WESCO International Reports Slight Decline in Net Sales, Organic Growth of 5.6% in Q1 2025

WESCO International, Inc. reported a slight decline in net sales for the first quarter of 2025, totaling $5.34 billion, compared to $5.35 billion in the same period last year. The company attributed this 0.1% decrease to a 2.8% impact from the divestiture of its Wesco Integrated Supply business and a 1.3% decline due to foreign exchange fluctuations. However, organic sales grew by 5.6%, driven by a 4% increase in volume, particularly in the Communications & Security Solutions (CSS) and Electrical & Electronic Solutions (EES) segments, despite a decline in the Utility & Broadband Solutions (UBS) segment.

WESCO's income from operations decreased to $240.9 million, down from $263 million in the prior year, reflecting higher costs of goods sold and increased selling, general, and administrative (SG&A) expenses, which rose to $836.3 million from $829.4 million. The company's net income attributable to common stockholders was $104 million, or $2.10 per diluted share, compared to $101.4 million, or $1.95 per diluted share, in the previous year. The increase in earnings per share was supported by a reduction in the number of outstanding shares due to stock repurchases.

Strategically, WESCO made significant moves during the quarter, including the acquisition of Industrial Software Solutions for $35.2 million, which is expected to enhance its capabilities in industrial automation. The company also issued $800 million in senior notes due 2033 to fund the planned redemption of its Series A Preferred Stock, which is anticipated to improve net income and cash flow. The company’s total debt as of March 31, 2025, stood at $5.21 billion, with a financial leverage ratio of 3.1x.

Operationally, WESCO reported an increase in inventories, which is expected to help mitigate supplier price increases and supply chain disruptions. The company serves approximately 140,000 customers globally and employs around 20,000 people. WESCO operates over 700 sites across approximately 50 countries, providing a robust distribution network. The company anticipates that its strategic actions, including the recent acquisitions and inventory management, will position it well to navigate ongoing economic volatility and supply chain challenges.

Looking ahead, WESCO remains focused on maintaining strong liquidity, with approximately $2.4 billion available from cash and credit facilities. The company plans to direct excess liquidity towards share repurchases, dividends, and potential acquisitions. Management expressed confidence in its ability to meet operational and business needs over the next twelve months, despite potential market disruptions.