Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 149

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 149
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SIDIARIES

The increase in adjusted earnings per diluted share primarily reflects the increase in net sales and the decrease in interest expense, as discussed above, partially offset by the increase in cost of goods sold as a percentage of net sales, an increase in SG&A expenses, and the decrease in other income. Additionally, there was a positive impact from the reduction in outstanding shares during the second quarter of 2025 as compared to the second quarter of 2024.

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP financial measure, was $394.2 million for the second quarter of 2025, compared to $400.1 million for the second quarter of 2024, a decrease of $5.9 million, or 1.5% year-over-year. The decrease primarily reflects a $375.2 million increase in cost of goods sold related to increased large project sales with lower margins, and a $43.8 million increase in SG&A expenses, as described above, partially offset by an increase in net sales.

Segment Results

The following is a discussion of the financial results of our operating segments comprising three strategic business units consisting of EES, CSS and UBS for the three months ended June 30, 2025. As further described below and in Note 14, “Business Segments” of our Notes to the unaudited Condensed Consolidated Financial Statements, the Chief Operating Decision Maker (the “CODM”) allocates resources and evaluates the performance of the Company’s reportable segments based on adjusted EBITDA, which is the Company’s measure of segment profit or loss. Adjusted EBITDA and adjusted EBITDA margin percentage are non-GAAP financial measures. As previously described in Note 2, “Accounting Policies,” the reportable segment information for the three months ended June 30, 2024 for the EES and CSS reportable segments has been recast to conform to the current year presentation.

Electrical & Electronic Solutions

Three Months EndedGrowth/(Decline)June 30, 2025June 30, 2024Reported SalesAcquisitionForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$2,257.8$2,134.55.8 %— %(0.2)%— %6.0 %Adjusted EBITDA$182.9$190.2Adjusted EBITDA margin %8.1%8.9%

EES reported net sales of $2.