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Wesco International (NYSE: WCC) is a Fortune 500 company headquartered in Pittsburgh, Pennsylvania, specializing in business-to-business distribution, logistics services, and supply chain solutions. The company operates globally, serving diverse markets with a comprehensive portfolio of products and services designed to optimize efficiency and productivity. Wesco's offerings include electrical equipment, network infrastructure, security products, and utility solutions.
- Electrical & Electronic Solutions (EES) - Supplies electrical equipment, automation devices, security systems, lighting, wire and cable, safety products, and maintenance, repair, and operating (MRO) products to construction, industrial, and OEM markets.
- Communications & Security Solutions (CSS) - Provides network infrastructure and security products, safety solutions, and energy management systems to end-users and integrators in the data communications, security, and professional audio/visual sectors.
- Utility & Broadband Solutions (UBS) - Offers wire and cable, transformers, transmission and distribution hardware, connectivity products, lighting, and safety solutions to utilities, municipalities, broadband operators, and contractors.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John J. Engel ExecutiveBoard | President and Chief Executive Officer | Director of United States Steel Corporation (Chair of Governance and Sustainability Committee) ; Member of Business Roundtable ; Member of Business Council ; Member of Board of Directors of the National Association of Manufacturers | John J. Engel has served as President and Chief Executive Officer since 2009 and as Chairman of the Board since May 2011 at Wesco International, Inc. He previously served as Senior Vice President and Chief Operating Officer from 2004 to 2009 and has held senior leadership roles at Gateway, Perkin Elmer, Allied Signal, and General Electric. | View Report → |
Akash Khurana Executive | Executive Vice President and Chief Information and Digital Officer | Akash Khurana has served as Executive Vice President and Chief Information and Digital Officer at Wesco International since November 2020, overseeing the company’s information and digital strategy. Previously, he held senior technology leadership roles at McDermott International, Baker Hughes, and GE Healthcare and Power & Water Divisions. | ||
Christine A. Wolf Executive | Executive Vice President and Chief Human Resources Officer | Christine A. Wolf has been serving as Wesco's Executive Vice President and Chief Human Resources Officer since June 2020. Previously, she served as Senior Vice President and Chief Human Resources Officer from June 2018 to June 2020, and has an extensive background in HR leadership in companies such as Orbital ATK, Fannie Mae, and E*Trade. | ||
David S. Schulz Executive | Executive Vice President and Chief Financial Officer | David S. Schulz has served as Executive Vice President and Chief Financial Officer at WCC since June 2020, having previously served as Senior Vice President and Chief Financial Officer from October 2016 to June 2020. | ||
Diane E. Lazzaris Executive | Executive Vice President and General Counsel | Diane E. Lazzaris has been serving as the Executive Vice President and General Counsel at Wesco International since June 2020. Previously, she held roles such as Corporate Secretary (February 2021 to December 2023) and Senior Vice President and General Counsel at Wesco. | ||
Hemant Porwal Executive | Executive Vice President, Supply Chain and Operations | Hemant Porwal has been serving as Executive Vice President, Supply Chain and Operations at WCC since June 2020. Previously, he served as Vice President of Global Supply Chain and Operations from January 2015 to June 2020. | ||
James F. Cameron Executive | Executive Vice President and General Manager of the Utility & Broadband Solutions (UBS) | James F. Cameron has led the Utility & Broadband Solutions (UBS) strategic business unit at Wesco since June 2020, after serving as Vice President and General Manager of the Utility and Broadband Group from January 2014 to June 2020 and as Regional Vice President from 2011 to 2013. | ||
Nelson J. Squires III Executive | Executive Vice President and General Manager of the Electrical & Electronic Solutions (EES) strategic business unit | Nelson J. Squires III is the Executive Vice President and General Manager of the Electrical & Electronic Solutions division at Wesco International, a role he has held since June 2020. He previously served in senior leadership positions at Wesco, including Senior Vice President and Chief Operating Officer from October 2019 to June 2020, and he brings experience from his tenure at Air Products and Chemicals as well as service as a Captain in the United States Army. | ||
William C. Geary Executive | Executive Vice President and General Manager, Communications & Security Solutions | William C. Geary, II has been serving as the Executive Vice President and General Manager of Communications & Security Solutions at WCC since June 2020, and previously held executive roles at Anixter International, including Executive Vice President – Network & Security Solutions and Senior Vice President – Global Markets – Network & Security Solutions, as well as senior management positions at Accu-Tech Corporation. |
- Given the significant growth in your data center business—where initial direct shipments generate lower gross margins—how do you plan to accelerate the transition to higher-margin services to ensure long-term profitability?
- With reported free cash flow reaching record levels in 2024, what measures are in place to sustain such cash generation, especially considering the timing shifts like the $45 million tax payment deferred to Q1 2025?
- The utility segment continues to face softness in the first half of the year; what concrete customer commitments or metrics are you using to justify your expectation of a robust recovery in the latter half of 2025?
- In light of the decline in supplier volume rebates that pressured your gross margins last quarter, what specific initiatives are being implemented to stabilize or even improve these rebates in 2025?
- With the anticipated SG&A headwinds from incentive adjustments and merit increases, how do you plan to maintain operating leverage and meet your EBITDA margin improvement targets if sales growth remains flat in certain segments?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Industrial Software Solutions I, Inc. and ISS | 2025 | Acquisition closed on January 2, 2025 for $36.3 million paid in cash, targeting an industrial automation consulting company with software distribution and AVEVA partnership capabilities; a preliminary purchase price allocation will be completed in Q1 2025. |
Ascent LLC | 2024 | Acquisition completed on December 6, 2024 for $185 million (cash-free, debt-free) to add a premier provider of data center facility management services with a proprietary Navigator platform, enhancing Wesco’s data center solutions portfolio and offering complementary engineering and operational services. |
Independent Electric Supply Inc. (IES) | 2024 | Acquisition effective on July 1, 2024 with a total estimated fair value of $13.2 million including $11.6 million cash paid at closing and up to $2.9 million contingent based on performance, acquiring valuable customer relationship intangibles and expanding capacity as a full-line electrical distributor in Ontario. |
entroCIM | 2024 | Acquisition completed on June 3, 2024 for an estimated $36.5 million (with $30.1 million in cash and additional contingent consideration), securing developed software intangibles valued at $8.0 million and significant IT/OT convergence capabilities via its Central Intelligence Manager platform. |
Rahi Systems Holdings, Inc. | 2022 | Acquisition closed on November 1, 2022 for $217 million funded through cash and borrowing facilities, integrating a leading global hyperscale data center solutions provider into Wesco’s CSS segment to drive strategic growth and sales synergies, with a valuation of 7.5x trailing EBITDA. |
Recent press releases and 8-K filings for WCC.
- Credit Agreement Amendment: WESCO amended its Credit Agreement, updating provisions and schedules involving its loan parties and consents, which may affect its credit arrangements.
- Senior Notes Offering: Its subsidiary, WESCO Distribution, completed an offering of $800 million in 6.375% senior notes due 2033, with net proceeds of approximately $789.5 million intended to redeem Series A Preferred Stock and partially repay borrowing facilities.
- Wesco International detailed its post-Anixter merger strategy, emphasizing a shift to a service-based model with an aggressive digital transformation plan, including a new tech stack rollout by 2027-2028.
- The company highlighted record free cash flow generation, noting over $1 billion free cash flow last year and a commitment to growing EBITDA margins to 10%+.
- Management discussed ongoing vendor price increases driven by tariffs and inflation, with a strong intent to pass these through to customers while monitoring potential demand impacts.
- The call also addressed the utility segment’s destocking cycle and expected recovery in the second half of the year, alongside continued strategic investments and M&A opportunities.
- Wesco International announced pricing of its private senior notes due 2033 with the aggregate principal amount expanded from $600M to $800M .
- Approximately $789.5M in net proceeds are expected to be used to redeem the outstanding Series A Preferred Stock and reduce portions of asset-based revolving credit facilities and related borrowings .
- The notes are unsecured, unsubordinated, and are guaranteed by Wesco International Inc. and its subsidiary Anixter Inc. .
- The offering includes a private placement by its subsidiary, Wesco Distribution, targeting qualified institutional buyers under Rule 144A and Regulation S .
- Achieved a record operating cash flow of $1.1B for FY 2024 and generated over $1B in free cash flow (including $268M in Q4)
- Delivered Q4 net sales of $5,499.7M, driven by over 70% growth in the global Data Center segment and 20% broadband sales increase
- Executed a $425M stock repurchase, reduced net debt by $431M, and increased the dividend by 10% to $1.82 per share
- Reported earnings improvement with diluted EPS of $3.03 and adjusted EPS of $3.16, marking a 19% YoY improvement
- Provided a 2025 outlook with forecasted organic sales growth of 2.5%-6.5% and anticipated free cash flow between $600-800M, noting early Q4 momentum despite December deceleration