Q1 2026 Wesco International Inc Earnings Call Transcript
Key Points
- WESCO International Inc (WCC) reported record first-quarter sales of $6.1 billion, marking a 14% increase and the third consecutive quarter of double-digit sales growth.
- Data center sales surged by approximately 70% year-over-year, contributing significantly to the company's overall sales and representing 24% of total company sales in the quarter.
- The company achieved a record backlog, up 22% compared to the previous year, indicating strong demand and effective cross-selling strategies.
- Adjusted EBITDA grew by 25%, with a margin expansion of 60 basis points, driven by gross margin expansion and strong operating cost leverage.
- WESCO International Inc (WCC) raised its full-year outlook for 2026, reflecting confidence in continued positive business momentum and market outperformance.
- Despite strong performance, the company remains cautious about the volatility of the broader macroeconomic environment, which could impact future results.
- The UBS segment experienced a 5% decline in adjusted EBITDA, with a margin decrease of 120 basis points due to gross margin pressure and higher SG&A expenses.
- The industrial segment within EES faced low single-digit declines, primarily due to project timing impacts, indicating potential challenges in project execution.
- Public power sales were flat year-over-year, and the market remains highly competitive, with expectations of continued gross margin pressure.
- The company is experiencing extended lead times in critical categories, which have persisted since the pandemic and could affect future project timelines.
Hello and welcome to WESCO's 2026 first-quarter earnings call. (Operator Instructions) Please note that this event is being recorded.
I would now hand the call over to Scott Gaffner, Senior Vice President, Investor Relations, to begin.
Thank you and good morning, everyone. Before we get started, I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not guarantees of performance and, by their nature, are subject to uncertainties. Actual results may differ materially. Please see our webcast slides and the company's SEC filings for additional risk factors and disclosures. Any forward-looking information speaks only as of this date, and the company undertakes no obligation to update the information to reflect changed circumstances.
Additionally, today, we'll use certain non-GAAP financial measures. Required information about these measures is available on our webcast slides and in our
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