Wesco International, Inc. recently provided an update on its long-term growth strategy, revealing its expectations for the future. The company anticipates achieving mid-single-digit organic growth over the long term, driven by a strategic shift into higher growth and higher margin end markets, along with continued share gains. It also aims to grow EBITDA at twice the rate of sales and target free cash flow of 100% of adjusted net income.
In terms of 2024 full-year expectations, Wesco expects reported sales to be between (3.5)% and (1.5)% compared to the prior year, with organic sales growth ranging from (1.5)% to 0.5%. The company continues to anticipate delivering adjusted EBITDA of 7.0% to 7.3% and adjusted EPS of $12 to $13.
Since its last investor meeting two years ago, Wesco shared that it has completed its integrations of Anixter and Rahi Systems while making substantial progress on its business transformation. Chairman, President, and CEO John Engel emphasized the company's commitment to achieving its vision of becoming the best tech-enabled supply chain solutions company globally.
As a result of these announcements, the company's shares have moved -2.9% on the market, and are now trading at a price of $163.23. For more information, read the company's full 8-K submission here.
