Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 50

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 50
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 payroll and payroll-related expenses for the first six months of 2025 of $1,060.9 million increased by $30.1 million compared to the same period in 2024 primarily as a result of higher salaries of $28.4 million due to wage inflation, partially offset by the impact of the divestiture of the WIS business, and higher benefits expense of $8.5 million, partially offset by lower commissions and incentive compensation expenses of $6.2 million.

SG&A expenses not related to payroll and payroll-related costs for the first six months of 2025 were $647.6 million, an increase of $20.5 million compared to the same period in 2024, which primarily reflects higher costs to operate our facilities of $16.1 million, higher transportation costs of $15.0 million, and higher IT costs of $6.5 million, partially offset by a decrease of $15.5 million in other income and deductions, primarily attributable to the loss on abandonment of assets in the second quarter of 2024 as discussed above. 

Income from Operations

Income from operations was $563.1 million for the first six months of 2025 compared to $586.5 million for the first six months of 2024. The decrease of $23.4 million, or 4.0%, reflects an increase in sales exceeded by higher cost of goods sold as a percentage of net sales due to a decrease in gross margin in all three segments, as well as an increase in SG&A expenses, as described above.

Interest Expense, net

Net interest expense totaled $179.2 million for the first six months of 2025 compared to $193.2 million for the first six months of 2024. The decrease of $14.0 million, or 7.2%, primarily reflects lower borrowings on the Receivables Facility and the Revolving Credit Facility, partly driven by repayment from refinancing activity related to the issuance of the 2029, 2032, and 2033 Notes, as well as lower interest rates on both facilities. 

Other Income, net

Other non-operating income totaled $7.1 million for the first six months of 2025 compared to $74.3 million for the first six months of 2024. We recognized $2.4 million of income in the first six months of 2025 from an adjustment to the fair value of the contingent consideration liability related to the entroCIM acquisition.