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1. Company Snapshot

1.a. Company Description

WESCO International, Inc.provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally.It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS).


The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products.This segment also offers contractor solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions.The CSS segment operates in the network infrastructure and security markets.


This segment sells products directly to end-users or through various channels, including data communications contractors, security, network, professional audio/visual, and systems integrators.It also provides safety and energy management solutions.The UBS segment offers products and services to investor-owned utilities; public power companies; and service and wireless providers, broadband operators, and contractors.


This segment's products include wire and cable, transformers, transmission and distribution hardware, switches, protective devices, connectors, conduits, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices.This segment also offers various service solutions, including fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and metering infrastructure installation, personal protective equipment dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management.The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

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1.b. Last Insights on WCC

Wesco International's recent performance was driven by strong sales growth, with record fourth-quarter reported net sales of $6.1 billion, up 10% year-over-year. The company's data center sales surged ~30% year-over-year, reaching $1.2 billion. Wesco's growth attributes make it an incredible growth stock. However, the company's Q4 earnings missed estimates, with earnings of $3.4 per share, below the Zacks Consensus Estimate of $3.82 per share. The company forecasts 5-8% reported sales growth and adjusted EBITDA margin of ~6.8% for 2026.

1.c. Company Highlights

2. WESCO Delivers Record Sales and Outperforms Market Expectations

WESCO's financial performance in the fourth quarter was impressive, with record sales reaching $6.1 billion, a 10% year-over-year increase, including 9% organic growth. The company's data center sales also achieved a significant milestone, with sales reaching $1.2 billion, a 30% year-over-year increase. However, the company's EPS of $3.4 was below analyst estimates of $3.82. The adjusted EBITDA margin expanded, driven by improved gross margin and operating leverage.

Publication Date: Feb -12

📋 Highlights
  • Leadership Transition: CFO David Schulz will retire in May 2026, succeeded by Neil Deve as Executive Vice President and CFO.
  • Record Fourth-Quarter Sales: Generated $6.1 billion in sales (+10% YoY), driven by 9% organic growth and $1.2 billion in data center sales (+30% YoY).
  • Segment Performance: CSS grew 17% organically, EES 8%, and UBS 3%, with CSS backlog up 40% year-over-year.
  • 2026 Guidance: Targets 4–7% organic sales growth, $14.50–$16.50 diluted EPS (+20% midpoint growth), and $500M–$800M free cash flow.
  • Digital Transformation: Deployed a new tech stack with AI integration in pilot locations, focusing on data lakes to enhance operational efficiency.

Segment Performance

The company's segments performed variably, with CSS delivering 17% organic growth, EES growing 8%, and UBS organic sales increasing by 3%. CSS backlog increased nearly 40% to a record level, driven by continued strength in WESCO data center solutions. EES reported organic sales growth of 9%, driven by growth across construction, industrial, and OEM. UBS reported organic sales growth of 3%, driven by mid-single-digit growth at IOU customers, partially offset by softness with public power customers.

Outlook and Guidance

WESCO expects to continue outperforming the market in 2026, with mid-to-high single-digit organic sales growth, strong operating leverage, and margin expansion. The company expects adjusted diluted EPS to be in the range of $14.50 to $16.50, a growth rate of 20% at the midpoint. The company's guidance implies a revenue growth rate of 5% to 8%, which is slightly above analyst estimates of 5.3%. The expected improvement in free cash flow generation is also a positive, with a guided range of $500 million to $800 million.

Valuation and Metrics

Using the current stock price and the guided EPS range, the P/E Ratio is around 23.18, indicating that the stock may be slightly overvalued. The P/S Ratio is 0.63, and the EV/EBITDA is 9.83, both of which are reasonable. The Dividend Yield is 0.6%, which is relatively low. The company's return on equity (ROE) is 13.13%, and the return on invested capital (ROIC) is 7.57%, both of which are respectable. As John Engel mentioned, "I'm confident that WESCO will continue to outperform our markets and deliver exceptional value to our customers and shareholders in 2026 and beyond."

3. NewsRoom

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Diane Lazzaris Sells 2,747 Shares of WESCO International (NYSE:WCC) Stock

Feb -20

Source: defenseworld.net

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Diane Lazzaris Sells 17,294 Shares of WESCO International (NYSE:WCC) Stock

Feb -20

Source: defenseworld.net

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WESCO International, Inc. (NYSE:WCC) Given Consensus Rating of “Moderate Buy” by Brokerages

Feb -19

Source: defenseworld.net

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Diamond Hill Select Strategy Q4 2025 Portfolio Review

Feb -15

Source: seekingalpha.com

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WESCO Q4 Earnings Miss Estimates, Sales Increase Y/Y, Shares Fall

Feb -11

Source: zacks.com

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Are You Looking for a Top Momentum Pick? Why Wesco International (WCC) is a Great Choice

Feb -11

Source: zacks.com

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Heartland Small Cap Value Plus Strategy Q4 2025 Portfolio Activity

Feb -11

Source: seekingalpha.com

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WESCO International, Inc. (WCC) Q4 2025 Earnings Call Transcript

Feb -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.84%)

6. Segments

Electrical & Electronic Solutions

Expected Growth: 2.8%

WESCO International's Electrical & Electronic Solutions segment growth of 2.8% is driven by increasing demand for industrial automation, renewable energy, and electrification of transportation. Additionally, growth in data center construction, 5G network deployments, and IoT adoption are contributing to the segment's expansion.

Communications & Security Solutions

Expected Growth: 3.2%

WESCO International's Communications & Security Solutions segment growth of 3.2% is driven by increasing demand for network infrastructure, cybersecurity, and IoT solutions. Additionally, the rising need for data centers, cloud computing, and 5G network deployments is fueling growth. Furthermore, government initiatives and investments in smart cities and public safety projects are also contributing to the segment's growth.

Utility & Broadband Solutions

Expected Growth: 2.5%

WESCO International, Inc.'s Utility & Broadband Solutions segment growth of 2.5% is driven by increasing demand for reliable and efficient energy infrastructure, government initiatives for grid modernization, and rising adoption of 5G and fiber-optic networks. Additionally, the segment benefits from WESCO's strong relationships with utility companies and its ability to provide comprehensive solutions for their infrastructure needs.

7. Detailed Products

Electrical and Electronic Solutions

WESCO International, Inc. offers a wide range of electrical and electronic solutions, including electrical distribution and control products, lighting and lighting controls, and data communications and security products.

Industrial and MRO Supplies

The company provides a broad range of industrial and MRO (maintenance, repair, and operations) supplies, including abrasives, adhesives, and sealants, as well as tools and equipment.

Communications and Security Solutions

WESCO International, Inc. offers a variety of communications and security solutions, including network infrastructure, wireless communications, and security systems.

Utility and Broadband Solutions

The company provides a range of utility and broadband solutions, including transmission and distribution products, and broadband infrastructure products.

Data and Broadband Solutions

WESCO International, Inc. offers data and broadband solutions, including data center infrastructure, broadband infrastructure, and network infrastructure.

8. WESCO International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WESCO International, Inc. operates in a industry where substitutes are available, but they are not a significant threat to the company's business. The score is 3, indicating a medium level of threat.

Bargaining Power Of Customers

WESCO International, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The score is 2, indicating a low level of bargaining power.

Bargaining Power Of Suppliers

WESCO International, Inc. has a moderate level of dependence on its suppliers, but it has also diversified its supplier base to mitigate this risk. The score is 3, indicating a medium level of bargaining power.

Threat Of New Entrants

WESCO International, Inc. operates in an industry with high barriers to entry, making it difficult for new entrants to join the market. The score is 2, indicating a low level of threat.

Intensity Of Rivalry

WESCO International, Inc. operates in a highly competitive industry, with many established players competing for market share. The score is 4, indicating a high level of intensity.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.21%
Debt Cost 8.45%
Equity Weight 45.79%
Equity Cost 14.23%
WACC 11.10%
Leverage 118.39%

11. Quality Control: WESCO International, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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MSC Industrial Direct Co

A-Score: 6.0/10

Value: 4.0

Growth: 3.7

Quality: 6.0

Yield: 8.0

Momentum: 6.0

Volatility: 8.3

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Applied Industrial Technologies

A-Score: 5.3/10

Value: 3.1

Growth: 7.1

Quality: 7.2

Yield: 2.0

Momentum: 4.5

Volatility: 8.0

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Watsco

A-Score: 5.2/10

Value: 3.1

Growth: 6.8

Quality: 7.1

Yield: 6.0

Momentum: 1.0

Volatility: 7.3

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WESCO

A-Score: 5.0/10

Value: 4.5

Growth: 7.8

Quality: 3.9

Yield: 1.0

Momentum: 8.0

Volatility: 5.0

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Pool

A-Score: 4.7/10

Value: 3.6

Growth: 6.8

Quality: 6.1

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

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Core & Main

A-Score: 4.6/10

Value: 3.6

Growth: 8.4

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

296.99$

Current Price

296.99$

Potential

-0.00%

Expected Cash-Flows