Wesco International Q4 and 2022 results “stellar”

PITTSBURGH – Wesco International shoots for the stars this week after revealing an impressive performance following its financial postmortem for 2022 and fourth fiscal quarter results.

At a glance the company displayed record net sales of $5.6 billion in the fourth quarter, up 15 percent year-over-year (YOY). There was operating profit of $382 million with an operating margin of 6.9 percent (Adjusted EBITDA of $451 million, up 41 percent YOY; adjusted EBITDA margin of 8.1 percent, up 150 basis points YOY) and a record operating cash flow of $422 million the logistics services and supply chain solutions provider stated during their earnings report on Feb. 14.

“Wesco delivered a stellar encore performance for the full year 2022 including exceptional fourth quarter results, clearly demonstrating our ability to drive sustained growth and market outperformance,” said John Engel, Chairman, President and CEO of Wesco International. “The success of our business model and integration efforts over the past two and a half years since our transformational combination with Anixter resulted in record full year sales of $21.4 billion, an increase of 18 percent over last year. We again set new company records for margin and profitability, and reduced leverage to below 3.0x for the first time since 2019. With this trajectory, we have taken a significant step forward in the achievement of our long-term target of 10 percent+ EBITDA margin. I am confident 2023 will be another transformational year with additional advances in our digital capabilities, strong topline growth, continued margin expansion and record free cash generation to support our capital allocation priorities.”

Engel goes on to attribute its Q4 success to secular demand trends, continued share gains, and an easing of the supply chain woes affecting the industry. Q4 also saw the companies acquisition of Rahi Systems, a data center solutions provider. Positive financial results have been the trend around the industry this year with companies like NAPCO, SecurityBridge, and Johnson Controls beginning to feel relief from past years supply chain issues and a push towards recurring revenue streams.

“We are building on our strong positive momentum and 2023 is off to an excellent start,” Engel concluded. He added, “Most importantly, our dedicated team of colleagues continues to provide resilient and critical supply chain solutions for our customers around the world, capturing the benefits of our exposure to sustainable secular trends that are deep and drive our future sales and profitability.”

The full investors report is available online from investors.wesco.com.