Wesco International saw its sales decline in 2024 despite an increase to end the year, company officials said Tuesday.
The Pittsburgh-based distributor and supply chain solutions company reported net sales of $21.8 billion last year, down 2.5% from the $22.4 billion posted in 2023. Organic sales, which did not account for the company’s acquisition of Ascent, its sale of Wesco Integrated Supply or other select factors, were off by 0.6% last year.
The company’s annual operating profit of $1.2 billion was also down 13% from the $1.4 billion reported in the previous year, and operating profit as a percentage of net sales fell from 6.3% to 5.6% over that span.
Net income attributable to Wesco came in at $718 million for the year, while net income attributable to common stockholders was $660 million; the latter translated to earnings of $13.05 per diluted share compared to $13.54 in 2023.
In the final quarter of 2024, however, net sales edged up 0.5% compared to the final three months of 2023, climbing from $5.47 billion up to just shy of $5.5 billion. Quarterly organic sales were up by 2.4% year-over-year, but operating profit of $301 million slipped 4.7% compared to the previous Q4.
Wesco executives attributed the quarterly sales increase to strong performances in its data center and broadband segments, along with “renewed positive sales momentum” in its electrical division. The company’s industrial business, meanwhile, saw a downturn, along with its utility segment.
John Engel, the company’s chairman, president and CEO, said in a statement that Wesco made progress on its transformation and “enterprise-wide digitalization efforts” in 2024, and that preliminary adjusted sales for January were up by 5%.
Engel said the company’s initial 2025 forecast anticipates organic sales growth of 2.5% to 6.5% and stronger operating margins — with “all three business units” delivering “profitable growth.”
“I'm confident that Wesco will outperform our markets this year, and we're best positioned to deliver improved sales growth and continue toward our long-term EBITDA margin expansion goal,” Engel said.
Wesco’s industrial business, which accounted for $3.1 billion in sales in 2023, came in at no. 11 on last year’s ID Big 50.
