Electrical, datacom and security supplies distributor Wesco International reported its 1Q26 financial results on April 30, led by surging datacenter market growth that led to record figures for the Pittsburgh-based company.

Wesco’s $6.08 billion were a 1Q company record and up 13.8% year-over-year, with organic sales up 12.3%. Sequentially, those figures were well ahead of 4Q25’s 10.3% and 9.2%, respectively. It was Wesco’s third straight quarter of double-digit total sales growth, leading to a 22% backlog increase to a new company-record level.

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Wesco saw total data center sales soar approximately 70% YoY, far ahead of the 30% growth in 4Q25. That market is approaching $5 billion in trailing 12-month sales for Wesco, representing 24% of 1Q sales and 20% of TTM sales.

The company’s total 1Q gross margin of 21.2% ticked up 10 basis points YoY. Adjusted EBITDA of $389 million jumped 25% as margin expanded 60 bps to 6.4%. Operating profit of $293.5 million increased 21.5%, and net profit of $154 million improved 2.5%.

“We delivered an exceptional start to 2026, building on last year’s market outperformance and accelerating business momentum,” Wesco Chairman, President and CEO John Engel said in the company’s earnings statement. “Sales, backlog, operating margin, adjusted earnings per share, and free cash flow all increased versus the prior year and exceeded our expectations.”

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By business segment during 1Q26, per Wesco:

Communications and Security Solutions (CSS) sales of $2.48 billion (41% of total) increased 24% overall YoY, with 22% organic growth driven by 21 percentage points from volume and just one point from price. 

• Wesco Data Center Solutions (WDCS) had another record quarter, with sales up approximately 60% YoY. Security sales were up high-single digits, while Enterprise Network Infrastructure was down mid-single digits (up high teens including data center projects. 
• CSS gross margin of 20.9% dipped 10 basis points YoY, while adjusted EBITDA soared 41% as margin of 9.0% improved 110 bps. Backlog was up about 40% YoY.

Electrical and Electronic Solutions (EES) sales of $2.24 billion (37% of total) increased 9% overall YoY, with 7% organic growth driven by three points from volume and 4 points from price.

• Construction was up low-double digits, driven by strong wire and cable demand and continued infrastructure and data center project activity. Industrial was down low-single digits, reflecting project timing impacts. OEM was up high-teens, driven by semiconductor and data center growth. Data center sales surged 100% YoY to represent 10% of EES total sales.
• EES gross margin of 23.8% jumped 100 bps YoY, while adjusted EBITDA grew 30% as margin of 8.2% improved 130 bps. The segment’s backlog grew 14% YoY.

Utility and Broadband Solutions (UBS) sales of $1.36 billion (22% of total) increased 6% YoY and organically, driven by three points each from volume and price.

• Utility delivered high-single digit growth, reflecting strong double-digit Large Investor-Owned growth and continued momentum in Grid Services, while Public Power stabalized with flat results. Broadband had mid-single digit growth, driven by U.S. strength.
• UBS gross margin of 17.7% fell 70 bps YoY and adjusted EBITDA declined 5% as margin of 9.6% slid 120 bps. The segment’s backlog grew 16% YoY.

On Feb. 10, Wesco announced the appointment of Indraneel “Neel” Dev as the company’s next Executive Vice President and Chief Financial Officer to succeed Dave Schulz, who will retire in May after 10 years with the company.

Updated 2026 Outlook

Looking ahead, Wesco raised its full-year guidance after the robust 1Q26. The company is now expecting organic sales growth of 5-8% (4-7% in February) and total ales growth of 6-9% (5-8% in Feb.) with reported sales of $24.9-25.6 billion (24.7-25.4B in Feb.). Wesco expects adjusted EBITDA margin of 6.6-7.0% — identical to February.