Company: WCC
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000929008-25-000005
Chunk: 76

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 76
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537.0$7,152.25.4 %0.5 %(0.2)%0.8 %4.3 %Adjusted EBITDA$621.1$683.8Adjusted EBITDA margin %8.2 %9.6 %

CSS reported net sales of $7.5 billion for 2024 compared to $7.2 billion for 2023, an increase of 5.4%. Adjusting for the favorable impact from the acquisition of Ascent of 0.5%, the unfavorable impact from fluctuations in foreign exchange rates of 0.2%, and the favorable impact from the number of workdays of 0.8%, CSS organic sales for 2024 grew by 4.3%, primarily as a result of growth in the data center solutions business, partially offset by volume decline in the enterprise network infrastructure and security solutions businesses. Changes in price did not have a material impact on the year-over-year increase in CSS organic sales.

CSS reported adjusted EBITDA of $621.1 million for 2024, or 8.2% of net sales, compared to $683.8 million for 2023, or 9.6% of net sales. Adjusted EBITDA decreased $62.7 million, or 9.2% year-over-year. The decrease reflects an increase in net sales of $384.8 million, which was more than offset by an increase in cost of goods sold of $393.8 million, which is inclusive of an increase in inventory adjustments of $13.1 million and lower supplier volume rebates of approximately $4.1 million, and an increase in SG&A expenses of $55.1 million. The increase in SG&A expenses is primarily attributed to increased commissions and incentives of $13.5 million, higher salaries of $11.5 million, higher costs to operate our facilities of $5.5 million, which includes an increase in rents and the opening of a new facility, higher benefits expense of $5.4 million, and higher professional and consulting fees of $5.3 million.

31

Utility & Broadband Solutions

Year Ended December 31,Growth/(Decline)20242023ReportedDivestitureForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$5,735.0$6,622.7(13.4)%(8.9)%(0.1)%0.8 %(5.2)%Adjusted EBIT