WESCO International reported third‑quarter 2025 results that included net sales of $6.199 billion, a 12.9% year‑over‑year increase, and adjusted earnings per share of $3.92. Organic sales grew 12.1% and data‑center sales reached $1.2 billion, up about 60% from a year earlier. Adjusted EBITDA rose to $423.0 million, a 6.8% margin, while gross margin was 21.3%, slightly lower than the 22.1% reported in the prior year.
Adjusted net income attributable to common stockholders was $187.5 million, up from $189.9 million in Q3 2024. The company’s operating cash flow turned negative at $82.7 million, a shift from the $302.1 million positive cash flow reported in Q3 2024.
Segment performance showed Communications & Security Solutions (CSS) achieving 18% organic growth, Electrical & Electronic Solutions (EES) 12% organic growth, and Utility & Broadband Solutions (UBS) returning to growth. Data‑center sales accounted for a significant portion of the top‑line growth and contributed to margin expansion.
The negative operating cash flow was driven by higher working‑capital requirements, including an inventory build‑up and longer accounts‑receivable cycles, reflecting accelerated demand across the company’s product lines.
Management raised its full‑year 2025 organic sales growth outlook to 8‑9% from the previous 5‑7% range and set an adjusted earnings‑per‑share range of $13.10 to $13.60. The free‑cash‑flow outlook was revised downward to reflect the increased working‑capital needs, following a prior outlook that had been higher.
WESCO’s performance is set against a competitive landscape that includes Graybar Electric, Rexel, and Sonepar. The company’s focus on high‑growth data‑center infrastructure, coupled with digital‑transformation initiatives such as generative‑AI analytics and automation, underpins its strategy for continued growth and margin improvement.
Financially, the company maintains a debt‑to‑equity ratio of 1.34 and a robust liquidity position, supporting its ongoing growth initiatives. Compared to Q3 2024, where net sales fell 2.7% year‑over‑year and operating cash flow was positive, the Q3 2025 results demonstrate a shift toward higher revenue growth at the expense of short‑term cash flow.
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