAAP diluted earnings per share was $13.05 in both 2025 and 2024. Adjusted diluted earnings per share rose to $12.91 from $12.23, reflecting the lower preferred dividends and a reduced common share count, and the redemption produced a $32.9 million gain attributable to common stockholders.
What is the status of share repurchases and capital returns?
The company repurchased $75.0 million of common stock in 2025 and paid $88.4 million in common dividends, at $0.454 per quarter. Under the Board's $1 billion authorization from May 2022, approximately $413.9 million remained available at year-end, and no shares were repurchased under that program in the fourth quarter of 2025. Management expects to direct excess liquidity toward debt reduction, dividends, share repurchases, digital initiatives and potential acquisitions.
06—Continue