Core Insights - Wesco International (WCC) is a significant player in the electronics parts distribution industry, offering a variety of products and services related to maintenance, repair, and operations (MRO) [1] Financial Performance - For the quarter ending December 2025, WCC reported earnings per share (EPS) of $3.34, which was below the estimated $3.82, resulting in an earnings surprise of -11% [2][6] - The company's revenue for the same quarter was approximately $6.07 billion, exceeding the estimated $5.79 billion and reflecting a year-over-year increase from $5.5 billion [3][6] Market Valuation - WCC has a price-to-earnings (P/E) ratio of 20.78, indicating the market's valuation of its earnings [4] - The price-to-sales ratio is approximately 0.58, and the enterprise value to sales ratio stands at 0.83, providing insights into the company's market value relative to its sales and revenue [4] Financial Health - The debt-to-equity ratio is 1.35, showing the proportion of debt used to finance assets relative to shareholders' equity [5] - A current ratio of 2.09 indicates WCC's strong liquidity position, suggesting it can cover short-term liabilities with short-term assets [5] - The company maintains an earnings yield of approximately 4.81%, reflecting the earnings generated per dollar invested [5]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record sales of $6.1 billion, a 10% increase year-over-year, with 9% organic growth [6][11] - Adjusted EBITDA for Q4 was $409 million, up 10% year-over-year, with an adjusted EBITDA margin of 6.7% [11][12] - For the full year 2025, sales totaled $23.5 billion, an 8% increase, with organic sales also up 9% [12][14] - Adjusted EPS for Q4 grew 8% to $3.40, while for the full year, it increased 6% to $12.91 [11][14] Business Line Data and Key Metrics Changes - Communications and Security Solutions (CSS) reported organic sales growth of 14% in Q4, with a backlog increase of nearly 40% [15][16] - Electrical and Electronic Solutions (EES) saw organic sales up 9% in Q4, with adjusted EBITDA growing 16% [22] - Utility and Broadband Solutions (UBS) had organic sales growth of 3% in Q4, with a backlog increase of 23% year-over-year [24][25] Market Data and Key Metrics Changes - Data center sales reached $4.3 billion for the full year, up approximately 50%, representing about 18% of total sales [17][18] - Investor-Owned Utilities (IOUs) showed growth momentum, with three consecutive quarters of sales growth, while Public Power customers continued to face challenges [24][50] Company Strategy and Development Direction - The company is focused on capital allocation, prioritizing debt reduction and share repurchases, while also investing in technology-enabled business transformation [8][37] - The strategic outlook for 2026 includes expected sales growth of 5% to 8%, with organic sales between 4% and 7% [34][36] - The company plans to increase its annual common stock dividend by over 10% to $2 per share [8][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming the market in 2026, driven by strong demand in data centers and improving trends in other segments [7][40] - The company anticipates continued growth in grid services, expecting double-digit growth in 2026 [25][78] - Management acknowledged challenges in the Public Power segment but expects a return to growth by the end of 2026 [50][76] Other Important Information - The company has made significant progress in its digital transformation, being recognized by Fortune with a top 10 ranking in AI among Fortune 500 companies [9] - The company reported a free cash flow of $54 million for 2025, with expectations for improvement in 2026 [30][37] Q&A Session Summary Question: Clarification on pricing and its impact on EBITDA margins - Management explained that while they are seeing an increase in price notifications from suppliers, they do not include these in their outlook due to uncertainty in timing [43][46] Question: Concerns about UBS performance and competitive pressures - Management clarified that the challenges in UBS are primarily due to Public Power customers facing inventory normalization and competitive pricing pressures, but they expect growth in 2026 [49][50] Question: Data center growth expectations for 2026 - Management indicated that they expect consistent activity levels in data centers throughout 2026, with mid-teens growth anticipated [54][56] Question: Free cash flow expectations for 2026 - Management provided a range of $500 million to $800 million for free cash flow in 2026, highlighting improvements in cash collection [60][62] Question: Backlog trends and engagement in mega projects - Management confirmed that all business units grew their backlog in Q4, with a robust opportunity pipeline for mega projects [65][81]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported record sales of $6.1 billion, a 10% increase year-over-year, with 9% organic growth [6][12] - Adjusted EBITDA for Q4 was $409 million, up 10% year-over-year, with an adjusted EBITDA margin of 6.7% [12][14] - For the full year, sales reached $23.5 billion, an 8% increase, with organic sales also up 9% [13] - Adjusted EPS for Q4 grew 8% to $3.40, while full-year adjusted EPS increased 6% to $12.91 [14][15] Business Line Data and Key Metrics Changes - Communications and Security Solutions (CSS) saw organic sales growth of 17% for the full year, driven by strong demand in data center solutions [17][18] - Electrical and Electronic Solutions (EES) reported organic sales growth of 8% for the full year, with notable strength in construction and OEM segments [22][23] - Utility and Broadband Solutions (UBS) experienced a decline in full-year sales of 5%, with organic sales down 1%, primarily due to challenges with public power customers [24][25] Market Data and Key Metrics Changes - Data center sales reached $4.3 billion for the full year, up approximately 50%, representing about 18% of total sales [19][20] - The backlog increased by 19% year-over-year, indicating strong demand across various sectors [7][12] - The company expects continued growth in 2026, with reported sales growth projected between 5%-8% and organic sales growth between 4%-7% [30][32] Company Strategy and Development Direction - The company is focused on capital allocation, prioritizing debt reduction and share repurchases while investing in technology-enabled business transformation [9][35] - Plans to increase the annual common stock dividend by over 10% to $2 per share, reflecting a commitment to shareholder returns [9][35] - The company aims to leverage digital transformation to enhance operational efficiency and margin expansion [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming the market in 2026, driven by strong demand in data centers and improving trends in other business units [8][38] - The company anticipates continued challenges in the public power segment but expects a return to growth by the end of 2026 [25][58] - Management highlighted the importance of grid services, which is expected to grow at a double-digit rate in 2026 [25][59] Other Important Information - The company has made significant progress in its digital transformation, recognized by Fortune as one of the top AI companies [10] - Free cash flow for 2025 was $54 million, with expectations for improvement in 2026 as working capital initiatives take effect [29][35] Q&A Session Summary Question: Clarification on pricing and its impact on EBITDA margins - Management explained that while they are seeing an increase in price notifications from suppliers, they do not include these in their outlook due to uncertainty in timing [39][40] - If price increases are realized, they could provide a transitory benefit to gross margins and operating leverage [42][43] Question: UBS segment performance and future outlook - Management clarified that challenges in the UBS segment are primarily driven by public power customers, with expectations for a return to growth by year-end 2026 [44][45][56] Question: Data center growth expectations - Management indicated that data center sales are expected to grow mid-teens in 2026, with consistent activity levels anticipated throughout the year [46][48] Question: Free cash flow expectations for 2026 - Management provided a range of $500 million-$800 million for free cash flow in 2026, highlighting improved cash generation and working capital management [49][51] Question: Order book trends and backlog growth - Management noted that all business units grew their backlog in Q4, with CSS showing the strongest growth at 40% [52][53]

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NYSE: WCC Fourth Quarter 2025 Webcast Presentation February 10, 2026 Forward-Looking Statements and Non-GAAP Measures All statements made herein that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding busi ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Wesco International (WCC) Analysis - Wesco International (WCC) has shown a price increase of 10.3% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, WCC's stock gained 21.7%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - WCC has a beta of 1.45, suggesting it moves 45% higher than the market in either direction, indicating fast-paced momentum [5] - WCC has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - WCC is trading at a Price-to-Sales ratio of 0.64, indicating it is reasonably valued at 64 cents for each dollar of sales, providing room for further price appreciation [7] Group 3: Additional Investment Opportunities - Besides WCC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - Wesco International (WCC) reported quarterly earnings of $3.4 per share, missing the Zacks Consensus Estimate of $3.82 per share, but showing an increase from $3.16 per share a year ago [1][2] - The company posted revenues of $6.07 billion for the quarter, exceeding the Zacks Consensus Estimate by 0.53% and up from $5.5 billion year-over-year [3] - The stock has gained approximately 23.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.7% [4] Earnings Performance - The earnings surprise for the quarter was -11.00%, contrasting with a positive surprise of +4.53% in the previous quarter [2] - Over the last four quarters, Wesco has surpassed consensus EPS estimates two times and topped revenue estimates four times [2][3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.04 on revenues of $5.85 billion, and for the current fiscal year, it is $15.73 on revenues of $24.81 billion [8] - The Zacks Rank for Wesco International is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - Wesco operates within the Zacks Electronics - Parts Distribution industry, which is currently ranked in the top 8% of over 250 Zacks industries [9] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Core Viewpoint - Wesco International, Inc. (WCC) has initiated its adjusted earnings and revenue guidance for the full-year 2026, projecting adjusted earnings between $14.50 and $16.50 per share with sales growth of 5 to 8 percent [1] Financial Performance - Analysts expect the company to report earnings of $16.42 per share, with revenue growth projected between 22.23 percent to $24.96 billion for the year [2] - The company plans to increase its annual common stock dividend by over 10 percent to $2.00 per share [2] Management Changes - The company announced the upcoming retirement of Dave Schulz, Executive Vice President and Chief Financial Officer, effective May 2026, and the appointment of Indraneel "Neel" Dev as his successor [3][4] - Dev will join the company in February 2026 to ensure a smooth transition, having previously served as CFO and Chief Revenue Officer of Congruex [4] Stock Performance - In pre-market trading, WCC shares are priced at $286.00, reflecting a decrease of $15.73 or 5.2 percent [4]

Core Insights - WESCO International, Inc. announces the retirement of Dave Schulz as Executive Vice President and Chief Financial Officer, effective May 2026, and the appointment of Indraneel "Neel" Dev to the position starting February 2026 to ensure a smooth transition [1] Group 1: Leadership Transition - Indraneel "Neel" Dev has previously served as Chief Financial Officer and Chief Revenue Officer at Congruex LLC and held senior finance leadership roles at Lumen Technologies, Level 3 Communications, MCI, and MFS Communications [2] - Mr. John J. Engel, Chairman, President, and CEO of WESCO, expressed confidence in Neel's ability to navigate complex financial environments and contribute to the company's growth and value creation [3] Group 2: Company Overview - WESCO International is a FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, with approximately $24 billion in annual sales for 2025 [4] - The company provides a comprehensive portfolio of business-to-business distribution, logistics services, and supply chain solutions, employing around 21,000 people and operating over 700 sites in approximately 50 countries [4]

PITTSBURGH, February 10, 2026 /PR Newswire/ -- Wesco International (NYSE: WCC), a leading provider of business-to- business distribution, logistics services and supply chain solutions, announces its results for the fourth quarter and full year 2025. "We closed out 2025 with positive momentum and again outperformed the market with our leading portfolio of products, services and solutions. Record sales of $23.5 billion were up 8% and increased by double-digits in the second half. Backlog was up 19% to a recor ...