Wesco on Thursday raised its annual forecast after its third-quarter sales set a new record — despite a decline in earnings in the quarter.
The Pittsburgh distribution and supply chain services giant reported nearly $6.2 billion in net sales between July and September, a 12.9% increase compared to the same quarter last year.
Wesco’s organic sales, which did not account for its acquisition of Ascent, were up 12.1%, including increases of 18.3% in its communications segment — thanks in large part to a roughly 60% jump in data center sales — and 11.9% in its electronics unit. The utility segment, meanwhile, returned to sales growth amid increases from investor-owned utilities.
Wesco’s adjusted gross profit climbed by 8.6% to $1.32 billion in the quarter, but its adjusted margin dropped by 80 basis points to 21.3%, which the company attributed to large projects with lower margins and higher inventory adjustments.
The company’s operating profit rose 2.9% to $345.4 million, but net income attributable to Wesco common shareholders slipped 1.3% year-over-year to $187.5 million. Adjusted earnings per share, however, rose, in part thanks to a stock redemption earlier in the year.
Wesco officials said that the company had raised its full-year sales forecast from the previous 5% to 7% annual growth projection up to 8% to 9%. The outlooks for adjusted earnings per share and adjusted EBITDA were also raised.
“We are building on our positive business momentum as we enter the fourth quarter and begin to prepare for continued market-leading growth in 2026," Wesco Chairman, President and CEO John Engel said in the company’s earnings release.
