Wesco International (NYSE:WCC) reported stronger-than-expected second-quarter results, with record revenue and earnings driven by continued growth in its data center business.
The upbeat earnings report lifted the company’s shares 1.18% in premarket trading.
Record Revenue and Earnings Surpass Forecasts
Wesco posted adjusted earnings of $4.57 per share for the second quarter, exceeding the analyst consensus estimate of $3.98 by $0.59.
Quarterly revenue reached a record $6.7 billion, ahead of market expectations of $6.44 billion and up 13% from the same period a year earlier.
Organic sales increased 12.6% year over year, with growth recorded across all three of the company’s operating segments.
Data Center Demand Continues to Drive Growth
Revenue from Wesco’s data center business climbed approximately 45% from the prior year to $1.5 billion.
The company’s total backlog also reached a record level after increasing roughly 60% year over year, reflecting continued customer demand and a strong project pipeline.
“We delivered another exceptional quarter marked by continued market outperformance and accelerating business momentum,” said John Engel, Chairman, President, and CEO. “Sales, backlog, adjusted EBITDA, and adjusted earnings per share all increased versus the prior year and achieved records that exceeded our plan.”
Margins Improve as Outlook Is Raised
Adjusted EBITDA increased 23.6% to $487.2 million from $394.2 million a year earlier.
Adjusted EBITDA margin expanded by 60 basis points to 7.3%, while gross margin improved to 21.8% from 21.1%, supported by stronger performance in the EES and CSS business segments.
During the quarter, Wesco generated operating cash flow of $53.7 million and free cash flow of $32.3 million.
Following its stronger first-half performance and improving business momentum, the company raised its full-year 2026 guidance.
Expansion Strengthens Data Center Capabilities
Wesco also announced that it secured a multi-year Grid Services contract from a hyperscale data center customer, marking a significant milestone for the business.
In addition, the company completed the acquisition of Singapore-based Newark Engineering, expanding its capabilities in data center cooling solutions.