01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Wesco International, Inc. reported strong second-quarter 2026 results, with net sales of $6.67 billiona for the three months ended June 30, 2026, up from $5.90 billion a year earlier, and net income attributable to WESCO International, Inc. of $209.0 million, or $4.23 diluted earnings per share, compared with $174.5 million in net income and $3.83 diluted EPS in the prior-year quarter (per-share figures for the prior year reflect net income attributable to common stockholders of $189.2 million).
For the first six months of 2026, net sales were $12.75 billionb, up 13.4% year over year, with organic sales growth of 12.5%, driven by volume growth across all three segments and led by the CSS segment's data center solutions business. Adjusted EBITDA was $487.2 million in the quarter and $876.0 million for the six months, and the financial leverage ratio improved to 3.0x as of June 30, 2026 from 3.4x at December 31, 2025. The balance sheet and capital structure changed meaningfully during the period.
In February 2026, Wesco Distribution issued $650 millionc of 5.250% Senior Notes due 2031 and $850 million of 5.500% Senior Notes due 2034, and used the proceeds to redeem all $1,325 million of its 7.250% Senior Notes due 2028 on June 15, 2026. The filing states that this redemption is expected to create substantial net income, earnings per share, and cash flow benefits, and that no significant debt maturities remain until 2029. The company recognized a non-cash loss of $10.0 million on the redemption.
Total debt was $5,985.9 milliond at June 30, 2026, and net cash provided by operating activities was $275.1 million for the six months, compared with $135.8 million a year earlier. Other items for investors include a July 1, 2026 acquisition of Newark Engineering Group for a base purchase price of approximately $135.0 million, and a Mexican tax assessment in which the Court issued a split decision mostly in favor of the government, with both parties appealing.
The filing states that IEEPA tariff refunds are not expected to materially affect the financial statements. Quarterly stock repurchases totaled $25.3 million, and the company paid $24.4 million in common dividends per quarter at $0.50 per share.
02—Key points
Key Highlights
- Net sales rose to $6,665.1 million in Q2 2026 from $5,899.6 million, and reported net sales for the first six months rose 13.4% to $12,745.2 million, with organic growth of 12.5%.
- Net income attributable to WESCO International, Inc. was $209.0 million in Q2 2026 versus $174.5 million in Q2 2025; diluted EPS was $4.23 versus $3.83 on a common-stockholder basis as reported.
- Adjusted EBITDA was $487.2 million in Q2 2026, up from $394.2 million, and $876.0 million for the six months, up from $704.9 million.
- CSS segment net sales grew 18.4% in Q2 2026, led by data center solutions, and CSS Adjusted EBITDA rose 37.2% year over year.
- The financial leverage ratio improved to 3.0x at June 30, 2026 from 3.4x at December 31, 2025, and the company refinanced its 7.250% 2028 Notes with 5.250% 2031 and 5.500% 2034 Notes.
- Operating cash flow for the first six months was $275.1 million, compared with $135.8 million in the prior-year period, and cash and equivalents increased to $808.9 million.
- Company closed the acquisition of Newark Engineering Group on July 1, 2026, for a base purchase price of approximately $135.0 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.67B$5.90B | +13.0% |
| SG&A Expenses | $1.02B$872.20M | +17.3% |
| Operating Income | $382.20M$322.20M | +18.6% |
| Net Income | $209.00M$174.50M | +19.8% |
| EPS (Basic) | $4.28$3.88 | +10.3% |
| EPS (Diluted) | $4.23$3.83 | +10.4% |
| Shares Outstanding (Basic) | 48.80M48.80M | 0.0% |
| Shares Outstanding (Diluted) | 49.40M49.40M | 0.0% |
05—Questions
Frequently Asked Questions
How did Wesco perform in the second quarter of 2026?
Net sales were $6,665.1 million, up 13.0% from $5,899.6 million, with organic sales growth of 12.6%. Income from operations rose to $382.2 million from $322.2 million, and net income attributable to WESCO International, Inc. was $209.0 million, compared with $174.5 million in the prior-year quarter.
What drove the growth in net sales?
The filing attributes growth to volume increases of approximately 10% across all three segments and a benefit from price of approximately 3%. CSS was the strongest contributor, with net sales up 18.4% in the quarter, primarily from its data center solutions business.
What did the company do with its debt in 2026?
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. It used the proceeds to redeem all $1,325 million of its 7.250% Senior Notes due 2028 on June 15, 2026, and recorded a non-cash loss of $10.0 million on the redemption. The filing states there are no significant debt maturities until 2029.
Are there any material legal or tax matters investors should know about?
The company has a loss contingency of approximately $49.0 million with a corresponding insurance recovery receivable of $48.5 million, and the filing says it does not expect a loss beyond the insurance deductible. In Mexico, the Court issued a split decision on a 2012 tax assessment of approximately $33.4 million, mostly in favor of the government, and both parties have appealed. The company maintains that it ultimately expects to prevail.
What are the company's plans for capital allocation?
Management expects excess liquidity to be directed primarily at debt reduction, dividends, share repurchases, digital transformation initiatives, and potential acquisitions. The company paid $0.50 per share in common dividends in each of the first two quarters of 2026, and it repurchased $39.9 million of common stock during the six months under its $1 billion authorization.
06—Continue