Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 123

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 123
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EES adjusted EBITDA decreased $26.4 million, or 7.5% year-over-year. The decrease primarily reflects an unfavorable change in product mix, partially offset by an increase in volume and price, as described above. Additionally, SG&A expenses increased $21.1 million as compared to the prior year, which was primarily attributed to an increase in salaries of $8.2 million, an increase in transportation costs of $6.0 million, an increase in operations expenses of $4.0 million, and an increase in bad debt expense of $3.0 million, partially offset by lower commissions and incentives of $3.5 million.

Communications & Security Solutions

Six Months EndedGrowth/(Decline)June 30, 2025June 30, 2024Reported SalesAcquisitionForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$4,265.5$3,609.118.2 %1.9 %(0.6)%(0.8)%17.7 %Adjusted EBITDA$357.4$286.8Adjusted EBITDA Margin %8.4%7.9%

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

CSS reported net sales of $4.3 billion for the first six months of 2025 compared to $3.6 billion for the first six months of 2024, an increase of $656.4 million, or 18.2%, which is inclusive of a favorable impact from the acquisition of Ascent of 1.9%. CSS organic sales for the first six months of 2025 grew by 17.7%, driven primarily by volume growth of approximately 17% as a result of growth in the data center solutions business and less significant growth in the security solutions business, partially offset by volume decline in the enterprise network infrastructure business, and by the impact of changes in price, which favorably impacted organic sales by approximately 1%.

CSS adjusted EBITDA increased $70.6 million, or 24.6% year-over-year. The increase reflects an increase in volume, specifically within the data center solutions business and the security solutions business, as described above. Further, there was an increase in SG&A expenses of $38.9 million. The increase in SG&A expenses is primarily attributed to higher transportation costs of $12.7 million consistent with higher sales, higher salaries of $9.8 million, higher commissions