Company: WCC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000929008-25-000034
Chunk: 142

Company: WESCO INTERNATIONAL INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 2
Chunk 142
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19.3Reduction to pension settlement cost(2)—2.2Adjusted other expense (income), net$—$(3.4)

(1)    Gain on divestiture represents the gain recognized as a result of the divestiture of the Wesco Integrated Supply (“WIS”) business on April 1, 2024.

(2)    Reduction to pension settlement cost represents income as a result of the finalization of the liabilities transferred as part of the settlement of the Company's U.S. pension plan. 

Income Taxes

The provision for income taxes was $57.8 million for the third quarter of 2025 compared to $69.3 million for the corresponding quarter of the prior year, resulting in effective tax rates of 23.5% and 25.3%, respectively. The lower effective tax rate for the third quarter of 2025 is due to higher discrete income tax benefits relating to the exercise of stock-based awards as compared to the prior year period.

Net Income and Earnings per Share

Net income and earnings per diluted share attributable to common stockholders were $187.5 million and $3.79, respectively, for the third quarter of 2025 compared to $189.9 million and $3.81, respectively, for the third quarter of 2024. Adjusted for the non-GAAP adjustments above and the related income tax effects, net income and earnings per diluted share attributable to common stockholders were $193.9 million and $3.92, respectively, for the three months ended September 30, 2025, and $178.1 million and $3.58, respectively, for the three months ended September 30, 2024. 

The increase in adjusted earnings per diluted share primarily reflects the favorable impact of the June 2025 Series A Preferred Stock redemption and the corresponding decrease in preferred dividends, as well as the increase in net sales, partially offset by the increase in cost of goods sold as a percentage of net sales, an increase in SG&A expenses, and the decrease in other income. Additionally, there was a positive impact from the reduction in outstanding common shares during the third quarter of 2025 as compared to the third quarter of 2024.

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Table of Contents   WESCO INTERNATIONAL, INC. AND SUBSIDIARIES

Adjusted EBITDA

Adjusted EBITDA, a non-GAAP financial measure, was $423.0 million for the third quarter of 2025, compared to