WESCO International : Q1 Financial Results (53524a49 4649 4755 8ece d0c1085d4383)

Published: 2026-04-30 06:19:01 ET WCC

Published on 04/30/2026 at 06:19 am EDT

NYSE: WCC

April 30, 2026

Exceptional start to 2026

building on

last year's market outperformance and accelerating momentum

Record first-quarter sales and backlog, up 14% and 22% respectively, support continued market outperformance.

Adjusted EBITDA up 25%, adjusted EPS up 52%, and free cash flow at 128% of adjusted net income.

Raising 2026 outlook reflecting

exceptional start to the year.

First-quarter sales of $6.1B, with reported sales up 14%

12% organic growth, driven by 22% organic growth in CSS

Accelerating momentum, with Q1 organic sales up 1% sequentially

Total company data center sales up ~70%

Backlog up 22% YOY, driven by record levels in CSS and EES

Adjusted EBITDA of $389 million, up 25% versus prior year, with

EBITDA margin expanding 60 basis points to 6.4%

Adjusted EPS of $3.37, up more than 50% versus prior year

Free cash flow of $213 million, representing 128% of adjusted net income

Leverage ratio improved from 3.4x to 3.2x

Raising our CSS data center sales outlook

Well positioned to benefit from secular growth trends

Focused on continued strong execution and outperformance under all market conditions

See appendix for non-GAAP definitions and reconciliations.

+12%

Organic Sales

+25%

+60 bps

Outstanding quarter with organic sales up 12%, adj. EBITDA up 25% and adj. EPS up 52%

Net Sales¹

($Millions)

Adjusted EBITDA

$6,080

$5,344

of sales

5.8%

of sales

6.4%

$311

$389

Q1 2025

Sales

Price Volume M&A, Fx, and Workdays

Q1 2026

Sales

Q1 2025

Adjusted EBITDA

Reported Sales

Gross Margin %

SG&A2

Q1 2026

Adjusted EBITDA

Reported sales up 14%, organic sales up 12%, driven by strong data center demand

Estimated price benefit of ~3%

Volume growth across all three SBUs

Organic sales grew 1% sequentially, exceeding typical first-quarter seasonality

Gross margin 21.2%, up ~20 bps versus prior year

SG&A2 operating leverage improved 40 bps

Adjusted EBITDA of $389 million, up 25% year-over-year, with EBITDA margin of 6.4%, an increase of 60 bps

¹ Sales growth attribution based on company estimates.

² SG&A for the reconciliation for adjusted EBITDA excludes the impact of stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization and

+52%

Outstanding Q1 earnings performance with adjusted EPS up 52%

Q1 EPS

$3.37

$2.21

Q1 2025

Adjusted EPS

Core Operations Foreign Exchange Interest Other Q1 2026

Adjusted EPS

Core operating performance was the primary driver, reflecting strong sales growth, margin expansion, and operating leverage across the portfolio

Foreign exchange provided a modest net benefit to EPS

Higher interest expense was a headwind, partially offset by a lower effective tax rate in the quarter

The absence of preferred dividends and a lower share count also

contributed to year-over-year EPS growth

Organic sales up 22% YOY; continued strong Wesco Data Center Solutions growth

Q1 Results

$ Millions

Q1 2026

Q1 2025

YOY

Sales

$2,479

$2,000

24%

Adjusted EBITDA

$223

$159

41%

% of Sales

Q1 2026

Q1 2025

Gross Profit

20.9%

21.0%

SG&A1

11.9%

13.0%

Adjusted EBITDA

9.0%

7.9%

First Quarter Drivers

Organic sales up 22% (volume +21%, price +1%), reported sales up 24% YOY

Wesco Data Center Solutions (WDCS) delivered another record quarter, with sales up

~60%

Security up HSD (up low teens including data center projects) reflecting continued share

gains

Enterprise Network Infrastructure (ENI) down MSD (up high teens including data center projects)

bps fav / (unfav)

(10) bps

110 bps

Record backlog up approximately 40% year-over-year driven by strong growth in data center projects

Improved profitability with 9.0% adjusted EBITDA margin

Adjusted EBITDA up 41%, and adjusted EBITDA margin up 110 bps YOY, reflecting strong operating leverage on double-digit organic sales growth

Organic sales up 7% driven by strong growth across OEM and Construction

Q1 Results

$ Millions

Q1 2026

Q1 2025

Sales

$2,244

$2,065

Adjusted EBITDA

$185

$143

30%

YOY

First Quarter Drivers

Organic sales up 7% (volume +3%, price +4%), reported sales up 9% YOY

Construction up LDD, driven by strong wire and cable demand and continued infrastructure and data-center project activity

Industrial down LSD, reflecting project timing impacts

OEM up high-teens, driven by semiconductor and data center growth

Data center sales up over 100% YOY representing 10% of EES sales

bps fav / (unfav)

100 bps

40 bps

130 bps

% of Sales

Q1 2026

Q1 2025

Gross Profit

23.8%

22.8%

SG&A1

15.5%

15.9%

Adjusted EBITDA

8.2%

6.9%

Record backlog up 14% year-over-year

Improved profitability with 8.2% adjusted EBITDA margin

Adjusted EBITDA up 30%, and adjusted EBITDA margin up 130 bps YOY, driven by significant improvement in gross margin and stronger operating cost leverage

Q1 Results

$ Millions

Q1 2026

Q1 2025

Sales

$1,357

$1,278

Adjusted EBITDA

$131

$138

(5)%

YOY

Improving demand and backlog momentum

First Quarter Drivers

Organic sales up 6% (volume +3%, price +3%), reported sales up 6% YOY

Utility delivered HSD growth, reflecting strong double-digit IOU growth and continued positive momentum in Grid Services, while Public Power performance stabilized with flat YOY results

Broadband delivered MSD growth YOY, driven by strength in the U.S.

Backlog up 16% year-over-year, driven by continued project wins Profitability pressured by public power utility customers

Adjusted EBITDA margin decreased 120 bps YOY, due to continued gross margin pressure in transformers and wire and cable products in Public Power

% of Sales

Q1 2026

Q1 2025

Gross Profit

17.7%

18.4%

SG&A1

8.1%

7.6%

Adjusted EBITDA

9.6%

10.8%

bps fav / (unfav)

(70) bps

(50) bps

(120) bps

Data center sales continue to scale, representing 24% of Q1 sales and 20% of TTM sales

Total Company Data Center Sales and YOY Growth

Up ~70%

Up ~65%

Up ~60%

Q1 2026: $1.4B

Q1 2025: $0.9B

Up ~70%

Up ~30%

Q1 '25

Q2 '25

Q3 '25

Q4 '25

Q1 '26

Growth and Expansion

of Capabilities Through M&A

November 2022

Hyperscale solutions

June 2024

December 2024

Data center building intelligence software

Data center facility services across the entire lifecycle

3-5 Years Time to Power

Land acquisition with access to power Transmission lines to a substation for site Generator sets to enable backup power Transformers to data center

Site

Substation

Transformers

Generators

1-2 Year Construction Period

Civil construction

Mechanical, electrical and plumbing equipment

Electrical distribution inside data hall

Commissioning

Data Center

gray space

white space

Providing holistic services and solutions for every phase of the data center lifecycle

Gray Space

End-to-end electrical, automation and MRO capabilities

Data Center

White Space

Extensive next-generation infrastructure and services for always-on connectivity

Electrical Infrastructure

Building wire, cable trays, medium-voltage cable, switch gear, UPS systems

Mechanical and Cooling

Automated switches and sensors, chillers, Computer Room Air Conditioning (CRAC), thermal

MRO, Safety and Other

Communication devices, janitorial, lighting, tools and equipment

Gray Space

20%

White Space

80%

Physical Security, IoT, Pro A/V

Access control, sensors and monitoring, video surveillance

Communications Infrastructure

Copper and fiber cabling systems, racks and enclosures, high-speed interconnects

IT Infrastructure Compute, network, storage, wireless technologies

Wesco data center sales mix

Services and Solutions for Every Phase of the Data Center Lifecycle

Pre-construction

Advisory Services

Grid Services

Installation Enhancement

Rack and Roll Services

Project Deployment Services

Managed Services

Operations

Global Ecosystem Expansive Portfolio Holistic Solutions

Strong cash conversion in Q1, with free cash flow at 128% of adjusted net income

Q1 2026

($ Millions)

Net Working Capital (NWC)¹

% of TTM Sales

$51

$167

$(216)

$(23)

$449 $213

$(215)

128%

of Adjusted Net Income

20.6%

20.1%

20.2%

Adjusted

D&A

Accounts

Inventory

Accounts

Capex

Free

Net Income

and Other

Receivable

Payable

Cash Flow

2024 2025 2026

Greater than $20 million in annualized interest savings

Executed a highly successful $1.5 billion bond offering in the first quarter to redeem our 2028 senior notes

5-year notes due 2031 priced at a 5.25% coupon - the lowest coupon Wesco has ever achieved on a senior notes offering and the lowest for any BB-rated 5-year note issued since 2021

Additionally, issued 8-year notes due 2034 at a 5.50%

coupon

Refinancing expected to generate more than $20M in annualized interest expense savings, beginning in June (less than $10 million savings in 2026)

Notes Maturity Schedule

($ Millions)

900

850

800

850

650

1,325

2026 2027 2028 2029 2030 2031 2032 2033 2034

2028 senior notes to be redeemed June 2026

Senior notes shown at par value

Wesco also maintains a $1.55 billion accounts receivable facility and a $1.725 billion revolving credit facility, which are not included as notes in this schedule.

Raising growth expectations driven by continued strength in data centers

% of Wesco 2025 Sales

2026

Outlook

SBU Sales Breakdown1

2026

Outlook

Reported Sales Growth Reported Sales

Growth

39%

Up LDD

(rais

ed from Up HSD+)

Construction

Electrical and Electronic Solutions

mid-teens prior)

Data Center expected to be up 20%+ (vs. up

Data Center

Security

Enterprise Network Infrastructure

Communication and

Security Solutions

38%

Up MSD

Industrial

(unchanged)

OEM

1 Bar sizes indicate the percentage of SBU sales of full year 2025.

Utility and Broadband Solutions

Broadband

Utility

23%

Up LSD - MSD

(unchanged)

Increasing reported and organic sales outlook and raising EBITDA and EPS expectations

$500 - $800 million

Free cash flow

Cash

$15.00 - $17.00

$14.50 - $16.50

Adjusted diluted EPS

6.6% - 7.0%

Adjusted EBITDA margin

Adjusted

EBITDA

Adjusted EPS

February April

4% - 7% 5% - 8%

~1% ~1%

0% 0%

5% - 8% 6% - 9%

$24.7 - $25.4 billion $24.9 - $25.6 billion

Organic sales growth

Estimated Fx impact

M&A and Workday impact

Reported sales growth Reported sales

Sales

2026 Outlook

2026 Outlook Assumptions

(millions, except effective tax rate)

FY 2026

February April

Depreciation and Amortization

Cloud Computing Amortization Expense Adjustment

~$195-$205

~$50

~$195-$205

~$50

Stock Compensation Expense Adjustment

~$40

~$50

Interest Expense

~$360-$375

Other Expense, net

~$10

Capital Expenditures

~$100

Share Count

49-49.5

Effective Tax Rate

~26%-27% (~27% in Q2-Q4)

~25%-26% (~26% in Q2-Q4)

2026 Underlying Assumptions

Cloud computing amortization and stock-based compensation are included in SG&A expense for adjusted EPS but are not included in adjusted EBITDA

Carryover pricing expected to add ~2 points to the topline; the impact of future pricing is not incorporated in the outlook

Interest rate assumption revised to zero Federal Reserve rate cuts in 2026, down from one previously expected

See appendix for non-GAAP definitions and reconciliations.

Solid start to Q2 with April preliminary sales per workday up ~10%

Q2 Outlook

YOY

Reported Sales

Adjusted EBITDA %

20%

15%

10%

YOY Organic Sales Trends

Q1-25 Q2-25 Q3-25 Q4-25 Q1-26

+6% +7% +12% +9% +12%

Jan 25

Feb 25

Mar 25

Apr 25

May 25

Jun 25

Jul 25

Aug 25

Sep 25

Oct 25

Nov 25

Dec 25

Jan 26

Feb 26

Mar 26

Exceptional start to 2026

building on

last year's market outperformance and accelerating momentum

Record first-quarter sales and backlog, up 14% and 22% respectively, support continued market outperformance.

Adjusted EBITDA up 25%, adjusted EPS up 52%, and free cash flow at 128% of adjusted net income.

Raising 2026 outlook reflecting

exceptional start to the year.

First-quarter sales of $6.1B, with reported sales up 14%

12% organic growth, driven by 22% organic growth in CSS

Accelerating momentum, with Q1 organic sales up 1% sequentially

Total company data center sales up ~70%

Backlog up 22% YOY, driven by record levels in CSS and EES

Adjusted EBITDA of $389 million, up 25% versus prior year, with

EBITDA margin expanding 60 basis points to 6.4%

Adjusted EPS of $3.37, up more than 50% versus prior year

Free cash flow of $213 million, representing 128% of adjusted net income

Leverage ratio improved from 3.4x to 3.2x

Raising our CSS data center sales outlook

Well positioned to benefit from secular growth trends

Focused on continued strong execution and outperformance under all market conditions

See appendix for non-GAAP definitions and reconciliations.

Appendix

2024

254

2025

253

2026

253

Organic Sales Growth

Growth/(Decline)

Three Months Ended

($ Millions)

March 31, 2026 March 31, 2025 Reported Sales Acquisition Foreign Exchange Workday Organic Sales

EES

$2,244.2 $2,065.3 8.7

- %

1.7

% - %

7.0

CSS

2,478.9 2,000.3 23.9

- %

2.0

% - %

21.9

UBS

1,357.0 1,278.1 6.2

- %

0.4

% - %

5.8

Total net sales

$6,080.1 $5,343.7 13.8

- %

1.5

% - %

12.3

($ Millions)

Three Months Ended

Growth/(Decline)

March 31, 2026 December 31, 2025

Reported Sales

Acquisition

Foreign Exchange

Workday

Organic Sales

EES

$2,244.2 $2,272.9

(1.3) %

- %

0.5 %

(1.6) %

(0.2) %

CSS

2,478.9

2,424.7

2.2 %

- %

0.4

(1.6) %

3.4

UBS

1,357.0

1,371.0

(1.0) %

- %

0.2

(1.6) %

0.4

Total net sales

$6,080.1

$6,068.6

0.2 %

- %

0.4

(1.6) %

1.4

Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in the United States. There was no change in the number of workdays in the first quarter of 2026 compared to the first quarter of 2025. The first quarter of 2026 had one less workday compared to the fourth quarter of 2025.

Gross Profit

Three Months Ended

($ Millions)

March 31, 2026

March 31, 2025

Net sales

$6,080.1

$5,343.7

Cost of goods sold (excluding depreciation and amortization)

4,788.3

4,218.1

Gross profit

$1,291.8

$1,125.6

Gross margin

21.2 %

21.1 %

Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales.

Business Unit Gross Profit and Gross Margin

($ Millions)

Electrical and Electronic Solutions (EES)

Three Months Ended

Gross Profit:

Net sales

March 31, 2026

$2,244.2

March 31, 2025

$2,065.3

Cost of goods sold (excluding depreciation and amortization)

1,711.0

1,594.1

Gross profit

$533.2

$471.2

Gross margin

23.8 %

22.8 %

Communications and Security Solutions (CSS)

Three Months Ended

Gross Profit:

Net sales

March 31, 2026

$2,478.9

March 31, 2025

$2,000.3

Cost of goods sold (excluding depreciation and amortization)

1,960.7

1,580.8

Gross profit

$518.2

$419.5

Gross margin

20.9 %

21.0 %

Utility and Broadband Solutions (UBS)

Three Months Ended

Gross Profit:

Net sales

March 31, 2026

$1,357.0

March 31, 2025

$1,278.1

Cost of goods sold (excluding depreciation and amortization)

1,116.6

1,043.2

Gross profit

$240.4

$234.9

Gross margin

17.7 %

18.4 %

Free Cash Flow

Three Months Ended

($ Millions)

March 31, 2026

March 31, 2025

Cash flow provided by operations

$221.4

$28.0

Less: Capital expenditures

(23.4)

(20.4)

Add: Other adjustments

15.4

1.8

Free cash flow

$213.4

$9.4

Percentage of adjusted net income

127.7 %

7.6 %

Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three months ended March 31, 2026 and 2025, the Company paid for certain costs related to digital transformation and restructuring. Such expenditures have been added back to operating cash flow to determine free cash flow for such periods. Our calculation of free cash flow may not be comparable to similar measures used by other companies.

Net Working Capital - March 31, 2026

($ Millions)

As of

Four-quarter Average as of

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Trade accounts receivable, net

$3,942.8

$4,204.2

$4,069.6

$4,273.1

Inventories

3,971.2

4,059.1

4,008.8

4,213.1

Accounts payable

3,291.4

3,375.1

3,030.5

3,470.5

Net working capital

$4,622.6

$4,888.2

$5,047.9

$5,015.7

$4,893.6

Three Months Ended

Twelve Months Ended

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Net sales $5,899.6

$6,199.1

$6,068.6

$6,080.1

$24,247.4

Average net working capital % of TTM March 31, 2026 net sales

20.2 %

Net Working Capital - March 31, 2025

($ Millions)

As of

Four-quarter Average as of

June 30, 2024

September 30, 2024

December 31, 2024

March 31, 2025

Trade accounts receivable, net

$3,654.6

$3,629.1

$3,454.4

$3,641.3

Inventories

3,505.8

3,630.1

3,501.7

3,740.2

Accounts payable

2,688.9

2,839.1

2,670.6

3,025.8

Net working capital

$4,471.5

$4,420.1

$4,285.5

$4,355.7

$4,383.2

Three Months Ended

Twelve Months Ended

June 30, 2024

September 30, 2024

December 31, 2024

March 31, 2025

Net sales $5,479.7

$5,489.4

$5,499.7

$5,343.7

$21,812.5

Average net working capital % of TTM March 31, 2025 net sales

20.1 %

Net Working Capital - March 31, 2024

($ Millions)

As of

Four-quarter Average as of

June 30, 2023

September 30, 2023

December 31, 2023

March 31, 2024

Trade accounts receivable, net

$3,850.7

$3,795.0

$3,639.5

$3,526.7

Inventories

3,584.3

3,541.4

3,572.1

3,525.4

Accounts payable

2,662.7

2,650.0

2,431.5

2,974.3

Net working capital

$4,772.3

$4,686.4

$4,780.1

$4,077.8

$4,579.2

Three Months Ended

Twelve Months Ended

June 30, 2023

September 30, 2023

December 31, 2023

March 31, 2024

Net sales $5,745.5

$5,644.4

$5,473.4

$5,350.0

$22,213.3

Average net working capital % of TTM March 31, 2024 net sales

20.6 %

Adjusted EBITDA - 1Q 2026

EBITDA and Adjusted EBITDA by Segment

($ Millions)

Three Months Ended March 31, 2026

Net income attributable to common stockholders

EES

$164.1

CSS

$188.3

UBS

$121.7

Corporate

$(320.3)

Total

$153.8

Net income (loss) attributable to noncontrolling interests

0.1

0.4

(0.2)

0.3

Provision for income taxes(1)

43.1

Interest expense, net(1)

96.7

Depreciation and amortization

13.2

19.8

8.5

9.2

50.7

EBITDA

$177.4

$208.5

$130.2

$(171.5)

$344.6

Other expense (income), net

6.8

13.1

(0.4)

(19.9)

(0.4)

Stock-based compensation expense

0.8

1.6

0.9

12.8

16.1

Digital transformation costs(2)

17.5

Cloud computing arrangement amortization(3)

11.0

Adjusted EBITDA

$185.0

$223.2

$130.7

$(150.1)

$388.8

Adjusted EBITDA margin %

8.2 %

9.0 %

9.6 %

6.4 %

The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.

Digital transformation costs include costs associated with certain

digital transformation initiatives.

Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.

EBITDA, adjusted EBITDA and adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the three months ended March 31, 2026, adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, and cloud computing arrangement amortization.

Adjusted EBITDA - 1Q 2025

EBITDA and Adjusted EBITDA by Segment

($ Millions) Three Months Ended March 31, 2025

EES CSS UBS Corporate Total

Net income attributable to common stockholders

$125.1

$127.2

$130.3

$(278.6)

$104.0

Net (loss) income attributable to noncontrolling interests

(0.1)

0.1

(0.1)

Preferred stock dividends

14.4

Provision for income taxes(1)

36.1

Interest expense, net(1)

86.3

Depreciation and amortization

12.2

19.0

7.8

9.4

48.4

EBITDA

$137.2

$146.3

$138.1

$(132.5)

$289.1

Other expense (income), net

4.4

10.9

(0.2)

(14.9)

0.2

Stock-based compensation expense

1.0

1.3

0.4

7.5

10.2

Digital transformation costs(2)

6.2

Cloud computing arrangement amortization(3)

3.9

Restructuring costs(4)

1.1

Adjusted EBITDA

$142.6

$158.5

$138.3

$(128.7)

$310.7

Adjusted EBITDA margin % 6.9 % 7.9 % 10.8 % 5.8 %

The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.

Digital transformation costs include costs associated with certain digital transformation initiatives.

Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

EBITDA, adjusted EBITDA and adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the three months ended March 31, 2025, adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs.

Adjusted SG&A, Income from Operations,

Other (Income) Expense, and Provision for Income Taxes

Adjusted SG&A Expenses:

March 31, 2026

March 31, 2025

SG&A Expenses

$947.6

$836.3

Digital transformation costs(1)

(17.5)

(6.2)

Restructuring costs(2)

(1.1)

Adjusted SG&A expenses

$930.1

$829.0

Percentage of Net sales

15.3 %

15.5 %

Adjusted Income from Operations:

Income from operations

$293.5

$240.9

Digital transformation costs(1)

17.5

6.2

Restructuring costs(2)

1.1

Adjusted income from operations

$311.0

$248.2

Adjusted income from operations margin %

5.1 %

4.6 %

Adjusted Other (Income) Expense, net:

Other (income) expense, net

$(0.4)

$0.2

Loss on termination of business arrangement(3)

(0.3)

Adjusted other income, net

$(0.4)

$(0.1)

Adjusted Provision for Income Taxes:

Provision for income taxes

$43.1

$36.1

Income tax effect of adjustments to income from operations and other (income) expense, net(4)

4.5

2.0

Adjusted provision for income taxes

$47.6

$38.1

($ Millions) Three Months Ended

Digital transformation costs include costs associated with certain

digital transformation initiatives.

Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party.

The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 25.8% and 26.4% for the three months ended March 31, 2026 and 2025, respectively.

Adjusted Net Income Attributable to Common Stockholders

($ Millions) Three Months Ended

March 31, 2026

March 31, 2025

Net income attributable to common stockholders

$153.8

$104.0

Digital transformation costs(1)

17.5

6.2

Restructuring costs(2)

1.1

Loss on termination of business arrangement(3)

0.3

Income tax effect of adjustments to income from operations and other (income) expense, net(4)

(4.5)

(2.0)

Adjusted net income attributable to common stockholders

$166.8

$109.6

Digital transformation costs include costs associated with certain digital transformation initiatives.

Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party.

The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 25.8% and 26.4% for the three months ended March 31, 2026 and 2025, respectively.

Adjusted Earnings Per Diluted Share

($ Millions, except for per share data)

Three Months Ended

Adjusted income from operations

March 31, 2026

$311.0

March 31, 2025

$248.2

Interest expense, net

96.7

86.3

Adjusted other income, net

(0.4)

(0.1)

Adjusted income before income taxes

214.7

162.0

Adjusted provision for income taxes

47.6

38.1

Adjusted net income

167.1

123.9

Net income (loss) attributable to noncontrolling interests

0.3

(0.1)

Adjusted net income attributable to WESCO International, Inc.

166.8

124.0

Preferred stock dividends

14.4

Adjusted net income attributable to common stockholders

$166.8

$109.6

Diluted shares

49.5

49.6

Adjusted earnings per diluted share

$3.37

$2.21

For the three months ended March 31, 2026, SG&A expenses, income from operations, provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude digital transformation costs and the related income tax effects. For the three months ended March 31, 2025, SG&A expenses, income from operations, other non-operating (income) expense, provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude digital transformation costs, restructuring costs, the loss on termination of business arrangement, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.

Financial Leverage

($ Millions, except ratios) Twelve Months Ended

March 31, 2026 December 31, 2025

Net income attributable to common stockholders $695.6 $645.8

Net income attributable to noncontrolling interests 2.6 2.3

Gain on redemption of Series A Preferred Stock (32.9) (32.9)

Preferred stock dividends 12.9 27.3

Provision for income taxes 220.4 213.4

Interest expense, net 397.2 386.7

Depreciation and amortization 199.9 197.6

EBITDA $1,495.7 $1,440.2

Other income, net (10.1) (9.6)

Stock-based compensation expense 46.4 40.5

Digital transformation costs(1) 46.5 35.2

Cloud computing arrangement amortization(2) 37.3 30.2

Restructuring costs(3) (1.1) -

Adjusted EBITDA $1,614.7 $1,536.5

As of

March 31, 2026 December 31, 2025

Short-term debt and current portion of long-term debt, net $22.8 $25.0

Long-term debt, net 5,738.1 5,756.4

Debt issuance costs and debt discount(4) 63.6 48.0

Total debt 5,824.5 5,829.4

Less: Cash and cash equivalents 696.6 604.8

Total debt, net of cash $5,127.9 $5,224.6

Financial leverage ratio 3.2 3.4

Digital transformation costs include costs associated with certain digital transformation initiatives.

Reduction to restructuring costs represents the reversal of certain severance costs previously incurred pursuant to an ongoing restructuring plan.

Debt is presented in the Condensed Consolidated Balance Sheets

net of debt issuance and debt discount costs.

Financial leverage ratio is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt issuance costs, and debt discount, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before other non-operating income, non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs.

Disclaimer

WESCO International Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:16 UTC.