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Did Wesco International beat or miss consensus estimates last quarter?

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What is Wesco International's latest dividend and current dividend yield?

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- **Revenue Surge**: Q3 organic sales up 12% YoY, with data center sales jumping 60% to $1.2 billion (19% of total revenue).
- **Profitability Boost**: Adjusted EPS rose 9.5% to $1.08, driven by 10 bps EBITDA margin expansion and gross margin improvements.
- **2025 Guidance Upped**: Organic growth raised to 8-9%, EBITDA up 10-15%, and EPS to $13.10-$13.60.
- **2026 Vision**: Mid-single-digit growth with data center sales leading, targeting 20-30 bps margin expansion.
- **Cash Flow Caution**: Free cash flow use of $89 million in Q3 due to AR growth, but long-term cash generation remains strong.

**【CEO Summary Section】**
- **Revenue Growth**: Organic sales rose 12% YoY in Q3, marking 4 consecutive quarters of accelerating momentum. Total sales reached $6.2 billion, an all-time record.
- **Data Center Dominance**: Data center sales hit $1.2 billion (19% of total Q3 revenue), up 60% YoY, with trailing 12-month sales nearing $4 billion.
- **Business Unit Performance**: All 3 SBUs (Communications & Security Solutions, Electrical & Electronic Solutions, Utility & Broadband Solutions) delivered growth for the first time since Q1 2023.
- **2025 Outlook Update**: Raised full-year organic sales growth to 8-9% (from 5-7%), adjusted EBITDA up 10-15%, and adjusted EPS to $13.10-$13.60.
- **2026 Vision**: Target mid-single-digit organic growth, with data center sales expected to remain a key driver.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA margin improved 10 bps Q/Q to 6.8%, driven by gross margin expansion (21.3%) and SG&A leverage. Adjusted EPS grew 9.5% YoY to $1.08.
- **Cash Flow**: Free cash flow use of $89 million in Q3 due to AR growth ($271 million YoY increase). Full-year free cash flow guidance lowered to $400-500 million.
- **Tariff Impact**: Price benefit of <3% in Q3, with 100%+ YoY increase in supplier price notifications. Marginal impact on Q3 results, but potential upside in 2026.
- **Balance Sheet**: redeemed $540 million Series A preferred stock, reducing annual interest expense by $32 million.

**【Q&A Highlights】**
- **EES Growth Drivers**: Construction (mid-teens growth), industrial (mid-single digits), and OEM (mid-teens) all contributed, with data center sales up 60% YoY.
- **Data Center Margins**: CSS gross margin improved 30 bps Q/Q, despite lower margins on large hyperscale projects. Long-term focus on expanding services across data center lifecycle.
- **2026 Margin Outlook**: Target 20-30 bps EBITDA margin expansion, driven by supplier volume rebates, operating leverage, and reduced incentive comp headwinds.
- **Utility Recovery**: Investor-owned utilities up high single digits YoY, while public power expected to return to growth in 2026.


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