Thousands of global skilled trades union members set to train at WCC this summer
The influx of trades professionals brings not only advanced training to the region but a $23 million boost to the local economy.
Plasterers and cement masons; roofers; ironworkers; electrical workers; and plumbers and pipefitters will train with their respective trade organizations each for a week from June through August.
The 'Train the Trainer' partnerships bring union members from throughout the United States and countries such as Canada, Ireland, Australia and beyond. Through a multi-year program, trainers work to enhance their skills and safety practices and then go back to teach fellow trades workers in their organizations.
A new report from Destination Ann Arbor revealed that three of the major unions impacted the local businesses, restaurants and economies of Ann Arbor and Washtenaw County by $23 million last summer. Union members and their families booked nearly 21,000 nights of hotel rooms and spent nearly $18 million during their stay.
This year's summer of training kicked off Monday with approximately 120 members of the Operative Plasterers' and Cement Masons' International Association on campus.
The United Union of Roofers, Waterproofers & Allied Workers will bring approximately 200 members for training June 23-27.
The International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Union will bring approximately 700 members July 12-18.
The International Brotherhood of Electrical Workers – National Electrical Contractors Association (NTI) will bring approximately 2,000 members to the Ann Arbor area July 23-August 1. The electrical workers will split training between WCC and the nearby Eastern Michigan University campus, with about 1,000 concentrated at WCC.
The summer of training concludes the week of August 9-15 with up to 3,000 members of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (UA). Highlights of the week include Industry Day, in which hundreds of industry leaders and vendors are hosted on campus, as well as the UA's International Apprentice Contest (INAC).
Union trainers typically spend a week on campus enrolled in hands-on instruction to stay ahead of the curve in cutting-edge skills and technological developments within their industries. Some also return at various times throughout the year for specific training.
Additionally, union members may also enroll as WCC students to pursue a certificate or associate degree.
Destination Ann Arbor will host downtown Ann Arbor block parties July 30 for the electrical workers and August 11 for the United Association.
Operative Plasterers' and Cement Masons' International Association: June 9-13 – 120 people
United Union of Roofers, Waterproofers & Allied Workers: June 23-27 – 200 people
International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Union: July 12-18 – 700 people
International Brotherhood of Electrical Workers - National Electrical Contractors Association (NTI): July 23-August 1 – 2,000 people total (1,000 at WCC & 1,000 at EMU)
United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (UA): August 9-15 – 2,500-3,000 people
About Washtenaw Community CollegeWashtenaw Community College (WCC), Ann Arbor, Michigan, educates students through a wide range of associate and certificate programs in areas such as healthcare, business, STEM and advanced transportation and mobility. The college also works through community, business and union partnerships to develop highly specialized training programs to meet the region's workforce talent needs.
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7ba2fcc8-366d-49eb-882d-899cad331b07
CONTACT: MEDIA CONTACT Fran LeFort, 734-677-5295
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Important factors that could cause actual results or events to differ materially from those presented or implied in the forward-looking statements include, among others, the failure to achieve the anticipated benefits of, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions; the inability to successfully integrate acquired businesses; the impact of increased interest rates or borrowing costs; fluctuations in currency exchange rates; evolving impacts from tariffs or other trade tensions between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); failure to adequately protect Wesco's intellectual property or successfully defend against infringement claims; the inability to successfully deploy new technologies, digital products and information systems or to otherwise adapt to emerging technologies in the marketplace, such as those incorporating artificial intelligence; failure to execute on our efforts and programs related to environmental, social and governance (ESG) matters; unanticipated expenditures or other adverse developments related to compliance with new or stricter government policies, laws or regulations, including those relating to data privacy, sustainability and environmental protection; the inability to successfully develop, manage or implement new technology initiatives or business strategies, including with respect to the expansion of e-commerce capabilities and other digital solutions and digitalization initiatives; disruption of information technology systems or operations; natural disasters (including as a result of climate change), health epidemics, pandemics and other outbreaks; supply chain disruptions; geopolitical issues, including the impact of the evolving conflicts in the Middle East and Russia/Ukraine; the impact of sanctions imposed on, or other actions taken by the U.S. or other countries against, Russia or China; the failure to manage the increased risks and impacts of cyber incidents or data breaches; and exacerbation of key materials shortages, inflationary cost pressures, material cost increases, demand volatility, and logistics and capacity constraints, any of which may have a material adverse effect on the Company's business, results of operations and financial condition. 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NON-GAAP FINANCIAL MEASURES In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") above, this earnings release includes certain non-GAAP financial measures. These financial measures include organic sales growth, gross profit, gross margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, financial leverage, free cash flow, adjusted selling, general and administrative expenses, adjusted income from operations, adjusted operating margin, adjusted other non-operating (income) expense, adjusted provision for income taxes, adjusted income before income taxes, adjusted net income, adjusted net income attributable to WESCO International, Inc., adjusted net income attributable to common stockholders, and adjusted earnings per diluted share. The Company believes that these non-GAAP measures are useful to investors as they provide a better understanding of our financial condition and results of operations on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude items impacting comparability of results such as digital transformation costs, restructuring costs, cloud computing arrangement amortization, pension settlement cost and excise taxes on excess pension plan assets related to the final settlement of the Anixter Inc. Pension Plan, loss on abandonment of assets, the gain recognized on the divestiture of the WIS business, the loss on termination of business arrangement, and the related income tax effects, as well as the gain on the redemption of the Series A Preferred Stock, allowing investors to more easily compare the Company's financial performance from period to period. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Organic Sales Growth by Segment - Three Months Ended:Three Months EndedGrowth/(Decline)June 30, 2025June 30, 2024ReportedSalesAcquisitionForeign ExchangeWorkdayOrganic Sales EES(1) $ 2,257.8$ 2,134.55.8 %— %(0.2) %— %6.0 % CSS(1) 2,265.21,904.319.0 %1.5 %0.2 %— %17.3 % UBS 1,376.61,440.9(4.5) %— %(0.1) %— %(4.4) % Total net sales $ 5,899.6$ 5,479.77.7 %0.5 %— %— %7.2 % (1) In the first quarter of 2025, a portion of the EES reportable segment was moved to the CSS reportable segment as a result of operational realignment. As a result, the reportable segment financial information for the three months ended June 30, 2024 has been recast to conform to the current year presentation. The recast does not impact previously reported condensed consolidated results. Organic Sales Growth by Segment - Six Months Ended:Six Months EndedGrowth/(Decline)June 30, 2025June 30, 2024ReportedSalesAcquisition/DivestitureForeignExchangeWorkdayOrganic Sales EES(1) $ 4,323.1$ 4,198.83.0 %— %(0.9) %(0.8) %4.7 % CSS(1) 4,265.53,609.118.2 %1.9 %(0.6) %(0.8) %17.7 % UBS 2,654.73,021.8(12.1) %(6.3) %(0.3) %(0.8) %(4.7) % Total net sales $ 11,243.3$ 10,829.73.8 %(1.2) %(0.6) %(0.8) %6.4 % (1) In the first quarter of 2025, a portion of the EES reportable segment was moved to the CSS reportable segment as a result of operational realignment. As a result, the reportable segment financial information for the six months ended June 30, 2024 has been recast to conform to the current year presentation. The recast does not impact previously reported condensed consolidated results. Organic Sales Growth by Segment - Sequential:Three Months EndedGrowth/(Decline)June 30, 2025March 31, 2025ReportedSales AcquisitionForeign ExchangeWorkdayOrganic Sales EES $ 2,257.8$ 2,065.39.3 %— %1.2 %3.2 %4.9 % CSS 2,265.22,000.313.2 %— %1.1 %3.2 %8.9 % UBS 1,376.61,278.17.7 %— %0.4 %3.2 %4.1 % Total net sales $ 5,899.6$ 5,343.710.4 %— %1.0 %3.2 %6.2 %Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in the United States. There was no change in the number of workdays in the second quarter of 2025 compared to the second quarter of 2024. The first six months of 2025 had one less workday compared to the first six months of 2024. The second quarter of 2025 had two more workdays compared to the first quarter of 2025. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months EndedSix Months Ended Gross Profit:June 30, 2025June 30, 2024June 30, 2025June 30, 2024Net sales$ 5,899.6$ 5,479.7$ 11,243.3$ 10,829.7 Cost of goods sold (excluding depreciation and amortization)4,656.94,281.78,875.08,493.8 Gross profit$ 1,242.7$ 1,198.0$ 2,368.3$ 2,335.9 Gross margin21.1 %21.9 %21.1 %21.6 %Three Months Ended Gross Profit:March 31, 2025Net sales$ 5,343.7 Cost of goods sold (excluding depreciation and amortization)4,218.1 Gross profit$ 1,125.6 Gross margin21.1 %Note: Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months EndedSix Months EndedJune 30, 2025June 30, 2024June 30, 2025June 30, 2024 Adjusted SG&A Expenses:Selling, general and administrative expenses $ 872.2$ 828.4$ 1,708.5$ 1,657.8 Digital transformation costs(1) (7.6)(6.1)(13.8)(12.1) Restructuring costs(2) (0.5)(0.9)(1.6)(9.0) Loss on abandonment of assets(3) —(17.8)—(17.8) Excise taxes on excess pension plan assets(4) ———(4.8) Adjusted selling, general and administrative expenses $ 864.1$ 803.6$ 1,693.1$ 1,614.1 Percentage of net sales 14.6 %14.7 %15.1 %14.9 % Adjusted Income from Operations:Income from operations $ 322.2$ 323.5$ 563.1$ 586.5 Digital transformation costs(1) 7.66.113.812.1 Restructuring costs(1) 0.50.91.69.0 Loss on abandonment of assets(3) —17.8—17.8 Excise taxes on excess pension plan assets(4) ———4.8 Adjusted income from operations $ 330.3$ 348.3$ 578.5$ 630.2 Adjusted income from operations margin % 5.6 %6.4 %5.1 %5.8 % Adjusted Other (Income) Expense, net:Other income, net $ (7.3)$ (95.9)$ (7.1)$ (74.3) Gain on divestiture —102.9—102.9 Loss on termination of business arrangement(5) —(3.8)(0.3)(3.8) Pension settlement cost(6) ———(5.5) Adjusted other (income) expense, net $ (7.3)$ 3.2$ (7.4)$ 19.3 Adjusted Provision for Income Taxes:Provision for income taxes $ 61.8$ 87.8$ 97.9$ 118.7 Income tax effect of adjustments to income from operations and other (income) expense, net(7) 2.2(20.1)4.1(13.6) Adjusted provision for income taxes $ 64.0$ 67.7$ 102.0$ 105.1 (1) Digital transformation costs include costs associated with certain digital transformation initiatives. (2) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. (3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. (4) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan. (5) Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party. (6) Pension settlement cost represents expense related to the final settlement of the Company's U.S. pension plan. (7) The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 26.3% for the three and six months ended June 30, 2025 and 27.1% for the three and six months ended June 30, 2024. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months EndedSix Months EndedJune 30, 2025June 30, 2024June 30, 2025June 30, 2024 Adjusted Net Income Attributable to Common Stockholders:Net income attributable to common stockholders $ 189.2$ 217.7$ 293.2$ 319.2 Digital transformation costs(1) 7.66.113.812.1 Restructuring costs(2) 0.50.91.69.0 Loss on abandonment of assets(3) —17.8—17.8 Excise taxes on excess pension plan assets(4) ———4.8 Gain on divestiture —(102.9)—(102.9) Loss on termination of business arrangement(5) —3.80.33.8 Pension settlement cost(6) ———5.5 Income tax effect of adjustments to income from operations and other (income) expense, net(7) (2.2)20.1(4.1)13.6 Gain on redemption of Series A Preferred Stock (27.6)—(27.6)— Adjusted net income attributable to common stockholders $ 167.5$ 163.5$ 277.2$ 282.9 (1) Digital transformation costs include costs associated with certain digital transformation initiatives. (2) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. (3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. (4) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan. (5) Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party. (6) Pension settlement cost represents expense related to the final settlement of the Company's U.S. pension plan. (7) The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 26.3% for the three and six months ended June 30, 2025 and 27.1% for the three and six months ended June 30, 2024. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months EndedSix Months Ended Adjusted Earnings per Diluted Share: June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Adjusted income from operations $ 330.3$ 348.3$ 578.5$ 630.2 Interest expense, net 92.998.8179.2193.2 Adjusted other (income) expense, net (7.3)3.2(7.4)19.3 Adjusted income before income taxes 244.7246.3406.7417.7 Adjusted provision for income taxes 64.067.7102.0105.1 Adjusted net income 180.7178.6304.7312.6 Net income attributable to noncontrolling interests 0.30.70.21.0 Adjusted net income attributable to WESCO International, Inc. 180.4177.9304.5311.6 Preferred stock dividends 12.914.427.328.7 Adjusted net income attributable to common stockholders $ 167.5$ 163.5$ 277.2$ 282.9 Diluted shares 49.450.949.551.3 Adjusted earnings per diluted share $ 3.39$ 3.21$ 5.60$ 5.51Note: For the three and six months ended June 30, 2025, SG&A expenses, income from operations, the provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude digital transformation costs, restructuring costs, and the related income tax effects, and the gain on redemption of the Company's Series A Preferred Stock. Other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders and earnings per diluted share for the six months ended June 30, 2025 was also adjusted to exclude the loss on termination of business arrangement and the related income tax effect. For the three and six months ended June 30, 2024, SG&A expenses, income from operations, other non-operating (income) expense, the provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude the loss on abandonment of assets, digital transformation costs, restructuring costs, excise taxes on excess pension plan assets related to the final settlement of the Anixter Inc. Pension Plan, the gain recognized on the divestiture of the WIS business, the loss on termination of business arrangement, pension settlement cost, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months Ended June 30, 2025 EBITDA and Adjusted EBITDA by Segment:EESCSSUBSCorporateTotalNet income attributable to common stockholders$ 162.1$ 162.1$ 137.8$ (272.8)$ 189.2 Net income (loss) attributable to noncontrolling interests0.10.6—(0.4)0.3 Gain on redemption of Series A Preferred Stock———(27.6)(27.6) Preferred stock dividends———12.912.9 Provision for income taxes(1)———61.861.8 Interest expense, net(1)———92.992.9 Depreciation and amortization12.419.17.69.248.3 EBITDA$ 174.6$ 181.8$ 145.4$ (124.0)$ 377.8 Other expense (income), net7.315.7(2.2)(28.1)(7.3) Stock-based compensation expense1.01.40.55.58.4 Digital transformation costs(2)———7.67.6 Cloud computing arrangement amortization(3)———7.27.2 Restructuring costs(4)———0.50.5 Adjusted EBITDA$ 182.9$ 198.9$ 143.7$ (131.3)$ 394.2 Adjusted EBITDA margin %8.1 %8.8 %10.4 %6.7 % (1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. (2) Digital transformation costs include costs associated with certain digital transformation initiatives. (3) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (4) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring Months Ended June 30, 2024 EBITDA and Adjusted EBITDA by Segment:EES(1)CSS(1)UBSCorporateTotalNet income attributable to common stockholders$ 174.4$ 119.2$ 268.5$ (344.4)$ 217.7 Net income (loss) attributable to noncontrolling interests0.10.7—(0.1)0.7 Preferred stock dividends———14.414.4 Provision for income taxes(2)———87.887.8 Interest expense, net(2)———98.898.8 Depreciation and amortization11.318.37.49.146.1 EBITDA$ 185.8$ 138.2$ 275.9$ (134.4)$ 465.5 Other expense (income), net3.315.7(103.2)(11.7)(95.9) Stock-based compensation expense1.11.60.8(0.8)2.7 Loss on abandonment of assets(3)———17.817.8 Digital transformation costs(4)———6.16.1 Cloud computing arrangement amortization(5)———3.03.0 Restructuring costs(6)———0.90.9 Adjusted EBITDA$ 190.2$ 155.5$ 173.5$ (119.1)$ 400.1 Adjusted EBITDA margin %8.9 %8.2 %12.0 %7.3 % (1) In the first quarter of 2025, a portion of the EES reportable segment was moved to the CSS reportable segment as a result of operational realignment. As a result, the reportable segment financial information for the three months ended June 30, 2024 has been recast to conform to the current year presentation. The recast does not impact previously reported condensed consolidated results. (2) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. (3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. (4) Digital transformation costs include costs associated with certain digital transformation initiatives. (5) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (6) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months Ended March 31, 2025 EBITDA and Adjusted EBITDA by Segment:EESCSSUBSCorporateTotalNet income attributable to common stockholders$ 125.1$ 127.2$ 130.3$ (278.6)$ 104.0 Net (loss) income attributable to noncontrolling interests(0.1)0.1—(0.1)(0.1) Preferred stock dividends———14.414.4 Provision for income taxes(1)———36.136.1 Interest expense, net(1)———86.386.3 Depreciation and amortization12.219.07.89.448.4 EBITDA$ 137.2$ 146.3$ 138.1$ (132.5)$ 289.1 Other expense (income), net4.410.9(0.2)(14.9)0.2 Stock-based compensation expense1.01.30.47.510.2 Digital transformation costs(2)———6.26.2 Cloud computing arrangement amortization(3)———3.93.9 Restructuring costs(4)———1.11.1 Adjusted EBITDA$ 142.6$ 158.5$ 138.3$ (128.7)$ 310.7 Adjusted EBITDA margin %6.9 %7.9 %10.8 %5.8 % (1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. (2) Digital transformation costs include costs associated with certain digital transformation initiatives. (3) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (4) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring EBITDA, Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the three months ended June 30, 2025, Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs. For the three months ended June 30, 2024, Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, loss on the abandonment of assets, digital transformation costs, cloud computing arrangement amortization, and restructuring. For the three months ended March 31, 2025, Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs. Adjusted EBITDA margin % is calculated by dividing Adjusted EBITDA by net sales. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Six Months Ended June 30, 2025 EBITDA and Adjusted EBITDA by Segment:EESCSSUBSCorporateTotalNet income attributable to common stockholders$ 287.2$ 289.3$ 268.1$ (551.4)$ 293.2 Net income (loss) attributable to noncontrolling interests—0.7—(0.5)0.2 Gain on redemption of Series A Preferred Stock———(27.6)(27.6) Preferred stock dividends———27.327.3 Provision for income taxes(1)———97.997.9 Interest expense, net(1)———179.2179.2 Depreciation and amortization24.638.115.418.696.7 EBITDA$ 311.8$ 328.1$ 283.5$ (256.5)$ 666.9 Other expense (income), net11.726.6(2.4)(43.0)(7.1) Stock-based compensation expense2.02.70.913.018.6 Digital transformation costs(2)———13.813.8 Cloud computing arrangement amortization(3)———11.111.1 Restructuring costs(5)———1.61.6 Adjusted EBITDA$ 325.5$ 357.4$ 282.0$ (260.0)$ 704.9 Adjusted EBITDA margin %7.5 %8.4 %10.6 %6.3 % (1) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. (2) Digital transformation costs include costs associated with certain digital transformation initiatives. (3) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (4) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring Months Ended June 30, 2024 EBITDA and Adjusted EBITDA by Segment:EES(1)CSS(1)UBSCorporateTotalNet income attributable to common stockholders$ 319.4$ 210.8$ 429.3$ (640.3)$ 319.2 Net (loss) income attributable to noncontrolling interests(0.4)1.1—0.31.0 Preferred stock dividends———28.728.7 Provision for income taxes(2)———118.7118.7 Interest expense, net(2)———193.2193.2 Depreciation and amortization22.536.414.418.391.6 EBITDA$ 341.5$ 248.3$ 443.7$ (281.1)$ 752.4 Other expense (income), net8.335.2(102.4)(15.4)(74.3) Stock-based compensation expense2.13.31.65.812.8 Loss on abandonment of assets(3)———17.817.8 Digital transformation costs(4)———12.112.1 Restructuring costs(5)———9.09.0 Cloud computing arrangement amortization(6)———5.95.9 Excise taxes on excess pension plan assets(7)———4.84.8 Adjusted EBITDA$ 351.9$ 286.8$ 342.9$ (241.1)$ 740.5 Adjusted EBITDA margin %8.4 %7.9 %11.3 %6.8 % (1) In the first quarter of 2025, a portion of the EES reportable segment was moved to the CSS reportable segment as a result of operational realignment. As a result, the reportable segment financial information for the six months ended June 30, 2024 has been recast to conform to the current year presentation. The recast does not impact previously reported condensed consolidated results. (2) The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and treasury functions. (3) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. (4) Digital transformation costs include costs associated with certain digital transformation initiatives. (5) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. (6) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (7) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension Adjusted EBITDA and Adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the six months ended June 30, 2025, Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs. For the six months ended June 30, 2024, Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, loss on abandonment of assets, digital transformation costs, restructuring costs, cloud computing arrangement amortization, and excise taxes on excess pension plan assets related to the final settlement of the Anixter Inc. Pension Plan. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Twelve Months Ended Financial Leverage: June 30,2025December 31,2024 Net income attributable to common stockholders $ 634.2$ 660.2 Net income attributable to noncontrolling interests 1.11.8 Gain on redemption of Series A Preferred Stock (27.6)— Preferred stock dividends 56.057.4 Provision for income taxes 210.7231.6 Interest expense, net 350.8364.9 Depreciation and amortization 188.4183.2 EBITDA $ 1,413.6$ 1,499.1 Other income, net (25.4)(92.7) Stock-based compensation expense 34.728.9 Digital transformation costs(1) 26.524.9 Restructuring costs(2) 4.812.1 Cloud computing arrangement amortization(3) 19.314.1 Loss on abandonment of assets(4) —17.8 Excise taxes on excess pension plan assets(5) 0.14.9 Adjusted EBITDA $ 1,473.6$ 1,509.1As ofJune 30,2025December 31,2024 Short-term debt and current portion of long-term debt, net $ 27.3$ 19.5 Long-term debt, net 5,641.25,045.5 Debt issuance costs and debt discount(6) 54.547.2 Fair value adjustments to the Anixter Senior Notes(6) —(0.1) Total debt 5,723.05,112.1 Less: Cash and cash equivalents 667.0702.6 Total debt, net of cash $ 5,056.0$ 4,409.5 Financial leverage ratio 3.42.9 (1) Digital transformation costs include costs associated with certain digital transformation initiatives. (2) Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan. (3) Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives. (4) Loss on abandonment of assets represents the write-off of certain capitalized cloud computing arrangement implementation costs relating to a third-party developed operations management software product in favor of an application with functionality that better suits the Company's operations. (5) Excise taxes on excess pension plan assets represent the excise taxes applicable to the excess pension plan assets following the final settlement of the Company's U.S. pension plan. (6) Debt is presented in the condensed consolidated balance sheets net of debt issuance and debt discount costs, and includes adjustments to record the long-term debt assumed in the merger with Anixter at its acquisition date fair Financial leverage ratio is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt issuance costs, debt discount and fair value adjustments, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before other non-operating income, non-cash stock-based compensation expense, digital transformation costs, restructuring costs, cloud computing arrangement amortization, loss on abandonment of assets, and excise taxes on excess pension plan assets related to the final settlement of the Anixter Inc. Pension Plan. WESCO INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) (Unaudited) Three Months EndedSix Months Ended Free Cash Flow: June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Cash flow provided by (used in) operations $ 107.8$ (223.8)$ 135.8$ 522.5 Less: Capital expenditures (21.8)(20.8)(42.2)(41.2) Add: Other adjustments 0.510.52.316.0 Free cash flow $ 86.5$ (234.1)$ 95.9$ 497.3 Percentage of adjusted net income 47.9 %(131.1) %31.5 %159.1 %Note: Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three and six months ended June 30, 2025 and 2024, the Company paid for certain costs related to digital transformation and restructuring. Such expenditures have been added back to operating cash flow to determine free cash flow for such periods. Our calculation of free cash flow may not be comparable to similar measures used by other companies. View original content to download multimedia: SOURCE Wesco International
