WESCO Q3 Earnings Beat Estimates, Sales Increase Y/Y, Shares Rise

WESCO International WCC shares have surged roughly 3% following an impressive third-quarter 2025 results. Adjusted earnings of $3.92 per share increased 9.5% year over year. The bottom line beat the Zacks Consensus Estimate by 4.53%.Net sales of $6.2 billion increased 13% year over year. The figure beat the Zacks Consensus Estimate by 5.17%. Organic sales increased 2.4% year over year.WCC’s Top-Line DetailsThe EES Segment (38.1% of Net Sales): Sales in the segment were $2.36 billion, up 11.8% year over year. Organic sales increased 11.9% year over year.  WESCO International, Inc. Price, Consensus and EPS Surprise WESCO International, Inc. price-consensus-eps-surprise-chart | WESCO International, Inc. Quote CSS (38.9% of Net Sales): Sales in the segment were $2.41 billion, up 20.8% year over year. Organic sales increased 18.3% on a year-over-year basis. UBS (23% of Net Sales): Sales in the segment were $1.43 billion, up 3.3% year over year. Organic sales increased 3.4% year over year.WCC’s Operating DetailsThe third-quarter 2025 gross margin was 21.3%, down 80 basis points (bps) year over year.The adjusted EBITDA margin of 6% declined 100 bps year over year.Selling, general and administrative expenses were $914.1 million, up 10.8% year over year. As a percentage of net sales, the figure decreased 30 bps year over year to 14.7%.The adjusted operating margin was 5.7%, which contracted 50 bps year over year.WCC’s Balance Sheet Remains StrongAs of Sept. 30, 2025, cash and cash equivalents were $571.9 million, down from $667 million as of June 30, 2025.The long-term debt was $5.72 billion at the third-quarter end compared with $5.64 billion in the prior quarter.Net cash used in operating activities for the third quarter of 2025 totaled $82.7 million.WESCO Raises 2025 OutlookFor 2025, WESCO expects organic sales growth between 8% and 9%. Sales on a reported basis are expected to be $21.8-$22.7 billion.WESCO expects the adjusted EBITDA margin to be 6.6%. The adjusted earnings is expected between $13.10 and $13.60 per share.The free cash flow is expected between $400 and $500 million. For the fourth quarter of 2025, reported sales are expected to increase in the high single-digit range. Adjusted EBITDA is expected to increase roughly 30 bps.Zacks Rank & Other Stocks to ConsiderWESCO carries a Zacks Rank #2 (Buy) at present.Fair Isaac FICO, StoneCo STNE, and Simulations Plus SLP are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.Fair Isaac shares have dropped 16.6% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.StoneCo shares have returned 138.5% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.   Simulations Plus shares have dropped 38.4% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WESCO International, Inc. (WCC): Free Stock Analysis Report Simulations Plus, Inc. (SLP): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks