Westcon-Comstor hits record USD $5.24 billion sales in FY25
This represents a 3.3% increase from its prior year's gross sales of USD $5.08 billion. The company also saw a rise in gross profit, which climbed 9.4% to USD $441 million, compared to USD $403 million in the previous year.
Gross margin improved to 22.4% on total revenue of USD $1.97 billion, up from 18.2% for the prior year, as restated to reflect changes in accounting treatment. Adjusted EBITDA for the period reached USD $149.9 million, a nearly 25% increase from USD $120.2 million in the previous year. The adjusted EBITDA margin also saw an increase to 7.6%, up from 5.4%.
Cybersecurity products and solutions were major contributors to the company's results, with gross sales in this area rising 19.3% year-on-year. Cybersecurity accounted for 51% of Westcon-Comstor's total gross sales in FY25. The company attributed this growth to expanded partnerships with cybersecurity vendors and the expansion of value-added offerings such as data, enablement, and education programmes.
The company's shift from traditional hardware distribution towards software, cloud, and recurring revenue models continued. Hardware accounted for just 32% of total gross sales, while software sales increased 22.2% to USD $2.33 billion. Software now represents 44% of overall gross sales, up from 38% a year ago.
Recurring sales – primarily those derived from software and service subscriptions – now comprise 66% of gross sales, compared to 60% last year. Westcon-Comstor highlighted this as part of a broader strategy to adopt recurring revenue models and solution lifecycle selling, reflecting a transformation trajectory shared with many of its vendors and channel partners.
The company also reported deepened relationships with its core group of nine main vendors across cybersecurity, networking, and cloud. These vendors accounted for USD $4.20 billion of gross sales, representing 80% of the company's total for the year and marking year-on-year growth of 4.9%, which outpaced overall gross sales growth.
Chief Executive Officer David Grant commented on the results: "I'm thrilled to mark another year of exceptional financial and operational performance, with strong progress against our core strategic objectives and a continued relentless focus on delivering partner success. Distribution is evolving and we're proud to be at the forefront of this change, enabling partners and vendors to grow through our suite of value-added services and market-leading programmes.
"In a changing world, we are proud to be a future-ready business that combines best-in-class data and digital platforms with deep relationships, leading market shifts and anticipating change to empower our partners and vendors to stay ahead of the curve. I'd like to pay tribute to our 3,700-plus employees around the world for their dedication and creativity. Without our people and the ambitious culture they embody, results like this wouldn't be possible."
Chief Financial Officer and Chief Operating Officer Callum McGregor added: "With strong fundamentals and positive performance across key metrics, FY25 saw us maintain the growth trajectory that has characterised our business for the best part of a decade. Despite the challenging backdrop of geopolitical and macroeconomic uncertainty, FY26 offers opportunities for further growth thanks to our healthy sales pipeline, track record of innovation and strong relationships with partners and vendors."
The FY25 financials reflect Westcon-Comstor's efforts to align with ongoing changes in technology consumption and delivery models, as the company continues its move from hardware towards software and recurring subscription-based solutions.
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