WESCO INTERNATIONAL INC
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
WCC$292.68+2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000929008-25-000023
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000929008-25-000034
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 144 current paragraphs.
78 unchanged; 51 reworded; 14 added; 16 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Our financial results reflect continued sales momentum in the third quarter of 2025, highlighted by a 5.1% sequential and 12.9% year over year increase in reported net sales. For the first nine months of 2025 compared to the first nine months of 2024, reported sales increased by 6.9% and organic sales increased by 8.3%, which adjusts for the impact of acquisitions and divestitures, fluctuations in foreign exchange rates and number of workdays. Our CSS data center business is primarily driving this growth in sales, but also contributing to lower gross margins as compared to prior years due to several large project sales. Our EES segment experienced continued growth across its construction, industrial and OEM businesses in the third quarter, fueled in part by rising demand for data center projects and increased infrastructure activity. Our Utility business also continued to show signs of improvement with increased investor-owned utility sales growth in the third quarter. Additionally, the Broadband business saw continued acceleration in the third quarter, which reflects an increased growth rate in the United States. We have seen year over year backlog growth driven by our CSS and UBS segments.
Current report
Third Quarter of 2025 versus Third Quarter of 2024
Current report
Income from operations was $345.4 million for the third quarter of 2025 compared to $335.6 million for the third quarter of 2024, an increase of $9.8 million, or 2.9%. The increase reflects higher sales partially offset by higher cost of goods sold as a percentage of net sales due to a decrease in gross margin in all three segments due to large projects and an increase in SG&A expenses as described above.
Current report
(2)Reduction to pension settlement cost represents income as a result of the finalization of the liabilities transferred as part of the settlement of the Company's U.S. pension plan.
Current report
UBS reported net sales of $1,428.6 million for the third quarter of 2025 compared to $1,383.1 million for the third quarter of 2024, an increase of $45.5 million, or 3.3%. UBS organic sales for the third quarter of 2025 grew by 3.4%, reflecting volume growth of approximately 2% driven primarily by growth in the broadband business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Current report
UBS adjusted EBITDA decreased $7.7 million, or 4.9% year-over-year. The decrease primarily reflects a decrease in gross margin driven by the competitive pricing environment.
Current report
(3)Reduction to pension settlement cost represents income as a result of the finalization of the liabilities transferred as part of the settlement of the Company's U.S. pension plan.
Current report
Nine Months Ended September 30, 2025 versus Nine Months Ended September 30, 2024
Current report
Net sales were $17.4 billion for the first nine months of 2025 compared to $16.3 billion for the first nine months of 2024, an increase of 6.9%. Organic sales for the first nine months of 2025 grew by 8.3%. This growth reflects an approximate 6% increase in volume driven by the CSS and EES segments, and an approximate 2% benefit from price.
Current report
SG&A expenses for the first nine months of 2025 totaled $2,631.4 million versus $2,488.9 million for the first nine months of 2024, an increase of $142.5 million, or 5.7%.
Current report
SG&A expenses not related to payroll and payroll-related costs for the first nine months of 2025 were $1,000.1 million, an increase of $62.0 million compared to the same period in 2024, which primarily reflects increased costs to operate our facilities of $27.6 million, and increased transportation costs of $24.9 million.
Current report
EES reported net sales of $6.7 billion for the first nine months of 2025 compared to $6.3 billion for the first nine months of 2024, an increase of $373.5 million, or 5.9%. EES organic sales for the first nine months of 2025 grew by 7.1%, driven primarily by volume growth of approximately 4%, primarily as a result of growth in the OEM and construction businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 3%.
Current report
Net cash provided by operating activities for the first nine months of 2025 totaled $53.1 million, compared to $824.6 million for the first nine months of 2024. The $771.5 million decrease is primarily driven by a $485.7 million impact from changes in trade accounts receivable and a $421.3 million impact from changes in inventories. The impact from trade accounts receivable was primarily due to sales growth in the EES and CSS segments as well as the timing of receipts from customers as compared to the prior year. The impact from inventories was primarily due to an increase in volume related to growth in large projects as compared to the prior year.
Current report
These decreases were partially offset by a $196.1 million impact from changes in accounts payable. The impact from accounts payable increased primarily due to the increase in inventory, as well as the timing of purchases and payments to suppliers as compared to the prior year. Additionally an increase in net income as adjusted for certain non-cash items offset the decreases in operating cash flows.
Removed paragraphs (16)
Previous report
Despite uncertainty and volatility persisting in the market, our financial results reflect continued sales momentum in the second quarter of 2025. Our financial results for the first six months of 2025 compared to the first six months of 2024 reflect an increase in reported sales of 3.8%, and as adjusted for mergers & acquisitions activity, fluctuations in foreign exchange rates and number of workdays, an increase in organic sales of 6.4%. Our data center business is primarily driving this growth in sales, but also contributing to lower gross margins as compared to prior year, as there have been several large project wins at lower margins. We saw weakness in the utility business within UBS, as expected, due to ongoing customer destocking and cautious spending related to tariff and market uncertainties. However, utility has begun to show signs of improvement as sales to investor-owned utilities returned to growth in the second quarter of 2025.
Previous report
Second Quarter of 2025 versus Second Quarter of 2024
Previous report
SG&A expenses not related to payroll and payroll-related costs for the second quarter of 2025 were $330.7 million, an increase of $8.9 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $9.2 million, higher transportation costs of $8.2 million, higher IT costs of $5.4 million, and higher employee expenses of $2.9 million. These increases were partially offset by a $17.1 million decrease in other income and deductions, primarily attributable to the loss on abandonment of assets in the second quarter of 2024 as discussed above.
Previous report
Income from operations was $322.2 million for the second quarter of 2025 compared to $323.5 million for the second quarter of 2024, a decrease of $1.3 million, or 0.4%.
Previous report
(2)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.
Previous report
UBS adjusted EBITDA decreased $29.8 million, or 17.2% year-over-year. The decrease primarily reflects a decline in volume, as described above. SG&A expenses increased $5.5 million as compared to the prior year, primarily due to higher costs to operate our facilities of $5.0 million.
Previous report
Six Months Ended June 30, 2025 versus Six Months Ended June 30, 2024
Previous report
Net sales were $11.2 billion for the first six months of 2025 compared to $10.8 billion for the first six months of 2024, an increase of 3.8%. Adjusting in part for the 1.2% net decrease from the divestiture of the WIS business and the acquisition of Ascent, organic sales for the first six months of 2025 grew by 6.4%. This growth is reflective of an approximate 5% increase in volume, driven by growth in the CSS and EES segments, partially offset by a decline in the UBS segment, and the impact of changes in price, which favorably impacted consolidated organic sales by approximately 1%.
Previous report
SG&A expenses for the first six months of 2025 totaled $1,708.5 million versus $1,657.8 million for the first six months of 2024, an increase of $50.7 million, or 3.1%.
Previous report
Interest Expense, net
Previous report
Net interest expense totaled $179.2 million for the first six months of 2025 compared to $193.2 million for the first six months of 2024. The decrease of $14.0 million, or 7.2%, primarily reflects lower borrowings on the Receivables Facility and the Revolving Credit Facility, partly driven by repayment from refinancing activity related to the issuance of the 2029, 2032, and 2033 Notes, as well as lower interest rates on both facilities.
Previous report
EES reported net sales of $4.3 billion for the first six months of 2025 compared to $4.2 billion for the first six months of 2024, an increase of $124.3 million, or 3.0%. EES organic sales for the first six months of 2025 grew by 4.7%, driven primarily by volume growth of approximately 3%, primarily as a result of growth in the original equipment manufacturers business, and by the impact of changes in price, which favorably impacted organic sales by approximately 2%.
Previous report
Net cash provided by operating activities for the first six months of 2025 totaled $135.8 million, compared to $522.5 million for the first six months of 2024. Net cash provided by operating activities for the first six months of 2025 included net income of $293.1 million and non-cash adjustments to net income totaling $130.0 million, which primarily comprised depreciation and amortization, stock-based compensation expense, and amortization of debt issuance costs and debt discount.
Previous report
Other sources of cash in the first six months of 2025 primarily included an increase in accounts payable of $574.7 million primarily due to the increase in inventory, as well as the timing of purchases and payment to suppliers, and an increase in other current and noncurrent liabilities of $21.9 million, primarily due to increases in accrued interest payable and accrued legal expenses. Primary uses of cash in the first six months of 2025 included an increase in trade accounts receivable of $431.2 million due to significant growth in sales in the CSS segment, as well as the timing of receipts from customers, and an increase in inventories of $403.1 million, primarily due to an increase in volume related to ongoing projects and stock replenishment. Uses of cash in the first six months of 2025 also included a decrease in accrued payroll and benefit costs of $38.0 million primarily due to the payment of management incentive compensation earned in 2024 and a decrease in accrued incentives, and an increase in other current and noncurrent assets of $24.4 million primarily due to increases in capitalized costs associated with developing cloud computing arrangements.
Previous report
Net cash provided by operating activities for the first six months of 2024 included net income of $348.9 million and non-cash adjustments to net income totaling $32.1 million, which primarily comprised depreciation and amortization, a loss on abandonment of assets, stock-based compensation expense, amortization of debt discount and debt issuance costs, a loss recognized on the extinguishment of debt, and pension settlement costs, partially offset by a gain resulting from the divestiture of the WIS business, as described in Note 4, “Acquisitions and Divestitures”.
Previous report
Other sources of cash in the first six months of 2024 included an increase in accounts payable of $341.9 million primarily due to the timing of inventory purchases and payment to suppliers, an increase in other current and noncurrent liabilities of $69.6 million, due to increases in accrued interest payable, deferred revenue, and federal income taxes payable, and a decrease in other accounts receivable of $60.7 million primarily due to the collection of supplier volume rebates earned in 2023 in excess of income accrued during the current period. Net operating cash flow was also positively impacted by $18.9 million from a decrease in inventories. Primary uses of cash in the first six months of 2024 included an increase in trade accounts receivable of $258.8 million due to the timing of receipts from customers, and an increase in other current and noncurrent assets of $90.0 million primarily due to an increase in supplier prepayments, capitalized costs associated with developing cloud computing arrangements, and an increase in federal income taxes receivable.
Reworded paragraphs (51)
Previous wording
We continued our approach to addressing supplier price increases in response to global tariffs enacted by the United States under the International Emergency Economic Powers Act of 1977, including but not limited to, passing through price increases, leveraging scale to provide locally sourced products, reducing imports from high tariff countries, optimizing supply chain logistics, and re-engineering our global supply chain.
Current wording
We continued to address supplier price increases in response, in part, to global tariffs, including but not limited to, passing through price increases, leveraging scale to provide locally sourced products, reducing imports from high tariff countries, optimizing supply chain logistics, and re-engineering our global supply chain. Although the long-term impact remains uncertain, tariffs did not have a material effect on our financial results for the third quarter of 2025.
Previous wording
As of June 22, 2025, we redeemed all outstanding shares of our Series A Preferred Stock for $540.3 million. As a result of the transaction, the Company recorded a $27.6 million gain recognized as income attributable to common stockholders. The redemption was funded with the net proceeds from our 6.375% senior notes due 2033, which we issued in the first quarter of 2025. This redemption reduced our total financing costs and creates ongoing net income, EPS, and cash flow benefits. Following this redemption, we have no significant debt maturities until 2028 and have strong liquidity to execute our capital allocation priorities of debt reduction, stock buybacks and acquisitions.
Current wording
After redeeming our Series A Preferred Stock in June 2025, we have no significant debt maturities until 2028 and have strong liquidity to execute our capital allocation priorities of debt reduction, stock buybacks and acquisitions.
Previous wording
During the second quarter of 2025, we continued to execute on our multi-year, phased development and implementation of a new Digital and Data Platform (“DDP”). The DDP is intended to be a unified, technology-enabled operating model that spans all business functions, maintains and enhances the flow of financial information, and improves resource efficiency.
Current wording
During the third quarter of 2025, we continued to execute on our multi-year, phased development and implementation of a new Digital and Data Platform (“DDP”). The DDP is intended to be a unified, technology-enabled operating model that spans all business functions, maintains and enhances the flow of financial information, and improves resource efficiency.
Previous wording
Note: 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 second quarter of 2025 compared to the second quarter of 2024.
Current wording
Note: 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 third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Net sales were $5.9 billion for the second quarter of 2025 compared to $5.5 billion for the second quarter of 2024, an increase of 7.7%. Adjusting for the increase from the acquisition of Ascent, organic sales for the second quarter of 2025 grew by 7.2%. This growth is reflective of an approximate 6% increase in volume, driven by volume increases in the CSS and EES segments, partially offset by a decline in the UBS segment, and by the impact of changes in price, which favorably impacted consolidated organic sales by approximately 1%.
Current wording
Net sales were $6.2 billion for the third quarter of 2025 compared to $5.5 billion for the third quarter of 2024, an increase of 12.9%. Adjusting for the increase from the acquisition of Ascent, organic sales for the third quarter of 2025 grew by 12.1%. This growth reflects an approximate 9% increase in volume, driven by volume increases in all three segments (CSS, EES and UBS), and by the impact of changes in price, which favorably impacted consolidated organic sales by approximately 3%.
Previous wording
Cost of goods sold for the second quarter of 2025 was $4.7 billion compared to $4.3 billion for the second quarter of 2024, an increase of 8.8%. Cost of goods sold as a percentage of net sales was 78.9% and 78.1% for the second quarter of 2025 and 2024, respectively. The unfavorable increase of 80 basis points reflects a decrease in gross margin in all three segments, which is inclusive of higher inventory adjustments, partially offset by higher supplier volume rebates.
Current wording
Cost of goods sold for the third quarter of 2025 was $4.9 billion compared to $4.3 billion for the third quarter of 2024, an increase of 14.1%. Cost of goods sold as a percentage of net sales was 78.7% and 77.9% for the third quarter of 2025 and 2024, respectively. The unfavorable increase of 80 basis points reflects a decrease in gross margin in all three segments driven by large project sales and higher inventory adjustments, partially offset by higher supplier volume rebates.
Previous wording
Selling, general and administrative (“SG&A”) expenses for the second quarter of 2025 totaled $872.2 million versus $828.4 million for the second quarter of 2024, an increase of $43.8 million, or 5.3%.
Current wording
Selling, general and administrative (“SG&A”) expenses for the third quarter of 2025 totaled $922.9 million versus $831.1 million for the third quarter of 2024, an increase of $91.8 million, or 11.0%.
Previous wording
SG&A payroll and payroll-related expenses for the second quarter of 2025 of $541.5 million increased by $34.9 million compared to the same period in 2024 primarily as a result of an increase of $28.3 million in salaries and $9.6 million in benefits, partially offset by a decrease of $3.0 million in commissions and incentives.
Current wording
SG&A payroll and payroll-related expenses for the third quarter of 2025 of $570.4 million increased by $50.3 million compared to the same period in 2024 primarily as a result of an increase of $24.2 million in salaries and $14.1 million in commissions and incentives.
Previous wording
SG&A expenses not related to payroll and payroll-related costs for the first six months of 2025 were $647.6 million, an increase of $20.5 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $16.1 million, higher transportation costs of $15.0 million, and higher IT costs of $6.5 million, partially offset by a decrease of $15.5 million in other income and deductions, primarily attributable to the loss on abandonment of assets in the second quarter of 2024 as discussed above.
Current wording
SG&A expenses not related to payroll and payroll-related costs for the third quarter of 2025 were $352.5 million, an increase of $41.4 million compared to the same period in 2024, which primarily reflects increased costs to operate our facilities of $11.5 million, increased transportation costs of $9.8 million and increased IT costs of $7.8 million.
Previous wording
Net interest expense totaled $92.9 million for the second quarter of 2025 compared to $98.8 million for the second quarter of 2024. The decrease of $5.9 million, or 6.0%, was primarily driven by lower interest rates on the Receivables Facility as well as lower borrowings and lower interest rates on the Revolving Credit Facility, partially offset by higher borrowings on the Receivables Facility throughout the second quarter of 2025 compared to the second quarter of 2024 due to the impact of the WIS divestiture on outstanding borrowings and increased working capital investments.
Current wording
Net interest expense totaled $99.0 million for the third quarter of 2025 compared to $86.5 million for the third quarter of 2024. The increase of $12.5 million, or 14.5%, was primarily driven by the issuance of the 2033 Notes, partially offset by lower borrowings and lower interest rates on the Receivables Facility and the Revolving Credit Facility throughout the third quarter of 2025 compared to the third quarter of 2024.
Previous wording
Other non-operating income totaled $7.3 million for the second quarter of 2025 compared to $95.9 million for the second quarter of 2024. We recognized a net foreign currency exchange gain of $3.0 million for the second quarter of 2025 compared to a net foreign currency exchange loss of $3.4 million for the second quarter of 2024. We recognized $2.3 million of income in the second quarter of 2025 from an adjustment to the fair value of the contingent consideration liability related to the entroCIM acquisition. We recognized net benefits of $0.8 million and $0.4 million associated with the non-service cost components of net periodic pension (benefit) cost for the three months ended June 30, 2025 and 2024, respectively.
Current wording
There was no other income, net for the third quarter of 2025 due to various immaterial offsetting income and losses as compared to $24.9 million for the third quarter of 2024. The third quarter of 2024 included a $19.3 million gain on the sale of our WIS business. We recognized $1.8 million of income in the third quarter of 2025 from an adjustment to the fair value of the contingent consideration liability related to a recent acquisition. We recognized a net foreign currency exchange loss of $2.1 million for the third quarter of 2025 compared to a net foreign currency exchange gain of $2.5 million for the third quarter of 2024. We recognized net benefits of $0.8 million and $2.4 million associated with the non-service cost components of net periodic pension (benefit) cost for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
The following table reconciles other non-operating income to adjusted other non-operating (income) expense, which is a non-GAAP financial measure, for the periods presented:
Current wording
The following table reconciles other non-operating income to adjusted other non-operating income, which is a non-GAAP financial measure, for the periods presented:
Previous wording
The provision for income taxes was $61.8 million for the second quarter of 2025 compared to $87.8 million for the corresponding quarter of the prior year, resulting in effective tax rates of 26.1% and 27.4%, respectively. The lower effective tax rate for the second quarter of 2025 is due to a higher provision for income taxes related to uncertain tax positions in the prior year period.
Current wording
The provision for income taxes was $57.8 million for the third quarter of 2025 compared to $69.3 million for the corresponding quarter of the prior year, resulting in effective tax rates of 23.5% and 25.3%, respectively. The lower effective tax rate for the third quarter of 2025 is due to higher discrete income tax benefits relating to the exercise of stock-based awards as compared to the prior year period.
Previous wording
Net income and earnings per diluted share attributable to common stockholders were $189.2 million and $3.83, respectively, for the second quarter of 2025 compared to $217.7 million and $4.28, respectively, for the second quarter of 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, and the $27.6 million gain recognized as a result of the Company's redemption of its outstanding Series A Preferred Stock, net income and earnings per diluted share attributable to common stockholders were $167.5 million and $3.39, respectively, for the three months ended June 30, 2025 and $163.5 million and $3.21, respectively, for the three months ended June 30, 2024.
Current wording
Net income and earnings per diluted share attributable to common stockholders were $187.5 million and $3.79, respectively, for the third quarter of 2025 compared to $189.9 million and $3.81, respectively, for the third quarter of 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, net income and earnings per diluted share attributable to common stockholders were $193.9 million and $3.92, respectively, for the three months ended September 30, 2025, and $178.1 million and $3.58, respectively, for the three months ended September 30, 2024.
Previous wording
The increase in adjusted earnings per diluted share primarily reflects the increase in net sales and the decrease in interest expense, as discussed above, partially offset by the increase in cost of goods sold as a percentage of net sales, an increase in SG&A expenses, and the decrease in other income. Additionally, there was a positive impact from the reduction in outstanding shares during the second quarter of 2025 as compared to the second quarter of 2024.
Current wording
The increase in adjusted earnings per diluted share primarily reflects the favorable impact of the June 2025 Series A Preferred Stock redemption and the corresponding decrease in preferred dividends, as well as the increase in net sales, partially offset by the increase in cost of goods sold as a percentage of net sales, an increase in SG&A expenses, and the decrease in other income. Additionally, there was a positive impact from the reduction in outstanding common shares during the third quarter of 2025 as compared to the third quarter of 2024.
Previous wording
Adjusted EBITDA, a non-GAAP financial measure, was $394.2 million for the second quarter of 2025, compared to $400.1 million for the second quarter of 2024, a decrease of $5.9 million, or 1.5% year-over-year. The decrease primarily reflects a $375.2 million increase in cost of goods sold related to increased large project sales with lower margins, and a $43.8 million increase in SG&A expenses, as described above, partially offset by an increase in net sales.
Current wording
Adjusted EBITDA, a non-GAAP financial measure, was $423.0 million for the third quarter of 2025, compared to $398.1 million for the third quarter of 2024, an increase of $24.9 million, or 6.3% year-over-year. The increase primarily reflects a $709.7 million increase in net sales, partially offset by a $605.0 million increase in cost of goods sold related to increased large project sales, and a $91.8 million increase in SG&A expenses, as described above.
Previous wording
EES reported net sales of $2.3 billion for the second quarter of 2025 compared to $2.1 billion for the second quarter of 2024, an increase of $123.3 million, or 5.8%. EES organic sales for the second quarter of 2025 grew by 6.0%, driven primarily by volume growth of approximately 5%, as well as the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Current wording
EES reported net sales of $2.4 billion for the third quarter of 2025 compared to $2.1 billion for the third quarter of 2024, an increase of $249.2 million, or 11.8%. EES organic sales for the third quarter of 2025 increased by 11.9%, with volume growth of approximately 8% driven primarily by the construction, industrial and OEM businesses. Price favorably impacted organic sales by approximately 4%.
Previous wording
EES adjusted EBITDA decreased $7.3 million, or 3.8% year-over-year. The decrease primarily reflects lower margin project activity and product mix, partially offset by an increase in volume. Additionally, SG&A expenses increased $14.1 million as compared to the prior year, which was primarily attributed to an increase in salaries of $7.1 million and an increase in transportation costs of $3.6 million.
Current wording
EES adjusted EBITDA increased $17.0 million, or 9.4% year-over-year. The increase primarily reflects an increase in volume and price inflation as discussed above, partially offset by an increase in SG&A expenses of $21.9 million. The increase in SG&A expenses is primarily attributed to an increase in salaries of $6.7 million as well as individually immaterial increases in various other operating expenses.
Previous wording
CSS reported net sales of $2.3 billion for the second quarter of 2025 compared to $1.9 billion for the second quarter of 2024, an increase of $360.9 million, or 19.0%, which is inclusive of a favorable impact from the acquisition of Ascent of 1.5%. CSS organic sales for the second quarter of 2025 grew by 17.3%, primarily reflecting volume growth of approximately 15%, driven primarily by growth in the data center solutions business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 2%.
Current wording
CSS reported net sales of $2.4 billion for the third quarter of 2025 compared to $2.0 billion for the third quarter of 2024, an increase of $415.0 million, or 20.8%, which is inclusive of a favorable impact from the acquisition of Ascent of 2.1%. CSS organic sales for the third quarter of 2025 grew by 18.3%, primarily reflecting volume growth of approximately 17%, driven primarily by the data center solutions business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 2%.
Previous wording
CSS adjusted EBITDA increased $43.4 million, or 27.9% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business, as described above, partially offset by an increase in SG&A expenses of $18.2 million. The increase in SG&A expenses is primarily attributed to a $5.8 million increase in transportation costs consistent with higher sales, increased salaries of $5.7 million, increased commissions and incentives of $3.0 million, higher benefits of $2.7 million, and increased operations expenses of $2.3 million.
Current wording
CSS adjusted EBITDA increased $40.3 million, or 22.4% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business, as described above, partially offset by an increase in SG&A expenses of $32.4 million. The increase in SG&A expenses is primarily attributed to increased salaries of $9.3 million, increased transportation costs of $7.9 million consistent with higher sales, as well as individually immaterial increases in various other operating expenses.
Previous wording
The following tables reconcile selling, general and administrative expenses, income from operations, other non-operating (income) expense, provision for income taxes, net income attributable to common stockholders, and earnings per diluted share to adjusted selling, general and administrative expenses, adjusted income from operations, adjusted other non-operating (income) expense, adjusted provision for income taxes, adjusted net income attributable to common stockholders, and adjusted earnings per diluted share, which are non-GAAP financial measures, for the periods presented:
Current wording
The following tables reconcile selling, general and administrative expenses, income from operations, other non-operating expense (income), provision for income taxes, net income attributable to common stockholders and earnings per diluted share to adjusted selling, general and administrative expenses, adjusted income from operations, adjusted other non-operating expense (income), adjusted provision for income taxes, adjusted net income attributable to common stockholders, and adjusted earnings per diluted share, which are non-GAAP financial measures, for the periods presented:
Previous wording
(5)The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 26.3% and 27.1% for the three months ended June 30, 2025 and 2024, respectively.
Current wording
(4)The adjustments to income from operations and other expense (income), net have been tax effected at rates of 26.7% and 24.3% for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Note: For the three months ended June 30, 2025, SG&A expenses, income from operations, the 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, and the related income tax effects, and the gain on redemption of the Company's Series A Preferred Stock. For the three months ended June 30, 2024, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders, and earnings per diluted share have been adjusted to exclude the loss on abandonment of assets, digital transformation costs, restructuring costs, the gain recognized on the divestiture of the WIS business, 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.
Current wording
Note: For the three months ended September 30, 2025, SG&A expenses, income from operations, the 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, and the related income tax effects. For the three months ended September 30, 2024, SG&A expenses, income from operations, other non-operating expense (income), the 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 gain recognized on the divestiture of the WIS business, the reduction to pension settlement cost, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.
Previous wording
Note: 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; the first six months of 2025 had one less workday compared to the first six months of 2024.
Current wording
Note: 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; the first nine months of 2025 had one less workday compared to the first nine months of 2024.
Previous wording
Cost of goods sold for the first six months of 2025 was $8.9 billion compared to $8.5 billion for the first six months of 2024, an increase of 4.5%. Cost of goods sold as a percentage of net sales was 78.9% and 78.4% for the first six months of 2025 and 2024, respectively. The unfavorable increase of 50 basis points primarily reflects a decrease in gross margin in all three segments, which is inclusive of higher inventory adjustments, partially offset by higher supplier volume rebates.
Current wording
Cost of goods sold for the first nine months of 2025 was $13.8 billion compared to $12.8 billion for the first nine months of 2024, an increase of 7.7%. Cost of goods sold as a percentage of net sales was 78.9% and 78.3% for the first nine months of 2025 and 2024, respectively. The unfavorable increase of 60 basis points primarily reflects a decrease in gross margin in all three segments driven by large project sales and higher inventory adjustments, partially offset by higher supplier volume rebates.
Previous wording
SG&A payroll and payroll-related expenses for the first six months of 2025 of $1,060.9 million increased by $30.1 million compared to the same period in 2024 primarily as a result of higher salaries of $28.4 million due to wage inflation, partially offset by the impact of the divestiture of the WIS business, and higher benefits expense of $8.5 million, partially offset by lower commissions and incentive compensation expenses of $6.2 million.
Current wording
SG&A payroll and payroll-related expenses for the first nine months of 2025 of $1,631.3 million increased by $80.5 million compared to the same period in 2024 primarily as a result of increased salaries of $46.9 million due to wage inflation, partially offset by the impact of the divestiture of the WIS business, and increased benefits expense of $15.6 million.
Previous wording
Income from operations was $563.1 million for the first six months of 2025 compared to $586.5 million for the first six months of 2024. The decrease of $23.4 million, or 4.0%, reflects an increase in sales exceeded by higher cost of goods sold as a percentage of net sales due to a decrease in gross margin in all three segments, as well as an increase in SG&A expenses, as described above.
Current wording
Income from operations was $908.5 million for the first nine months of 2025 compared to $922.1 million for the first nine months of 2024. The decrease of $13.6 million, or 1.5%, reflects an increase in sales exceeded by higher cost of goods sold as a percentage of net sales due to a decrease in gross margin in all three segments due to large projects, as well as an increase in SG&A expenses, as described above.
Previous wording
Other non-operating income totaled $7.1 million for the first six months of 2025 compared to $74.3 million for the first six months of 2024. We recognized $2.4 million of income in the first six months of 2025 from an adjustment to the fair value of the contingent consideration liability related to the entroCIM acquisition. Due to fluctuations in the U.S. dollar against certain foreign currencies, we recognized a net foreign currency exchange gain of $1.9 million for the first six months of 2025 compared to a net loss of $20.7 million for the first six months of 2024. We recognized net benefits of $1.6 million and net costs of $5.5 million associated with the non-service cost components of net periodic pension cost (benefit) for the six months ended June 30, 2025 and 2024, respectively. The year-over-year decrease in net periodic pension costs was due to pension settlement cost to recognize unrealized losses previously reported as a component of other comprehensive income (loss) related to the benefit obligation of the Anixter Inc. Pension Plan as a result of the final settlement of the plan in the first quarter of 2024.
Current wording
Other non-operating income totaled $7.0 million for the first nine months of 2025 compared to $99.3 million for the first nine months of 2024. The first nine months of 2024 included a $122.2 million gain on the sale of our WIS business. We recognized $4.2 million of income in the first nine months of 2025 from an adjustment to the fair value of the contingent consideration liability related to a recent acquisition. Due to fluctuations in the U.S. dollar against certain foreign currencies, we recognized a net foreign currency exchange loss of $0.2 million for the first nine months of 2025 compared to a net loss of $18.2 million for the first nine months of 2024. We recognized net benefits of $2.5 million and net costs of $3.2 million associated with the non-service cost components of net periodic pension cost (benefit) for the nine months ended September 30, 2025 and 2024, respectively. The year-over-year decrease in net periodic pension costs was due to pension settlement cost to recognize unrealized losses previously reported as a component of other comprehensive income (loss) related to the benefit obligation of the Anixter Inc. Pension Plan as a result of the final settlement of the plan in the first quarter of 2024.
Previous wording
The provision for income taxes was $97.9 million for the first six months of 2025 compared to $118.7 million in last year's comparable period, resulting in effective tax rates of 25.0% and 25.4%, respectively.
Current wording
The provision for income taxes was $155.7 million for the first nine months of 2025 compared to $188.1 million in last year's comparable period, resulting in effective tax rates of 24.4% and 25.4%, respectively. The lower effective tax rate for the first nine months of 2025 is due to higher discrete income tax benefits relating to the exercise and vesting of stock-based awards as compared to the prior year period.
Previous wording
Net income and earnings per diluted share attributable to common stockholders were $293.2 million and $5.92, respectively, for the first six months of 2025 compared to $319.2 million and $6.22, respectively, for the first six months of 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, and the $27.6 million gain recognized as a result of the Company's redemption of its outstanding Series A Preferred Stock, net income and earnings per diluted share attributable to common stockholders were $277.2 million and $5.60, respectively, for the first six months of 2025 and $282.9 million and $5.51, respectively, for the first six months of 2024.
Current wording
Net income and earnings per diluted share attributable to common stockholders were $480.6 million and $9.71, respectively, for the first nine months of 2025 compared to $509.1 million and $10.02, respectively, for the first nine months of 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, and the $27.6 million gain recognized as a result of the Company's redemption of its outstanding Series A Preferred Stock, net income and earnings per diluted share attributable to common stockholders were $470.9 million and $9.51, respectively, for the first nine months of 2025 and $461.0 million and $9.07, respectively, for the first nine months of 2024.
Previous wording
The increase in adjusted earnings per diluted share primarily reflects the increase in net sales as well as the decrease in interest expense, as discussed above, partially offset by the increase in cost of goods sold as a percentage of net sales, the decrease in other income, and the increase in SG&A expenses. Additionally, there was a positive impact from the reduction in outstanding shares during the first six months of 2025 as compared to the first six months of 2024.
Current wording
The increase in adjusted earnings per diluted share primarily reflects the favorable impact of the June 2025 Series A Preferred Stock redemption and the corresponding decrease in preferred dividends, as well as the increase in net sales as discussed above, partially offset by the increase in cost of goods sold as a percentage of net sales, the decrease in other income, and the increase in SG&A expenses. Additionally, there was a positive impact from the reduction in outstanding common shares during the first nine months of 2025 as compared to the first nine months of 2024.
Previous wording
Adjusted EBITDA, a non-GAAP financial measure, was $704.9 million for the first six months of 2025 compared to $740.5 million for the first six months of 2024, a decrease of $35.6 million, or 4.8% year-over-year. The decrease primarily reflects a $381.2 million increase in cost of goods sold, and a $50.7 million increase in SG&A expenses, as described above, partially offset by a $413.6 million increase in net sales. Included in the increase in SG&A expenses was a $17.8 million increase from the absence of asset abandonment loss in first six months of 2025 compared to the first six months of 2024, and a $4.8 million increase from the absence of excise taxes on excess pension plan assets in first six months of 2025 compared to the first six months of 2024. Additionally, there was a year-over-year decrease in restructuring costs of $7.4 million. All three items are adjustments to calculate adjusted EBITDA.
Current wording
Adjusted EBITDA, a non-GAAP financial measure, was $1,127.8 million for the first nine months of 2025 compared to $1,138.6 million for the first nine months of 2024, a decrease of $10.8 million, or 0.9% year-over-year. The decrease primarily reflects a $986.2 million increase in cost of goods sold, and a $142.5 million increase in SG&A expenses, as described above, partially offset by a $1,123.3 million increase in net sales. Included in the increase in SG&A expenses was a $17.8 million increase from the absence of asset abandonment loss in the first nine months of 2025 compared to the first nine months of 2024, a $6.6 million increase from digital transformation costs, and a $4.8 million increase from the absence of excise taxes on excess pension plan assets in first nine months of 2025 compared to the first nine months of 2024. Additionally, there was a year-over-year decrease in restructuring costs of $9.5 million.
Previous wording
EES adjusted EBITDA decreased $26.4 million, or 7.5% year-over-year. The decrease primarily reflects an unfavorable change in product mix, partially offset by an increase in volume and price, as described above. Additionally, SG&A expenses increased $21.1 million as compared to the prior year, which was primarily attributed to an increase in salaries of $8.2 million, an increase in transportation costs of $6.0 million, an increase in operations expenses of $4.0 million, and an increase in bad debt expense of $3.0 million, partially offset by lower commissions and incentives of $3.5 million.
Current wording
EES adjusted EBITDA decreased $9.5 million, or 1.8% year-over-year. The decrease primarily reflects an unfavorable change in product mix, partially offset by an increase in volume and price, as described above. Additionally, SG&A expenses increased $43.0 million as compared to the prior year, which was primarily attributed to increased salaries of $15.0 million, increased transportation costs of $8.3 million, increased operations expenses of $7.8 million, and increased bad debt expense of $5.8 million.
Previous wording
CSS reported net sales of $4.3 billion for the first six months of 2025 compared to $3.6 billion for the first six months of 2024, an increase of $656.4 million, or 18.2%, which is inclusive of a favorable impact from the acquisition of Ascent of 1.9%. CSS organic sales for the first six months of 2025 grew by 17.7%, driven primarily by volume growth of approximately 17% as a result of growth in the data center solutions business and less significant growth in the security solutions business, partially offset by volume decline in the enterprise network infrastructure business, and by the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Current wording
CSS reported net sales of $6.7 billion for the first nine months of 2025 compared to $5.6 billion for the first nine months of 2024, an increase of $1.1 billion, or 19.1%, which is inclusive of a favorable impact from the acquisition of Ascent of 1.9%. CSS organic sales for the first nine months of 2025 grew by 17.9%, driven primarily by volume growth of approximately 17% as a result of the data center solutions business and less significant growth in the security solutions business, partially offset by volume decline in the enterprise network infrastructure business, and by the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Previous wording
CSS adjusted EBITDA increased $70.6 million, or 24.6% year-over-year. The increase reflects an increase in volume, specifically within the data center solutions business and the security solutions business, as described above. Further, there was an increase in SG&A expenses of $38.9 million. The increase in SG&A expenses is primarily attributed to higher transportation costs of $12.7 million consistent with higher sales, higher salaries of $9.8 million, higher commissions and incentives of $6.6 million, and higher benefits expense of $6.0 million.
Current wording
CSS adjusted EBITDA increased $111.1 million, or 23.8% year-over-year. The increase reflects an increase in volume, specifically within the data center solutions business and the security solutions business, as described above. Further, there was an increase in SG&A expenses of $71.3 million. The increase in SG&A expenses is primarily attributed to increased transportation costs of $20.6 million consistent with higher sales, increased salaries of $19.8 million, increased commissions and incentives of $11.1 million, and increased benefits expense of $8.9 million.
Previous wording
UBS reported net sales of $2.7 billion for the first six months of 2025 compared to $3.0 billion for the first six months of 2024, a decrease of $367.1 million, or 12.1%, which is inclusive of an unfavorable impact from the divestiture of the WIS business of 6.3%. UBS organic sales for the first six months of 2025 declined by 4.7%, reflecting volume declines, primarily as a result of ongoing customer destocking and cautious spending related to tariff and market uncertainties. Changes in price did not have a material impact on the year-over-year decline in UBS organic sales.
Current wording
UBS reported net sales of $4.1 billion for the first nine months of 2025 compared to $4.4 billion for the first nine months of 2024, a decrease of $321.6 million, or 7.3%, which is inclusive of an unfavorable impact from the divestiture of the WIS business of 4.4%. UBS organic sales for the first nine months of 2025 declined by 2.2%, reflecting volume declines, primarily as a result of ongoing customer destocking and cautious spending related to tariff and market uncertainties. Changes in price did not have a material impact on the year-over-year decline in UBS organic sales.
Previous wording
UBS adjusted EBITDA decreased $60.9 million, or 17.8% year-over-year. The decrease primarily reflects a decline in volume, as described above. The decrease in adjusted EBITDA was further offset by a decrease in SG&A expenses of $12.3 million as compared to the prior year, which was primarily attributed to lower salaries of $4.8 million, lower commissions and incentives of $4.7 million, and lower benefits expense of $2.4 million, all of which were driven by the impact of the WIS divestiture.
Current wording
UBS adjusted EBITDA decreased $68.7 million, or 13.8% year-over-year. The decrease primarily reflects a decline in volume, as described above. The decrease in adjusted EBITDA was partially offset by a decrease in SG&A expenses of $12.2 million as compared to the prior year, which was primarily attributed to lower commissions and incentives of $7.1 million as well as individually immaterial increases in various other operating expenses.
Previous wording
(7)The adjustments to income from operations and other (income) expense, net have been tax effected at a rate of approximately 26.3% and 27.1% for the six months ended June 30, 2025 and 2024, respectively.
Current wording
(7)The adjustments to income from operations and other (income) expense, net have been tax effected at a rate of approximately 26.4% and 26.5% for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Note: For the six months ended June 30, 2025, SG&A expenses, income from operations, other non-operating (income) expense, the 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, and the gain on redemption of the Company's Series A Preferred Stock. For the six months ended June 30, 2024, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders, and earnings per diluted share have been adjusted to exclude the loss on abandonment of assets, digital transformation costs, restructuring costs, excise taxes on excess pension plan assets, the gain recognized on the divestiture of the WIS business, the loss on termination of business arrangement, pension settlement cost, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.
Current wording
Note: For the nine months ended September 30, 2025, SG&A expenses, income from operations, other non-operating (income) expense, the 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, and the gain on redemption of the Company's Series A Preferred Stock. For the nine months ended September 30, 2024, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders, and earnings per diluted share have been adjusted to exclude the loss on abandonment of assets, digital transformation costs, restructuring costs, excise taxes on excess pension plan assets, the gain recognized on the divestiture of the WIS business, the loss on termination of business arrangement, pension settlement cost, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.
Previous wording
We finance our operating and investing needs primarily with borrowings under our Revolving Credit Facility and Receivables Facility, as well as uncommitted lines of credit entered into by certain of our foreign subsidiaries to support local operations, some of which are overdraft facilities. The Revolving Credit Facility has a borrowing limit of $1,725 million and the purchase limit under the Receivables Facility is $1,550 million. As of June 30, 2025, we had $475.0 million outstanding on the Revolving Credit Facility and $1,300.0 million outstanding under the Receivables Facility. The maximum borrowing limits of our international lines of credit vary by facility and range between $0.6 million and $9.5 million. Our international lines of credit generally are renewable on an annual basis and certain facilities are fully and unconditionally guaranteed by Wesco Distribution. Accordingly, certain borrowings under these lines directly reduce availability under our Revolving Credit Facility. As of June 30, 2025, we had $5.6 million outstanding under our international lines of credit.
Current wording
Our liquidity needs generally arise from fluctuations in our working capital requirements, information technology investments, capital expenditures, acquisitions, the payment of dividends, and debt service obligations. We finance our operating and investing needs primarily with borrowings under our Revolving Credit Facility and Receivables Facility, as well as uncommitted lines of credit entered into by certain of our foreign subsidiaries to support local operations, some of which are overdraft facilities. The Revolving Credit Facility has a borrowing limit of $1,725 million and the purchase limit under the Receivables Facility is $1,550 million. Our international lines of credit generally are renewable on an annual basis and certain facilities are fully and unconditionally guaranteed by Wesco Distribution. Accordingly, certain borrowings under these lines directly reduce availability under our Revolving Credit Facility. The maximum borrowing limits of our international lines of credit vary by facility and range between $0.6 million and $9.5 million. As of September 30, 2025, we had $5.1 million outstanding under our international lines of credit.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The following is a discussion of the financial results of our operating segments comprising three strategic business units consisting of EES, CSS and UBS for the nine months ended September 30, 2025. As further described below and in Note 14, “Business Segments” of our Notes to the unaudited Condensed Consolidated Financial Statements, the CODM allocates resources and evaluates the performance of the Company’s reportable segments based on adjusted EBITDA, which is the Company’s measure of segment profit or loss. Adjusted EBITDA and adjusted EBITDA margin percentage are non-GAAP financial measures. As previously described in Note 2, “Accounting Policies,” the reportable segment information for the nine months ended September 30, 2024 for the EES and CSS reportable segments has been recast to conform to the current year presentation.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
UBS reported net sales of $1,376.6 million for the second quarter of 2025 compared to $1,440.9 million for the second quarter of 2024, a decrease of $64.3 million, or 4.5%. UBS organic sales for the second quarter of 2025 declined by 4.4%, reflecting volume declines, primarily as a result of ongoing customer destocking and cautious spending related to tariff and market uncertainties. Changes in price did not have a material impact on the year-over-year decline in UBS organic sales.
Previous report — wording carried elsewhere
(4)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.
Previous report — wording carried elsewhere
(3)Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.
Previous report — wording carried elsewhere
(3)Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.