you, markets. end year. Construction X%; strong Utility CIG grew X% range John everyone. I'll up to with a up sales increased our of were at increased Thank sales with all Page prior the X% X%. and the X% up on within were X.X% sales in quarter beginning over Reported start X. an Industrial overview and outlook in sales U.S. morning growth X%; X%; good
basis. in nonrenewal sales Sales XX% top X% an in up our were Utility in Canada on the due down, X% on contract year sales were period. International of were end with quarters. and X% in the mentioned up markets, X% up were sales CIG to and growth up industrial more previous organic X% prior Canada Construction than respectively.
quarter The SLS prior year. the points within the quarter. lower XXX X.X% for effective was our outlook for than were than and of year SG&A of expected XX% acquisition. the basis driven prior profit the range rate than sales or the our XX.X% by Operating $XX.X higher was tax expenses X% rate higher million
year is typically tax taxes. was for intercompany the expenses rate tax the the application lower provisions effective than effective quarter, the tax The Our tax due nondeductible our impacted state effect tax by rate to and of income international rate financing differences of U.S. outlook of reform, foreign Interest offset primarily be Canadian full China transfer foreseeable earnings benefit to of pricing the lower of costs by partially expected operations settling due the were discrete effect to attributable the accruing noncash the future. in in are than from remitted undistributed taxes prior issue. a to that
X. Moving Slide to
down than cost the what the some on headwinds. prior was this drove versus two and gross basis to Relative margin quarter. June and year, quarter, result. factors, XX mix points basis was the I'd XX mentioned, more detail margin year gross quarter price this XX.X% John prior like provide by primary impacted As lower in points to
of side the this On provided sales gross by type. rate overview recall our of right Investor historical we in differences may slide, an from Day margin that you
The growth created gross-margin which utility, are in WESCO, on gross The our grew the business Canadian was the less mix to markets. line same for and construction average a international we in below margins. true basis geographic high experienced our than drag sales and in U.S. a as
higher have shipments. a Lastly, operating costs sales our sales direct gross direct than ship and and lower grew our rate ship sales margins stock than at stock
we supplier working in as seen cited customers. increases, driver all our through with XXXX increases. pass continued of half price for exceed to increases to supplier price are those a significant increases number tariff Regarding the to approximately Year-to-date aggressively of
high in in XXXX magnitude The averaged and also continues increases supplier of year-to-date. that price digits the quarter exceed to single seen and
value typical to the through chain working the the of increases lag time customers. experiencing are We
see in quarters. efforts the expect We effects our coming to positive of
This SLS by on XXXX, combined decline, rates, impact interest, count the X% core following a Moving a benefit Page offset diluted acquisition. from due lower a XXXX $X.XX We foreign activity our partially EPS share per of combined $X.XX, net of in X. walk to exchange to reflected tax and reported from diluted share lower year. operations the and repurchase earnings and the a prior up $X.XX
We've also and provided you our growth. sales of the reconciliation organic reported
by to sales, acquisition. more but of the drag offset than SLS exchange was the reported a Foreign benefit
double account global versus Industrial expect was Moving prior result overall petrochemical reflecting while up sales to sales our the X% and from market growth X%, Page on the mining X% Canada from were and down Among we the in respectively, to stronger X% this in our the in a beginning market the prior period, first and processing up X% were year. X. all Industrial results Industrial and second sequentially were end quarter. and U.S. up OEM up verticals, food up half. sales and continue metals were year digits Year-to-date market.
and Although levels moderating quarter levels and remained third utilization rates prior year-to-date strong with and the up in very macroeconomic indicators still periods. support U.S. RFP activity mid-single versus solid quotations the Canada. and production digits bidding capacity
we awarded manufacturer. electrical and provide contract three-year support quarter, MRO high-voltage were operations OEM to new Canadian the the to a U.S. and equipment a During products of
due were have seasonality. from to however currency. levels constraints the sequentially seen in price construction that X% increases. contractors in and to typical X. active uncertainty, reflecting activity market local with skilled second with industrial caused Project end in some labor by Turning X% X% overall quarter, and Canada we were sales partially quarter project in up Sales delays line tariff-driven remain in were Page in up Sales the the up X% the U.S. up
was reflecting that are for currency job help shortages Backlog represent challenges management constant skilled our supply productivity. in reducing opportunities prior and The on customers construction customers normal sequential increasing chain and these basis labor our complexity year services site down flat project facing a WESCO meet that by seasonality. and versus
We the basis. in We're with sequential in and higher year-over-year quarter our ended the note QX both second-highest margin the backlog that pleased on was backlog our history. to
Canada. an a we switchgear the were our quarter recent to success, of As a hospital contract multimillion-dollar new awarded of example for construction this provide in
Page X. to Moving
were is Utility of in contract. at for last be negative Our in from the the prior continues X% an for strong. quarters. Canadian growth in our absence due This that This sales our will contract business, Utility we a year. that to this sales XX% there result Sales a despite have delivering a XX% decrease nonrenewal unacceptable in be comparison the quarter margin after Canadian discussed the was prior to quarter the of up was which
U.S. sales from WESCO X%, output, benefiting increased growth reliability market hardening secular construction X% including energy. sector, sequentially. projects, renewable is and industrial demand and increased utility for trends improved higher in grid the and
contractor In addition to power, our these trends, services of with we customers. utility, to expand investor-owned utility and continue public scope
of Utility are levels activity and continue opportunity has years expect we a robust going forward. seven to have this posted growth and Our business Bidding high pipeline. we
U.S. support and a a multiyear contract awarded provide were utility equipment in municipal the we for quarter fiber project a to fiber-to-the-x broadband This cable to
call. utility the servicing quarter began customer highlighted we had also We a October, new in alliance on which first
Finally security the digits. U.S. Page Commercial and Sales down currency. sales or X%. with were CIG XX. double were datacom up were strong and was local prior X% Institutional project customers down reflecting X% double X% turning activity International Canada in to up digits the in year. Government Sequentially, on up Sales up at and
strong was On quarter. and solutions. driven our as up retrofit Canada lighting security as renovation This build-outs capabilities by in were in well services a and fiber-to-the-x two-year the performance broadband value-added and deployments stack basis, LED again applications and X% sales in CIG network
multimillion-dollar in contract CIG, we this facility. As provide data to for an construction communications example a quarter of we the U.S. strength of the awarded seeing products were federal government continued a are
to company of flow of or XXX% net Year income. in Page generated or the date free of million Turning XX% XX. The $XX net WESCO has to quarter cash million generated $XXX income.
cash the expect to to income continue We net XX% for of flow year. of generate approximately full free
available a on cash lower trailing We or not within accounting liquidity higher quarter new of strong lease debt cash, XX-month a the net to target cash statement of $XXX statement standard is Xx range our EBITDA. at quarter. end have driven did of leverage by from capacity flows. as The the committed of of material was Leverage the million the maintained Xx down EBITDA, defined prior borrowing income and XX-month the X.Xx plus balance. cash impact trailing Debt
borrowing for the Our was weighted quarter. X.X% average rate
Our with approximately debt averages. fixed historical rate consistent total of debt is XX%
referenced dates capacity credit facilities on As and two presentation, maturity for extended Slide quarter, the overall during our of million. the we the by $XX increased X borrowing
our we an digital in reflecting business, $X into shares million quarter, were previously tools repurchase May transaction information We and Capital the digitize to in and received quarter. expenditures applications. for in including share XXX,XXX mentioned investment $XXX accelerated completed incremental technology entered the million that the
share have the cycle business entire completed strong and end now authorization will of buyback $XXX free continue. to of million WESCO throughout expect history that we has XXXX. $XXX the of We generating a the expire flow million at cash this
priorities remain allocation capital Our consistent.
acquisitions, accretive that and The is first initiatives to market the in consolidate large distributors or priority new core provide transactions invest strategic electrical including a growth organic that capability.
Second, we leverage targeted EBITDA. and a between seek ratio to of financial maintain Xx X.Xx
share return our authorization. buyback cash through $XXX three-year under share we Third, million shareholders repurchase to
Now, for XXXX let's turn to our the on Slide of XX. outlook remainder
full-year, nine months For first that we to the the results our of the points economic well our midpoint reflect the now as are data of outlook slower as in lowering growth. to year,
digits We end and and CIG be Industrial markets up end full-year for the Utility our our Construction expect mid-single-digits. single to be low to to up market low
rate X.X%, $X.XX. low to On We diluted for of mid-single-digits an X%, is the consolidated X% a Canada approximately U.S. to to tax $X year. operating up outlook be up approximately growth to single-digits of expect the our low EPS effective in and XX%, be basis, and sales margin to sales of of for
as will approximately midpoint, of the flow full of continue operating rate cash represent of share cash earning in to the expect approximately XX% first We increase WESCO midpoint, highest effective XX% accounts X.X%, this quarter. half generate implies income receivable be in the fourth in sales approximately the to fourth would X.X% tax converted and of quarter. At that year guidance still the of impacted at approximately per to the growth This the for net margin free outlook history.
to are providing Moving for today. outlook XXXX end we first XX, our market Slide
profitable provide end construction and XXXX, opportunities uncertainties the to for industrial while WESCO expect in could affect growth We markets our end macroeconomic markets.
the that Utility expect long-term next the and growth continue we Overall, markets by current CIG second potential, secular soft digitization year trends. similar XXXX end with electrification offering demand half relatively the driven will and environment to of stronger
and full XXXX Our our services includes people leveraging cost solutions, range and by our markets capabilities, outperforming and in digital WESCO's of plan management discipline. investing end our the and maintaining cash
call outlook in plus balance during a result, fourth earnings next the and flat sales XXXX we the growth range quarter January. As expect in of we'll X% to our for of provide year the
As the our of economy priorities. allocation will of support become generation capital strong our strategy slows flow free and business the more challenging and execution the markets capability end cash
continuous and seeking chain Customers in stability changing are supply complex improvement world. an increasingly rapidly and
value-added of our team complete and to associates project capital in of robust solutions portfolio talented OEM and services our WESCO Our customers needs. for the providing products continue differentiate with and MRO
With that, let John. me turn to the back call
