Wesco International closed 2025 with record sales and a sharply higher backlog as demand from data centers, electrification and utility projects accelerated. Now the distributor is focused on how quickly it can translate that demand into orders, accurate pricing, efficient fulfillment, and stronger cash flow.
Wesco reported $23.5 billion in sales for the year, up 8% from 2024. Fourth-quarter sales rose 10%, and backlog at year end was 19% higher than a year earlier.
At the same time, operating cash declined as receivables and inventory increased alongside large project work — a common pattern for distributors serving complex customers with extended payment terms and sizable material commitments.
Chief Executive Officer John Engel said the answer is not additional price increases or cost cuts, but better use of data across Wesco’s network of more than 700 branches, distribution centers, and service locations worldwide.
“We made excellent progress on our enterprise-wide digitalization efforts in 2025,” Engel said. “The centerpiece of our new tech stack is a world-class data lake where we’re working to apply AI to improve the efficiency and effectiveness of our business.”
Wesco said it invested more than $35 million in 2025 on its digital transformation, including pilot deployments across its Communications and Security Solutions, Electrical and Electronic Solutions, and Utility and Broadband Solutions business units. The goal is to replace a mix of legacy systems with a single digital backbone connecting pricing, inventory, customer data, and order management across the company.
Executives said the system is designed to give sales teams consistent visibility into contract pricing, improve inventory accuracy across locations, make it easier to sell across business units, and tighten the connection between ecommerce orders and local fulfillment.
Engel said those changes are expected to improve margins, lower operating costs, and help Wesco move inventory and receivables more quickly.
Wesco is a global business-to-business distributor supplying the products, logistics and supply-chain services used to build, power, connect and secure commercial, industrial, and utility infrastructure. The company operates between thousands of manufacturers and customers such as data center operators, utilities, contractors, manufacturers, government agencies, and telecommunications providers.
Its role is to ensure the right materials arrive where they are needed for large, complex projects that often span multiple suppliers and job sites.
Wesco’s product portfolio includes electrical and industrial supplies such as wire, cable, lighting, and switchgear; data center and network infrastructure such as fiber, racks, and connectivity equipment; utility and grid hardware including transmission and distribution materials; and security and communications systems such as cameras, access control, and fire-safety equipment.
Beyond distribution, the company provides project staging and kitting, customer and jobsite inventory management, technical sourcing, logistics and direct-to-jobsite delivery, and e-commerce ordering tied to local branch fulfillment.
Much of Wesco’s recent growth is tied to large projects serving AI-driven data centers, power generation and grid infrastructure.
Sales in the Communications and Security Solutions segment grew 16% in the fourth quarter. Electrical and Electronic Solutions sales rose 9%. The Utility and Broadband Solutions segment continued to face pressure with public-power customers, though orders from investor-owned utilities improved late in the year and backlog increased more than 20%.
Those projects often come with extended payment cycles and significant inventory positions, which can weigh on cash flow even as revenue rises. Wesco said higher receivables and inventory were the primary reasons operating cash declined in 2025.
The company said its new data platform is intended to give leaders and frontline teams a single view of orders, pricing, and inventory across all locations, reducing delays between quoting, ordering, fulfillment, and payment.
Wesco said it expects steady sales growth, margin improvement, and stronger cash performance in 2026 as the system moves from pilot programs to broader use. The company also plans to raise its annual dividend by 10%.
For distributors seeing similar growth in data centers, electrification and utility infrastructure, Wesco’s results highlight a broader shift: demand is increasing, but competitive advantage increasingly depends on how effectively distributors use data, AI, and ecommerce tools to convert that demand into faster orders, tighter pricing, and more efficient fulfillment.
Do not miss any content from Distribution Strategy Group. Join our list.
