WESCO International (WCC) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 sales of $6.1 billion, up 14% year-over-year, with organic growth of 12% and strong data center demand driving results.

• Data center sales surged ~70% year-over-year to $1.4 billion, now 24% of total sales, driven by AI and infrastructure demand.

• Adjusted EBITDA grew 25% to $389 million, with margin expanding 60 bps to 6.4%; adjusted EPS rose 52% to $3.37.

• Backlog reached a record high, up 22% year-over-year, led by CSS and EES segments, providing strong visibility into future growth.

• Raised full-year 2026 outlook for sales, EBITDA, and EPS based on robust Q1 performance and momentum.

Financial highlights

• Reported sales: $6.1 billion (+14% YoY), with 12% organic growth and 3% price benefit.

• Gross margin: 21.2% (+20 bps YoY); SG&A leverage improved 40 bps.

• Adjusted EBITDA: $389 million (+25% YoY); margin expanded 60 bps to 6.4%.

• Adjusted EPS: $3.37 (+52% YoY), aided by lower tax rate and absence of preferred stock dividend.

• Free cash flow: $213 million, 128% of adjusted net income; operating cash flow $221.4 million.

Outlook and guidance

• Raised 2026 reported sales growth outlook to $24.9B–$25.6B (6%–9%), with organic growth of 5%–8%.

• Adjusted EBITDA margin expected at 6.6%–7%; adjusted EPS outlook increased to $15–$17.

• Free cash flow guidance maintained at $500M–$800M, with 70% typically generated in H2.

• April sales per workday up ~10% YoY; Q2 sales expected to be up high single digits.

• Data center sales outlook raised, now expected to be up 20%+ for the year.