WCC Filings — Wesco International, Inc. - FilingSpy
WCC
Wesco International, Inc.
A global B2B distributor and supply chain solutions provider, Wesco supplies electrical equipment, data center infrastructure, security systems, and utility products to roughly 130,000 customers across dozens of countries. Founded in 1922 as the Westinghouse Electric Supply Company, its name is an acronym of that original title, and it grew into a distribution giant by acquiring Anixter in 2020. Today it runs more than 700 sites worldwide serving contractors, industrial plants, and broadband providers.
Wesco's Q2 revenue rose 13% to $6.67B as all three segments grew organically for the first time in over a year.
Every grew organically — the first time since Q4 2024. rose 13.0% to $6.67 billion and widened 0.8 points to 21.8% as data center demand drove a 17.5% organic increase in the Communications & Security Solutions segment. The broad-based growth lifted 18.6%, but fell 70.3% as built again.
Key takeaways
rose 12.6% in Q2, the fastest rate in over two years, on approximately 10% volume growth and 3% price, with all three segments contributing positively for the first time since Q4 2024.
The Communications & Security Solutions (CSS) remained the primary growth engine, with up 17.5% on approximately 17% volume growth in data center solutions, extending a multi-quarter run of double-digit organic increases.
widened 0.8 points to 21.8%, as cost of goods sold fell to 78.2% of sales from 78.9% a year ago, reversing the compression trend that had persisted through most of FY2025.
Section summaries
Management's Discussion and Analysis
Wesco Q2 2026 net sales rose 13% to $6.7B on 12.6% organic growth, led by CSS data center demand, with adjusted EBITDA up 24%.
⌄
Consolidated Q2 grew 13.0% to $6.7B, with organic sales up 12.6% driven by ~10% volume and ~3% price.
rose 18.6% to $382.2 million and widened 0.3 points to 5.7%, as the gain and on the higher base outpaced a 17.3% increase in expenses driven by higher commissions and bad debt provisions.
rose 19.8% to $209.0 million and increased 10.4% to $4.23, with reaching $4.57, up from $3.39 a year ago.
fell 70.3% to $25.5 million, as a build to support the CSS-driven growth absorbed most of the , marking a return to cash consumption after the Q1 reversal.
What changed
trajectory: After multiple quarters of compression that drove the metric to 21.1% in FY2025, Q2 2026 gross margin widened to 21.8%, settling the question of whether the 21.1% level represented a floor — it did, and margins have now expanded for two consecutive quarters.
CSS growth sustainability: The 17.5% rate in Q2 2026, while below the 21.9% peak in Q1 2026, confirms that data center demand continues to drive double-digit growth in the , sustaining the trend that began in FY2025.
generation: The Q1 2026 reversal that produced $198.0 million in free cash flow did not continue into Q2; instead, free cash flow fell to $25.5 million, indicating that the cash cost of supporting CSS growth has not yet structurally reversed and the cash conversion rate remains below historical levels.
All-: Q2 2026 marked the first quarter since Q4 2024 in which all three segments — CSS, EES, and UBS — posted positive growth, resolving the concern that the company was becoming dependent on a single segment to offset declines elsewhere.
What to watch
in Q3 2026 to see whether the 21.8% level can be sustained or improved, or whether the mix shift toward large data center projects resumes pressuring profitability as it did through most of FY2025.
generation in Q3 2026 to determine whether the seasonal reversal materializes as it did in Q3 2023 and Q3 2024, enabling a return to stronger cash conversion after two quarters of cash absorption to support CSS growth.
CSS growth trajectory to gauge whether the 17.5% rate represents a sustainable run rate as data center demand continues, or whether growth moderates further from the 21.9% Q1 peak and leaves the company more dependent on EES and UBS.
as a percentage of sales, which rose to 15.3% in Q2 from 14.7% a year ago, to see whether the higher commissions and bad debt costs tied to the mix are structural or whether cost improves as revenue growth continues.
CSS led growth with 18.4% reported sales increase and 17.5% , fueled by ~17% volume in data center solutions.
EES sales rose 11.2% on ~6% volume from construction and OEM, while UBS grew 7.0% on ~4% volume from broadband and utility.
improved as cost of goods sold fell to 78.2% of sales from 78.9%, though SG&A rose 17.3% to $1.02B on higher commissions, DDP costs, and bad debt.
increased 23.6% to $487M; adjusted reached $4.57, up from $3.39, reflecting higher sales and lower COGS ratio.
Liquidity stood at ~$1.7B; the company redeemed 7.250% 2028 Notes with new 5.250%/5.500% notes, leaving no major maturities until 2029.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of changes to the market risks that were previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, refer to Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and to P…
⌄
For a discussion of changes to the market risks that were previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, refer to Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and to Part II, Item 1A, “Risk Factors”.
As set forth in Note 10, “Commitments and Contingencies” to the Notes to the unaudited Condensed Consolidated Financial Statements, from time to time, a number of lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including litig…
⌄
As set forth in Note 10, “Commitments and Contingencies” to the Notes to the unaudited Condensed Consolidated Financial Statements, from time to time, a number of lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including litigation relating to commercial, product and employment matters. The outcome of any litigation cannot be predicted with certainty, and some lawsuits may be determined adversely to us. However, management does not believe that the ultimate outcome of any such pending matters is likely to have a material adverse effect on our financial condition or liquidity, although the resolution in any fiscal period of one or more of these matters may have a material adverse effect on our results of operations for that period.
There have been no material changes to the risk factors previously disclosed in Item 1A. to Part I of WESCO International, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
⌄
There have been no material changes to the risk factors previously disclosed in Item 1A. to Part I of WESCO International, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.