Wesco on Tuesday reported a double-digit increase in quarterly sales and a record total for 2025, but its gross margin was flat in the quarter and adjusted earnings fell short of company expectations.
The Pittsburgh-based distribution and supply chain services giant posted net sales of $6.07 billion in the final quarter of the year, an increase of 10.3% over the same period in late 2024. The company’s Q4 operating profit climbed 7.8 % to $324.6 million, while net income attributable to Wesco common stockholders rose 9.4 % to $165.2 million.
Organic sales in Wesco’s communication and electronics segments increased by 16.2% and 9.2%, respectively, while its utility business saw sales rise by 3.1%. Company officials noted that data center sales were up by about 30% in the quarter and that its backlog rose by 19% to set a new record, while its utility segment "continued to face ongoing sales and margin challenges with public power customers."
Wesco Chairman, President and CEO John Engel said the backlog highlighted “the strength of our business” and provided “another proof point that Wesco is benefiting from the secular growth trends of AI-driven data centers, increased power generation and supply chain reshoring.”
For the full year, Wesco reported net sales of $23.51 billion, up 7.8% year-over-year and a new annual record; organic sales, which did not account for its acquisition of Ascent, the sale of Wesco Integrated Supply to Vallen, and other factors, rose by 8.6%. Annual operating profit edged up 0.8% to $1.23 billion, while net income attributable to common stockholders came in at $645.8 million, down 2.2% from 2024.
The company’s debut 2026 outlook anticipates sales growth of between 5% and 8% and adjusted earnings of between $14.50 and $16.50 per diluted share.
"We expect to continue to outperform the market and deliver mid- to high-single-digit organic sales growth, strong operating leverage and margin expansion, double-digit EPS growth, and improved free cash flow generation,” Engel said in a statement.
Wesco also announced Tuesday that Executive Vice President and Chief Financial Officer Dave Schulz plans to retire in May. Congruex LLC CFO and Chief Revenue Officer Indraneel Dev will join Wesco this month and will succeed Schulz this spring.
