PITTSBURGH — Wesco International reaffirmed its 2022 financial outlook, provided its long-term growth expectations, and discussed its plans to initiate a quarterly common stock dividend program commencing in 2023 during its Investor Day meeting which took place in person and online yesterday, September 7th. Speakers included Chairman, President and Chief Executive Officer John Engel along with strategic business unit leaders and other company executives.
Wesco’s 2022 full-year expectations remain consistent with the outlook described in the company’s second quarter earnings call. Wesco expects sales to increase 16% to 18% and adjusted EBITDA to expand to between 7.8% and 8.0%, equating to approximately $1.68 billion of adjusted EBITDA at the midpoint of its outlook range, and adjusted EPS of $15.60 to $16.40, or up 55% to 65% versus the prior year.
Wesco announced that over the long term it expects to achieve a “mid-single digit plus” organic sales compound annual growth rate, with EBITDA and EPS growing at least twice the sales growth rate, and free cash flow generation equal to 100% of adjusted net income annually.
The Company expects to return $1.5 billion of capital to shareholders over the next five years in the form of a quarterly cash dividend on its common stock and by executing its previously announced share repurchase authorization. Subject to approval and declaration by its Board of Directors, the Company plans to begin the cash dividend on its common stock of approximately $1.50 per share annually, payable quarterly starting in the first quarter of 2023.
John Engel, Wesco’s Chairman, President and CEO, stated, “The execution of our strategic vision has increased our expectation for sales and profit growth over the near and longer term. As we have mix-shifted into greater exposure to higher-growth markets, we are benefiting and will continue to benefit from long-term secular trends. Our global scale and leading customer value proposition are driving increased operational efficiencies that will deliver continued share gains and margin expansion. All of these factors contribute to upsized cash generation allowing us to initiate a quarterly common stock dividend in 2023, while continuing to invest in our growth strategies and support our $1 billion stock repurchase program. Our goal is to deliver superior shareholder returns through above-market growth, our digital transformation and a return of capital to our shareholders. We are confident that the new Wesco, as an industry leader, is well positioned to deliver superior results and create exceptional shareholder value.”
Also on September 7th, the New York Stock Exchange welcomed executives and guests of Wesco International (NYSE: WCC) to celebrate the new Wesco and honor all the people past and present who have rolled up their sleeves to deliver 100 Years of Ingenuity. To honor the occasion, John Engel, Chairman, President and CEO, rang The Closing Bell®.
Tagged with Biggest News, wesco