Electrical supplies distributor Wesco reported its 2025 second quarter results on July 31, which showed an organic sales growth jump year-over-year, continuing a trend from the past several quarters, while profit margin saw a continued modest decline.

The Pittsburgh-based company posted total 2Q sales of $5.9 billion, up 8.0% year-over-year, with organic sales growth 7.2%. Wesco said the organic sales increase reflects an increase in Communication & Security Solutions (CSS), as well as growth in Electrical & Electronic Solutions (EES) and its data centers businesses.

“We continued to build on our positive sales momentum in the first half of 2025 and outperformed the market with our leading portfolio of products, services and solutions,” Wesco Chairman, President and CEO John Engel said in the company’s financial release. “Sales growth is accelerating, with organic sales up 6% in the first quarter, 7% in the second quarter, and preliminary July sales per workday up approximately 10% year-over-year. The second quarter performance was led by 17% organic growth in CSS and 6% organic growth in EES. Total data center sales eclipsed $1B in the quarter, setting a new mark, and were up 65% versus the prior year.”

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Wesco’s 2Q gross margin of 21.1% was down 80 basis points year-over-year, reflecting a decline in all three segments as increased project activity and product mix in the company’s EES segment and growth with hyperscale data center customers in the CSS was partially offset by higher supplier volume rates. Sequentially, gross margin was down 20 bps.

Adjusted EBITDA decreased 1.5% to $394.2 million, reflecting a $43.8 million increase in SG&A expenses, primarily driven by higher salaries and benefits, increased costs to operate facilities, an increase in transportation costs and higher IT costs, partially offset by a decrease in other income and deductions.

Engel added: “Our Wesco opportunity pipeline continues to grow, bid activity levels remain very strong, and backlog is at record levels, increasing both year-over-year and sequentially across all three business segments. Adjusted EBITDA margin was up 90 basis points sequentially as we generated strong operating leverage on higher topline sales and stable gross margin. All in all, we’re off to a good start in the first half of 2025 and we are building on that momentum for the remainder of the year.”

Wesco Promotes Company Veteran to Lead CSS Unit (June 19)

By Wesco business unit in 2Q:

• Electrical & Electronic Solution (EES) sales of $2.2 billion increased 6.0% year-over-year, with organic sales up 6.0%, Sequentially, sales were up 5.0%.
• Communications & Security Solutions (CSS) sales of $2.2 billion increased 17.0% year-over-year, with organic sales up 19.0%. In 2Q, the Wesco Data Center Solutions (WDCS) was up 60.0% year-over-year, driven by large project activity. Sequentially, sales were up 9.0%.
• Utility & Broadband Solutions (UBS) sales of $1.3 billion decreased 4.0% year-over-year, while organic sales were likewise down 4.0%. Sequentially, sales were up 4.0%.

“We are raising our full-year organic sales growth outlook based on our positive momentum through the first seven months of 2025 while maintaining our EPS mid-point,” Engel said. “We remain firmly focused on executing our cross-selling initiatives and enterprise-wide margin improvement program while delivering operational improvements enabled by our technology-driven business transformation.”

Wesco ranked No. 16 on MDM’s 2025 Top Distributors List for Industrial Supplies, No. 1 for Electrical/Data/Security and No. 5 for Safety.