Wesco International (WCC) Q3 2026 Earnings Report
MX:WCC Q3 2026 EPS Results
- Actual EPS
- MXN 108.40
- Consensus EPS
- MXN 88.20
- Beat/Miss
- Beat by +MXN 20.19
- One Year Ago EPS
- MXN 73.64
MX:WCC Q3 2026 Revenue Results
- Actual Revenue
- MXN 135.76B
- Expected Revenue
- MXN 129.04B
- Beat/Miss
- Beat by +MXN 6.71B
- YoY Revenue Growth
- +16.57%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
MX:WCC Upcoming Earnings
Wesco International's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:WCC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Wesco reported record sales, profitability, backlog, cash flow generation and adjusted EPS, delivered broad-based growth across all three business units, significantly raised its 2026 outlook and described positive momentum entering the fourth quarter and 2027. The main challenges were flat broadband sales, competitive conditions in public power, seasonal and calendar factors affecting fourth-quarter leverage, and timing lags in data center project revenue realization.
Company Guidance
For 2026, Wesco expects CSS sales to grow about 20%, EES to grow low double digit, Wesco Data Center Solutions to grow more than 40%, and UBS to grow at a mid-single-digit rate; companywide guidance is organic sales growth of 13% to 14%, reported sales growth of 14% to 15%, full year sales of approximately $26.8 billion to $27 billion, adjusted EBITDA margin of approximately 7.2%, and adjusted EPS of $18 to $18.50 per share, while maintaining free cash flow guidance. For the fourth quarter, Wesco expects low to mid-teens reported sales growth and adjusted EBITDA margin expansion of approximately 50 basis points versus the prior year. For 2027, Wesco expects sales up mid- to high single digits, along with continued margin expansion, and digital transformation is expected to provide at least 100 basis points of EBITDA margin expansion.
- Utility and Grid Services MomentumUtility grew high single digit, driven by strong IOU performance, improving public power trends and continued infrastructure investments. IOUs grew double digits for the fourth consecutive quarter, public power grew for the second consecutive quarter, and grid services grew double digits for the last four quarters. Grid services is expected to grow double digits in the fourth quarter, and management said its margins are attractive and margin accretive.
- Strong Free Cash Flow GenerationThird-quarter free cash flow was $184 million. Management said cash flow generation was solid after investing in working capital to support strong sequential sales growth and maintained full-year free cash flow guidance despite significantly higher sales growth and working-capital implications.
- Working Capital ManagementNet working capital as a percentage of trailing 12-month sales was approximately 20%, remaining generally consistent with prior quarters despite higher sales, expanding margins and accelerating business momentum.
- Deleveraging and LiquidityNet leverage improved to 2.8x net debt to adjusted EBITDA from 3.4x at year-end, ending the quarter below 3x and improving every quarter over the past year. Wesco exited the quarter with available liquidity of over $2 billion, no significant near-term debt maturities and flexibility to support capital allocation priorities and future growth.
- Raised 2026 OutlookWesco significantly raised its full-year outlook. The company now expects organic sales growth of 13% to 14%, reported sales growth of 14% to 15%, full-year sales of approximately $26.8 billion to $27 billion, adjusted EBITDA margin of approximately 7.2% and adjusted EPS of $18 to $18.50 per share.
- Raised Business-Unit Growth ExpectationsThe company raised its 2026 growth expectations for CSS to about 20% and EES to low double digit. Within CSS, Wesco Data Center Solutions is now expected to grow more than 40%. UBS is still expected to grow at a mid-single-digit rate in 2026.
- Positive Fourth-Quarter StartPreliminary October sales per workday were up in the high teens year-over-year. Wesco expects low to mid-teens reported sales growth and adjusted EBITDA margin expansion of approximately 50 basis points in the fourth quarter versus the prior year.
- 2027 Growth ExpectationsManagement expects to continue outperforming its markets in 2027, with sales up mid- to high single digits and continued margin expansion. A full 2027 outlook will be provided with fourth-quarter earnings.
- Digital Transformation ProgressAll three strategic business units are running initial builds on the new digital platform in multiple locations. Wesco successfully deployed the platform in a more complex end-to-end operation during the first half of the year. Management said the digital transformation target is at least 100 basis points of EBITDA margin expansion and that it sees material opportunities and upside.
- AI and Data-Lake CapabilitiesWesco has expanded from standard AI applications to generative AI and true Agentic AI applications using its new technology stack and company data lake. Management said AI is already providing enhanced analytics and productivity benefits, supporting operating cost leverage and potentially helping accelerate sales growth.
- Record Third-Quarter ResultsWesco delivered record third-quarter sales, backlog, operating profit, adjusted EBITDA and adjusted earnings per share. Sales, backlog, operating profit and earnings per share all increased double digits versus the prior year and exceeded expectations.
- Broad Data Center ExposureManagement stated that Wesco's data center business serves hyperscalers, multi-tenant data centers, emerging AI players and enterprise-class customers globally. Enterprise AI investment is expanding into hybrid and private AI infrastructure and deployment closer to the edge, areas management said align with Wesco's white space, gray space, power and infrastructure capabilities.
- Footprint Optimization and Capacity InvestmentsWesco has continued combining facilities where appropriate while adding materially larger facilities with expanded capabilities for value-added services. A new large Texas facility includes Level 10, Level 11 and Level 12 data center testing capability for full server racks.
- Services-Led Data Center Margin ExpansionManagement said data center gross margin improvement is being driven less by price and more by adding products through the project life cycle and increasing services content during construction and after deployment. Wesco has added capabilities through acquisitions covering day 2 through day end of the data center.
- Stock-and-Flow Momentum in EESManagement reported a pickup in stock-and-flow business, most notably in EES. Construction was accelerating, Industrial was improving and OEM showed further acceleration. Management also stated that it believes the company is at the beginning of an industrial super cycle.
- Customer Value Proposition and Cross-SellingWesco said its global capabilities, product, service and solution portfolio, added services and One Wesco cross-selling strategy are helping it outperform the market and increase customer reliance across diversified end markets.
- Investor Data Center EventWesco plans to host a virtual investor event on November 10 covering its leadership position in data centers, differentiated solutions across the data center life cycle and its One Wesco strategy.
- Broad-Based Organic Sales GrowthOrganic sales increased 17% to $7.2 billion, with approximately 3% contribution from pricing and approximately 14% from volume. Sales growth was broad-based across all three business units, and non-data center sales increased 7% year-over-year.
- Record Profitability and Margin ExpansionAdjusted EBITDA increased 33% to a record $562 million, while adjusted EBITDA margin expanded approximately 100 basis points to 7.8%. Gross margin increased to 21.7%, and SG&A improved approximately 50 basis points as strong sales growth, productivity and disciplined cost management drove operating leverage.
- Record Adjusted EPSAdjusted EPS increased 47% year-over-year to a record $5.77 per share, driven primarily by higher sales and margin expansion.
- Exceptional Backlog GrowthBacklog increased over 80% year-over-year to a new record level for each of Wesco's three business units. Management said backlog growth was fueled by multi-year customer commitments and increased customer reliance on Wesco across communications, security, electrical, utility and power markets.
- Strong Data Center PerformanceThird-quarter data center sales increased approximately 55% year-over-year to a record $1.8 billion. Data center sales were approximately $6 billion on a trailing 12-month basis and represented approximately 23% of company sales. Management stated that the data center business remains margin accretive to Wesco and a meaningful contributor to profitability and margin expansion.
- CSS Growth and ProfitabilityCSS sales increased 22% to a record $2.9 billion, with organic growth of 21%. Wesco Data Center Solutions grew approximately 40%, primarily driven by hyperscale and multi-tenant data center customers. CSS backlog increased approximately 140% year-over-year to a record level, while adjusted EBITDA increased 42% to a record $313 million and adjusted EBITDA margin expanded 160 basis points to a record 10.7%.
- EES Growth Across Core End MarketsEES sales increased 18% to a record $2.8 billion. OEM grew approximately 30%, Construction grew mid-teens, and Industrial increased mid-single digit. EES data center sales increased more than 100% year-over-year, while EES excluding data center grew high single digit. EES backlog increased approximately 40% year-over-year to a record level.
- EES Record ProfitabilityEES adjusted EBITDA increased 31% to a record $259 million, and EBITDA margin expanded 90 basis points to 9.3%. Management attributed margin expansion to gross margin improvement and operating leverage from strong sales growth and effective cost management.
- UBS Growth and Sequential Margin ImprovementUBS sales increased 6% to $1.5 billion, with organic sales up 7%. Adjusted EBITDA increased 6% to $158 million, and EBITDA margin remained strong at 10.4%, improving 40 basis points sequentially. UBS delivered a third consecutive quarter of sequential margin improvement and maintained a double-digit EBITDA margin.
MX:WCC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | 86.83- | 63.87 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 88.20108.40 | 73.64 | 47.19% (+34.75) | |
| Jul 30, 2026 | 2026 (Q2) | 74.7585.85 | 63.68 | 34.81% (+22.17) | |
| Apr 30, 2026 | 2026 (Q1) | 53.3163.31 | 41.52 | 52.49% (+21.79) | |
| Feb 10, 2026 | 2025 (Q4) | 73.0863.87 | 59.36 | 7.59% (+4.51) | |
| Oct 30, 2025 | 2025 (Q3) | 71.8073.64 | 67.25 | 9.50% (+6.39) | |
| Jul 31, 2025 | 2025 (Q2) | 62.9763.68 | 60.3 | 5.61% (+3.38) | |
| May 01, 2025 | 2025 (Q1) | 43.6641.52 | 43.21 | -3.91% (-1.69) | |
| Feb 11, 2025 | 2024 (Q4) | 60.8359.36 | 49.78 | 19.25% (+9.58) | |
| Oct 31, 2024 | 2024 (Q3) | 60.2367.25 | 84.35 | -20.27% (-17.10) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed