WESCO International Reports 7.7% Sales Growth in Q2 2025, Net Income Declines

WESCO International, Inc. reported its financial results for the second quarter of 2025, revealing a net sales increase of 7.7% to $5.9 billion, compared to $5.5 billion in the same period last year. The company attributed this growth to a 6% increase in volume, particularly in its Communications & Security Solutions (CSS) and Electrical & Electronic Solutions (EES) segments, despite a decline in the Utility & Broadband Solutions (UBS) segment. Net income for the quarter was $189.2 million, or $3.83 per diluted share, down from $217.7 million, or $4.28 per diluted share, in the prior year. The decrease in net income was influenced by higher costs of goods sold, which rose to 78.9% of net sales, and increased selling, general, and administrative (SG&A) expenses.

In the first half of 2025, WESCO's net sales reached $11.2 billion, a 3.8% increase from $10.8 billion in the same period of 2024. Adjusted for acquisitions and divestitures, organic sales grew by 6.4%. The company reported a net income of $293.2 million for the first six months, down from $319.2 million in the previous year. The decline in profitability was attributed to increased costs, including a rise in SG&A expenses and a decrease in gross margins across all segments.

Strategically, WESCO has been active in acquisitions, including the purchase of Ascent, LLC, a data center facility management services provider, for $179.2 million, and Industrial Software Solutions for $36.3 million. The company also completed the redemption of its Series A Preferred Stock for $540.3 million, resulting in a $27.6 million gain recognized in the second quarter. This redemption was funded through the issuance of $800 million in senior notes due 2033, which is expected to reduce financing costs and enhance cash flow.

Operationally, WESCO serves approximately 140,000 customers globally and maintains relationships with over 35,000 suppliers. The company has a workforce of around 20,000 employees and operates more than 700 sites across approximately 50 countries. The company continues to focus on digital transformation initiatives, including the development of a new Digital and Data Platform aimed at enhancing operational efficiency and financial information flow.

Looking ahead, WESCO anticipates continued growth driven by trends in AI-driven data centers, electrification, and automation. The company remains committed to managing its capital effectively, with plans to prioritize share repurchases, debt reduction, and potential acquisitions. Despite facing challenges such as market volatility and inflation, WESCO believes it is well-positioned to navigate these conditions and capitalize on emerging opportunities.