Wesco International — No. 1 on MDM’s 2026 Top Electrical/Data/Security Distributors list — reported record 2Q26 sales of $6.67 billion, up 13% year-over-year and 10% sequentially, as growth accelerated across all three business units.

Organic sales increased 12.6%, driven by volume growth across the company and an estimated 3% pricing benefit. Wesco’s backlog climbed approximately 60% to a record level, fueled by data center awards, including a multi-year Grid Services contract with a hyperscale customer.

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“We have now posted four consecutive quarters of double-digit sales growth fueled by data centers,” Chairman, President and CEO John Engel said.

Wesco’s gross margin expanded 70 basis points to 21.8%. Adjusted EBITDA increased 24% to a record $487 million, while margin improved 60 basis points to 7.3%.

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By business unit:

• Communications and Security Solutions sales rose 18% to $2.68 billion, including approximately 45% growth for Wesco Data Center Solutions. The segment’s backlog increased about 95%, while adjusted EBITDA margin reached a record 10.2%.
• Electrical and Electronic Solutions sales increased 11% to $2.51 billion. Construction grew high-single digits, industrial improved low-single digits and OEM sales jumped more than 20%. Data center sales within EES increased more than 70%, while non-data center sales grew high-single digits.
• Utility and Broadband Solutions sales increased 7% to $1.47 billion, with utility up mid-single digits and broadband up mid-teens. Backlog rose about 80%, largely reflecting Grid Services awards, though competitive public power conditions pressured margins.

Wesco’s Outlook

Wesco raised its 2026 organic sales growth outlook to 9%-11% from 5%-8% and its reported growth forecast to 10%-12% from 6%-9%. It now expects $25.9 billion-$26.3 billion in annual sales and a 6.9%-7.1% adjusted EBITDA margin. However, the company lowered its free cash flow outlook to $300 million-$600 million from $500 million-$800 million. Preliminary July sales per workday were up high-teens.

The company also completed its approximately $136 million acquisition of Singapore-based Newark Engineering Group on July 1. Newark adds data center cooling, engineering, installation and lifecycle service capabilities in Southeast Asia.

MDM Analysis

For distributors serving electrical, communications, utility and industrial markets, Wesco’s quarter signals that demand is broadening beyond one exceptional data center category. Construction, OEM, MRO, broadband and utility activity all improved, while record backlogs suggest visibility extending well beyond the current quarter. Pricing remains supportive, but volume supplied most of Wesco’s growth, making the results a stronger demand indicator than a price-led revenue gain.

The caution is uneven profitability: utility margins remained pressured, while working-capital needs accompanied rapid growth. Still, Wesco’s raised outlook and preliminary July sales growth indicate market momentum is strengthening rather than fading.