WESCO International, Inc.

Hello, and welcome to WESCO's 2025 Fourth Quarter and Full Year 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 this event is being recorded. I will now hand the call over to Scott Gaffner, Senior Vice President, Investor Relations. Please go ahead, Scott.

Thank you, and good morning, everyone. Before we get started, I want to remind you that certain statements made on this call contain forward-looking information. Forward-looking statements are not guaranteed 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 to reflect changed circumstances. Additionally, today we will use certain non-GAAP financial measures. Required information on these measures is available on our webcast slides and in our press release, both of which are posted on our website at westco.com. On this call, we have today... John Eagle, Wesco's Chairman and President, Chief Executive Officer, and Dave Schultz, Executive Vice President and Chief Financial Officer. And with that, I'll turn the call over to John.

Well, thank you, Scott. Good morning, everyone, and thanks for joining our call today. So I'd like to open up today's call with an organization change we announced earlier this morning. Wesco CFO Dave Schultz will be retiring from Wesco in May 2026. Dave will serve as Executive Vice President Special Advisor to me until his retirement. Dave has done an absolutely excellent job since joining our company in 2016. On behalf of our board of directors and entire Wesco team, I'd like to thank Dave for his outstanding and dedicated service and tremendous contributions to our Wesco success over the past 10 years. The utmost respect for Dave and greatly appreciate our business partnership that we had in building out the new Wesco. We extend our very best wishes to Dave and his family. I'm pleased to announce the appointment of Neil Dev as Executive Vice President and CFO. Dave and Neil will work together to effectively transition CFO responsibilities. Neil will join Wesco later this month to support a smooth transition. For a brief introduction to Neil, he's a seasoned CFO with extensive financial, commercial, and operational experience in multiple Wesco-served end markets. In his leadership roles for both public and private companies, he's demonstrated an ability to navigate complex financial environments and deliver superior growth and value creation. Neil is an excellent addition to our executive management team and will help us as we continue to accelerate our strategy, execute our growth initiatives, deliver our financial targets, and create value for our stockholders. Now moving to our Wesco results, we closed out 2025 with positive momentum and again outperform the market with our leading portfolio of product services and solutions. In the fourth quarter, we delivered record sales of $6.1 billion, up 10% year over year, including 9% organic growth, and set another record in data center sales of 1.2 billion, up approximately 30% year over year. At the business unit level, communications and security solutions and electrical and electronic solutions both delivered excellent results. This all occurred while utility and broadband solutions results continued to reflect the ongoing sales and margin challenges with public power customers. However, we saw a clear inflection back to growth with our investor-owned utilities in the second quarter of last year, and that marks the first of three consecutive quarters of IOU sales growth that strengthened in the fourth quarter. Overall, we finished the year with strong momentum, continued to take share, and build a record backlog, which was up 19% year over year, providing another proof point that Wesco is benefiting from the enduring secular growth trends of, number one, digitalization, and that includes AI-driven data centers and automation. Number two, electrification. That includes increased power generation and reliability. And number three, supply chain resiliency. That includes reshoring. Looking ahead in 2026 and into this year, we expect to continue to outperform the market and deliver mid to high single-digit organic sales growth, strong operating leverage and margin expansion, double-digit EPS growth, and improved free cash flow generation. Recall that our mid-term growth targets outlined at our last investor day called for organic sales growth of 3% to 5%. But given our market share gains and exposure to secular trends, we have exceeded our mid-term growth targets. As we've done consistently, we're maintaining a disciplined approach to capital allocation. In the near term, our priorities remain focused on debt reduction and share repurchases to offset the annual equity award dilution. And we continue to invest in our tech-enabled business transformation and manage an active M&A pipeline. I'm also pleased to announce that we plan to increase our annual common stock dividend by over 10% to $2 per share. Now I'll briefly touch on our enterprise-wide digitalization efforts in 2025. And this is an increasingly important differentiator for Wesco. We made excellent progress in our digital transformation throughout 2025. We advanced our technology and capabilities build, and we've deployed our new tech stack in pilot locations in each of our three business units. 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. Recently, We were pleased to be recognized by Fortune in their inaugural AI ranking of Fortune 500 companies with a number 10 ranking. Once our digital transformation is completed, we expect to accelerate our earnings growth through even greater cross-sell, expand our margins through improved pricing and operating cost leverage, and increase our working capital turns by leveraging our single global IT instance. In closing, As the market leader and with positive momentum building, I'm confident that Wesco will continue to outperform our markets and deliver exceptional value to our customers and shareholders in 2026 and beyond. Finally, I continue to be very proud of our talented and dedicated Wesco team, whose relentless focus on serving customers, advancing our digital transformation agenda, and driving superior execution across our businesses is producing notable results. This is all occurring as we realize our vision of becoming the best tech-enabled supply chain solutions provider in the world. With that, I will now hand it over to Dave to take you through our fourth quarter and full year 2025 results, as well as provide a more detailed outlook on our 2026 outlook. Dave.