WCC · WESCO International, Inc.

WESCO International delivered exceptional Q1 2026 results, with record net sales of $6.1 billion, up 14% reported and 12.3% organically year-over-year, driven by volume growth across all segments (CSS, EES, UBS) and favorable pricing. Data center sales reached $1.4 billion, up approximately 70% YOY and representing 24% of total sales, highlighting the strength of Wesco Data Center Solutions amid secular growth trends. Record backlog increased 22% YOY, with particularly strong growth in CSS (40%) and EES (14%), supporting sustained momentum. Profitability expanded significantly, with adjusted EBITDA rising 25% to $388.8 million and margin improving 60 basis points to 6.4%, fueled by gross margin gains (21.2%, +20 bps), operating leverage (adjusted SG&A at 15.3% of sales vs. 15.5% prior year), and lower cost of goods sold as a percentage of sales. Adjusted diluted EPS surged 52.5% to $3.37, aided by core operations, favorable FX, absent preferred dividends, and a lower effective tax rate of 21.8%. Cash generation was robust, with operating cash flow at $221 million (up $193 million YOY, driven by accounts payable changes and higher adjusted net income) and free cash flow of $213 million, equating to 128% of adjusted net income. CEO John Engel emphasized market outperformance, cross-selling effectiveness, and customer value proposition, while noting macro uncertainties but confidence in execution. The company raised its full-year 2026 outlook, particularly for CSS data center sales, positioning it to capitalize on data center lifecycle solutions across white space and gray space offerings.