Wesco Reports 8% Annual Sales Rise, 50% Data Center Growth, Lifts Dividend
Wesco’s Q4 net sales rose 10% YoY to $6.1B and full-year revenue climbed 8% to $23.5B, driven by data center sales up ~30% ($1.2B) in Q4 and ~50% ($4.3B) annually, with backlog up 19%. It forecasts 5–8% 2026 sales growth, ~6.8% EBITDA margin, and hikes dividend to $2.
1. Record Quarterly and Annual Sales
Wesco delivered Q4 net sales of $6.1 billion, a 10% increase year-over-year, and full-year 2025 sales of $23.5 billion, up 8%. GAAP diluted EPS rose 10.2% to $3.34 in the quarter, while full-year EPS held at $13.05.
2. Robust Data Center Growth
Data center sales surged to $1.2 billion in Q4 (+30%) and $4.3 billion for the full year (+50%), reflecting strong demand for AI-driven infrastructure and supply chain re-shoring.
3. 2026 Outlook and Capital Returns
The company projects 5–8% reported sales growth in 2026 with an adjusted EBITDA margin of roughly 6.8% at midpoint, $14.50–$16.50 adjusted EPS, and $500–$800 million in free cash flow. The board approved a 10% dividend increase to $2.00 per share.
4. Backlog Growth and Digital Transformation
Total backlog rose 19% year-over-year, with utility backlog up over 20%, providing a strong revenue runway for 2026. Wesco has piloted a new global technology stack and AI-driven data lake to boost margins and improve working capital efficiency.