01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Wesco International, Inc. reported first-quarter 2026 net sales of $6.08 billiona, up 13.8% from $5.34 billion in the first quarter of 2025, with organic sales growth of 12.3%.
Growth was led by the CSS segment, where net sales rose 23.9% to $2.48 billionb on data center and security demand, while EES net sales rose 8.7% to $2.24 billion and UBS rose 6.2% to $1.36 billion. Income from operations increased 21.8% to $293.5 million, and net income attributable to common stockholders was $153.8 million, or $3.11 per diluted share, compared with $104.0 million, or $2.10 per diluted share, a year earlier. Adjusted EBITDA was $388.8 million, up 25.1% year over year, and the financial leverage ratio improved to 3.2x from 3.4x at December 31, 2025.
Cash from operations was $221.4 millionc, compared with $28.0 million in the prior-year quarter, driven mainly by a $105.7 million impact from changes in accounts payable. In February 2026, Wesco Distribution issued $650 million of 5.250% Senior Notes due 2031 and $850 million of 5.500% Senior Notes due 2034, and it exercised its right on April 29, 2026 to redeem the entire $1,325 million of 7.250% Senior Notes due 2028 on June 15, 2026. The company expects this redemption to create substantial net income, earnings per share, and cash flow benefit, and states that it will have no significant debt maturities until 2029.
Management also noted that the company has not recorded any refund amounts related to IEEPA tariffs invalidated by the U.S. Supreme Court on February 20, 2026, because the availability and timing of refunds are uncertain. At March 31, 2026, the company reported liquidity of approximately $3.2 billiond, combining $353.0 million of available cash with unused capacity under its receivables and revolving facilities. Approximately 92% of its debt was fixed rate.
Management states it was in compliance with all financial covenants. Wesco also disclosed that a Mexican tax assessment of approximately $33.4 million, which it had not accrued, is still under evaluation following an unfavorable-to-be-determined court decision received on April 23, 2026.
02—Key points
Key Highlights
- Net sales rose 13.8% to $6.08 billion, with organic sales growth of 12.3% driven by about 9% volume growth and about 3% price benefit.
- CSS segment net sales increased 23.9% to $2.48 billion, with Adjusted EBITDA up 40.8% to $223.2 million, primarily on data center solutions volume.
- Diluted EPS was $3.11 versus $2.10 a year ago; adjusted diluted EPS was $3.37 versus $2.21.
- Adjusted EBITDA increased 25.1% to $388.8 million; financial leverage ratio improved to 3.2x from 3.4x at December 31, 2025.
- Operating cash flow was $221.4 million, up from $28.0 million, mainly due to a $105.7 million favorable change in accounts payable.
- Issued $1.5 billion of new senior notes in February 2026 and called the $1,325 million 7.250% notes due 2028 for redemption on June 15, 2026.
- Potential IEEPA tariff refunds following the February 20, 2026 Supreme Court ruling are not recorded, as the amount and timing remain uncertain.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Wesco International kept $0.03.
- Revenue$6.08B100.0%
- Cost of revenue−$4.79B78.8%
- Gross profit$1.29B21.2%
- Operating costs−$998.3M16.4%
- Operating income$293.5M4.8%
- Interest, other & tax−$139.7M2.3%
- Net income$153.8M2.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.08B$5.34B | +13.8% |
| Cost of Revenue | $4.79B$4.22B | +13.5% |
| Gross Profit | $1.29B$1.13B | +14.8% |
| SG&A Expenses | $947.60M$836.30M | +13.3% |
| Operating Income | $293.50M$240.90M | +21.8% |
| Net Income | $153.80M$118.40M | +29.9% |
| EPS (Basic) | $3.16$2.13 | +48.4% |
| EPS (Diluted) | $3.11$2.10 | +48.1% |
| Shares Outstanding (Basic) | 48.70M48.80M | −0.2% |
| Shares Outstanding (Diluted) | 49.50M49.60M | −0.2% |
05—Questions
Frequently Asked Questions
How did Wesco perform in the first quarter of 2026?
Net sales were $6.08 billion, up 13.8% from $5.34 billion, with organic sales growth of 12.3%. Income from operations rose 21.8% to $293.5 million, and net income attributable to common stockholders was $153.8 million, or $3.11 per diluted share, compared with $104.0 million, or $2.10, a year earlier.
Which segment drove growth?
The CSS segment led growth, with net sales up 23.9% to $2.48 billion and organic sales up 21.9%, mainly from data center solutions and security solutions volume. EES net sales rose 8.7% to $2.24 billion, and UBS net sales rose 6.2% to $1.36 billion, though UBS Adjusted EBITDA declined 5.5%.
What is the impact of the 2028 notes redemption?
Wesco Distribution exercised its right on April 29, 2026 to redeem all $1,325 million of its 7.250% Senior Notes due 2028 on June 15, 2026, at 100% of principal. The company expects this to create substantial net income, earnings per share, and cash flow benefit, and states it will have no significant debt maturities until 2029.
How is Wesco's liquidity and leverage position?
As of March 31, 2026, liquidity was approximately $3.2 billion, including $353.0 million of available cash, $1,437.8 million of revolving credit capacity, and $1,430.0 million of receivables facility capacity. The financial leverage ratio was 3.2x, versus 3.4x at December 31, 2025, and the company was in compliance with all financial covenants.
Are there material legal or tax risks disclosed?
The company has a $49.0 million loss contingency offset by a $48.5 million insurance recovery receivable, and expects only the insurance deductible to be a loss. A Mexican tax assessment of approximately $33.4 million is under evaluation after an April 23, 2026 court decision, and the company maintains it expects to prevail in final resolution.
06—Continue