Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 115

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 115
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,439.314.9%

(1)    Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)    Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)    Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company’s operations.

(4)    Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan.

35

Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

SG&A payroll and payroll-related expenses for the first nine months of 2025 of $1,631.3 million increased by $80.5 million compared to the same period in 2024 primarily as a result of increased salaries of $46.9 million due to wage inflation, partially offset by the impact of the divestiture of the WIS business, and increased benefits expense of $15.6 million.

SG&A expenses not related to payroll and payroll-related costs for the first nine months of 2025 were $1,000.1 million, an increase of $62.0 million compared to the same period in 2024, which primarily reflects increased costs to operate our facilities of $27.6 million, and increased transportation costs of $24.9 million. 

Income from Operations

Income from operations was $908.5 million for the first nine months of 2025 compared to $922.1 million for the first nine months of 2024. The decrease of $13.6 million, or 1.5%, 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 due to large projects, as well as an increase in SG&A expenses, as described above.

Other Income, net

Other non-operating income totaled $7.0 million for the first nine months of 2025 compared to $99.3 million for the first nine months of 2024. The first nine months of 2024 included a $122.2 million gain on the sale of our WIS business. We recognized $4.2 million of income in the first nine months of 2025 from an adjustment to the fair value of the contingent consideration liability related to a