Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 54

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 54
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 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 and incentives of $6.6 million, and higher benefits expense of $6.0 million.

Utility & Broadband Solutions

Six Months EndedGrowth/(Decline)June 30, 2025June 30, 2024Reported SalesDivestitureForeign ExchangeWorkdayOrganic Sales(In millions)Net sales$2,654.7$3,021.8(12.1)%(6.3)%(0.3)%(0.8)%(4.7)%Adjusted EBITDA$282.0$342.9Adjusted EBITDA Margin %10.6%11.3%

UBS reported net sales of $2.7 billion for the first six months of 2025 compared to $3.0 billion for the first six months of 2024, a decrease of $367.1 million, or 12.1%, which is inclusive of an unfavorable impact from the divestiture of the WIS business of 6.3%. UBS organic sales for the first six months of 2025 declined by 4.7%, reflecting volume declines, primarily as a result of ongoing customer destocking and cautious spending related to tariff and market uncertainties. Changes in price did not have a material impact on the year-over-year decline in UBS organic sales.

UBS adjusted EBITDA decreased $60.9 million, or 17.8% year-over-year. The decrease primarily reflects a decline in volume, as described above. The decrease in adjusted EBITDA was further offset by a decrease in SG&A expenses of $12.3 million as compared to the prior