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WESCO's Q3 adjusted EPS rose 9.5% year over year to $3.92, beating Zacks Consensus Estimates.
Net sales climbed 13% to $6.2 billion, with strong gains in the EES and CSS segments.
The company now expects 2025 organic sales growth of 8-9% and EPS of $13.10-$13.60.
WESCO International (WCC - Free Report) shares have surged roughly 3% following an impressive third-quarter 2025 results. Adjusted earnings of $3.92 per share increased 9.5% year over year. The bottom line beat the Zacks Consensus Estimate by 4.53%.
Net sales of $6.2 billion increased 13% year over year. The figure beat the Zacks Consensus Estimate by 5.17%. Organic sales increased 2.4% year over year.
WCC’s Top-Line Details
The EES Segment (38.1% of Net Sales): Sales in the segment were $2.36 billion, up 11.8% year over year. Organic sales increased 11.9% year over year.
WESCO International, Inc. Price, Consensus and EPS Surprise
CSS (38.9% of Net Sales): Sales in the segment were $2.41 billion, up 20.8% year over year. Organic sales increased 18.3% on a year-over-year basis.
UBS (23% of Net Sales): Sales in the segment were $1.43 billion, up 3.3% year over year. Organic sales increased 3.4% year over year.
WCC’s Operating Details
The third-quarter 2025 gross margin was 21.3%, down 80 basis points (bps) year over year.
The adjusted EBITDA margin of 6% declined 100 bps year over year.
Selling, general and administrative expenses were $914.1 million, up 10.8% year over year. As a percentage of net sales, the figure decreased 30 bps year over year to 14.7%.
The adjusted operating margin was 5.7%, which contracted 50 bps year over year.
WCC’s Balance Sheet Remains Strong
As of Sept. 30, 2025, cash and cash equivalents were $571.9 million, down from $667 million as of June 30, 2025.
The long-term debt was $5.72 billion at the third-quarter end compared with $5.64 billion in the prior quarter.
Net cash used in operating activities for the third quarter of 2025 totaled $82.7 million.
WESCO Raises 2025 Outlook
For 2025, WESCO expects organic sales growth between 8% and 9%. Sales on a reported basis are expected to be $21.8-$22.7 billion.
WESCO expects the adjusted EBITDA margin to be 6.6%. The adjusted earnings is expected between $13.10 and $13.60 per share.
The free cash flow is expected between $400 and $500 million.
For the fourth quarter of 2025, reported sales are expected to increase in the high single-digit range. Adjusted EBITDA is expected to increase roughly 30 bps.
Fair Isaac shares have dropped 16.6% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
StoneCo shares have returned 138.5% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.
Simulations Plus shares have dropped 38.4% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1.
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WESCO Q3 Earnings Beat Estimates, Sales Increase Y/Y, Shares Rise
Key Takeaways
WESCO International (WCC - Free Report) shares have surged roughly 3% following an impressive third-quarter 2025 results. Adjusted earnings of $3.92 per share increased 9.5% year over year. The bottom line beat the Zacks Consensus Estimate by 4.53%.
Net sales of $6.2 billion increased 13% year over year. The figure beat the Zacks Consensus Estimate by 5.17%. Organic sales increased 2.4% year over year.
WCC’s Top-Line Details
The EES Segment (38.1% of Net Sales): Sales in the segment were $2.36 billion, up 11.8% year over year. Organic sales increased 11.9% year over year.
WESCO International, Inc. Price, Consensus and EPS Surprise
WESCO International, Inc. price-consensus-eps-surprise-chart | WESCO International, Inc. Quote
CSS (38.9% of Net Sales): Sales in the segment were $2.41 billion, up 20.8% year over year. Organic sales increased 18.3% on a year-over-year basis.
UBS (23% of Net Sales): Sales in the segment were $1.43 billion, up 3.3% year over year. Organic sales increased 3.4% year over year.
WCC’s Operating Details
The third-quarter 2025 gross margin was 21.3%, down 80 basis points (bps) year over year.
The adjusted EBITDA margin of 6% declined 100 bps year over year.
Selling, general and administrative expenses were $914.1 million, up 10.8% year over year. As a percentage of net sales, the figure decreased 30 bps year over year to 14.7%.
The adjusted operating margin was 5.7%, which contracted 50 bps year over year.
WCC’s Balance Sheet Remains Strong
As of Sept. 30, 2025, cash and cash equivalents were $571.9 million, down from $667 million as of June 30, 2025.
The long-term debt was $5.72 billion at the third-quarter end compared with $5.64 billion in the prior quarter.
Net cash used in operating activities for the third quarter of 2025 totaled $82.7 million.
WESCO Raises 2025 Outlook
For 2025, WESCO expects organic sales growth between 8% and 9%. Sales on a reported basis are expected to be $21.8-$22.7 billion.
WESCO expects the adjusted EBITDA margin to be 6.6%. The adjusted earnings is expected between $13.10 and $13.60 per share.
The free cash flow is expected between $400 and $500 million.
For the fourth quarter of 2025, reported sales are expected to increase in the high single-digit range. Adjusted EBITDA is expected to increase roughly 30 bps.
Zacks Rank & Other Stocks to Consider
WESCO carries a Zacks Rank #2 (Buy) at present.
Fair Isaac (FICO - Free Report) , StoneCo (STNE - Free Report) , and Simulations Plus (SLP - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Fair Isaac shares have dropped 16.6% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
StoneCo shares have returned 138.5% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.
Simulations Plus shares have dropped 38.4% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1.