WESCO International (WCC) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 sales of $6.1B, up 10% year-over-year, and full-year sales of $23.5B, up 8% year-over-year, with organic sales up 9% and strong growth in CSS and EES.

• Data center sales reached $1.2B in Q4 (up ~30% YoY) and $4.3B for the year (up ~50%), now 18% of total sales.

• Record year-end backlog, up 19% YoY, with all business units contributing to growth and positioning for continued expansion.

• Announced CFO transition: Dave Schulz retiring in May 2026, Neil Dev appointed as new CFO.

• Announced over 10% increase in annual dividend to $2/share and recognized by Fortune as a top AI adopter.

Financial highlights

• Q4 organic sales up 9%; adjusted EBITDA $409M (6.7% margin), up 10% YoY; adjusted EPS up 8% to $3.40.

• Full-year adjusted EBITDA $1.54B (6.5% margin), up 2%; adjusted EPS up 6% to $12.91.

• Gross margin for Q4 was 21.2%, flat YoY; full-year gross margin 21.1%, down 50 bps.

• Free cash flow for the year was $54M, impacted by higher receivables and inventory to support growth.

• Financial leverage ratio increased to 3.4x at year-end 2025, up from 2.9x in 2024.

Outlook and guidance

• 2026 reported sales growth expected at 5%-8%, organic sales up 4%-7%.

• Adjusted EBITDA margin guidance: 6.6%-7%; adjusted EPS expected at $14.50-$16.50, ~20% growth at midpoint.

• Free cash flow projected at $500M-$800M, with working capital growth at half the rate of sales.

• Data center sales expected to grow mid-teens; CSS up high single digits+, EES up mid-single digits, UBS up low to mid-single digits.

• Preliminary January 2026 sales per workday up 15% year-over-year.