WESCO International, Inc.

Hello, and welcome to Wesco's 2025 Second Quarter Earnings Call. I would like to remind you that all lines are in listen-only mode throughout the presentation. If you would like to ask a question, please press star followed by one on your telephone keypad. Please note that this event is being recorded. I will now hand the call over to Scott Gaffner, SVP, Investor Relations, to begin. Please go ahead.

Thank you, and good morning. Before we begin, I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not guarantees of performance and by their nature are subject to uncertainties. Actual results may differ materially. Please see our webcast slides and the company's SEC filings for additional risk factors and disclosures. Any forward-looking information speaks only as of this date and the company undertakes no obligation to update the information or reflect change circumstances. Additionally, today we will be using certain non-GAAP financial measures. Required information about these measures is available on our webcast slides and in our press release, both of which are posted on our website at wesco.com. On the call this morning, we have John Engel, Wesco's Chairman, President, and Chief Executive Officer, and Dave Schultz, Executive Vice President and Chief Financial Officer. Now I'll turn the call over to John.

Well, thank you, Scott. Good morning, everyone. Thanks for joining our call today. We're pleased to report that our sales momentum accelerated in the second quarter, and that's building on our strong start to the year. This marks three consecutive quarters of accelerating sales momentum. After growing 6% in Q1, organic sales grew 7% in Q2. Preliminary July sales per workday have accelerated even further and are up approximately 10% year over year. Our second quarter performance was led by 17% organic growth in CSS and 6% organic growth in EES. Setting a new record and a new mark, our total data center sales eclipsed $1 billion, and that's for the entire Wesco enterprise, in the second quarter. And they were up 65% versus the prior year. This is a clear indication of our leading value proposition. and the enduring secular growth trends of AI-driven data centers. Utility, as expected, had declining sales in the first half, but has begun to show signs of improvement as sales to investor-owned utilities return to growth in the second quarter. We continue to expect a return to growth in utility in the second half of the year. So all in all, we're off to a good start in the first half of 2025. Shifting to profitability, adjusted EBITDA margin was up 90 basis points sequentially as we generated strong operating cost leverage and stable gross margin. And finally, adjusted EPS was up 6% versus the prior year. Turning to our balance sheet and capital allocation priorities. As planned, we completed the redemption of our preferred stock in June. This refinancing strengthens our balance sheet. It also extends our debt maturities and it significantly improves our earnings and cash flow run rates. Following this redemption, we have strong liquidity to support our capital allocation priorities. As you'll recall, and as we outlined at our last investor day, after funding our common stock dividend and offsetting equity award dilution through stock repurchases, over 75% of our free cash flow generation is targeted to debt reduction, additional stock buybacks and acquisitions. As we begin the second half of the year, I'm very encouraged by our positive and increasing momentum that we're seeing across our business. Backlog is at record levels up both year over year and sequentially across all three business units. July, as I mentioned earlier, is off to a very strong start with preliminary sales up approximately 10% versus prior year. Importantly, in July for this preliminary number, this reflects growth in all three SBUs, and that obviously is including our UBS segment. We raised our full-year outlook for organic sales growth based on our positive trajectory while maintaining our EPS range at the midpoints. As always, we remain focused on what we can control, and that's executing our cross-sell initiatives, managing margins to ensure we get operating leverage on our sales growth, and delivering operational improvements enabled by our technology-driven business transformation. As the market leader, we're seeing, we're clearly seeing the growth potential of our Wesco portfolio, and that's supported by the enduring secular growth trends of AI-driven data centers, increased power generation, electrification, automation, and reshoring. All this underpins my confidence that Wesco will continue to outperform our markets this year. Before I turn it over to Dave, I wanted to take a brief moment to thank Bill Geary for his service to Wesco. Bill ran our CSS business through June and has left Wesco to assume a CEO position at a privately held company. We wish Bill well in his new endeavors and thank him for positioning the business for continued success. In line with our success succession management plan, and reflective of our deep talent bench, we appointed Dirk Naylor as EVP and GM to run our communications and security solutions business. Dirk is an accomplished and proven leader within Wesco, and he has been instrumental in developing our growing data center business. With that, I'll turn it over to Dave to walk you through our Q2 results and our outlook for the remainder of the year. Dave.