WESCO International (WCC) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 sales of $23.5B, up 8% year-over-year (9% organic), with strong growth in CSS and EES, and data center sales up 50% to $4.3B, now 18% of total sales.

• Q4 2025 sales reached $6.1B, up 10% year-over-year, with organic growth of 9%.

• Record year-end backlog, up 19% year-over-year, with all business units contributing.

• Announced CFO transition and succession plan, with Dave Schulz retiring in May 2026 and Neil Dev appointed as new CFO.

• Advanced digital transformation, recognized by Fortune for AI initiatives and piloted new technology stack.

Financial highlights

• Q4 2025 sales: $6.07B–$6.1B (+10% YOY), organic sales up 9%; Q4 adjusted EBITDA: $409M (6.7% margin), up 10% YOY.

• Full-year 2025 sales: $23.5B (+8% YOY, 9% organic); adjusted EBITDA: $1.54B (6.5% margin), up 2%; adjusted EPS: $12.91, up 6%.

• Gross margin for 2025 was 21.1%, down 50 bps year-over-year.

• Free cash flow for 2025 was $54M, impacted by higher receivables and inventory.

• Financial leverage ratio increased to 3.4x at year-end 2025, up from 2.9x in 2024.

Outlook and guidance

• 2026 outlook: reported sales growth of 5%-8%, organic sales 4%-7%, adjusted EBITDA margin ~6.8% at midpoint.

• Adjusted EPS expected at $14.50–$16.50, up 20% at midpoint; free cash flow projected at $500M–$800M.

• Dividend to increase over 10% to $2 per share, totaling ~$100M annually.

• All business units expected to contribute to growth, with data center sales projected to rise mid-teens percent.

• Preliminary January 2026 sales per workday up 15% year-over-year.