01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
WESCO International, Inc. reported net sales of $5.9 billiona for the second quarter of 2025, up 7.7% from $5.5 billion a year earlier, with organic sales growth of 7.2%.
Growth was driven by the CSS segment, where net sales rose 19.0%b (17.3% organic) on data center solutions, and the EES segment, where net sales rose 5.8%. The UBS segment declined 4.5% as utility customers destocked and spending was cautious amid tariff and market uncertainty. Gross margin pressure was evident: cost of goods sold was 78.9% of net sales versus 78.1% a year earlier, which the filing attributes to lower-margin large data center projects.
Diluted EPS attributable to common stockholders was $3.83c versus $4.28, though adjusted diluted EPS rose to $3.39 from $3.21. Adjusted EBITDA was $394.2 million, down 1.5% year over year.
For the first six months of 2025, net sales were $11.2 billiond, up 3.8%, with organic growth of 6.4%. Operating cash flow fell sharply to $135.8 million from $522.5 million, reflected in a $575 million...
02—Key points
Key Highlights
- Q2 2025 net sales of $5,899.6 million, up 7.7% from $5,479.7 million; organic sales growth of 7.2%.
- Diluted EPS attributable to common stockholders was $3.83 for Q2 2025 versus $4.28; adjusted diluted EPS was $3.39 versus $3.21.
- Adjusted EBITDA was $394.2 million for Q2 2025 versus $400.1 million, a decrease of 1.5%; six-month adjusted EBITDA was $704.9 million versus $740.5 million.
- Cost of goods sold was 78.9% of net sales in Q2 2025 versus 78.1%, reflecting lower-margin large data center project wins.
- Six-month net cash provided by operating activities was $135.8 million versus $522.5 million, with accounts receivable up $431.2 million and inventories up $403.1 million.
- Redeemed all 21,612 Series A Preferred Shares for $540.3 million in June 2025, funded by the $800 million 6.375% senior notes due 2033, and recognized a $27.6 million gain.
- Financial leverage ratio rose to 3.4x at June 30, 2025 from 2.9x at December 31, 2024; the company reports about $1.8 billion of liquidity and no significant debt maturities until 2028.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Wesco International kept $0.03.
- Revenue$5.90B100.0%
- Cost of revenue−$4.66B78.9%
- Gross profit$1.24B21.1%
- Operating costs−$920.5M15.6%
- Operating income$322.2M5.5%
- Interest, other & tax−$147.7M2.5%
- Net income$174.5M3.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $5.90B$5.48B | +7.7% |
| Cost of Revenue | $4.66B$4.28B | +8.8% |
| Gross Profit | $1.24B$1.20B | +3.7% |
| SG&A Expenses | $872.20M$828.40M | +5.3% |
| Operating Income | $322.20M$323.50M | −0.4% |
| Net Income | $174.50M$232.10M | −24.8% |
| EPS (Basic) | $3.88$4.34 | −10.6% |
| EPS (Diluted) | $3.83$4.28 | −10.5% |
| Shares Outstanding (Basic) | 48.80M50.20M | −2.8% |
| Shares Outstanding (Diluted) | 49.40M50.90M | −2.9% |
05—Questions
Frequently Asked Questions
What drove sales growth in the second quarter of 2025?
The CSS segment drove growth, with net sales up 19.0% (17.3% organic), primarily from data center solutions. EES net sales rose 5.8% (6.0% organic), while UBS net sales declined 4.5% due to customer destocking and cautious spending tied to tariff and market uncertainty.
Why did gross margin decline?
The filing states that cost of goods sold was 78.9% of net sales versus 78.1% a year earlier, reflecting a decrease in gross margin in all three segments, including higher inventory adjustments, partially offset by higher supplier volume rebates. Data center growth was accompanied by several large project wins at lower margins.
How did the Series A Preferred Stock redemption affect results?
The company redeemed all Series A Preferred Stock for $540.3 million as of June 22, 2025, recognizing a $27.6 million gain attributable to common stockholders. The filing states the redemption reduces total financing costs and creates ongoing net income, EPS and cash flow benefits.
How is the company's debt position and liquidity?
Total debt was $5,719.3 million at June 30, 2025, versus $5,107.7 million at year-end 2024, and about 68% of the debt portfolio was fixed rate. Liquidity was approximately $1.8 billion, including $1.2 billion of available Revolving Credit Facility capacity, $250.0 million under the Receivables Facility and $350.5 million of cash. The company was in compliance with its financial covenants.
What was the impact of the One Big Beautiful Bill Act?
The filing states the OBBBA was enacted into law on July 4, 2025, and that there is no impact from it reflected in the current period financial statements. The company does not expect the provisions to materially impact its 2025 effective tax rate, and it is still evaluating the impact.
06—Continue