Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 40

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 40
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 third quarter of 2025 was $4.9 billion compared to $4.3 billion for the third quarter of 2024, an increase of 14.1%. Cost of goods sold as a percentage of net sales was 78.7% and 77.9% for the third quarter of 2025 and 2024, respectively. The unfavorable increase of 80 basis points reflects a decrease in gross margin in all three segments driven by large project sales and higher inventory adjustments, partially offset by higher supplier volume rebates.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses for the third quarter of 2025 totaled $922.9 million versus $831.1 million for the third quarter of 2024, an increase of $91.8 million, or 11.0%.

The following table reconciles SG&A expenses to adjusted SG&A expenses, which is a non-GAAP financial measure, for the periods presented: 

Three Months EndedSeptember 30, 2025% of net salesSeptember 30, 2024% of net salesAdjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$922.914.9%$831.115.1%Digital transformation costs(1)(10.4)(5.4)Restructuring costs(2)1.6(0.5)Adjusted selling, general and administrative expenses$914.114.7%$825.215.0%

(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.

SG&A payroll and payroll-related expenses for the third quarter of 2025 of $570.4 million increased by $50.3 million compared to the same period in 2024 primarily as a result of an increase of $24.2 million in salaries and $14.1 million in commissions and incentives.

SG&A expenses not related to payroll and payroll-related costs for the third quarter of 2025 were $352.5 million, an increase of $41.4 million compared to the same period in 2024, which primarily reflects increased costs to operate our facilities of $11.5 million, increased transportation costs of $9.8 million and increased IT costs of $7.8 million.

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

Income from Operations

Income from