Total Revenue

–0.1% (Q1 2025: $5,343.7M vs Q1 2024: $5,350.0M)

Flat overall revenue is the net result of stark contrasts among business segments—with strong growth in Communications & Security Solutions nearly offset by substantial declines in Utility & Broadband Solutions and minor headwinds in Electrical & Electronic Solutions. " "

Electrical & Electronic Solutions

–1.6% (Q1 2025: $2,065.3M vs Q1 2024: $2,099.0M)

The modest decline in EES reflects the continuation of prior trends such as lower volume and pricing pressures, suggesting that historical headwinds remain persistent in this segment. " "

Communications & Security Solutions

+19.8% (Q1 2025: $2,000.3M vs Q1 2024: $1,670.1M)

Robust growth in this segment, driven largely by accelerated data center solutions and project activity, marks a strong turnaround relative to the previous period’s lower base. " "

Utility & Broadband Solutions

–19.2% (Q1 2025: $1,278.1M vs Q1 2024: $1,580.9M)

A dramatic decline in UBS indicates a persistent downturn driven by weaker utility sales, customer purchasing delays and ongoing effects from previous divestitures or destocking trends that have continued from prior periods. " "

United States Revenue

+2.6% (Q1 2025: $4,100.3M vs Q1 2024: $3,997.6M)

The US market saw a moderate increase, likely due to stronger performance in segments such as CSS and steady contributions from EES, building on the historical base while benefiting from a better mix in the domestic market. "

Canada Revenue

Nearly unchanged (Q1 2025: $713.5M vs Q1 2024: $718.5M)

Canadian revenue remaining flat reflects stability in this geography, consistent with prior period levels, as opposing factors have balanced out over time. "

Other International Revenue

+8.2% (Q1 2025: $685.9M vs Q1 2024: $633.9M)

Growth in Other International revenue, up by 8.2%, appears to be driven by favorable market conditions and potentially expanding advanced technology or security solutions, building on earlier modest gains in these regions. "

Net Income

+1.9% (Q1 2025: $118.3M vs Q1 2024: $116.1M)

The slight increase in net income, despite largely flat revenue, indicates that improvements in cost management, decreased interest expense, and lower other expenses are delivering better bottom‐line performance relative to the prior period. "

Diluted EPS

+7.7% (Q1 2025: $2.10 vs Q1 2024: $1.95)

A 7.7% rise in diluted EPS reflects not only the modest net income improvement but also the positive impact of a reduction in outstanding shares and improved per-share profitability stemming from operational leverage. "

Income from Operations

–8.3% (Q1 2025: $240.9M vs Q1 2024: $263.0M)

The decline in operating income stems from margin pressures in weak-performing segments (notably UBS) and higher operating costs, which were not fully offset by the robust growth seen in the CSS segment, continuing a trend evident in the previous period. "

Organic Sales Growth

FY 2025

2.5% to 6.5% " "

2.5% to 6.5% " "

no change

Reported Sales Growth

FY 2025

Flat to up 4% " "

Up about 20% "

raised

Adjusted EBITDA Margin

FY 2025

6.7% to 7.2%, including a 20–30 basis point SG&A headwind "

Approximately 50 basis points lower than Q2 2024 " "

no prior guidance

Adjusted Diluted EPS

FY 2025

$12 to $14.50 "

Benefit from calling the preferred stock halfway through FY 2025 "

no prior guidance

Free Cash Flow

FY 2025

$600 million to $800 million " "

$600 million to $800 million "

no change

Gross Margin

FY 2025

Expected to expand slightly "

Anticipated to be down slightly versus FY 2024 (21.6%) "

lowered

CSS Growth

FY 2025

Reported sales up mid-single digits "

Increased expectation: up mid- to high single digits "

raised

EES

FY 2025

Reported sales flat to up low single digits "

Construction expected flat; industrial and OEM expected to grow "

no prior guidance

UBS

FY 2025

Utility soft in H1, returning to growth in H2 " "

Utility expected to inflect in H2 and deliver growth "

no change

Data Center Growth

Q2–Q4 2024: Consistently strong growth was reported – Q4 2024 noted over 70% YoY growth with increasing contribution to CSS sales and strategic acquisitions (e.g. Ascent) " " " ; Q3 2024 highlighted over 40% YoY gains with improved backlog and consolidated supply base " " " ; Q2 2024 noted acceleration driven by AI and GenAI applications. " " "

Q1 2025: Continued robust growth with a 70% YoY increase, enhanced customer engagement, an increasing share of data center sales (now representing 16% of total sales), and a clear strategic focus leveraging acquisitions and AI-driven opportunities. " " " "

Recurring strong growth with an increasing strategic focus – consistent momentum, further supported by enhanced service offerings and acquisition activity.

Utility Segment Performance and Trends

Q2–Q4 2024: Persistent short‐term softness was noted across quarters due to customer destocking, lower project activity, and sales declines in UBS; however, there was a clear long‐term secular theme around electrification, green energy, and grid modernization. " " " " " "

Q1 2025: Temporary weakness continues due to inventory destocking; sequential backlog improvement combined with confidence in long‐term secular trends like electrification and grid modernization. " " " "

Consistent short‐term headwinds with a long‐term positive outlook driven by secular trends despite current softness.

Tariff-Related Pricing and Management

Q4 2024: Discussed a well‐developed playbook rooted in past tariff challenges with low direct exposure through private label; minimal mention in Q3 and Q2 2024. "

Q1 2025: Detailed discussion including no tariff‐related price increases in the outlook, a noted 15% decline in supplier price increases, proactive mitigation strategies (e.g., passing on costs, inventory management, and supply chain optimization). " " " " " "

Evolving detail and clarity – while the overall strategy remains consistent, Q1 2025 provided more granular insights into supplier pricing dynamics and future tariff-related management.

Operational Efficiency and Margin Expansion

Q2–Q4 2024: Emphasis on digital transformation, cost management, and strategic portfolio moves (divestitures, acquisitions) to drive operating improvements and aim toward a 10%+ EBITDA margin; Q3 highlighted margin benefits (e.g. supplier rebates) and Q4 noted progress in digitalization and operating cost leverage. " " " " " " "

Q1 2025: Continued investments in tech-enabled transformation, working capital and inventory management; however, margin expansion initiatives now face headwinds from product mix issues leading to slight gross margin compression and lower EBITDA margin guidance for Q2 2025. " " " " "

Consistent focus on efficiency but with increased margin pressure in Q1 2025 due to product mix challenges despite ongoing digital transformation efforts.

Margin Pressure from Product Mix and Sales Declines

Q2–Q4 2024: Regular concerns were raised about lower-margin, large project mixes (especially in CSS and UBS), sales declines driven by destocking and weaker day-to-day business, partially offset by mix benefits from divestitures and supplier rebates. " " " " " " " "

Q1 2025: Continued pressure with adjusted EBITDA margin down 60 bps YoY and gross margin down 20 bps; attributed to a higher mix of low-margin products, competitive pressures in segments like EES and CSS, and increased inventory provisions. " " " "

Persistent margin challenges – product mix and sales declines remain an ongoing issue with only sporadic sequential improvements amid broader market pressures.

FX, Inflation, and Macroeconomic Headwinds

Q2–Q4 2024: FX was a moderate headwind – for example, Q4 reported about 300 bps impact; inflation contributed to higher SG&A and influenced capital spending; overall macro conditions were mixed with visible impacts on utilities and industrial sectors. " " " " "

Q1 2025: FX continued to negatively affect reported sales; inflation contributed to a 2% increase in SG&A resulting in a 40 bps margin headwind; macro headwinds include persisting utility softness and ongoing tariff uncertainties, though actions are underway to manage these risks. " " " " " "

Steady headwinds – FX and inflation impacts are consistently challenging, while macroeconomic factors (e.g. utility softness, tariff issues) persist, albeit with proactive mitigation across periods.

Geographic Market Positioning (Canada)

Q2–Q4 2024: Canadian businesses showed steady performance improvements across segments – Q2 noted low single digit growth in EES from project wins, Q3 highlighted improvement in construction, industrial and broadband markets, and Q4 emphasized strong broadband and industrial sales growth. " " " " " "

Q1 2025: Very strong performance reported in Canada with significant backlog growth and market share gains across all divisions (electrical, utility, and CSS), reinforcing WESCO’s leadership from coast to coast. "

Strengthening leadership – Canada remains a consistently bright spot with growing market share and multi-vertical strength observed over time.

Acquisitions and Expansion of Service Offerings

Q2–Q4 2024: Acquisitions such as entroCIM, Storeroom Logix (Q2) and Ascent (Q4) were highlighted to bolster digital capabilities and data center services; strategic portfolio adjustments (e.g. divestiture of integrated supply) supported expansion in service offerings; Q3 emphasized a focus on future M&A opportunities. " " " " "

Q1 2025: Continued focus on acquisitions, with explicit references to entroCIM and Ascent elevating data center service capabilities and broadening the scope of supply; emphasis on opportunistic acquisitions in high-growth markets like electrification and AI-driven data centers. " " " " "

Consistent strategic investment – acquisitions remain a key lever, with continuous expansion of service offerings to support growth in data centers and other high-growth segments.

Solar Business Performance in EES

Q2–Q4 2024: Consistently reported weakness in the solar business – Q2 noted low single digit declines in construction sales due to solar softness; Q3 described strong double-digit declines (down over 25% YoY) with challenging comparables; Q4 mentioned U.S. solar weakness offset by growth in other regions. " " " "

Q1 2025: Solar business under renewed pressure from technology changes, resulting in higher inventory provisions and a negative impact on EES gross margins (approximately 25 bps). "

Persistent underperformance – the solar segment has shown a continuing downward trend across periods with worsening challenges in Q1 2025 due to technological changes and resultant margin impacts.