Wesco’s sales dipped slightly in the first quarter of the year, but its earnings rose as the company maintained its initial forecast for 2025 as a whole.
The Pittsburgh-based distribution and supply chain services provider reported $5.34 billion in net sales, which amounted to a 0.1% decline compared to the first quarter of 2024. Net income attributable to common Wesco stockholders, meanwhile, rose 2.6% year-over-year to $104 million, and diluted earnings per share were up 7.7% to $2.10.
Wesco’s quarterly gross profit of $1.13 billion, however, was down 1.1% compared to the previous first quarter, and its gross margin slipped 20 basis points to 21.1%. Adjusted EBITDA was down 8.7% over that span.
Wesco officials also highlighted a 5.6% increase in organic sales in the quarter, and its chief executive said total data center sales were up by 70%.
“Our positive momentum is building to start the second quarter with preliminary April sales per workday up 7% versus prior year,” Chairman, President and CEO John Engel said in a statement.
Among its individual segments, sales in Wesco’s communications and security segment rose by 17.3%, while electrical sales were essentially flat and utility and broadband sales, “as expected,” were down by more than 19%.
Wesco “reaffirmed” its initial outlook for 2025 amid what Engel called “positive sales momentum to start the year.” He also suggested that an increased inventory would “help manage the potential supply chain impact of global tariffs on our customers."
“Against a backdrop of increased uncertainty and volatility, we remain sharply focused on what we can control – our cross-selling activities, our enterprise-wide margin improvement program, and operational improvements resulting from our tech-enabled business transformation,” Engel said.
Wesco’s industrial sales were enough to rank at no. 11 on ID’s 2024 Big 50 list.
