WESCO Q4 Earnings Miss Estimates, Sales Increase Y/Y, Shares Fall

WESCO International WCC shares slid 5.27% following disappointing fourth-quarter 2025 earnings results. Adjusted earnings of $3.40 per share increased 7.6% year over year. The bottom line missed the Zacks Consensus Estimate by 11%.

Net sales of $6.1 billion increased 10% year over year. The figure beat the Zacks Consensus Estimate by 0.53%. Organic sales increased 9% year over year.

WCC’s Top-Line Details

The EES Segment (37.5% of Net Sales): Sales in the segment were $2.27 billion, up 9.1% year over year. Organic sales increased 8.8% year over year. 

CSS (40% of Net Sales): Sales in the segment were $2.42 billion, up 16.2% year over year. Organic sales increased 13.5% on a year-over-year basis. 
 

WESCO International, Inc. Price, Consensus and EPS Surprise

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

UBS (22.6% of Net Sales): Sales in the segment were $1.37 billion, up 3.1% year over year. Organic sales increased 3.1% year over year.

WCC’s Operating Details

The fourth-quarter 2025 gross margin was 21.2%, in line with the prior year.

The adjusted EBITDA margin of 6.7% is in line with the prior year.

Selling, general and administrative expenses were $899 million, up 11.4% year over year. As a percentage of net sales, the figure increased 10 bps year over year to 14.8%.

The adjusted operating margin was 5.5%, which contracted 20 bps year over year.

WCC’s Balance Sheet Remains Strong

As of Dec. 31, 2025, cash and cash equivalents were $604.8 million, up from $571.9 million as of Sept. 30, 2025.

The long-term debt was $5.76 billion at the fourth-quarter end compared with $5.72 billion in the prior quarter.

Net cash used in operating activities for the fourth quarter of 2025 totaled $71.9 million.

WESCO Initiates 2026 Outlook

For 2026, WESCO expects organic sales growth between 4% and 7%. Sales on a reported basis are expected to be $24.7-$25.4 billion.

WESCO expects the adjusted EBITDA margin to be approximately 6.8% at the midpoint. The adjusted earnings are expected to be between $14.50 and $16.50 per share.

The free cash flow is expected to be between $500 million and $800 million. 

For the first quarter of 2026, reported sales are expected to increase in the high single-digit range. Adjusted EBITDA is expected to increase year over year.

Zacks Rank & Other Stocks to Consider

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

Micron Technology MU, MongoDB MDB, and MKS MKSI are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Micron Technology shares have gained 307.1% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.

MongoDB shares have returned 29% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2, 2026. The company currently sports a Zacks Rank #1.  
 
MKS shares have gained 126.7% in the past 12-month period. MKSI is set to report its fourth-quarter 2025 results on Feb. 17, 2026. The company currently sports a Zacks Rank #1. 

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

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