Company: WCC
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000929008-25-000005
Chunk: 75

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 75
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 above, partially offset by a corresponding decrease in cost of goods sold of $435.3 million.

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 year ended December 31, 2024. As further described below and in Note 16, “Business Segments” of our Notes to Consolidated Financial Statements, the performance of our operating segments is based on net sales, adjusted EBITDA, and adjusted EBITDA margin percentage. Adjusted EBITDA and adjusted EBITDA margin percentage are non-GAAP financial measures.

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Electrical & Electronic Solutions

Year Ended December 31,Growth/(Decline)20242023Reported SalesAcquisitionForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$8,546.8$8,610.3(0.7)%— %(0.5)%0.8 %(1.0)%Adjusted EBITDA$717.5$727.4Adjusted EBITDA margin %8.4 %8.4 %

EES reported net sales of $8.5 billion for 2024 compared to $8.6 billion for 2023, a decrease of 0.7%. Adjusting for the unfavorable impact from fluctuations in foreign exchange rates of 0.5% and the favorable impact from the number of workdays of 0.8%, EES organic sales for 2024 declined 1.0%, reflecting volume declines of approximately 2%, primarily as a result of a decline in the original equipment manufacturer business. The decline in volume was partially offset by the impact of changes in price, which favorably impacted organic sales by approximately 1%. 

EES reported adjusted EBITDA of $717.5 million for 2024, or 8.4% of net sales, compared to $727.4 million for 2023, or 8.4% of net sales. Adjusted EBITDA decreased $9.9 million, or 1.4% year-over-year. The decrease primarily reflects the $63.5 million decline in net sales, as described above, partially offset by a corresponding decrease in cost of goods sold of $58.4 million. 

Communications & Security Solutions

Year Ended December 31,Growth/(Decline)20242023Reported SalesAcquisitionsForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$7,