WESCO Q3 Earnings Beat Estimates, Sales Increase Y/Y, Shares Rise

WESCO International WCC shares have surged roughly 3% following an impressive third-quarter 2025 results. Adjusted earnings of $3.92 per share increased 9.5% year over year. The bottom line beat the Zacks Consensus Estimate by 4.53%.

Net sales of $6.2 billion increased 13% year over year. The figure beat the Zacks Consensus Estimate by 5.17%. Organic sales increased 2.4% year over year.

WCC’s Top-Line Details

The EES Segment (38.1% of Net Sales): Sales in the segment were $2.36 billion, up 11.8% year over year. Organic sales increased 11.9% year over year. 
 

WESCO International, Inc. Price, Consensus and EPS Surprise

WESCO International, Inc. price-consensus-eps-surprise-chart | WESCO International, Inc. Quote

CSS (38.9% of Net Sales): Sales in the segment were $2.41 billion, up 20.8% year over year. Organic sales increased 18.3% on a year-over-year basis. 

UBS (23% of Net Sales): Sales in the segment were $1.43 billion, up 3.3% year over year. Organic sales increased 3.4% year over year.

WCC’s Operating Details

The third-quarter 2025 gross margin was 21.3%, down 80 basis points (bps) year over year.

The adjusted EBITDA margin of 6% declined 100 bps year over year.

Selling, general and administrative expenses were $914.1 million, up 10.8% year over year. As a percentage of net sales, the figure decreased 30 bps year over year to 14.7%.

The adjusted operating margin was 5.7%, which contracted 50 bps year over year.

WCC’s Balance Sheet Remains Strong

As of Sept. 30, 2025, cash and cash equivalents were $571.9 million, down from $667 million as of June 30, 2025.

The long-term debt was $5.72 billion at the third-quarter end compared with $5.64 billion in the prior quarter.

Net cash used in operating activities for the third quarter of 2025 totaled $82.7 million.

WESCO Raises 2025 Outlook

For 2025, WESCO expects organic sales growth between 8% and 9%. Sales on a reported basis are expected to be $21.8-$22.7 billion.

WESCO expects the adjusted EBITDA margin to be 6.6%. The adjusted earnings is expected between $13.10 and $13.60 per share.

The free cash flow is expected between $400 and $500 million. 

For the fourth quarter of 2025, reported sales are expected to increase in the high single-digit range. Adjusted EBITDA is expected to increase roughly 30 bps.

Zacks Rank & Other Stocks to Consider

WESCO carries a Zacks Rank #2 (Buy) at present.

Fair Isaac FICO, StoneCo STNE, and Simulations Plus SLP are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Fair Isaac shares have dropped 16.6% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo shares have returned 138.5% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.  
 
Simulations Plus shares have dropped 38.4% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1. 

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This article originally published on Zacks Investment Research (zacks.com).

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