Company: WCC
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000929008-25-000023
Chunk: 108

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 108
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 second quarter of 2025 compared to the second quarter of 2024.

Net sales were $5.9 billion for the second quarter of 2025 compared to $5.5 billion for the second quarter of 2024, an increase of 7.7%. Adjusting for the increase from the acquisition of Ascent, organic sales for the second quarter of 2025 grew by 7.2%. This growth is reflective of an approximate 6% increase in volume, driven by volume increases in the CSS and EES segments, partially offset by a decline in the UBS segment, and by the impact of changes in price, which favorably impacted consolidated organic sales by approximately 1%. 

Cost of Goods Sold

Cost of goods sold for the second quarter of 2025 was $4.7 billion compared to $4.3 billion for the second quarter of 2024, an increase of 8.8%. Cost of goods sold as a percentage of net sales was 78.9% and 78.1% for the second quarter of 2025 and 2024, respectively. The unfavorable increase of 80 basis points reflects a decrease in gross margin in all three segments, which is inclusive of higher inventory adjustments, partially offset by higher supplier volume rebates.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses for the second quarter of 2025 totaled $872.2 million versus $828.4 million for the second quarter of 2024, an increase of $43.8 million, or 5.3%.

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 EndedJune 30, 2025% of net salesJune 30, 2024% of net salesAdjusted SG&A Expenses:(In millions)Selling, general and administrative expenses$872.214.8%$828.415.1%Digital transformation costs(1)(7.6)(6.1)Restructuring costs(2)(0.5)(0.9)Loss on abandonment of assets(3)—(17.8)Adjusted selling, general and administrative expenses$864.114.6%$803.614.7%

(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.

(