WESCO International, Inc. ( WCC ) reported fourth-quarter adjusted earnings per share of $3.16, missing the street view of $3.23. Quarterly sales of $5.50 billion outpaced the analyst consensus estimate of $5.41 billion.

The fourth-quarter reported net sales increased by 0.5% year-over-year, with organic sales rising 2.4% year-over-year and 1.7% sequentially.

“We are pleased with our return to sales growth in the fourth quarter sparked by more than 70% growth year-over-year in our global Data Center business, 20% growth in Broadband Solutions, and renewed positive sales momentum in Electrical and Electronic Solutions,” said John Engel, Chairman, President, and CEO.

Engel stated that financial leverage remained stable at 2.9x trailing twelve-month adjusted EBITDA, highlighting a $431 million reduction in net debt and $425 million in share repurchases last year.

Also Read: SMCI Stock Falls Nearly 4% In Tuesday Pre-Market As Investors Await An Update On Delayed Filing

The CEO also mentioned the strengthening of the portfolio through the divestiture of the integrated supply business and acquisitions of three services-based businesses, including Ascent.

Looking ahead to 2025, the company noted that the pipeline of strategic acquisitions remains strong and aligned with the goal of expanding service offerings to customers.

WESCO exited the quarter with cash and equivalents worth $702.6 million.

Outlook: In 2025, the company expects organic sales to grow 2.5% to 6.5% and the operating margin to expand, as all three business units to deliver profitable growth.

WESCO expects to generate $600 million to $800 million of free cash flow and plans to increase the common stock dividend by 10% again this year to $1.82 per share while continuing its share buyback program. 

Price Action: WCC shares are trading lower by 2.45% to $188.76 premarket at last check Tuesday.

Read Next: 

Wall Street's AI Server Darling? JPMorgan Says It's Still Dell