WWesco International is a large B2B distributor and logistics provider that moves electrical, industrial, and communications products to customers such as electrical contractors, data centers, and government agencies. It sources products from thousands of manufacturers and offers procurement, warehousing, distribution, and supply chain management services through a global network of about 800 branches and facilities in nearly 50 countries. The company differentiates itself by offering a wide product range at scale with end-to-end supply chain services that support customers across industrial, utility, and government markets. Its goal is to be a reliable partner for customers’ procurement and logistics needs by delivering comprehensive worldwide distribution and supply chain solutions.
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Industries
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
Pittsburgh, PA
Founded
1922
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Total Funding
$2.3B
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Industry Average
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2 Rounds
WESCO International Q3 earnings call highlights. WESCO International (NYSE:WCC) reported record third-quarter results for 2026, with double-digit increases in sales, backlog, operating profit and earnings per share, as data center demand and broader infrastructure activity supported growth across all three business units. Chairman, President and Chief Executive Officer John Engel said the company entered the fourth quarter with positive momentum and raised its full-year outlook. "The past five consecutive quarters of double-digit sales growth demonstrate Wesco's higher growth profile," Engel said, adding that sales excluding data centers rose at a high-single-digit rate. Third-quarter organic sales increased 17% year over year to $7.2 billion, driven by approximately 14% volume growth and a roughly 3% contribution from pricing, according to Executive Vice President and Chief Financial Officer Neel Dev. Adjusted EBITDA rose 33% to a record $562 million, while adjusted EBITDA margin expanded 100 basis points to 7.8%. Adjusted earnings per share increased 47% from the prior year to a record $5.77. Gross margin rose to 21.7%, while SG&A expense improved by about 50 basis points as sales growth, productivity initiatives and cost management generated operating leverage, Dev said. Data centers remain major growth driver. Data center sales rose approximately 55% year over year to a record $1.8 billion in the quarter. On a trailing 12-month basis, data center revenue totaled approximately $6 billion, representing about 23% of company sales. Management said the business is now margin accretive to the company and is contributing to overall margin expansion. Engel attributed the improvement not primarily to pricing, but to Wesco increasing the amount of products and services it supplies during construction projects and after facilities are deployed. "The gross margin improvement is because of our services content increasing over time," Engel said. He added that the company has expanded its capabilities to support data centers beyond initial construction, including services for operating facilities after deployment. Wesco's Communications and Security Solutions business, or CSS, generated record sales of $2.9 billion, up 22% year over year. Organic sales increased 21%, driven almost entirely by volume. Wesco Data Center Solutions grew about 40%, led by hyperscale and multi-tenant data center customers, while network infrastructure demand also supported growth in enterprise networking and security. CSS backlog increased about 140% year over year to a record level. Adjusted EBITDA rose 42% to $313 million, and the unit's adjusted EBITDA margin expanded 160 basis points to 10.7%. Engel said Wesco's data center business also includes enterprise, private and hybrid AI infrastructure customers in addition to hyperscalers. The company plans to discuss its data center offerings in greater detail during a virtual investor event scheduled for Nov. 10. Growth across electrical and utility businesses. Electrical and Electronic Solutions, or EES, reported sales of $2.8 billion, up 18% from a year earlier. The unit's OEM sales grew about 30%, supported by semiconductor and data center markets. Construction sales increased at a mid-teens rate on infrastructure and data center project activity, while industrial sales rose at a mid-single-digit rate on maintenance, repair and operations demand. EES data center sales more than doubled from the prior year. Excluding data centers, EES grew at a high-single-digit rate. Its backlog rose approximately 40% to a record level, while adjusted EBITDA increased 31% to $259 million. Adjusted EBITDA margin expanded 90 basis points to 9.3%. The Utility and Broadband Solutions, or UBS, business posted sales of $1.5 billion, up 6%, with organic growth of 7%. Utility sales rose at a high-single-digit rate, helped by investor-owned utility performance, improving public-power trends and infrastructure investment. Broadband sales were flat against a comparison period in which sales had risen more than 20%. UBS backlog increased approximately 90% year over year to a record level, driven by Grid Services and utility and broadband orders. Adjusted EBITDA rose 6% to $158 million, while adjusted EBITDA margin was 10.4%, up 40 basis points sequentially. Engel said Grid Services is margin accretive and has grown at a double-digit rate through the first three quarters of 2026. He also said a large, multiyear Grid Services win announced in the previous quarter is expected to begin contributing meaningfully in the first half of 2027. Cash flow, leverage and outlook. Wesco generated $184 million in free cash flow during the third quarter after investing in working capital to support sales growth. Net working capital was approximately 20% of trailing 12-month sales, generally consistent with prior quarters, Dev said. Net leverage improved to 2.8 times net debt to adjusted EBITDA, compared with 3.4 times at the end of 2025. The company exited the quarter with more than $2 billion of available liquidity and no significant near-term debt maturities, according to management. Based on year-to-date performance and fourth-quarter momentum, Wesco raised its 2026 outlook. The company now expects: * Organic sales growth of 13% to 14%; * Reported sales growth of 14% to 15%; * Full-year sales of approximately $26.8 billion to $27 billion; * Adjusted EBITDA margin of approximately 7.2%; and * Adjusted earnings per share of $18 to $18.50. For the fourth quarter, the company expects reported sales growth in the low- to mid-teens and adjusted EBITDA margin expansion of approximately 50 basis points from the prior-year period. Preliminary October sales per workday were up in the high teens year over year. Looking ahead, Engel said Wesco expects to outperform its markets in 2027, with sales growth in the mid- to high-single digits and continued margin expansion. The company said it will provide a detailed 2027 outlook when it reports fourth-quarter results in February. About WESCO International (NYSE:WCC). WESCO International, Inc is a business-to-business provider of electrical, communications, security, and supply chain solutions. The company distributes products used in electrical and electronic systems, including wire and cable, lighting, circuit protection, automation and control equipment, data communications infrastructure, security products, and other electrical and industrial supplies. WESCO serves a broad range of customers, including electrical and data communications contractors, industrial companies, original equipment manufacturers, utilities, commercial and institutional businesses, government entities, and telecommunications providers.
WESCO International reported record third-quarter results, with organic sales up 17% to $7.2 billion. Adjusted EBITDA rose 33% to $562 million, and adjusted earnings per share climbed 47% to $5.77. Data centre sales grew about 55% to $1.8 billion, driving growth. Backlog in its Communications and Security Solutions unit rose about 140% year over year. The company raised its 2026 outlook to 13%–14% organic sales growth, revenue of about $26.8 billion to $27 billion, and adjusted EPS of $18 to $18.50. Net leverage improved to 2.8 times adjusted EBITDA from 3.4 times at the end of 2025. Chief executive officer John Engel said the company entered the fourth quarter with positive momentum.
WESCO International (NYSE:WCC) announces earnings results. WESCO International (NYSE:WCC - Get Free Report) issued its quarterly earnings data on Thursday. The technology company reported $5.77 EPS for the quarter, beating the consensus estimate of $4.70 by $1.07, FiscalAI reports. The company had revenue of $7.23 billion for the quarter, compared to analyst estimates of $6.87 billion. WESCO International had a return on equity of 14.95% and a net margin of 2.84%. WESCO International's quarterly revenue was up 16.6% compared to the same quarter last year. During the same period last year, the company earned $3.92 earnings per share. Here are the key takeaways from WESCO International's conference call: * WESCO reported record third-quarter results, with organic sales up 17% to $7.2 billion, adjusted EBITDA up 33% to $562 million, EBITDA margin expanding 100 basis points to 7.8%, and adjusted EPS up 47% to $5.77. * Data center demand remains a major growth engine, with sales up 55% year over year to $1.8 billion and CSS backlog up approximately 140%; management said the business is now margin-accretive and increasingly spans hyperscale, multi-tenant, enterprise, private AI, and edge infrastructure. * Growth is broadening beyond data centers. EES sales rose 18%, driven by OEM, construction, and industrial demand, while UBS sales increased 6%, utility grew at a high-single-digit rate, and backlog reached records across all three business units. * WESCO significantly raised its 2026 outlook to 13%-14% organic sales growth, approximately $26.8 billion-$27.0 billion in sales, 7.2% adjusted EBITDA margin, and $18.00-$18.50 adjusted EPS; October sales per workday were up in the high teens, though fourth-quarter guidance reflects seasonal factors and continued business investment. * Free cash flow was $184 million and net leverage improved to 2.8 times from 3.4 times at year-end. Management expects mid- to high-single-digit sales growth and continued margin expansion in 2027, but will provide detailed guidance with fourth-quarter results. WESCO International price performance. WCC stock traded up $17.95 during mid-day trading on Thursday, reaching $365.17. The company's stock had a trading volume of 1,484,000 shares, compared to its average volume of 608,598. The stock has a market cap of $17.79 billion, a PE ratio of 25.24, a P/E/G ratio of 1.90 and a beta of 1.54. The company has a current ratio of 2.09, a quick ratio of 1.23 and a debt-to-equity ratio of 1.13. WESCO International has a fifty-two week low of $221.43 and a fifty-two week high of $388.64. The company's 50 day moving average is $350.06 and its two-hundred day moving average is $326.18. WESCO International announces dividend. The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 11th were paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, September 11th. WESCO International's dividend payout ratio is currently 13.82%. Analysts set new price targets. WCC has been the topic of a number of research analyst reports. Wall Street Zen raised shares of WESCO International from a "hold" rating to a "buy" rating in a research note on Saturday, October 24th. Stephens upgraded shares of WESCO International from an "equal weight" rating to an "overweight" rating and upped their price objective for the stock from $350.00 to $400.00 in a research report on Tuesday, July 14th. Royal Bank Of Canada increased their price objective on shares of WESCO International from $430.00 to $435.00 and gave the company an "outperform" rating in a report on Wednesday, October 14th. Barclays lifted their target price on shares of WESCO International from $390.00 to $437.00 and gave the company an "overweight" rating in a research report on Monday, October 12th. Finally, Weiss Ratings cut shares of WESCO International from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, October 23rd. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $402.83. Key headlines impacting WESCO International. Here are the key news stories impacting WESCO International this week: * Record sales and earnings: Third-quarter net sales reached $7.226 billion, up 16.6% year over year and 8% sequentially. GAAP diluted EPS was $5.43, while adjusted EPS was $5.77 - well above analyst estimates of approximately $4.61 to $4.70 and up from $3.92 a year earlier. * Data-center growth was a major catalyst: Data-center sales rose roughly 55% year over year to $1.8 billion, while non-data-center sales increased 7%. The results support continued demand tied to data-center infrastructure and related technology spending. * Profitability and cash generation improved: Operating profit rose 30.5% to $450.8 million, operating margin expanded to 6.2%, and adjusted EBITDA margin reached 7.8%. Operating cash flow was $193.9 million versus cash use of $82.7 million in the prior-year quarter, with free cash flow of $184 million. * Outlook and backlog strengthened: WESCO raised its 2026 guidance after reporting record sales, profitability and backlog. Backlog increased approximately 80% year over year, while financial leverage declined to 2.8x from 3.4x at the end of 2025. * The strong report reinforces WCC's premium valuation and momentum, but investors will likely monitor whether exceptional data-center growth can continue and whether backlog converts into sustained revenue and margins. Insider transactions at WESCO International. In related news, Director Laura Thompson sold 270 shares of WESCO International stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $368.45, for a total transaction of $99,481.50. Following the transaction, the director owned 10,720 shares in the company, valued at approximately $3,949,784. This trade represents a 2.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Akash Khurana sold 3,400 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $366.78, for a total value of $1,247,052.00. Following the transaction, the executive vice president directly owned 27,404 shares in the company, valued at $10,051,239.12. This trade represents a 11.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.60% of the company's stock. About WESCO International. WESCO International, Inc is a business-to-business provider of electrical, communications, security, and supply chain solutions. The company distributes products used in electrical and electronic systems, including wire and cable, lighting, circuit protection, automation and control equipment, data communications infrastructure, security products, and other electrical and industrial supplies. WESCO serves a broad range of customers, including electrical and data communications contractors, industrial companies, original equipment manufacturers, utilities, commercial and institutional businesses, government entities, and telecommunications providers. Receive News & Ratings for WESCO International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WESCO International and related companies with MarketBeat.com's FREE daily email newsletter.
Wesco International reported record third-quarter 2026 net sales of $7.2 billion, up 17% year on year and 8% from the previous quarter. Organic sales also rose 17%. Data center sales reached $1.8 billion, up about 55%. Non-data center sales grew 7%. Backlog hit a record, up about 80%. Operating margin was 6.2%, up 60 basis points. Diluted earnings per share were $5.43, while adjusted earnings per share rose 47% to $5.77. Free cash flow was $184 million, and leverage fell to 2.8x from 3.4x at the end of 2025. The Pittsburgh-based distributor raised its 2026 outlook. Chief executive officer John Engel said he was "bullish" on continued outperformance into 2027.
WESCO International shares trade around $318, after a 159.0% gain over three years. A discounted cash flow model suggests the stock is worth substantially more than that price. The model leans on projections of much larger annual free cash flow by the early 2030s. Latest twelve-month free cash flow is about $158 million, and the stock trades at 21.7 times earnings. Views are split. The bull case sees the stock 20% undervalued, citing growth in higher-margin services and engineering. The bear case sees it as roughly fairly valued, noting that AI-driven data centre projects make up about 24% of quarterly sales, or roughly $4.8 billion of trailing twelve-month revenue. Simply Wall St also flagged recent share sales by company insiders.
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Industries
Company Size
5,001-10,000
Company Stage
IPO
Headquarters
Pittsburgh, PA
Founded
1922
Find jobs on Simplify and start your career today
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