Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 106

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 106
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 SUBSIDIARIES

Communications & Security Solutions

The CSS segment, serving customers in over 50 countries, is a global leader in data center, enterprise 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, public power companies, including 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

Despite uncertainty and volatility persisting in the market, our financial results reflect continued sales momentum in the second quarter of 2025. Our financial results for the first six months of 2025 compared to the first six months of 2024 reflect an increase in reported sales of 3.8%, and as adjusted for mergers & acquisitions activity, fluctuations in foreign exchange rates and number of workdays, an increase in organic sales of 6.4%. Our data center business is primarily driving this growth in sales, but also contributing to lower gross margins as compared to prior year, as there have been several large project wins at lower margins. We saw weakness in the utility business within UBS, as expected, due to ongoing customer destocking and cautious spending related to tariff and market uncertainties. However, utility has begun to show signs of improvement as sales to investor-owned utilities returned to growth in the second quarter of 2025.

As of June 22, 2025, we redeemed all outstanding shares of our Series A Preferred Stock for $540.3 million. As a result of the transaction, the Company recorded a $27.6