Company: WCC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000929008-25-000012
Chunk: 14

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 14
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-year. The decrease primarily reflects an increase in cost of goods sold of $13.2 million, which is inclusive of higher inventory adjustments of approximately $4.0 million. Additionally, SG&A expenses increased $7.0 million as compared to the prior year, which was primarily attributed to an increase in transportation costs of $2.5 million and an increase in operations expenses of $2.5 million.

Communications & Security Solutions

Three Months EndedGrowth/(Decline)March 31, 2025March 31, 2024Reported SalesAcquisitionForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$2,000.3$1,704.817.3 %2.3 %(1.5)%(1.6)%18.1 %Adjusted EBITDA$158.5$131.2Adjusted EBITDA margin %7.9 %7.7 %

CSS reported net sales of $2,000.3 million for the first quarter of 2025 compared to $1,704.8 million for the first quarter of 2024, an increase of $295.5 million, or 17.3%, which is inclusive of a favorable impact from the acquisition of Ascent of 2.3%. CSS organic sales for the first quarter of 2025 grew by 18.1%, primarily reflecting volume growth in the data center solutions business. Changes in price did not have a material impact on the year-over-year growth in CSS organic sales.

CSS adjusted EBITDA increased $27.3 million, or 20.8% year-over-year. The increase primarily reflects a $295.5 million increase in net sales, as described above, partially offset by a corresponding increase in cost of goods sold of $247.2 million, and an increase in SG&A expenses of $20.7 million. The increase in SG&A expenses is primarily attributed to a $6.9 million increase in transportation costs consistent with higher sales, increased salaries of $4.0 million and increased commissions and incentives of $3.5 million. 

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

Utility & Broadband Solutions

Three Months EndedGrowth/(Decline)March 31, 2025March 31, 2024Reported SalesDivestitureForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$1,278.1$1,580.9(19.