Wesco International Reports Strong Q2 2025 Results with Record Backlog and Margin Expansion
Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics, and supply chain solutions , announced its second quarter 2025 financial results , highlighting solid performance across key metrics, record backlog, and continued margin expansion.
Revenue and Earnings Highlights
Wesco posted net sales of $5.8996 billion in Q2 2025 , a 7.7% increase year-over-year. Organic sales for the quarter were up 7.2% year-over-year , reflecting volume and price growth in the CSS and EES segments.
The company’s reported net income attributable to common stockholders was $189.2 million, or $3.83 per diluted share. This compares to $217.7 million, or $4.28 per diluted share, in Q2 2024. Adjusted earnings per diluted share came in at $3.39, which is up 6% year-over-year.
Operating Margins and Backlog Growth
Wesco demonstrated operating efficiency with an adjusted EBITDA margin of 6.8%, which was an increase of 90 basis points sequentially. The gross margin for the quarter was 21.1%, a decrease of 80 basis points year-over-year. Operating cash flow for the quarter was a robust $107.8 million. Free cash flow was $86.5 million.
Backlog is at record levels and is up year-over-year and sequentially across all three business units. The backlog at the end of the second quarter of 2025 increased by 11% compared to the end of the second quarter of 2024. Sequentially, backlog increased by approximately 5%.
Segment Performance
- EES (Electrical & Electronic Solutions): The EES segment had organic growth of 6%. Reported sales were $2.2578 billion, an increase of 5.8% year-over-year.
- CSS (Communications & Security Solutions): The CSS segment experienced 17% organic growth. Data center sales eclipsed $1 billion, up approximately 65% year-over-year. Reported sales were $2.2652 billion, a 19.0% increase year-over-year.
- UBS (Utility & Broadband Solutions): The UBS business has begun to show signs of improvement as sales to investor-owned utilities returned to growth in the second quarter. The segment’s organic sales declined by 4.4%. Reported sales were $1.3766 billion, a 4.5% decrease year-over-year.
Full-Year 2025 Outlook
Wesco is raising its full-year organic sales growth outlook based on positive momentum through the first seven months of 2025. The company is maintaining its EPS mid-point.
Conclusion
Wesco International is building on its positive sales momentum from the first half of 2025. The company’s record backlog, strong operating leverage on higher sales, and redemption of preferred stock position it well for the remainder of the year.