Wesco | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 6.069 B

Revenue: As of FY2025 Q4, the actual value is USD 6.069 B, beating the estimate of USD 6.033 B.EPS: As of FY2025 Q4, the actual value is USD 3.34, missing the estimate of USD 3.7557.EBIT: As of FY2025 Q4, the actual value is USD 327.1 M.Fourth Quarter 2025 Financial HighlightsNet Sales: Reported net sales were $6.1 billion, an increase of 10% year-over-year (YOY), with organic sales growing by 9% YOY. Data center sales reached $1.2 billion, up approximately 30% YOY. GAAP net sales were $6,068.6 million, up 10.3% from $5,499.7 million in the prior year quarter.Gross Profit and Margin: Gross profit was $1,286.3 million, an increase of 10.5% from $1,164.0 million in the fourth quarter of 2024. Gross margin remained flat at 21.2% compared to the fourth quarter of 2024.Operating Profit: GAAP operating profit was $324.6 million, an increase of 7.8% from $301.1 million in the prior year quarter.Selling, General, and Administrative (SG&A) Expenses: SG&A expenses were $910.0 million, an increase of 11.3% from $817.3 million in the prior year quarter. Adjusted SG&A expenses were $899.0 million, up 11.4% from $807.2 million in the fourth quarter of 2024.Adjusted EBITDA: Adjusted EBITDA increased by 10.3% to $408.6 million from $370.5 million in the fourth quarter of 2024. Adjusted EBITDA margin remained at 6.7%.Net Income Attributable to Common Stockholders: GAAP net income attributable to common stockholders was $165.2 million, up 9.4% from $151.0 million in the prior year quarter. Adjusted net income attributable to common stockholders was $167.9 million, an increase of 6.7% from $157.4 million in the fourth quarter of 2024.Operating Cash Flow: Net cash provided by operating activities totaled $71.9 million, a decrease of -74.0% from $276.6 million in the fourth quarter of 2024.Free Cash Flow: Free cash flow was $47.2 million, a decrease of -82.4% from $268.4 million in the fourth quarter of 2024.Effective Tax Rate: The effective tax rate was 26.4%, an increase of 560 basis points from 20.8% in the fourth quarter of 2024.Full Year 2025 Financial HighlightsNet Sales: Reported net sales were a record $23.5 billion, up 8% YOY, with organic sales increasing by 9% YOY. Data center sales were $4.3 billion, up approximately 50% YOY, accounting for roughly 18% of total company sales. GAAP net sales were $23,510.9 million, up 7.8% from $21,818.8 million in 2024.Gross Profit and Margin: Gross profit was $4,972.0 million, an increase of 5.5% from $4,712.6 million in 2024. Gross margin decreased by -50 basis points to 21.1% from 21.6% in 2024.Operating Profit: GAAP operating profit was $1,233.0 million, an increase of 0.8% from $1,223.2 million in 2024.Selling, General, and Administrative (SG&A) Expenses: SG&A expenses were $3,541.4 million, an increase of 7.1% from $3,306.2 million in 2024. Adjusted SG&A expenses were $3,506.2 million, up 8.0% from $3,246.5 million in 2024.Adjusted EBITDA: Adjusted EBITDA increased by 1.8% to $1,536.5 million from $1,509.1 million in 2024. Adjusted EBITDA margin decreased by -40 basis points to 6.5% from 6.9% in 2024.Net Income Attributable to Common Stockholders: GAAP net income attributable to common stockholders was $645.8 million, a decrease of -2.2% from $660.2 million in 2024. Adjusted net income attributable to common stockholders was $638.9 million, an increase of 3.3% from $618.6 million in 2024.Operating Cash Flow: Net cash provided by operating activities totaled $125.0 million, a decrease of -88.6% from $1,101.2 million in 2024. This decrease was primarily driven by a - $507.3 million impact from changes in trade accounts receivable and a - $428.1 million impact from changes in inventories.Free Cash Flow: Free cash flow was $53.8 million, a decrease of -94.9% from $1,045.2 million in 2024. Capital expenditures were $99.8 million.Effective Tax Rate: The effective tax rate was 24.9%, an increase of 50 basis points from 24.4% in 2024.Financial Leverage: The financial leverage ratio was 3.4 as of December 31, 2025, compared to 2.9 as of December 31, 2024. Total debt, net of cash, was $5,224.6 million as of December 31, 2025, up from $4,409.5 million as of December 31, 2024.Backlog: Total company backlog reached a record level, up 19% YOY, with CSS backlog increasing by approximately 40%. All three Strategic Business Units (SBUs) experienced backlog growth at year-end.Net Working Capital: As of December 31, 2025, net working capital was $5,047.9 million, with an average net working capital as a percentage of trailing twelve-month sales of 20.1%. Trade accounts receivable, net, was $4,069.6 million, inventories were $4,008.8 million, and accounts payable were $3,030.5 million as of December 31, 2025.Segment Performance (Fourth Quarter 2025 vs Fourth Quarter 2024)Electrical & Electronic Solutions (EES): EES reported sales of $2,272.9 million, with organic sales growth of 8.8%. Adjusted EBITDA for EES was $193.7 million, with an Adjusted EBITDA margin of 8.5%.Communications & Security Solutions (CSS): CSS reported sales of $2,424.7 million, with organic sales growth of 13.5%. Adjusted EBITDA for CSS was $221.3 million, with an Adjusted EBITDA margin of 9.1%.Utility and Broadband Solutions (UBS): UBS reported sales of $1,371.0 million, with organic sales growth of 3.1%. Adjusted EBITDA for UBS was $132.1 million, with an Adjusted EBITDA margin of 9.6%.Segment Performance (Full Year 2025 vs Full Year 2024)Electrical & Electronic Solutions (EES): EES reported sales of $8,955.5 million, with organic sales growth of 7.5%. Data center sales represented approximately 5% of total segment sales, up 40% year-over-year. Adjusted EBITDA for EES was $717.6 million, with an Adjusted EBITDA margin of 8.0%, a decrease of 30 basis points due to lower gross margin. Gross margin was 23.2%, a decrease of 50 basis points from 23.7%.Communications & Security Solutions (CSS): CSS reported sales of $9,101.0 million, with organic sales growth of 16.7%. Data center demand accelerated, contributing to approximately 50% growth. Adjusted EBITDA for CSS was $799.4 million, with an Adjusted EBITDA margin of 8.8%, an improvement of 50 basis points, reflecting strong operating cost leverage. Gross margin was 21.1%, a decrease of 40 basis points from 21.5%.Utility & Broadband Solutions (UBS): UBS reported sales of $5,454.4 million, with organic sales decline of -1.0%. Utility sales were down slightly, while Broadband showed mid-single-digit growth. Adjusted EBITDA for UBS was $562.8 million, with an Adjusted EBITDA margin of 10.3%, a decrease of 90 basis points, primarily due to competitive pressures in the public power market. Gross margin was 17.9%, a decrease of 70 basis points from 18.6%.Outlook / GuidanceWESCO International, Inc. (西科国际) anticipates full-year 2026 reported sales growth of 5% to 8% and an adjusted EBITDA margin of approximately 6.8% at the mid-point. The company projects free cash flow to be between $500 million and $800 million, and plans to increase its annual common stock dividend by over 10% to $2.00 per share. The outlook reflects increasing momentum, with data center sales expected to be up mid-teens percent in 2026.