01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
WESCO International, Inc. reported third-quarter 2025 net sales of $6.2 billiona, up 12.9% from $5.5 billion a year earlier, with organic sales growth of 12.1%.
Growth was driven by all three segments, led by Communications & Security Solutions (CSS), where net sales rose 20.8% on data center demand. Income from operations rose to $345.4 millionb from $335.6 million, an increase of 2.9%, but cost of goods sold as a percentage of net sales rose to 78.7% from 77.9% because of large project sales and higher inventory adjustments. Net income attributable to common stockholders was $187.5 million, or $3.79 per diluted share, compared with $189.9 million, or $3.81, a year earlier.
Adjusted diluted earnings per share were $3.92c, versus $3.58, and adjusted EBITDA was $423.0 million, up 6.3%. For the first nine months of 2025, net sales were $17.4 billion, up 6.9%, with organic sales up 8.3%. Net cash provided by operating activities fell sharply to $53.1 million from $824.6 million.
The filing attributes the decline mainly to a $485.7 milliond impact from trade receivables and a $421.3 million impact from inventories, which were partly offset by a $196.1 million benefit from accounts payable. Inventories reached $4.06 billion at September 30, 2025, up from $3.50 billion at year-end 2024. During the period, WESCO issued $800 million of 6.375% senior notes due 2033 and used the proceeds to redeem all 21,612 shares of its Series A Preferred Stock for $540.3 million.
Management states the company has no significant debt maturities until 2028 and about $1.6 billion of liquidity, including $258.6 million of cash. The financial leverage ratio rose to 3.5x from 2.9x at year-end 2024, and the company repurchased $75.0 million of common stock in the nine months.
02—Key points
Key Highlights
- Q3 2025 net sales were $6.2 billion, up 12.9% year over year, with organic sales growth of 12.1%; volume rose about 9% and price added about 3%.
- CSS net sales increased 20.8% in Q3 to $2.4 billion, driven primarily by data center solutions, while EES grew 11.8% and UBS grew 3.3%.
- Gross margin pressure: cost of goods sold was 78.7% of net sales in Q3 2025 versus 77.9% in Q3 2024, reflecting large project sales and higher inventory adjustments.
- Q3 diluted EPS was $3.79 on a GAAP basis versus $3.81 a year earlier; adjusted diluted EPS was $3.92 versus $3.58, reflecting the Series A Preferred Stock redemption and lower preferred dividends.
- Nine-month operating cash flow was $53.1 million versus $824.6 million, driven by higher trade receivables and inventory investment.
- The company issued $800 million of 6.375% senior notes due 2033 and redeemed its Series A Preferred Stock for $540.3 million; the financial leverage ratio was 3.5x at September 30, 2025, up from 2.9x at year-end 2024.
- Management reports about $1.6 billion of liquidity, no significant debt maturities until 2028, and approximately 67% of debt at fixed rates; tariffs did not have a material effect on Q3 results.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Wesco International kept $0.03.
- Revenue$6.20B100.0%
- Cost of revenue−$4.88B78.7%
- Gross profit$1.32B21.3%
- Operating costs−$972.0M15.7%
- Operating income$345.4M5.6%
- Interest, other & tax−$157.9M2.5%
- Net income$187.5M3.0%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.20B$5.49B | +12.9% |
| Cost of Revenue | $4.88B$4.28B | +14.1% |
| Gross Profit | $1.32B$1.21B | +8.6% |
| SG&A Expenses | $922.90M$831.10M | +11.0% |
| Operating Income | $345.40M$335.60M | +2.9% |
| Net Income | $187.50M$204.30M | −8.2% |
| EPS (Basic) | $3.85$3.87 | −0.5% |
| EPS (Diluted) | $3.79$3.81 | −0.5% |
| Shares Outstanding (Basic) | 48.70M49.10M | −0.8% |
| Shares Outstanding (Diluted) | 49.50M49.80M | −0.6% |
05—Questions
Frequently Asked Questions
What drove the increase in third-quarter net sales?
Net sales rose 12.9% to $6.2 billion. Organic sales grew 12.1%, reflecting approximately 9% volume growth in all three segments and approximately 3% from price. CSS was the largest contributor, with data center solutions driving 18.3% organic growth in that segment.
Why did operating cash flow decline so much in the first nine months?
Net cash provided by operating activities was $53.1 million, compared with $824.6 million in the prior-year period. The filing cites a $485.7 million impact from trade accounts receivable, primarily from sales growth in EES and CSS and the timing of customer receipts, and a $421.3 million impact from inventories, primarily from higher large-project volume. A $196.1 million benefit from accounts payable partially offset these effects.
How did the Series A Preferred Stock redemption affect shareholders?
WESCO redeemed all 21,612 Series A Preferred shares in June 2025 for $540.3 million, funded by the 2033 notes. The company recognized a $27.6 million gain on the redemption as income attributable to common stockholders. Preferred dividends fell to $27.3 million for the first nine months from $43.1 million a year earlier, which management cites as a driver of higher adjusted EPS.
What is WESCO's liquidity and debt position?
As of September 30, 2025, the company had $425.0 million outstanding and $1,253.9 million of available capacity on its Revolving Credit Facility, and $1,425.0 million outstanding with $125.0 million available on its Receivables Facility. Combined with $258.6 million of cash, liquidity was approximately $1.6 billion. Total debt was $5,797.8 million, and the financial leverage ratio was 3.5x, up from 2.9x at December 31, 2024.
What is the outlook on tariffs and margins?
Management states that tariffs did not have a material effect on third-quarter 2025 results, though the long-term impact remains uncertain. It cites actions including passing through price increases, sourcing locally, reducing imports from high-tariff countries and re-engineering its supply chain. Gross margins declined in all three segments in Q3 due to large project sales and inventory adjustments, partly offset by higher supplier volume rebates.
06—Continue