How did WESCO perform in the fourth quarter of 2024?

Net sales were $5,499.7 million, up 0.5% year over year, and organic sales grew 2.4%. Operating profit was $301.1 million, a decrease of 4.7%, and net income attributable to common stockholders was $151.0 million, an increase of 18.3%. Diluted EPS was $3.03, and adjusted diluted EPS was $3.16, up 19%.

How did full-year 2024 results compare with 2023?

Net sales were $21.8 billion, down 2.5% from $22.4 billion, and organic sales declined 0.6%. Operating profit was $1.2 billion, a decrease of 13.0%. Net income attributable to common stockholders was $660.2 million, compared with $708.1 million in 2023. Diluted EPS was $13.05, compared with $13.54, and adjusted diluted EPS was $12.23, compared with $14.60.

What is the company's 2025 outlook?

Management expects organic sales growth of 2.5% to 6.5% and reported sales growth of 0% to 4%, with reported sales of $21.8 to $22.7 billion. Adjusted EBITDA margin is expected to be 6.7% to 7.2%, adjusted diluted EPS $12.00 to $14.50, and free cash flow $600 to $800 million. The outlook does not incorporate the impact of tariffs due to a high level of uncertainty.

How is the company returning capital to shareholders?

Management plans to increase the common stock dividend by 10% to $1.82 per share in 2025 and to continue its share buyback program. In 2024, the company repurchased $425 million of common stock and paid $81.5 million in common stock dividends. The filing also states the company plans to redeem its preferred equity in 2025.

What drove the strong cash flow in 2024?

Operating cash flow was $1,101.2 million, compared with $493.2 million in 2023. Net changes in assets and liabilities contributed $276.2 million, primarily an increase in accounts payable of $329.5 million due to the timing of inventory purchases and supplier payments. Management also credited effective working capital management and inventory reductions.

WCC 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed February 11, 2025. Cited figures are marked; the original filing is the authoritative source.

WESCO International, Inc. furnished a press release (Exhibit 99.1) reporting fourth-quarter and full-year 2024 results, along with an investor slide presentation (Exhibit 99.2).

Fourth-quarter net sales were $5,499.7 million^a, up 0.5% year over year, and organic sales grew 2.4%. Diluted EPS was $3.03, and adjusted diluted EPS was $3.16, up 19%. For full-year 2024, net sales were $21.8 billion, down 2.5%, and organic sales declined 0.6%.

Operating profit was $1.2 billion^b with a 5.6% operating margin, and adjusted EBITDA margin was 6.9%, down 70 basis points year over year. Cash generation was the standout. Operating cash flow was $1.1 billion for 2024, up from $493 million in 2023, and free cash flow was $1,045.2 million, or 154.2% of adjusted net income.

Management reported reducing net debt by $431 million^c, repurchasing $425 million of shares, and holding financial leverage at 2.9x trailing twelve-month adjusted EBITDA. The company divested its Wesco Integrated Supply business and acquired three services-based businesses, including Ascent. For 2025, management expects organic sales growth of 2.5% to 6.5%, operating margin expansion, and free cash flow of $600 to $800 million.

The company plans to raise its common stock dividend by 10% to $1.82^d per share and continue its share buyback program. Management cited January preliminary sales per workday, adjusted for M&A, up 5% versus the prior year, and noted that tariff impacts are not incorporated in the outlook.

02—Key points

Key Highlights

Q4 2024 net sales of $5,499.7 million, up 0.5% year over year; organic sales up 2.4%
Q4 2024 diluted EPS of $3.03; adjusted diluted EPS of $3.16, up 19% year over year
Full-year 2024 net sales of $21.8 billion, down 2.5%; organic sales down 0.6%
Record 2024 operating cash flow of $1.1 billion and free cash flow of $1,045.2 million, or 154.2% of adjusted net income
Net debt reduced by $431 million and $425 million of shares repurchased in 2024; financial leverage of 2.9x
2025 outlook: organic sales growth of 2.5% to 6.5%, free cash flow of $600 to $800 million, and a 10% dividend increase to $1.82 per share
Wesco Data Center Solutions sales up more than 70% year over year in Q4 2024, with broadband up 20%

03—Questions

Frequently Asked Questions

How did WESCO perform in the fourth quarter of 2024?
Net sales were $5,499.7 million, up 0.5% year over year, and organic sales grew 2.4%. Operating profit was $301.1 million, a decrease of 4.7%, and net income attributable to common stockholders was $151.0 million, an increase of 18.3%. Diluted EPS was $3.03, and adjusted diluted EPS was $3.16, up 19%.
How did full-year 2024 results compare with 2023?
Net sales were $21.8 billion, down 2.5% from $22.4 billion, and organic sales declined 0.6%. Operating profit was $1.2 billion, a decrease of 13.0%. Net income attributable to common stockholders was $660.2 million, compared with $708.1 million in 2023. Diluted EPS was $13.05, compared with $13.54, and adjusted diluted EPS was $12.23, compared with $14.60.
What is the company's 2025 outlook?
Management expects organic sales growth of 2.5% to 6.5% and reported sales growth of 0% to 4%, with reported sales of $21.8 to $22.7 billion. Adjusted EBITDA margin is expected to be 6.7% to 7.2%, adjusted diluted EPS $12.00 to $14.50, and free cash flow $600 to $800 million. The outlook does not incorporate the impact of tariffs due to a high level of uncertainty.
How is the company returning capital to shareholders?
Management plans to increase the common stock dividend by 10% to $1.82 per share in 2025 and to continue its share buyback program. In 2024, the company repurchased $425 million of common stock and paid $81.5 million in common stock dividends. The filing also states the company plans to redeem its preferred equity in 2025.
What drove the strong cash flow in 2024?
Operating cash flow was $1,101.2 million, compared with $493.2 million in 2023. Net changes in assets and liabilities contributed $276.2 million, primarily an increase in accounts payable of $329.5 million due to the timing of inventory purchases and supplier payments. Management also credited effective working capital management and inventory reductions.

04—Continue

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