Wesco International (WCC) · Q2 2026 results and valuation

The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.

1. Guidance ↑

   WCC significantly raised its full-year outlook for sales, EBITDA, and EPS.

   Source quote

   “As a result, we are significantly raising our full-year outlook for sales, EBITDA and EPS.”

2. Guidance

   WCC updated its guidance for CSS to expect reported sales growth of mid to high teens year-over-year on a percentage basis.

   Source quote

   “Within CSS, we now expect reported sales growth of mid to high teens year-over-year on a percentage basis.”

3. Figure

   Adjusted EBITDA reached a record level and increased by 24% compared to the previous quarter.

   Source quote

   “Record adjusted EBITDA was up 24%.”

4. Fading

   CSS is now expected to grow reported sales by mid-to-high teens year over year.

   Source quote

   “Adjusted EBITDA grew 25% and adjusted EBITDA margin expanded 60 basis points driven by gross margin expansion and strong operating... Profit growth, margin improvement, and free cash flow generation were also excellent in the first quarter. Adjusted diluted earnings per share was up 52% versus the prior year.”

Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“The margin improvement was driven by strong gross margin expansion to a record 24.4%.”

“Adjusted EBITDA grew 24% to a record $487 million, and margin expanded 60 basis points to 7.3% of sales.”

“Adjusted EBITDA increased 37% and adjusted EBITDA margin expanded 140 basis points to a record 10.2%.”