WESCO INTERNATIONAL INC (WCC)

CIK: 0000929008. SIC: 5063 Wholesale-Electrical Apparatus & Equipment, Wiring Supplies . Latest 10-K as of: 2026-02-13.

SIC breadcrumb: Wholesale Trade > SIC Major Group 50 > SIC 5063 Wholesale-Electrical Apparatus & Equipment, Wiring Supplies

SEC company page: https://www.sec.gov/edgar/browse/?CIK=929008. Latest filing source: 0000929008-26-000008.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000929008.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000929008.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0000929008-26-000014.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-30. Report date: 2026-03-31.

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included in Item 1 of this Quarterly Report on Form 10-Q and WESCO International, Inc.’s audited Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in Item 1A of WESCO International, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as WESCO International, Inc.’s other reports filed with the Securities and Exchange Commission. In this Item 2, “Wesco” refers to WESCO International, Inc., and its subsidiaries and its predecessors unless the context otherwise requires. References to “we,” “us,” “our” and the “Company” refer to Wesco and its subsidiaries.

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), our discussion and analysis of financial condition and results of operations includes certain non-GAAP financial measures, which are defined further below. These financial measures include Organic sales growth, Earnings before interest, taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted EBITDA margin, Financial leverage, Adjusted selling, general and administrative expenses, Adjusted income from operations, Adjusted other non-operating (income) expense, Adjusted provision for income taxes, Adjusted income before income taxes, Adjusted net income, Adjusted net income attributable to WESCO International, Inc., Adjusted net income attributable to common stockholders, and Adjusted earnings per diluted share. We believe that these non-GAAP measures are helpful to users of our financial statements as they provide a better understanding of our financial condition and results of operations on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude items impacting comparability of results, allowing users to more easily compare our financial performance from period to period. Management uses certain non-GAAP financial measures in its evaluation of the performance of the Company’s operating segments and in the determination of incentive compensation. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.

Company Overview

Wesco, headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services and supply chain solutions.

We employ approximately 21,000 people, maintain relationships with more than 35,000 suppliers, and serve nearly 130,000 customers worldwide. With millions of products, end-to-end supply chain services and significant digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, technology companies, telecommunications providers, and utilities. Our innovative solutions include supply chain management, logistics and transportation, procurement, warehousing and inventory management, as well as kitting and labeling, limited assembly of products and installation enhancement. We operate more than 700 sites, including distribution centers, fulfillment centers and sales offices in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

We have operating segments comprising three strategic business units: Electrical & Electronic Solutions (“EES”), Communications & Security Solutions (“CSS”) and Utility & Broadband Solutions (“UBS”). These operating segments are equivalent to our reportable segments. The following is a description of each of our reportable segments and their business activities.

Electrical & Electronic Solutions

The EES segment, serving customers in over 50 countries, is a North American leader, and supplies a broad range of products and solutions primarily to construction, industrial and original equipment manufacturer (“OEM”) customers. The EES product portfolio includes a broad range of electrical equipment and supplies, automation and connected devices (the “Internet of Things” or “IoT”), security, lighting, wire and cable, safety, and maintenance, repair and operating (“MRO”) products from industry-leading manufacturing partners. The EES service portfolio includes solutions to improve project execution, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions to improve safety and productivity.

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WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

Communications & Security Solutions

The CSS segment, serving customers in over 50 countries, is a global leader in data center, network infrastructure and security solutions. CSS sells directly to end-users or through an extensive network of channel partners, including data communications contractors, security and network integrators, professional audio/visual integrators, and systems integrators. CSS also provides a wide range of professional A/V, safety, facilities, and energy management solutions. The full CSS product portfolio is frequently coupled with services designed to enhance efficiency and productivity across all customer segments globally. These services include data center services, advisory, installation enhancement, project deployment, supply chain solutions, and management platforms.

Utility & Broadband Solutions

The UBS segment is a leader in North America, serving customers primarily in the U.S. and Canada, and provides products and services to investor-owned utilities, electric power cooperatives and municipalities, as well as global service providers, wireless providers, broadband operators and the contractors that service these customers. The products sold include wire and cable, transformers, transmission and distribution hardware, switches, protective devices, connectors, lighting, conduit, fiber and copper cable, connectivity products, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices. UBS also offers a complete set of service solutions to improve customer supply chain efficiencies.

Business Highlights

Our financial results reflect continued sales momentum in the first quarter of 2026, highlighted by a 13.8% year over year increase in reported Net sales driven by volume growth across all three segments. For the first quarter of 2026 compared to the first quarter of 2025, organic sales increased by 12.3%, which adjusts for fluctuations in foreign exchange rates. Our CSS segment data center solutions business is primarily driving this growth in sales. Our EES segment experienced continued growth and improved gross margin across its construction and OEM businesses, fueled in part by strong wire and cable demand, as well as continued demand for data center projects and increased infrastructure activity. Our UBS segment also delivered sales growth, driven by year-over-year increases in its utility business from investor-owned utility sales and continued momentum in grid services, along with growth in the United States broadband business. Our UBS segment experienced lower gross margin primarily driven by public power utility customers. We also saw record year-over-year backlog growth driven by our CSS and EES segments.

During the first quarter of 2026, we issued 5.250% Senior Notes due 2031 (the “2031 Notes”) and 5.500% Senior Notes due 2034 (the “2034 Notes” and, together with the 2031 Notes, the “2031 and 2034 Notes”) in part to support the planned redemption of our 7.250% senior notes due 2028 (the “2028 Notes”) in June 2026. Following the redemption of the 2028 Notes, we will have no significant debt maturities until 2029. We expect this redemption to create substantial net income, earnings per share, and cash flow benefit.

We are monitoring and evaluating the potential effects of the February 20, 2026 U.S. Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”); however, due to uncertainty regarding the availability and timing of any potential refunds, we have not recorded any related amounts as of March 31, 2026.

We continued to execute on our multi-year, phased development and implementation of a new Digital and Data Platform (“DDP”). The DDP is intended to be a unified, technology-enabled operating model that spans all business functions, maintains and enhances the flow of financial information, and improves resource efficiency.

Taking the above highlights into consideration, we believe we are well positioned to benefit from enduring secular growth trends of AI-driven data centers, increased power generation, electrification, automation and reshoring.

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WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

Results of Operations

First Quarter of 2026 versus First Quarter of 2025

Net Sales

The following table sets forth Net sales and organic sales growth for the periods presented:

Three Months Ended

Growth/(Decline)

March 31, 2026

March 31, 2025

Reported Sales

Acquisition

Foreign Exchange

Workday

Organic Sales

(In millions)

Net sales

$

6,080.1 

$

5,343.7 

13.8 

%

— 

%

1.5 

%

— 

%

12.3 

%

Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated Net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in the United States; there was no change in the number of workdays in the first quarter of 2026 compared to the first quarter of 2025.

Net sales were $6.1 billion for the first quarter of 2026 compared to $5.3 billion for the first quarter of 2025, an increase of 13.8%. Organic sales for the first quarter of 2026 grew by 12.3%. This growth reflects an approximate 9% increase in volume driven by all three segments (CSS, EES and UBS), and an approximate 3% benefit from price.

Cost of Goods Sold

Cost of goods sold for the first quarter of 2026 was $4.8 billion compared to $4.2 billion for the first quarter of 2025, an increase of 13.5%. Cost of goods sold as a percentage of Net sales was 78.8% and 78.9% for the first quarter of 2026 and 2025, respectively. The favorable impact reflects improved gross margin in the EES segment partially offset by a decline in the UBS segment and to a lesser extent, the CSS segment.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses for the first quarter of 2026 totaled $947.6 million versus $836.3 million for the first quarter of 2025, an increase of $111.3 million, or 13.3%.

The following table reconciles SG&A expenses to Adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented:

Three Months Ended

March 31, 2026

% of Net sales

March 31, 2025

% of Net sales

Adjusted SG&A Expenses:

(In millions)

SG&A expenses

$

947.6

15.6%

$

836.3

15.7%

Digital transformation costs(1)

(17.5)

(6.2)

Restructuring costs(2)

—

(1.1)

Adjusted SG&A expenses

$

930.1

15.3%

$

829.0

15.5%

(1)    Digital transformation costs include costs associated with certain digital transfo

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-13. Report date: 2025-12-31.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the audited consolidated financial statements and notes thereto included in Item 8 of this Annual Report on Form 10-K. The matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. Certain of these risks are set forth in Item 1A of this Annual Report on Form 10-K. In this Item 7, “Wesco” refers to WESCO International, Inc., and its subsidiaries and its predecessors unless the context otherwise requires. References to “we,” “us,” “our” and the “Company” refer to Wesco and its subsidiaries.

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), our discussion and analysis of financial condition and results of operations includes certain non-GAAP financial measures, which are defined further below. These financial measures include organic sales growth, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA margin, financial leverage, adjusted selling, general and administrative expenses, adjusted income from operations, adjusted other non-operating expense (income), adjusted provision for income taxes, adjusted income before income taxes, adjusted net income, adjusted net income attributable to WESCO International, Inc., adjusted net income attributable to common stockholders, and adjusted earnings per diluted share. We believe that these non-GAAP measures are helpful to users of our financial statements as they provide a better understanding of our financial condition and results of operations on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude items impacting comparability of results, allowing users to more easily compare our financial performance from period to period. Management uses certain non-GAAP financial measures in its evaluation of the performance of the Company’s operating segments and in the determination of incentive compensation. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.

Company Overview

Wesco, headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services and supply chain solutions.

We employ approximately 21,000 people, maintain relationships with more than 35,000 suppliers, and serve nearly 130,000 customers worldwide. With millions of products, end-to-end supply chain services, and significant digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, technology companies, telecommunications providers, and utilities. Our innovative solutions include supply chain management, logistics and transportation, procurement, warehousing and inventory management, as well as kitting and labeling, limited assembly of products and installation enhancement. We operate more than 700 sites, including distribution centers, fulfillment centers and sales offices, in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

We have operating segments comprising three strategic business units: Electrical & Electronic Solutions (“EES”), Communications & Security Solutions (“CSS”) and Utility & Broadband Solutions (“UBS”). These operating segments are equivalent to our reportable segments. See Item 1, “Business” in this Annual Report on Form 10-K for a description of each of our reportable segments and their business activities.

Business Highlights

Our financial results reflect strong sales in 2025, highlighted by a 7.8% year-over-year increase in reported net sales. Organic sales increased by 8.6% year over year, which adjusts for the impact of acquisitions and divestitures, fluctuations in foreign exchange rates and number of workdays. Our CSS data center business is primarily driving this growth in sales, but also contributing to lower gross margins as compared to the prior year due to several large project sales. Our EES segment experienced continued growth across its Original Equipment Manufacturer (“OEM”) and construction businesses, fueled in part by rising demand for data center projects and increased infrastructure activity. Within the UBS segment, our Utility business experienced a year-over-year sales decline driven by reduced public power activity, while our Broadband business delivered year-over-year growth supported by continued network investments. We have also seen year-over-year backlog growth driven primarily by our CSS and UBS segments, with our EES segment contributing as well.

We continued to address supplier price increases in response, in part, to global tariffs, including but not limited to, passing through price increases, leveraging scale to provide locally sourced products, reducing imports from high tariff countries, optimizing supply chain logistics, and re-engineering our global supply chain. Although the long-term impact remains uncertain, tariffs did not have a material effect on our financial results for 2025.

After redeeming our Series A Preferred Stock in June 2025, we have no significant debt maturities until 2028 and have strong liquidity to execute our capital allocation priorities of debt reduction, stock buybacks and acquisitions.

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During 2025, we continued to execute on our multi-year, phased development and implementation of a new Digital and Data Platform (“DDP”). The DDP is intended to be a unified, technology-enabled operating model that spans all business functions, maintains and enhances the flow of financial information, and improves resource efficiency.

Taking the above highlights into consideration, we believe we are well positioned to benefit from enduring secular growth trends of AI-driven data centers, increased power generation, and supply chain re-shoring.

Critical Accounting Estimates

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations, including those related to goodwill and indefinite-lived intangible assets and income taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. If actual market conditions are less favorable than those projected by management, additional adjustments to reserve items may be required. We believe the following accounting estimates are the most critical to the understanding of our consolidated financial statements as they require subjective or complex judgments by management.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets are tested for impairment annually as of October 1, or more frequently if triggering events occur, indicating that their carrying values may not be recoverable. We test for goodwill impairment on a reporting unit level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value as a basis for determining whether it is necessary to perform quantitative impairment tests. When performing a qualitative assessment we consider several factors, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant events such as changes in key personnel, changes in the composition or carrying amount of the net assets of a reporting unit, and changes in share price.

We will perform a quantitative impairment test if we bypass the qualitative assessment, or if based on the qualitative assessment, it is more likely than not that the fair value of each reporting unit or indefinite-lived intangible asset is less than the carrying amount. For the year ended December 31, 2025, we performed annual impairment tests of goodwill and indefinite-lived intangible assets during the fourth quarter of 2025 by assessing the above-mentioned qualitative factors. As a result of these assessments, we determined that it was more likely than not that the fair values of our reporting units and indefinite-lived intangible assets continued to exceed their respective carrying amounts and, therefore, a quantitative impairment test was not necessary.

As it pertains to a quantitative impairment test, the determination of fair value involves significant management judgment, particularly as it relates to the underlying assumptions and factors around future expected revenues, operating margins and discount rate. This involves performing sensitivity analyses around certain of these assumptions in order to assess the reasonableness of the assumptions and resulting estimated fair values. Management applies its best judgment when assessing the reasonableness of financial projections. Fair values are sensitive to changes in underlying assumptions and factors, and as a result there can be no assurance that the estimates and assumptions made for purposes of the annual goodwill and indefinite-lived intangible assets impairment tests will prove to be an accurate prediction of future results.

See Note 2, “Accounting Policies” and Note 6, “Goodwill and Intangible Assets” of our Notes to Consolidated Financial Statements for additional disclosure regarding goodwill and indefinite-lived intangible assets.

Income Taxes

We recognize deferred tax assets consistent with amounts expected to be realized. To make such determination, management evaluates all positive and negative evidence, including but not limited to, prior, current and future taxable income, tax planning strategies and future reversals of existing taxable temporary differences. A valuation allowance is recognized if it is “more-likely-than-not” that some or all of a deferred tax asset will not be realized. We regularly assess the realizability of deferred tax assets.

We account for uncertainty in income taxes using a “more-likely-than-not” recognition threshold. Due to the subjectivity inherent in the evaluation of uncertain tax positions, the tax benefit ultimately recognized may materially differ from the estimate recognized in the consolidated financial statements. We recognize interest and penalties related to uncertain tax benefits as part of interest expense and income tax expense, respectively.

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See Note 2, “Accounting Policies” and Note 11, “Income Taxes” of our Notes to Consolidated Financial Statements for additional disclosure regarding income taxes.

Results of Operations

2025 Compared to 2024

Net Sales

The following table sets forth net sales and organic sales growth for the periods presented:

Year Ended December 31,

Growth/(Decline)

2025

2024

Reported Sales

Acquisition/Divestiture

Foreign Exchange

Workday

Organic Sales

(In millions)

Net sales

$

23,510.9 

$

21,818.8 

7.8 

%

(0.2)

%

(0.2)

%

(0.4)

%

8.6 

%

Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in the United States; 2025 had one less workday compared to 2024.

Net sales were $23.5 billion for 2025 compared to $21.8 billion for 2024, an increase of 7.8%. Organic sales for 2025 grew by 8.6%. This growth reflects an approximate 6% increase in volume driven by the CSS and EES segments, and an approximate 2% benefit from price.

Cost of Goods Sold

Cost of goods sold for 2025 was $18.5 billion compared to $17.1 billion for 2024, an increase of $1.4 billion. Cost of goods sold as a percentage of net sales was 78.9% and 78.4% for 2025 and 2024, respectively. The unfavorable increase of 50 basis points primarily reflects a decrease in gross margin across all three segments, most significantly in the UBS segment primarily due to competitive pressures in the public power market, as well as in the EES and CSS segments driven by large project sales.

Selling, General and Administrative (“SG&A”) Expenses

SG&A expenses for 2025 totaled $3.5 billion versus $3.3 billion for 2024, an increase of 7.1%.

The following table reconciles SG&A expenses to adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented:

Year Ended December 31,

2025

% of net sales

2024

% of net sales

Adjusted SG&A Expenses:

(In millions)

SG&A expenses

$

3,541.4

15.1%

$

3,306.2

15.2%

Digital transformation costs(1)

(35.2)

(24.9)

Restructuring costs(2)

—

(12.1)

Loss on abandonment of assets(3)

—

(17.8)

Excise taxes on excess pension plan assets(4)

—

(4.9)

Adjusted SG&A expenses

$

3,506.2

14.9%

$

3,246.5

14.9%

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(4)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan.

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SG&A payroll and payroll-related expenses for 2025 of $2,193.7 million increased by $144.2 million compared to 2024, primarily as a result of increased salaries of $69.8 million due to wage inflation and increased commissions and incentives of $42.2 million, partially offset by the impact of the divestiture of the WIS business.

SG&A expenses not related to payroll and payroll-related costs for 2025 were $1,347.7 million, an increase of $91.0 million compared to 2024, which primarily reflects increased costs to operate our facilities of $32.8 million, increased transportation costs of $32.1 million, and higher IT costs of $24.8 million.

Depreciation and Amortization

Depreciation and amortization for 2025 was $197.6 million compared to $183.2 million for 2024, an increase of $14.4 million. The increase was primarily driven by depreciation related to IT asset additions placed into service during 2025.

Interest Expense, net

Net interest expense totaled $386.7 million for 2025 compared to $364.9 million for 2024. The increase of $21.8 million, or 6.0%, was primarily driven by the issuance of the 6.375% Senior Notes due 2033 (the “2033 Notes”) and an increase in expense from adjustments for uncertain tax positions, partially offset by lower borrowings and lower interest rates on the Revolving Credit Facility throughout 2025 compared to 2024.

Other Income, net

Other non-operating income totaled $9.6 million for 2025 compared to $92.7 million for 2024. The year ended December 31, 2024 included a $122.2 million gain on the sale of our WIS business. We recognized $4.5 million of income in 2025 from adjustments to the fair value of the contingent consideration liability related to a recent acquisition. Due to fluctuations in the U.S. dollar against certain foreign currencies, we recognized a net foreign currency exchange loss of $0.3 million for 2025 compared to a net loss of $25.5 million for 2024. We recognized net benefits of $3.3 million and net costs of $1.6 million associated with the non-service cost components of net periodic pension cost (benefit) for 2025 and 2024, respectively. The year-over-year decrease in net periodic pension cost was due to the settlement of the Anixter Inc. Pension Plan in the first quarter of 2024.

The following table reconciles other non-operating income to adjusted other non-operating (income) expense, which is a non-GAAP financial measure, for the periods presented:

Year Ended December 31,

2025

2024

Adjusted Other (Income) Expense, net:

(In millions)

Other income, net

$

(9.6)

$

(92.7)

Loss on termination of business arrangement(1)

(0.3)

(3.6)

Pension settlement cost(2)

—

(2.5)

Gain on divestiture

—

122.2

Adjusted other (income) expense, net

$

(9.9)

$

23.4

(1)    Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party.

(2)    Pension settlement cost represents expense related to the final settlement of the Company's U.S. pension plan.

Income Taxes

The provision for income taxes was $213.4 million for 2025 compared to $231.6 million for 2024, resulting in effective tax rates of 24.9% and 24.4%, respectively.

Net Income and Earnings per Share

Net income and earnings per diluted share attributable to common stockholders were $645.8 million and $13.05, respectively, for 2025 compared to $660.2 million and $13.05, respectively, for 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, and the $32.9 million gain recognized as a result of the Company's redemption of its outstanding Series A Preferred Stock, net income and earnings per diluted share attributable to common stockholders were $638.9 million and $12.91, respectively, for the year ended December 31, 2025 and $618.6 million and $12.23, respectively, for the year ended December 31, 2024.

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The increase in adjusted earnings per diluted share primarily reflects the favorable impact of the June 2025 Series A Preferred Stock redemption and the corresponding decrease in preferred dividends. Additionally, there was a positive impact from the reduction in outstanding common shares during the year ended December 31, 2025 as compared to the year ended December 31, 2024.

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP financial measure, was $1,536.5 million for 2025 compared to $1,509.1 million for 2024, an increase of $27.4 million, or 1.8% year-over-year. The increase primarily reflects an increase in net sales, partially offset by an increase in cost of goods sold and an increase in SG&A expenses, as described above. The year ended December 31, 2024 included $17.8 million in SG&A expenses from loss on abandonment of assets and $4.9 million in excise taxes on excess pension plan assets. There was also a decrease in restructuring costs of $12.1 million in 2025, partially offset by a $10.3 million increase in digital transformation costs.

Segment Results

The following is a discussion of the financial results of our operating segments comprising three strategic business units consisting of EES, CSS and UBS for the year ended December 31, 2025. As further described below and in Note 16, “Business Segments” of our Notes to Consolidated Financial Statements, the Chief Operating Decision Maker (the “CODM”) allocates resources and evaluates the performance of the Company’s reportable segments based on adjusted EBITDA, which is the Company’s measure of segment profit or loss. Adjusted EBITDA and adjusted EBITDA margin percentage are non-GAAP financial measures. As discussed in Note 2, “Accounting Policies,” the reportable segment information for the year ended December 31, 2024 for the EES and CSS reportable segments has been recast to conform to the current year presentation.

Electrical & Electronic Solutions

Year Ended December 31,

Growth/(Decline)

2025

2024

Reported Sales

Acquisition

Foreign Exchange

Workday

Organic Sales

(In millions)

Net sales

$

8,955.5

$

8,391.7

6.7 

%

— 

%

(0.4)

%

(0.4)

%

7.5 

%

Adjusted EBITDA

$

717.6

$

699.8

Adjusted EBITDA margin %

8.0 

%

8.3 

%

EES reported net sales of $9.0 billion for 2025 compared to $8.4 billion for 2024, an increase of $563.8 million, or 6.7%. EES organic sales for 2025 grew by 7.5%, driven primarily by volume growth of approximately 4%, primarily as a result of growth in the OEM and construction businesses, and by the impact of changes in price, which favorably impacted organic sales by approximately 4%.

EES adjusted EBITDA increased $17.8 million, or 2.5% year-over-year. The increase primarily reflects an increase in volume and price, as described above. The decrease in adjusted EBITDA margin is attributable to an unfavorable change in product mix. Additionally, SG&A expenses increased $69.7 million as compared to the prior year, which was primarily attributed to increased salaries of $24.4 million, increased commissions and incentives of $15.0 million, increased transportation costs of $11.7 million, and increased operations expenses of $9.2 million.

Communications & Security Solutions

Year Ended December 31,

Growth/(Decline)

2025

2024

Reported Sales

Acquisition

Foreign Exchange

Workday

Organic Sales

(In millions)

Net sales

$

9,101.0

$

7,692.1

18.3 

%

1.9 

%

0.1 

%

(0.4)

%

16.7 

%

Adjusted EBITDA

$

799.4

$

638.8

Adjusted EBITDA margin %

8.8 

%

8.3 

%

CSS reported net sales of $9.1 billion for 2025 compared to $7.7 billion for 2024, an increase of $1.4 billion, or 18.3%, which is inclusive of a favorable impact from the acquisition of Ascent of 1.9%. CSS organic sales for 2025 grew by 16.7%, driven primarily by volume growth of approximately 15% as a result of the data center solutions business, and to a lesser extent, growth in the security solutions business, and by the impact of changes in price, which favorably impacted organic sales by approximately 1%.

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CSS adjusted EBITDA increased $160.6 million, or 25.1% year-over-year. The increase reflects an increase in volume, specifically within the data center solutions business and the security solutions business, as described above. Further, there was an increase in SG&A expenses of $97.2 million. The increase in SG&A expenses is primarily attributed to increased salaries of $28.7 million, increased transportation costs of $25.7 million consistent with higher sales, increased commissions and incentives of $17.8 million, increased operations expenses of $11.9 million, and increased benefits expense of $11.5 million.

Utility & Broadband Solutions

Year Ended December 31,

Growth/(Decline)

2025

2024

Reported Sales

Divestiture

Foreign Exchange

Workday

Organic Sales

(In millions)

Net sales

$

5,454.4

$

5,735.0

(4.9)

%

(3.3)

%

(0.2)

%

(0.4)

%

(1.0)

%

Adjusted EBITDA

$

562.8

$

643.4

Adjusted EBITDA margin %

10.3 

%

11.2 

%

UBS reported net sales of $5.5 billion for 2025 compared to $5.7 billion for 2024, a decrease of $280.6 million or 4.9%, which is inclusive of an unfavorable impact from the divestiture of the WIS business of 3.3%. UBS organic sales for 2025 declined by 1.0%, reflecting volume declines in the Utility business primarily as a result of reduced public power activity. The decline was partially offset by growth in the Broadband business from continued network investments. Changes in price did not have a material impact on the year-over-year decline in UBS organic sales.

UBS adjusted EBITDA decreased $80.6 million, or 12.5% year-over-year. The decrease primarily reflects a decline in volume, as described above. The decrease in adjusted EBITDA was partially offset by a decrease in SG&A expenses of $8.3 million as compared to the prior year, which was primarily attributed to lower commissions and incentives of $9.3 million.

The following tables reconcile net income attributable to common stockholders to adjusted EBITDA and adjusted EBITDA margin % by segment, which are non-GAAP financial measures, for the periods presented:

Year Ended December 31, 2025

(In millions)

EES

CSS

UBS

Corporate

Total

Net income attributable to common stockholders

$

646.5

$

649.1

$

531.0

$

(1,180.8)

$

645.8

Net income (loss) income attributable to noncontrolling interests

0.5

2.9

—

(1.1)

2.3

Gain on redemption of Series A Preferred Stock

—

—

—

(32.9)

(32.9)

Preferred stock dividends

—

—

—

27.3

27.3

Provision for income taxes(1)

—

—

—

213.4

213.4

Interest expense, net(1)

—

—

—

386.7

386.7

Depreciation and amortization

50.5

77.7

32.6

36.8

197.6

Other expense (income), net

16.0

64.4

(2.6)

(87.4)

(9.6)

Stock-based compensation expense

4.1

5.3

1.8

29.3

40.5

Digital transformation costs(2)

—

—

—

35.2

35.2

Cloud computing arrangement amortization(3)

—

—

—

30.2

30.2

Adjusted EBITDA

$

717.6

$

799.4

$

562.8

$

(543.3)

$

1,536.5

Adjusted EBITDA margin %

8.0 

%

8.8 

%

10.3 

%

(1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.

(2) Digital transformation costs include costs associated with certain digital transformation initiatives.

(3) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.                                        

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Table of Contents

Year Ended December 31, 2024

(In millions)

EES(1)

CSS(1)

UBS

Corporate

Total

Net income attributable to common stockholders

$

641.0

$

496.8

$

733.0

$

(1,210.6)

$

660.2

Net (loss) income attributable to noncontrolling interests

(1.1)

2.3

—

0.6

1.8

Preferred stock dividends

—

—

—

57.4

57.4

Provision for income taxes(2)

—

—

—

231.6

231.6

Interest expense, net(2)

—

—

—

364.9

364.9

Depreciation and amortization

46.4

71.9

28.5

36.4

183.2

Other expense (income), net(3)

9.1

61.2

(121.2)

(41.8)

(92.7)

Stock-based compensation expense

4.4

6.6

3.1

14.8

28.9

Digital transformation costs(4)

—

—

—

24.9

24.9

Loss on abandonment of assets(5)

—

—

—

17.8

17.8

Cloud computing arrangement amortization(6)

—

—

—

14.1

14.1

Restructuring costs(7)

—

—

—

12.1

12.1

Excise taxes on excess pension plan assets(8)

—

—

—

4.9

4.9

Adjusted EBITDA

$

699.8

$

638.8

$

643.4

$

(472.9)

$

1,509.1

Adjusted EBITDA margin %

8.3 

%

8.3 

%

11.2 

%

(1) As described in Note 2, “Accounting Policies,” the reportable segment information for the year ended December 31, 2024 for the EES and CSS reportable segments has been recast to conform to the current year presentation.

(2) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions.

(3) Other income for the UBS segment includes the gain on the divestiture of the WIS business as disclosed in Note 5, “Acquisitions and Divestitures”.

(4) Digital transformation costs include costs associated with certain digital transformation initiatives.

(5) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations.

(6) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.                                        

(7) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(8) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan.

Note: Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company’s performance and its ability to meet debt service requirements. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales.

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The following tables reconcile SG&A expenses, income from operations, other non-operating (income) expense, provision for income taxes, net income attributable to common stockholders, and earnings per diluted share to adjusted SG&A expenses, adjusted income from operations, adjusted other non-operating (income) expense, adjusted provision for income taxes, adjusted net income attributable to common stockholders, and adjusted earnings per diluted share, which are non-GAAP financial measures, for the periods presented:

Year Ended December 31,

2025

2024

Adjusted SG&A Expenses:

(In millions)

SG&A expenses

$

3,541.4 

$

3,306.2 

Digital transformation costs(1)

(35.2)

(24.9)

Restructuring costs(2)

— 

(12.1)

Loss on abandonment of assets(3)

— 

(17.8)

Excise taxes on excess pension plan assets(4)

— 

(4.9)

Adjusted SG&A expenses

$

3,506.2 

$

3,246.5 

Adjusted Income from Operations:

Income from operations

$

1,233.0 

$

1,223.2 

Digital transformation costs(1)

35.2 

24.9 

Restructuring costs(2)

— 

12.1 

Loss on abandonment of assets(3)

— 

17.8 

Excise taxes on excess pension plan assets(4)

— 

4.9 

Adjusted income from operations

$

1,268.2 

$

1,282.9 

Adjusted Other (Income) Expense, net:

Other (income) expense, net

$

(9.6)

$

(92.7)

Loss on termination of business arrangement(5)

(0.3)

(3.6)

Pension settlement cost(6)

— 

(2.5)

Gain on divestiture

— 

122.2 

Adjusted other (income) expense, net

$

(9.9)

$

23.4 

Adjusted Provision for Income Taxes:

Provision for income taxes

$

213.4 

$

231.6 

Income tax effect of adjustments to income from operations and other (income) expense, net(7)

9.5 

(14.8)

Adjusted provision for income taxes

$

222.9 

$

216.8 

Adjusted Net Income Attributable to Common Stockholders:

Net income attributable to common stockholders

$

645.8 

$

660.2 

Digital transformation costs(1)

35.2 

24.9 

Restructuring costs(2)

— 

12.1 

Loss on abandonment of assets(3)

— 

17.8 

Excise taxes on excess pension plan assets(4)

— 

4.9 

Gain on divestiture

— 

(122.2)

Loss on termination of business arrangement(5)

0.3 

3.6 

Pension settlement cost(6)

— 

2.5 

Income tax effect of adjustments to income from operations and other (income) expense, net(7)

(9.5)

14.8 

Gain on redemption of Series A Preferred Stock

(32.9)

— 

Adjusted net income attributable to common stockholders

$

638.9 

$

618.6 

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(4)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company’s U.S. pension plan.

(5)    Loss on termination of business arrangement represents the loss recognized as a result of management’s decision to terminate a business arrangement with a third party.

(6)    Pension settlement cost represents expense related to the settlement of the Company’s U.S. pension plan.

(7)    The adjustments to income from operations and other (income) expense, net for the years ended December 31, 2025 and 2024 have been tax effected at rates of 26.6% and 26.2%, respectively.

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Year Ended December 31,

Adjusted Earnings Per Diluted Share:

2025

2024

(In millions, except per share data)

Adjusted income from operations

$

1,268.2 

$

1,282.9 

Interest expense, net

386.7 

364.9 

Adjusted other (income) expense, net

(9.9)

23.4 

Adjusted income before income taxes

891.4 

894.6 

Adjusted provision for income taxes

222.9 

216.8 

Adjusted net income

668.5 

677.8 

Net income attributable to noncontrolling interests

2.3 

1.8 

Adjusted net income attributable to WESCO International, Inc.

666.2 

676.0 

Preferred stock dividends

27.3 

57.4 

Adjusted net income attributable to common stockholders

$

638.9 

$

618.6 

Diluted shares

49.5 

50.6 

Adjusted earnings per diluted share

$

12.91 

$

12.23 

Note: For the year ended December 31, 2025, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders, and earnings per diluted share have been adjusted to exclude digital transformation costs, restructuring costs, the loss on termination of business arrangement, and the related income tax effects, and the gain on redemption of the Company's Series A Preferred Stock. For the year ended December 31, 2024, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders, and earnings per diluted share have been adjusted to exclude digital transformation costs, the loss on abandonment of assets, restructuring costs, excise taxes on excess pension plan assets, the gain recognized on the divestiture of the WIS business, the loss on termination of business arrangement, pension settlement cost, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.

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Table of Contents

Liquidity and Capital Resources

Our liquidity needs generally arise from fluctuations in our working capital requirements, information technology investments, capital expenditures, acquisitions, the payment of dividends, and debt service obligations. We finance our operating and investing needs primarily with borrowings under our Revolving Credit Facility and Receivables Facility, as well as uncommitted lines of credit entered into by certain of our foreign subsidiaries to support local operations, some of which are overdraft facilities. The Revolving Credit Facility has a borrowing limit of $1,725 million and the purchase limit under the Receivables Facility is $1,550 million. Our international lines of credit generally are renewable on an annual basis and certain facilities are fully and unconditionally guaranteed by Wesco Distribution. Accordingly, certain borrowings under these lines directly reduce availability under our Revolving Credit Facility. The maximum borrowing limits of our international lines of credit vary by facility and range between $1.0 million and $12.0 million. As of December 31, 2025, we had $5.6 million outstanding under our international lines of credit.

As of December 31, 2025, we had $581.5 million outstanding and $1,107.9 million in available borrowing capacity on the Revolving Credit Facility after giving effect to outstanding letters of credit and certain borrowings under our international lines of credit. Additionally, as of December 31, 2025, we had $1,300.0 million outstanding and $250.0 million of available borrowing capacity under our Receivables Facility, which combined with available cash of $282.1 million, provided liquidity of approximately $1.6 billion. Cash included in our determination of liquidity represents cash in certain deposit and interest-bearing investment accounts held in the United States and Canada. We monitor the depository institutions that hold our cash and cash equivalents on a regular basis, and we believe that we have placed our deposits with creditworthy financial institutions.

For information regarding amendments to the Receivables Facility and Revolving Credit Facility as well as disclosure of our debt instruments, including our outstanding indebtedness as of December 31, 2025, see Note 9, “Debt” of our Notes to Consolidated Financial Statements.

As described in Note 9, “Debt” of our Notes to Consolidated Financial Statements, on March 6, 2025, Wesco Distribution issued $800 million aggregate principal amount of 2033 Notes. We used the net proceeds from the issuance of the 2033 Notes to redeem all of the Company’s outstanding Series A Preferred Stock and all of the related depositary shares representing fractional interests in the Series A Preferred Stock in June 2025, and to repay a portion of the amounts outstanding under the Revolving Credit Facility.

We regularly review our mix of fixed versus variable rate debt, and we may, from time to time, issue or retire borrowings and/or refinance existing debt in an effort to mitigate the impact of interest rate and foreign exchange rate fluctuations, and to maintain a cost-effective capital structure consistent with our anticipated capital requirements. Interest rates remained stable in the first half of 2025 before the Federal Reserve reacted to economic conditions and reduced its benchmark interest rate at the end of the third quarter and twice more in the fourth quarter by 25 basis points, respectively, for a total reduction of 75 basis points in the second half of 2025. Future interest rate changes would raise or lower the rates we pay on our variable rate debt and would contribute to fluctuations in interest expense versus prior periods.

At December 31, 2025, approximately 66% of our debt portfolio consisted of fixed rate debt. We believe our capital structure has an appropriate mix of fixed versus variable rate debt and secured versus unsecured instruments.

Over the next several quarters, we expect that our excess liquidity will be directed primarily at debt reduction, the payment of dividends, share repurchases, digital transformation initiatives, and potential acquisitions and related integration activities. We expect to maintain sufficient liquidity through our credit facilities and cash balances. We continue to monitor the sufficiency of our liquidity given the potential impact of current economic conditions and uncertainty, including tariffs, interest rates, and inflation. While we did not face significant challenges with our sources or uses of cash in 2025, future market disruptions could occur which could potentially affect our liquidity. We believe cash provided by operations and financing activities will be adequate to cover our operational and business needs for at least the next twelve months.

We communicate on a regular basis with our lenders regarding our financial and working capital performance, and liquidity position. We were in compliance with all financial covenants and restrictions contained in our debt agreements as of December 31, 2025.

We also measure our ability to meet our debt obligations based on our financial leverage ratio, which was 3.4x as of December 31, 2025 and 2.9x as of December 31, 2024.

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The following table sets forth our financial leverage ratio, which is a non-GAAP financial measure, for the periods presented:

Twelve months ended

December 31, 2025

December 31, 2024

(In millions of dollars, except ratios)

Net income attributable to common stockholders

$

645.8 

$

660.2 

Net income attributable to noncontrolling interests

2.3 

1.8 

Gain on redemption of Series A Preferred Stock

(32.9)

— 

Preferred stock dividends

27.3 

57.4 

Provision for income taxes

213.4 

231.6 

Interest expense, net

386.7 

364.9 

Depreciation and amortization

197.6 

183.2 

EBITDA

$

1,440.2 

$

1,499.1 

Other income, net

(9.6)

(92.7)

Stock-based compensation expense

40.5 

28.9 

Digital transformation costs(1)

35.2 

24.9 

Cloud computing arrangement amortization(2)

30.2 

14.1 

Restructuring costs(3)

— 

12.1 

Loss on abandonment of assets(4)

— 

17.8 

Excise taxes on excess pension plan assets(5)

— 

4.9 

Adjusted EBITDA

$

1,536.5 

$

1,509.1 

As of

December 31, 2025

December 31, 2024

Short-term debt and current portion of long-term debt, net

$

25.0 

$

19.5 

Long-term debt, net

5,756.4 

5,045.5 

Debt discount and debt issuance costs(6)

48.0 

47.2 

Fair value adjustments to the Anixter Senior Notes(6)

— 

(0.1)

Total debt

5,829.4 

5,112.1 

Less: Cash and cash equivalents

604.8 

702.6 

Total debt, net of cash

$

5,224.6 

$

4,409.5 

Financial leverage ratio

3.4

2.9

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.

(3)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(4)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(5)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company’s U.S. pension plan.

(6)    Debt is presented in the Consolidated Balance Sheets net of debt issuance costs and debt discount, and includes adjustments to record the long-term debt assumed in the merger with Anixter at its acquisition date fair value.

Note: Financial leverage ratio is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt issuance costs, debt discount and fair value adjustments, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization.

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Table of Contents

An analysis of cash flows for 2025 and 2024 follows:

Operating Activities

Net cash provided by operating activities for 2025 totaled $125.0 million, compared to $1,101.2 million in 2024. The $976.2 million decrease is primarily driven by a $507.3 million impact from changes in trade accounts receivable and a $428.1 million impact from changes in inventories. The impact from trade accounts receivable was primarily due to sales growth in the CSS and EES segments, as well as the timing of receipts from customers as compared to the prior year. The impact from inventories was primarily due to an increase in volume related to growth in large projects as compared to the prior year. These decreases were partially offset by an increase in net income as adjusted for certain non-cash items.

Investing Activities

Net cash used in investing activities in 2025 was $140.7 million compared to $40.4 million provided by investing activities in 2024. Included in 2025 were capital expenditures of $99.8 million compared to $94.7 million in 2024. Capital expenditures in 2025 and 2024 primarily comprised equipment and leasehold improvements to support our global network of locations, and internal-use computer software and information technology hardware to support our digital transformation initiatives.

Net cash used in investing activities in 2025 also included $36.3 million paid to acquire Industrial Software Solutions, net of cash acquired. Included in net cash provided by investing activities in 2024 were $354.9 million in proceeds from the divestiture of the WIS business, net of cash transferred, partially offset by $221.3 million paid to acquire Ascent, entroCIM and Independent Electric Supply, net of cash acquired.

Financing Activities

Net cash used in financing activities in 2025 was $92.7 million, compared to $928.3 million in 2024. During 2025, financing activities primarily comprised proceeds of $800 million related to the issuance of the 2033 Notes, net borrowings of $54.8 million related to our Revolving Credit Facility, net repayments of $150.0 million related to our Receivables Facility, and payment of total debt issuance costs of $14.0 million related to the issuance of the 2033 Notes and amendments to the Revolving Credit Facility and Receivables Facility. Financing activities for 2025 also included $540.3 million paid to redeem our Series A Preferred Stock, $75.0 million of common stock repurchases, $88.4 million and $27.3 million of dividends paid to holders of our common stock and Series A Preferred Stock, respectively, and $37.2 million of payments for taxes related to the exercise and vesting of stock-based awards.

During 2024, financing activities primarily comprised proceeds of $900.0 million and $850.0 million related to the issuance of the 6.375% senior notes due 2029 and 6.625% senior notes due 2032 (the “2029 and 2032 Notes”), respectively, the redemption of our $1,500.0 million aggregate principal amount of 7.125% Senior Notes due 2025, net repayments of $428.0 million related to our Revolving Credit Facility, net repayments of $100.0 million related to our Receivables Facility, and payment of total debt issuance costs of $26.6 million related to the issuance of the 2029 and 2032 Notes and amendments to the Revolving Credit Facility and Receivables Facility. Financing activities for 2024 also included $425.0 million of common stock repurchases, $81.5 million and $57.4 million of dividends paid to holders of our common stock and Series A Preferred Stock, respectively, and $30.9 million of payments for taxes related to the exercise and vesting of stock-based awards.

The following table summarizes our material cash requirements from known contractual and other obligations at December 31, 2025, including interest, and the expected effect on our liquidity and cash flow in future periods:

2026

2027 to 2028

2029 to 2030

2031 - After

Total

(In millions)

  Debt, excluding debt discount and debt issuance costs(1)

$

25.0 

$

2,655.1 

$

1,497.2 

$

1,652.1 

$

5,829.4 

  Interest on indebtedness(1)(2)

356.4 

608.7 

278.3 

218.4 

1,461.8 

  Non-cancelable operating leases

243.4 

393.9 

248.2 

215.6 

1,101.1 

Transition tax installments

13.7 

— 

— 

— 

13.7 

Total

$

638.5 

$

3,657.7 

$

2,023.7 

$

2,086.1 

$

8,406.0 

(1)    Debt payments include both principal and interest payments on debt and finance lease obligations.

(2)    Interest on variable rate debt was calculated using the rates and balances outstanding at December 31, 2025.

In addition to the cash requirements disclosed in the table above, we expect future uses of cash to include working capital requirements, capital expenditures, investments in our digital capabilities, dividend payments to holders of our common stock, and other organic opportunities. Future uses of cash could also include acquisitions of businesses and the repurchase of common stock. We expect to spend approximately $100 million in 2026 on capital expenditures for information technology investments and to support our global network of distribution centers, fulfillment centers and sales offices.

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We expect to fund future uses of cash with a combination of existing cash balances, cash generated from operating activities, borrowings under our revolving credit and accounts receivable securitization facilities, or new issuances of debt.

Purchase orders for inventory requirements and service contracts are not included in the table above. Generally, our purchase orders and contracts contain clauses allowing for cancellation. We do not have agreements to purchase material or goods that would specify significant minimum order quantities.

Liabilities related to unrecognized tax benefits, including interest and penalties, of $164.7 million were excluded from the table above as we cannot reasonably estimate the timing of these potential cash settlements with taxing authorities. See Note 11, “Income Taxes” of our Notes to Consolidated Financial Statements for further information related to unrecognized tax benefits.

The undistributed earnings of our foreign subsidiaries amounted to approximately $2,109.2 million at December 31, 2025. Most of these earnings have been taxed in the U.S. under either the one-time tax on the deemed repatriation of undistributed foreign earnings (the “transition tax”), or the global intangible low-taxed income (“GILTI”) tax regime imposed by the Tax Cuts and Jobs Act of 2017 (the “TCJA”). We have elected to pay the transition tax in installments over an eight year period ending in 2026. As of December 31, 2025, our remaining liability for the transition tax was $13.7 million. We continue to assert that the remaining undistributed earnings of our foreign subsidiaries are indefinitely reinvested. The distribution of earnings by our foreign subsidiaries in the form of dividends, or otherwise, may be subject to additional taxation. We estimate that additional taxes of approximately $116.6 million would be payable upon the remittance of all previously undistributed foreign earnings as of December 31, 2025, based upon the laws in effect on that date. We believe that we are able to maintain sufficient liquidity for our domestic operations and commitments without repatriating cash from our foreign subsidiaries.

Seasonality

Our operating results are not significantly affected by seasonal factors. Sales during the first and fourth quarters have historically been affected by a reduced level of activity primarily due to the impact of weather on projects. Sales typically increase beginning in March, with slight fluctuations per month through October. During periods of economic expansion or contraction, our sales by quarter have varied significantly from this pattern.

Recent Accounting Standards

See Note 2, “Accounting Policies” of our Notes to Consolidated Financial Statements for a description of recently adopted and recently issued accounting standards.