Research · Sep 3, 2026
[WCC] WESCO International Thesis 2026: Data Center Demand Drives Double-Digit Earnings Guidance Raise
WESCO International, Inc. FY25 revenue $23.51B (+8%, 9% organic); op income $1.23B (+1%); NI $640M (-11%); EPS $13.05 (flat YoY). FCF $25M (capex-heavy + working capital). Q4 record sales $6.1B (+10%, 9% organic). Data center sales record $1.2B (+~30% YoY). Q4 segment performance — CSS (Communications + Security): organic sales +14%; reported +16%; adj EBITDA +30%; margin 9.1% (+90bp). EES (Electrical + Electronic): organic +9%; backlog +6% YoY; adj EBITDA +16%; margin +50bp to 8.5%. UBS (Utility + Broadband): organic +3%; backlog +23% YoY; margin -120bp (public power headwinds). FY: total sales $23.5B (+8%, 9% organic); CSS reported +18% / organic +17% / margin +50bp; EES reported +7% / organic +8%; UBS reported -5% / organic -1%. Backlog +19% YoY. David Schulz CFO retiring May 2026; Neil Deve appointed. Digital transformation: tech stack pilots + data lake + AI; Fortune AI ranking. Plan dividend +10%+ to $2/share. Grid Services $300M+ FY25; double-digit growth FY26. Total debt $7.48B (+32%); buyback $615M (+45%). FY26 guide: reported sales +5-8% / organic +4-7%; adj EBITDA margin 6.6-7%; adj diluted EPS $14.50-$16.50 (+20% midpoint); FCF $500M-$800M; working capital growth ~half rate of sales. Risks: industrial / construction cycle, data center hyperscaler capex cycle, competition (Sonepar, Rexel, Graybar, MSC Industrial, Fastenal), UBS public power, M&A integration, working capital normalization.