WESCO INTERNATIONAL INC
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Oct 29, 2026
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 2026-06-30; filed 2026-07-30.
0000929008-26-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0000929008-26-000032
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 133 previous paragraphs and 138 current paragraphs.
61 unchanged; 55 reworded; 21 added; 15 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 20 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 (21)
Current report
On July 1, 2026, we acquired Newark Engineering Group (“Newark”), a Singapore-based provider of engineered cooling solutions and lifecycle services for data centers. Newark brings specialized expertise in designing, installing and maintaining advanced thermal management systems critical to data center performance and reliability. This acquisition expands our participation in the data center value chain while strengthening our presence across Southeast Asia.
Current report
Third Quarter of 2026 versus Third Quarter of 2025
Current report
SG&A expenses for the third quarter of 2026 totaled $1,062.4 million versus $922.9 million for the third quarter of 2025, an increase of $139.5 million, or 15.1%.
Current report
Income from operations was $450.8 million for the third quarter of 2026 compared to $345.4 million for the third quarter of 2025, an increase of $105.4 million, or 30.5%. The increase reflects higher Net sales, lower Cost of goods sold as a percentage of Net sales, and lower SG&A expenses as a percentage of Net sales.
Current report
Other Expense, net
Current report
The following table reconciles Other non-operating expense to Adjusted other non-operating expense, which is a non-GAAP financial measure, for the periods presented:
Current report
(1)Pension settlement gain represents income as a result of the partial settlement and remeasurement of the Company's EECOL Canada pension plan.
Current report
EES Adjusted EBITDA increased $60.8 million, or 30.7% year-over-year. The increase primarily reflects an increase in volume, as described above, as well as gross margin expansion driven primarily by a $12.2 million increase in supplier volume rebates. Cost of goods sold increased $309.0 million primarily due to the increase in volume, which was partially offset by improved gross margin. SG&A payroll expenses increased $26.7 million as compared to the prior year, which was primarily attributed to increased salaries of $11.6 million and increased commissions and incentives of $11.4 million. Other segment items increased $16.1 million as compared to the prior year, reflecting increased transportation costs and other volume-related costs.
Current report
CSS Adjusted EBITDA increased $92.9 million, or 42.1% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business as described above. Cost of goods sold increased $394.2 million primarily due to the increase in volume, which was partially offset by improved gross margin. SG&A payroll expenses increased by $19.5 million, which is primarily attributed to higher salaries of $9.1 million as well as higher commissions and incentives of $9.1 million. Other segment items increased by $16.3 million as compared to the prior year, which included increased volume-related costs, and to a lesser extent, bad debt expense.
Current report
UBS reported Net sales of $1,520.5 million for the third quarter of 2026 compared to $1,428.6 million for the third quarter of 2025, an increase of $91.9 million, or 6.4%, reflecting volume growth of approximately 5% driven by the utility and broadband businesses, as well as the impact of changes in price, which favorably impacted organic sales by approximately 2%.
Current report
UBS Adjusted EBITDA increased $9.4 million, or 6.3% year-over-year. The increase primarily reflects an increase in volume, as described above. Cost of goods sold increased $75.7 million primarily due to the increase in volume, which was partially offset by lower gross margin. SG&A payroll expenses increased by $5.1 million as compared to the prior year, which was primarily attributed to higher salaries, commissions, and incentives.
Current report
(3)Pension settlement gain represents income as a result of the partial settlement and remeasurement of the Company's EECOL Canada pension plan.
Current report
Nine Months Ended September 30, 2026 versus Nine Months Ended September 30, 2025
Current report
SG&A expenses for the first nine months of 2026 totaled $3.0 billion versus $2.6 billion for the first nine months of 2025, an increase of $401.3 million, or 15.3%.
Current report
Income from operations was $1,126.5 million for the first nine months of 2026 compared to $908.5 million for the first nine months of 2025, an increase of $218.0 million, or 24.0%. The increase primarily reflects higher Net sales and lower Cost of goods sold as a percentage of Net sales.
Current report
Other Expense (Income), net
Current report
(1)Pension settlement gain represents income as a result of the partial settlement and remeasurement of the Company's EECOL Canada pension plan.
Current report
EES Adjusted EBITDA increased $151.6 million, or 28.9% year-over-year. The increase primarily reflects an increase in volume and price, as described above, as well as gross margin expansion driven primarily by a $29.0 million increase in supplier volume rebates. Cost of goods sold increased $584.4 million primarily due to the increase in volume, which was partially offset by improved gross margin. These increases were partially offset by an increase in SG&A payroll expenses, which increased $68.7 million as compared to the prior year, which was primarily attributed to increased salaries of $33.2 million, and increased commissions and incentives of $25.8 million. Other segment items increased $39.2 million as compared to the prior year, which was primarily attributed to increased volume-related costs such as transportation costs and operations expenses.
Current report
CSS Adjusted EBITDA increased $231.5 million, or 40.1% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business as described above. Cost of goods sold increased $1.1 billion primarily due to the increase in volume, which was partially offset by improved gross margin. These increases were partially offset by an increase in SG&A payroll expenses of $55.8 million. The increase in SG&A payroll expenses is primarily attributed to increased salaries $27.2 million, increased commissions and incentives of $21.7 million, and increased benefits expense of $5.7 million. Other segment items increased by $50.7 million as compared to the prior year, which was primarily attributed to increased volume-related costs such as transportation expenses and operations expenses, as well as increased bad debt expenses.
Current report
UBS Adjusted EBITDA increased $5.0 million, or 1.2% year-over-year.
Current report
(2)Pension settlement gain represents income as a result of the partial settlement and remeasurement of the Company's EECOL Canada pension plan.
Removed paragraphs (15)
Previous report
We are actively monitoring and evaluating the potential effects of the February 20, 2026 U.S. Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). IEEPA tariff refunds are not expected to materially impact our unaudited Condensed Consolidated Financial Statements.
Previous report
Second Quarter of 2026 versus Second Quarter of 2025
Previous report
Selling, general and administrative (“SG&A”) expenses for the second quarter of 2026 totaled $1,022.7 million versus $872.2 million for the second quarter of 2025, an increase of $150.5 million, or 17.3%.
Previous report
Income from operations was $382.2 million for the second quarter of 2026 compared to $322.2 million for the second quarter of 2025, an increase of $60.0 million, or 18.6%. The increase primarily reflects higher Net sales and lower Cost of goods sold as a percentage of Net sales, partially offset by higher SG&A expenses as a percentage of Net sales.
Previous report
Other Income, net
Previous report
EES Adjusted EBITDA increased $48.4 million, or 26.5% year-over-year. The increase primarily reflects an increase in volume and price, as well as improved gross margin.
Previous report
CSS Adjusted EBITDA increased $74.0 million, or 37.2% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business as well as improved gross margin and lower SG&A expenses as a percentage of Net sales.
Previous report
UBS Adjusted EBITDA increased $3.1 million, or 2.2% year-over-year.
Previous report
Six Months Ended June 30, 2026 versus Six Months Ended June 30, 2025
Previous report
SG&A expenses for the first six months of 2026 totaled $2.0 billion versus $1.7 billion for the first six months of 2025, an increase of $261.8 million, or 15.3%.
Previous report
Income from operations was $675.7 million for the first six months of 2026 compared to $563.1 million for the first six months of 2025, an increase of $112.6 million, or 20.0%. The increase primarily reflects higher Net sales and lower Cost of goods sold as a percentage of Net sales, partially offset by higher SG&A expenses as a percentage of Net sales.
Previous report
Other Income, net
Previous report
EES Adjusted EBITDA increased $90.8 million, or 27.9% year-over-year. The increase primarily reflects an increase in volume and price, as well as improved gross margin.
Previous report
CSS Adjusted EBITDA increased $138.7 million, or 38.8% year-over-year. The increase primarily reflects an increase in volume, specifically within the data center solutions business, as well as improved gross margin and lower SG&A expenses as a percentage of Net sales.
Previous report
UBS Adjusted EBITDA decreased $4.5 million, or 1.6% year-over-year.
Reworded paragraphs (55)
Previous wording
The EES segment, serving customers in over 50 countries, is a North American leader, and supplies a broad range of products and solutions primarily to construction, industrial and original equipment manufacturer (“OEM”) customers. The EES product portfolio includes a broad range of electrical equipment and supplies, automation and connected devices (the “Internet of Things” or “IoT”), security, lighting, wire and cable, safety, and maintenance, repair and operating (“MRO”) products from industry-leading manufacturing partners. The EES service portfolio includes solutions to improve project execution, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions to improve safety and productivity.
Current wording
The EES segment, serving customers in over 50 countries, is a North American leader, and supplies a broad range of products and solutions primarily to construction, industrial and original equipment manufacturer (“OEM”) customers. The EES product portfolio includes a broad range of electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, safety, and maintenance, repair and operating (“MRO”) products from industry-leading manufacturing partners. The EES service portfolio includes solutions to improve project execution, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions to improve safety and productivity.
Previous wording
Our financial results reflect continued sales momentum in the first six months of 2026, highlighted by a 13.4% year-over-year increase in reported Net sales driven by volume growth across all three segments. For the first six months of 2026 compared to the first six months of 2025, organic sales increased by 12.5%, which adjusts for fluctuations in foreign exchange rates. All three of our segments contributed to growth, led by our CSS segment's data center solutions business. Our EES segment experienced continued growth across its OEM and construction businesses, fueled in part by continued demand for data center projects and increased infrastructure activity. Our UBS segment also delivered sales growth, driven by year-over-year increases in its United States and Canadian broadband businesses, along with growth in its utility business and increased grid services activity. We also saw record year-over-year backlog growth driven by all three segments.
Current wording
Our financial results reflect continued sales momentum in the first nine months of 2026, highlighted by a 14.5% year-over-year increase in reported Net sales driven by volume growth across all three segments. For the first nine months of 2026 compared to the first nine months of 2025, organic sales increased by 13.9%, which adjusts for fluctuations in foreign exchange rates. All three of our segments contributed to growth, led by our CSS segment's data center solutions business. Our EES segment experienced continued growth across its OEM and construction businesses, driven by ongoing demand for data center projects, infrastructure investment and continued momentum across key end markets. Our UBS segment also delivered sales growth, driven by strength in its utility business, continued utility infrastructure investment, and grid services activity, as well as an increase in its broadband business. We also saw record year-over-year backlog growth driven by all three segments.
Previous wording
During the first quarter of 2026, we issued 5.250% Senior Notes due 2031 (the “2031 Notes”) and 5.500% Senior Notes due 2034 (the “2034 Notes” and, together with the 2031 Notes, the “2031 and 2034 Notes”) in part to support the redemption of our 7.250% senior notes due 2028 (the “2028 Notes”) which occurred in the second quarter on June 15, 2026. Following the redemption of the 2028 Notes, we have no significant debt maturities until 2029. We expect this redemption to create substantial net income, earnings per share, and cash flow benefit.
Current wording
During the first quarter of 2026, we issued 5.250% Senior Notes due 2031 (the “2031 Notes”) and 5.500% Senior Notes due 2034 (the “2034 Notes” and, together with the 2031 Notes, the “2031 and 2034 Notes”) in part to support the redemption of our 7.250% senior notes due 2028 (the “2028 Notes”) which occurred in the second quarter of 2026. Following the redemption of the 2028 Notes, we have no significant debt maturities until 2029.
Previous wording
During the second quarter of 2026, 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
Throughout 2026, 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 2026 compared to the second quarter of 2025.
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 2026 compared to the third quarter of 2025.
Previous wording
Net sales were $6.7 billion for the second quarter of 2026 compared to $5.9 billion for the second quarter of 2025, an increase of 13.0%. Organic sales for the second quarter of 2026 grew by 12.6%. This growth reflects an approximate 10% increase in volume driven by all three segments (CSS, EES and UBS), and an approximate 3% benefit from price.
Current wording
Net sales were $7.2 billion for the third quarter of 2026 compared to $6.2 billion for the third quarter of 2025, an increase of 16.6%. Organic sales for the third quarter of 2026 grew by 16.6%. This growth reflects an approximate 14% increase in volume driven by all three segments (CSS, EES and UBS), and an approximate 3% benefit from price.
Previous wording
Cost of goods sold for the second quarter of 2026 was $5.2 billion compared to $4.7 billion for the second quarter of 2025, an increase of 11.9%. Cost of goods sold as a percentage of Net sales was 78.2% and 78.9% for the second quarter of 2026 and 2025, respectively. The favorable impact reflects improved gross margins in the EES and CSS segments, partially offset by a decline in the UBS segment.
Current wording
Cost of goods sold for the third quarter of 2026 was $5.7 billion compared to $4.9 billion for the third quarter of 2025, an increase of 16.0%. The increase primarily reflects the increase in volume in all three segments primarily driven by large project activity, particularly in the data center business, as well as the OEM, construction and utility businesses. Cost of goods sold as a percentage of Net sales was 78.3% and 78.7% for the third quarter of 2026 and 2025, respectively. The favorable impact reflects improved gross margins in the EES and CSS segments, while the UBS segment remained flat.
Previous wording
(3)Reduction to restructuring costs represents the reversal of certain severance costs previously incurred pursuant to an ongoing restructuring plan.
Current wording
(2)Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.
Previous wording
SG&A payroll and payroll-related expenses for the second quarter of 2026 were $628.1 million, an increase of $86.6 million compared to the same period in 2025, which primarily reflects increases of $33.4 million in commissions and incentives, $25.3 million in salaries, $15.6 million in benefits, and $10.7 million in stock-based compensation expense. The higher commissions and incentives expense was largely driven by increased commissions and management incentive accruals aligned with Company performance.
Current wording
SG&A payroll and payroll-related expenses for the third quarter of 2026 were $656.2 million, an increase of $85.8 million compared to the same period in 2025, which primarily reflects increases of $41.2 million in commissions and incentives, $24.7 million in salaries, $10.0 million in stock-based compensation expense, and $7.5 million in benefits. The higher commissions and incentives expense was aligned with the increase in Company performance.
Previous wording
SG&A expenses not related to payroll and payroll-related costs for the second quarter of 2026 were $394.6 million, an increase of $63.9 million compared to the same period in 2025, which primarily reflects increased professional and consulting fees of $15.3 million, increased transportation costs of $11.8 million, increased costs to operate our facilities of $10.9 million, and increased bad debt expense of $10.7 million. Additionally, digital transformation costs increased by $15.6 million year-over-year primarily due to increased costs associated with DDP deployment resources.
Current wording
SG&A expenses not related to payroll and payroll-related costs for the third quarter of 2026 were $406.2 million, an increase of $53.8 million compared to the same period in 2025, which primarily reflects increased transportation costs of $11.8 million, increased costs to operate our facilities of $11.0 million, increased professional and consulting fees of $9.3 million, and increased IT costs of $7.9 million. Additionally, digital transformation costs increased by $14.4 million year-over-year primarily due to increased costs associated with DDP deployment resources.
Previous wording
Net interest expense totaled $110.4 million for the second quarter of 2026 compared to $92.9 million for the second quarter of 2025. The increase of $17.5 million, or 18.8%, was primarily driven by higher net term debt throughout the second quarter of 2026 compared to the second quarter of 2025, as well as a $10.0 million non-cash loss on extinguishment of the 2028 Notes. These increases were partially offset by lower borrowings and lower rates on our accounts receivable securitization facility (the “Receivables Facility”) and our revolving credit facility (the “Revolving Credit Facility”) throughout the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Net interest expense totaled $93.6 million for the third quarter of 2026 compared to $99.0 million for the third quarter of 2025. The decrease of $5.4 million, or 5.5%, was primarily driven by the issuance of the 2031 and 2034 Notes at lower rates as compared to the 2028 Notes, as well as lower rates on our accounts receivable securitization facility (the “Receivables Facility”) and our revolving credit facility (the “Revolving Credit Facility”) throughout the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Other non-operating income totaled $0.2 million for the second quarter of 2026 compared to $7.3 million for the second quarter of 2025. We recognized a net foreign currency exchange loss of $2.3 million for the second quarter of 2026 compared to a net foreign currency exchange gain of $3.0 million for the second quarter of 2025. We also recognized $0.6 million and $2.3 million of income in the second quarter of 2026 and 2025, respectively, from adjustments to the fair value of the contingent consideration liability related to a recent acquisition.
Current wording
Other non-operating expense totaled $1.9 million for the third quarter of 2026 compared to no Other expense, net for the third quarter of 2025. We recognized a net foreign currency exchange loss of $3.9 million for the third quarter of 2026 compared to a net loss of $2.1 million for the third quarter of 2025. We also recognized a $2.0 million gain related to the partial settlement and remeasurement of the EECOL Canada pension plan in the third quarter of 2026. In the third quarter of 2025, we recognized $1.8 million of income from an adjustment to the fair value of the contingent consideration liability related to an acquisition.
Previous wording
The provision for income taxes was $62.4 million for the second quarter of 2026 compared to $61.8 million for the corresponding quarter of the prior year, resulting in effective tax rates of 22.9% and 26.1%, respectively. The lower effective tax rate for the second quarter of 2026 is largely driven by higher discrete income tax benefits relating to the exercise of stock-based awards.
Current wording
The provision for income taxes was $86.8 million for the third quarter of 2026 compared to $57.8 million for the corresponding quarter of the prior year, resulting in effective tax rates of 24.4% and 23.5%, respectively. The higher effective tax rate for the third quarter of 2026 is largely driven by a higher annual effective tax rate resulting from higher non-deductible compensation expense as compared to the prior year period.
Previous wording
Net income and Earnings per diluted share attributable to common stockholders were $209.0 million and $4.23, respectively, for the second quarter of 2026 compared to $189.2 million and $3.83, respectively, for the second quarter of 2025. 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 $225.6 million and $4.57, respectively, for the three months ended June 30, 2026, and $167.5 million and $3.39, respectively, for the three months ended June 30, 2025.
Current wording
Net income and Earnings per diluted share attributable to common stockholders were $267.8 million and $5.43, respectively, for the third quarter of 2026 compared to $187.5 million and $3.79, respectively, for the third quarter of 2025. 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 $284.4 million and $5.77, respectively, for the three months ended September 30, 2026, and $193.9 million and $3.92, respectively, for the three months ended September 30, 2025.
Previous wording
Adjusted EBITDA, a non-GAAP financial measure, was $487.2 million for the second quarter of 2026, compared to $394.2 million for the second quarter of 2025, an increase of $93.0 million, or 23.6% year-over-year. The increase primarily reflects higher Net sales and gross margin.
Current wording
Adjusted EBITDA, a non-GAAP financial measure, was $561.5 million for the third quarter of 2026, compared to $423.0 million for the third quarter of 2025, an increase of $138.5 million, or 32.7% year-over-year. The increase primarily reflects higher Net sales and increased gross margin, partially offset by higher Adjusted SG&A expenses.
Previous wording
EES reported Net sales of $2.5 billion for the second quarter of 2026 compared to $2.3 billion for the second quarter of 2025, an increase of $252.9 million, or 11.2%. EES organic sales for the second quarter of 2026 increased by 10.9%, reflecting volume growth of approximately 6%, driven primarily by the construction and OEM businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 5%.
Current wording
EES reported Net sales of $2.8 billion for the third quarter of 2026 compared to $2.4 billion for the third quarter of 2025, an increase of $412.8 million, or 17.5%. EES organic sales for the third quarter of 2026 increased by 17.8%, reflecting volume growth of approximately 13%, driven primarily by the OEM and construction businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 5%.
Previous wording
CSS reported Net sales of $2.7 billion for the second quarter of 2026 compared to $2.3 billion for the second quarter of 2025, an increase of $416.0 million, or 18.4%. CSS organic sales for the second quarter of 2026 grew by 17.5%, 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 1%.
Current wording
CSS reported Net sales of $2.9 billion for the third quarter of 2026 compared to $2.4 billion for the third quarter of 2025, an increase of $522.6 million, or 21.7%. CSS organic sales for the third quarter of 2026 grew by 21.4%, primarily reflecting volume growth of approximately 20%, driven primarily by the data center solutions business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Previous wording
The following tables reconcile Selling, general and administrative expenses, Income from operations, 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 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 SG&A expenses, Income from operations, Other non-operating expense, Provision for income taxes, Net income attributable to common stockholders and Earnings per diluted share to Adjusted SG&A expenses, Adjusted income from operations, Adjusted other non-operating 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:
Previous wording
(3)The adjustments to Income from operations have been tax effected at rates of 28.4% and 26.3% for the three months ended June 30, 2026 and 2025, respectively.
Current wording
(4)The adjustments to Income from operations and Other expense, net have been tax effected at rates of 27.1% and 26.7% for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Note: For the three months ended June 30, 2026, Selling, general and administrative 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 June 30, 2025, Selling, general and administrative 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, Restructuring costs, and the related income tax effects, and the Gain on redemption of the Company's Series A Preferred Stock. 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, 2026, SG&A expenses, Income from operations, Other non-operating expense, Provision for income taxes, Net income attributable to common stockholders, and Earnings per diluted share have been adjusted to exclude Digital transformation costs, the gain recognized from the partial settlement of the EECOL Canada pension plan, and the related income tax effects. For the three months ended September 30, 2025, 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, Restructuring costs, 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; there was no change in the number of workdays in the first six months of 2026 compared to the first six months of 2025.
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 first nine months of 2026 compared to the first nine months of 2025.
Previous wording
Net sales were $12.7 billion for the first six months of 2026 compared to $11.2 billion for the first six months of 2025, an increase of 13.4%. Organic sales for the first six months of 2026 grew by 12.5%. This growth reflects an approximate 10% increase in volume driven by all three segments (CSS, EES, and UBS), and an approximate 3% benefit from price.
Current wording
Net sales were $20.0 billion for the first nine months of 2026 compared to $17.4 billion for the first nine months of 2025, an increase of 14.5%. Organic sales for the first nine months of 2026 grew by 13.9%. This growth reflects an approximate 11% increase in volume driven by all three segments (CSS, EES, and UBS), and an approximate 3% benefit from price.
Previous wording
Cost of goods sold for the first six months of 2026 was $10.0 billion compared to $8.9 billion for the first six months of 2025, an increase of 12.6%. Cost of goods sold as a percentage of Net sales was 78.4% and 78.9% for the first six months of 2026 and 2025, respectively. The favorable impact reflects improved gross margin in the EES and CSS segments, partially offset by a decline in the UBS segment.
Current wording
Cost of goods sold for the first nine months of 2026 was $15.7 billion compared to $13.8 billion for the first nine months of 2025, an increase of 13.8%. The increase primarily reflects the increase in volume in all three segments. Cost of goods sold as a percentage of Net sales was 78.4% and 78.9% for the first nine months of 2026 and 2025, respectively. The favorable impact reflects improved gross margin in the EES and CSS segments, partially offset by a decline in the UBS segment.
Previous wording
SG&A payroll and payroll-related expenses for the first six months of 2026 were $1,213.0 million, an increase of $152.1 million compared to the same period in 2025, which primarily reflects increases of $55.7 million in commissions and incentives, $51.8 million in salaries, $25.0 million in benefits, and $16.6 million in stock-based compensation expense. The higher commissions and incentives expense was largely driven by increased commissions and management incentive accruals aligned with Company performance.
Current wording
SG&A payroll and payroll-related expenses for the first nine months of 2026 were $1,869.3 million, an increase of $238.0 million compared to the same period in 2025, which primarily reflects increases of $96.9 million in commissions and incentives, $76.5 million in salaries, $32.5 million in benefits, and $26.6 million in stock-based compensation expense. The higher commissions and incentives expense was aligned with the increase in Company performance.
Previous wording
SG&A expenses not related to payroll and payroll-related costs for the first six months of 2026 were $757.3 million, an increase of $109.7 million compared to the same period in 2025, which primarily reflects increased professional and consulting fees of $26.0 million, increased transportation costs of $24.1 million, increased costs to operate our facilities of $21.3 million, and increased IT costs of $20.6 million. Additionally, digital transformation costs increased by $26.9 million year-over-year primarily due to increased costs associated with DDP deployment resources.
Current wording
SG&A expenses not related to payroll and payroll-related costs for the first nine months of 2026 were $1,163.4 million, an increase of $163.3 million compared to the same period in 2025, which primarily reflects increased transportation costs of $35.8 million, increased professional and consulting fees of $35.3 million, increased costs to operate our facilities of $32.4 million, and increased IT costs of $28.6 million. Additionally, digital transformation costs increased by $41.4 million year-over-year primarily due to increased costs associated with DDP deployment resources.
Previous wording
Net interest expense totaled $207.1 million for the first six months of 2026 compared to $179.2 million for the first six months of 2025. The increase of $27.9 million, or 15.6%, was primarily driven by higher net term debt throughout the first six months of 2026 compared to the first six months of 2025, as well as a $10.0 million non-cash loss on extinguishment of the 2028 Notes. These increases were partially offset by lower borrowings and lower rates on our Receivables Facility and our Revolving Credit Facility throughout the first six months of 2026 compared to the first six months of 2025.
Current wording
Net interest expense totaled $300.7 million for the first nine months of 2026 compared to $278.2 million for the first nine months of 2025. The increase of $22.5 million, or 8.1%, was primarily driven by higher net term debt throughout the first nine months of 2026 compared to the first nine months of 2025, as well as a $10.0 million non-cash loss on extinguishment of the 2028 Notes. These increases were partially offset by the issuance of the 2031 Notes and 2034 Notes at lower rates as compared to the 2028 Notes, as well as lower rates on our Receivables Facility and our Revolving Credit Facility throughout the first nine months of 2026 compared to the first nine months of 2025.
Previous wording
Other non-operating income totaled $0.6 million for the first six months of 2026 compared to $7.1 million for the first six months of 2025. We recognized a net foreign currency exchange loss of $3.1 million for the first six months of 2026 compared to a net foreign currency exchange gain of $1.9 million for the first six months of 2025. We also recognized $1.1 million and $2.4 million of income in the first six months of 2026 and 2025, respectively, from adjustments to the fair value of the contingent consideration liability related to a recent acquisition.
Current wording
Other non-operating expense totaled $1.3 million for the first nine months of 2026 compared to income of $7.0 million for the first nine months of 2025. We recognized a net foreign currency exchange loss of $7.8 million for the first nine months of 2026 compared to a net loss of $0.2 million for the first nine months of 2025. We also recognized net periodic pension benefits of $4.8 million and $2.5 million for the nine months ended September 30, 2026 and 2025, respectively, which included a $2.0 million gain related to the partial settlement and remeasurement of the EECOL Canada pension plan in the first nine months of 2026. In the first nine months of 2026 and 2025, we recognized $1.1 million and $4.2 million of income, respectively, from adjustments to the fair value of the contingent consideration liability related to an acquisition.
Previous 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:
Current wording
The following table reconciles Other non-operating expense (income) to Adjusted other non-operating expense (income), which is a non-GAAP financial measure, for the periods presented:
Previous wording
(1)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.
Current wording
(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 wording
The provision for income taxes was $105.5 million for the first six months of 2026 compared to $97.9 million in last year's comparable period, resulting in effective tax rates of 22.5% and 25.0%, respectively. The lower effective tax rate for the first six months of 2026 is largely driven by higher discrete income tax benefits relating to the exercise and vesting of stock-based awards.
Current wording
The provision for income taxes was $192.3 million for the first nine months of 2026 compared to $155.7 million in last year's comparable period, resulting in effective tax rates of 23.3% and 24.4%, respectively. The lower effective tax rate for the first nine months of 2026 is largely driven by higher discrete income tax benefits relating to the exercise and vesting of stock-based awards and return to provision adjustments primarily attributable to lower U.S. tax on foreign income, partially offset by higher non-deductible compensation expense in 2026 as compared to 2025.
Previous wording
Net income and Earnings per diluted share attributable to common stockholders were $362.8 million and $7.33, respectively, for the first six months of 2026 compared to $293.2 million and $5.92, respectively, for the first six months of 2025. 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 $392.4 million and $7.93, respectively, for the first six months of 2026 and $277.2 million and $5.60, respectively, for the first six months of 2025.
Current wording
Net income and Earnings per diluted share attributable to common stockholders were $630.6 million and $12.77, respectively, for the first nine months of 2026 compared to $480.6 million and $9.71, respectively, for the first nine months of 2025. 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 $676.8 million and $13.70, respectively, for the first nine months of 2026 and $470.9 million and $9.51, respectively, for the first nine months of 2025.
Previous wording
The increase in Adjusted earnings per diluted share primarily reflects the increase in Net sales and lower Cost of goods sold as a percentage of Net sales.
Current wording
The increase in Adjusted earnings per diluted share primarily reflects the increase in Net sales and lower Cost of goods sold as a percentage of Net sales, partially offset by higher Adjusted SG&A Expenses.
Previous wording
Adjusted EBITDA, a non-GAAP financial measure, was $876.0 million for the first six months of 2026 compared to $704.9 million for the first six months of 2025, an increase of $171.1 million, or 24.3% year-over-year. The increase primarily reflects higher Net sales and gross margin.
Current wording
Adjusted EBITDA, a non-GAAP financial measure, was $1,437.5 million for the first nine months of 2026 compared to $1,127.8 million for the first nine months of 2025, an increase of $309.7 million, or 27.5% year-over-year. The increase primarily reflects higher Net sales and increased gross margin, partially offset by higher Adjusted SG&A expenses.
Previous wording
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 six months ended June 30, 2026. As further described below and in Note 12, “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.
Current wording
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, 2026. As further described below and in Note 13, “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.
Previous wording
EES reported Net sales of $4.8 billion for the first six months of 2026 compared to $4.3 billion for the first six months of 2025, an increase of $431.8 million, or 10.0%. EES organic sales for the first six months of 2026 grew by 9.1%, reflecting volume growth of approximately 5%, driven primarily by the construction and OEM businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 4%.
Current wording
EES reported Net sales of $7.5 billion for the first nine months of 2026 compared to $6.7 billion for the first nine months of 2025, an increase of $844.6 million, or 12.6%. EES organic sales for the first nine months of 2026 grew by 12.1%, reflecting volume growth of approximately 7%, driven primarily by the construction and OEM businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 5%.
Previous wording
CSS reported Net sales of $5.2 billion for the first six months of 2026 compared to $4.3 billion for the first six months of 2025, an increase of $894.6 million, or 21.0%. CSS organic sales for the first six months of 2026 grew by 19.7%, primarily reflecting volume growth of approximately 19%, driven primarily by the data center solutions business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Current wording
CSS reported Net sales of $8.1 billion for the first nine months of 2026 compared to $6.7 billion for the first nine months of 2025, an increase of $1,417.2 million, or 21.2%. CSS organic sales for the first nine months of 2026 grew by 20.2%, primarily reflecting volume growth of approximately 19%, driven primarily by the data center solutions business, as well as the impact of changes in price, which favorably impacted organic sales by approximately 1%.
Previous wording
UBS reported Net sales of $2.8 billion for the first six months of 2026 compared to $2.7 billion for the first six months of 2025, an increase of $175.5 million, or 6.6%. UBS organic sales for the first six months of 2026 grew by 6.4%, reflecting volume growth of approximately 3% driven by the broadband and utility businesses, as well as the impact of changes in price, which favorably impacted organic sales by approximately 3%.
Current wording
UBS reported Net sales of $4.4 billion for the first nine months of 2026 compared to $4.1 billion for the first nine months of 2025, an increase of $267.4 million, or 6.5%. UBS organic sales for the first nine months of 2026 grew by 6.5%, reflecting volume growth of approximately 4% driven by the broadband and utility businesses, as well as the impact of changes in price, which favorably impacted organic sales by approximately 3%.
Previous wording
The following tables reconcile Selling, general and administrative expenses, Income from operations, Other non-operating 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 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:
Current wording
The following tables reconcile SG&A 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 SG&A 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
(4)The adjustments to Income from operations and Other income, net have been tax effected at rates of 27.2% and 26.3% for the six months ended June 30, 2026 and 2025, respectively.
Current wording
(4)The adjustments to Income from operations and Other expense (income), net have been tax effected at rates of 27.2% and 26.4% for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Note: For the six months ended June 30, 2026, Selling, general and administrative 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 six months ended June 30, 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, and the Gain on redemption of the Company's Series A Preferred Stock. 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, 2026, SG&A expenses, Income from operations, Other non-operating expense (income), Provision for income taxes, Net income attributable to common stockholders, and Earnings per diluted share have been adjusted to exclude Digital transformation costs, the gain recognized from the partial settlement of the EECOL Canada pension plan, and the related income tax effects. For the nine months ended September 30, 2025, SG&A expenses, Income from operations, Other non-operating expense (income), 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, the related income tax effects, and the gain on redemption of the Company's Series A Preferred Stock. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(2)Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
UBS reported Net sales of $1,473.2 million for the second quarter of 2026 compared to $1,376.6 million for the second quarter of 2025, an increase of $96.6 million, or 7.0%, reflecting volume growth of approximately 4% driven by the broadband and utility businesses, as well as the impact of changes in price, which favorably impacted organic sales by approximately 3%.
Previous report — wording carried elsewhere
As of June 30, 2026, approximately 68% of our debt portfolio consisted of fixed rate debt. We believe our capital structure has an appropriate mix of fixed versus variable rate debt and secured versus unsecured instruments.