and John, you, everyone. Thank morning, good
network in a growth digits growth through broadband Sales in industrial versus for WESCO again our while results. Sales in of Turning were weeks finish digits. to Canadian in below month X, infrastructure, enterprise solutions quarter, December. delivered expectations Organic November. walk trending the business. up prior saw before continued mid-single dropping X in were low single I'll Page the data digits the end latter positive fourth you exceptional last in and our single strong quarter sales half of fourth our year In the through with weakness and to high Workday down December the of center the considerable we the market drop-off utility, quarter were in
the flat growth up Reported under prior fourth Price approximately sales volume X%. versus quarter sales year contributed with were organic the were year-over-year X%. X.X% just in and
In These addition, an the sales Supply of were offset XXX reported Integrated by divestiture negatively approximately were points from impacted the rates. by partially workday. benefit foreign additional of exchange basis and headwinds
the of the XX% of margin you SG&A. lower was XX $X.XX headwind prior On sales, year, approximately a including Adjusted see the Gross impact adjusted slightly was of of volume from from points the basis XX lower basis supplier per by can half higher lower margin up down and offset higher year. EBITDA page, from earnings gross rebates. prior points share
was Page contributed a X.X% On which about differences down and to rates cumulative X.X%, volume XXXX. and [ organically. from basis, exchange in by Turning compared workdays of point and year to additional sales full foreign benefit impact and were X. basis ] and a XXX divestitures Price reported lower X.X% down a offset acquisitions X on basis the
level supplier that integrated rebates. volume employee-related the reflecting margin page, up the the leases. On of year prior year divestiture as the sales. the SG&A was warehouse was slightly, costs down benefit was the was Gross prior from half you inflation lower adjusted and can of by see EBITDA lower on supply with into flat lower offset
Turning Page to X.
basis direct the and points, increased up A point over for On of of is margin and were XXXX points expansion. gross UBS the gross you this by which opportunity year XX can respectively. in more an the XX.X%. integrated EES year resulted XXX varied and right years the portfolio to prior with see margin flat unit. shift, contributor margin left of further increase was business. XX at we result page of The the page, divestiture supply prior than in side Both the basis strategic shows is side that in increase there at business UBS that our the reflects XXXX X of and the past This XX basis margins believe a from
and reflects increases the impact program. In enterprise-wide at EES margin our the addition, positive improved UBS of
As participation business, within data growth John data projects. center remarks, opening our that we mentioned included large-scale center exceptional numerous in the his has in have experienced
which these gross consistent with lower margins these improve of additional We course the projects as with of over and direct that have a we the provide believe will we margin. services Some are life cycle, past ship, customers center data experience. products
Note want SEC business our XXXX. to [indiscernible] that we with on results, our SG&A filings this profit on additional provided each and of in in X. and our Slide provided gross be have will annual information segments disclosure beginning Let as for EES quarterly starting unit do
up were were sales extra year. quarter. with the workday the organic X%, of reflected prior in sales up an benefit compared X% which Reported the fourth PES
were down Industrial are across single single reflecting low reflecting from the to the the XXXX. market in digits half quarter. project for was X% of higher continued with growth solar our normal a weakness growth X% low delivered were low in United improved experienced with the up up second digits growth return in a of down consecutive sales industrial OEM EMEA the in sales prior drove in sales in weaker momentum were sequentially, by quarter driven in and activity pleased Canada, level seasonality. year fourth slowdown by market offset We the that and Canada, Cala the in offset quarter, in broad-based digits. U.S. by business. EES Construction the single second down the fourth line States. We Backlog
as right year, XX EES of EBITDA points points. you the up page, on prior margin efficiency improved operational reflecting SG&A side controls was from of favorable cost percent this that XX by with can and table the Within basis sales, basis see adjusted a the
organic sales full was a For construction, in were was low sales decline in the OEM. margin flat to growth Gross X% XX the year. to basis year industrial and single-digit year, adjusted points and flat low single-digit up full due down margin reported prior EBITDA and
data company XX% the on segment center approximately sales. approximately basis. in center, a and sales and quarter which CSS total nearly prior XX% the was an Slide a momentum up customer of was significantly end-use accelerating which mix up all reported. hyperscale, The XX% year-over-year fourth multi-tenant in was center than growth quarter, the X controls and with XX% all year XX% about as This WESCO of Turning Within data basis sales increased business the center From types: X. year Center and growth from by saw in across across CSS, to Solutions, data sales XX% units, quarter. WESCO within X up WESCO driven CSS with of perspective, both has up sales enterprise. of represented sales Data double-digit includes on growth XX% data full organic more
this Network an based at Note, was quarter comparable sales approximately shared of continued our by flat business. through sales that Security cabling, were from the wireless reflecting partially in softness provider Investor the strength Infrastructure is offset fourth WESCO and XX-month which Enterprise increase Day, XX% in sales the the June. in quarter construction trailing service down was in was on
the [indiscernible] data quarter CSS data I XX% moment year, center that in center up given large substantial down a business and ago. with in the XXX the reflecting versus margin the points shipments our prior the of from Adjusted was large for project sequentially a growth mix prior was down EBITDA the gross customer reflecting margin year, of lower timing X% mentioned basis QX. of about primarily projects
were For data growth XXXX. the a was on X% full and due sales strong This X% build-outs exceptionally up organic. CSS to in basis center reported in growth the year, up
before centers data September. stages this key maturity. It years are is total power Based that site, projects Investor to among approximately We broader of the the construction XX by categories to The announced continues today X discuss will center left expand, I X about the Slide accounted and and of page of seen that at track. data growth space and first project XX% X. a data provided mega on X the information side space. we've last that data in center especially the the construction on takeaway want funding take we participate. recently Day we to likely the time moment the to Turning how center up over for and the to the will our take that project of far highlights highest we X running. be they rapidly years, The data within pipeline track the past mega investment, the have obtained to have projects
data to infrastructure from our the phases throughout that all operations, services electrical cycle. everything advance ensuring to customers encompass systems comprehensive now solutions of Our distribution the support IT have center data that solutions center
the accelerated capabilities This within been slide, substantial growth increase of center can the investments data organic service to that substantial see On side our growth along XXXX. delivered with you the we've by has the made right initiatives, our and space. in acquisition business and exposure driven
capabilities center crate, services We expand X% to technology customers in continue Ascent invest data ] [ in an center XXXX on-site to to service including upgrades. capabilities and to cradle in data from at
to Moving Page XX.
services. John mentioned acquisition management Ascent [indiscernible] of at with management data operators the of center provides the of As data we provider facility center December, services. the Ascent, in highly top a St. call, facility At closed specialized Louis,
further center cooling and end-to-end extend leading strengthens data global our us solutions. including our advanced liquid solutions by customers for to implementation offerings, service design our portfolio Ascent allowing
XX. reported supply were down includes the UBS in Slide which to sales were quarter period. in Organic the sales divested integrated in down X% Turning XX%, and base the business
rate previously, market regulatory softness discussed to current a of is experience we partly the short-term interest the environment. and function related utility continues which customer activity and project As lower levels, destocking to
year. long expect will half electrification, the and utility to return the energy, support the benefit into in trends a We of with of We the green continue the substantial growth second from half believe in over in XXXX to secular acceleration trends confident these these the future remain growth first modernization our term. business highly impacts of
Broadband broadband of the growth sales more in We down UBS The Broadband strong from basis business XX%, are basis, down and reflecting year more year up reported than up were in On quarter. fourth return was were our points XX improving the as sales exceptionally growth EBITDA discussed sequentially. signs XX%, XX% Canada. was X% points the organic in prior prior was were than pleased down Adjusted a year divestiture. the against moment the albeit sales momentum from that with was the XX%, a Gross QX. began margin XX% down up down backlog Canada showing and year. prior over margin year full prior basis XX ago. reflecting we in
cash of billion, representing and In adjusted of the more fourth driven free has or the XXXX. flow of to like $XX of we out XXXX capital. net adjusted cash from which XXX%. I'd This largely record XX. working payments been Page full cycle than cash our for the to that flow Turning income, fourth more that This the million by a previous cash reduction point the purchases tax moved credit than substantially free income. XXX% payment quarter, quarter million from effectively contributed to of delivered in for of $XXX net first $X a the of a flow benefited our to quarter quarter of of is company year fourth XXX% timing target
we intensity by basis net this on reduced the side working You page in XXXX. XXX points that of see can right capital
inventory at rate remain we result working progress, a expect further We focused down including making net capital of which net In the drive with reducing will sales. on half sales. of working further percent XXXX, as of are as this percentage sales to a capital pleased grow growth, and
to strategic our individual XX. the by shows XXXX Turning outlook business and unit operating Slide groups. slide This
of to low be expect the to difference along expect up Starting to flat to reported activity we workdays. and headwinds XXXX single with the X%, X.X% mentioned, reported digits. organic driven sales and John flat from X.X% sales be up EES, in exchange by As sales we the foreign range with with M&A to up
XXXX. relatively flat in all can that from X You operating groups sales were see
will will As construction of this move experienced is our half XXXX, up and flat, in will we expectation be momentum as that Industrial approximately into be positive we XXXX OEM grow year. the continues second the
in believe Looking with expect data in sales we up significant mid-teens. be at reported we operating discussed will We've which continue XXXX CSS growth XXXX that digits. our the centers already into group segment, mid-single will up XXXX,
primarily expect contractors, throughout markets. build-outs into providers markets, in slower end XG security in infrastructure, faced U.S. to by markets came. structured sells have which specific and particularly XXXX Enterprise also service a be and network due driven We will softness up, construction recovery communications
expect We XXXX. infrastructure network in be flat will overall enterprise
UBS. Lastly, looking at
utility due throughout Our activity. customer project business lower and XXXX down to was destocking
expect softness we growth XXXX, to that that half return is year. While of the of in half continue the the through first our expectation will second
as significant is integrated new transmission As modernization and investment discussed demand generation, leads. as electrical we underlying in previously, and growing to well have distribution there support investments power for
XX. Page to Moving
top expect expect XXXX. adjusted me X between for that XX you Let Starting EBITDA impact compensation. and of range in to the outlook of integrated incentive restoration through of offset April, X.X% acquisitions at half last we a for X.X% basis grow point the Recall of workday we year. the XXXX, of and details the our the margin which walk in sales page, divestitures organic the sales X% primarily partially Reported a to flat up XX supply to X.X%. in we facing rate SG&A includes headwind foreign sales due second by approximately X%, are be fewer differences be expected [indiscernible] of to completed Canada. exchange Reported to from in X.X% including to also headwind Recall are in from approximately net to X.X% is XXXX. the the an
track we Without in have of target, improvement investor that our the we results on day. XXXX. with points XX payout this incentive headwind, to margin annual target XXXX, we assumed at the XX below compensation highlighted a is and Given are in basis
operating reflects on and leverage flat upper gross the this volume of leverage. reflects while range range the lowering higher of the end on of impact operating expansion The EBITDA sales, both margin margin
due some expect expansion to XXXX rebates volume supplier gross a part margin improvement level and gross of gross in to Regarding CSS slightly deliver margin. higher of in margin, level we of
$XX outlook of modeling comment growth specifics. for want year-over-year to I that Note that of the X% diluted adjusted assumptions Our range few [ $XX.XX per share we a of also reflects earnings ]. have line on key provided to new
outlook from that assumes up will Our cloud XXXX. approximately in expense be in XXXX, $XX million computing million $XX
SG&A is is, included and cloud and EBITDA. will of per in in Interest amortization included balances year. June however, operating income adjusted Consistent in and equity as decrease lower earnings adjusted results, share. is XXXX historical adjusted preferred It we reduced recognized on in the with security expense this expected anticipate as by to beginning preferred debt to due dividends half not be
We expect redeeming to rates preferred to and due rate. the and X/Xs our expected generate substantial the by XX savings a expense borrowing [ dividend difference ] preferred stock between
turning cash free Lastly, to flow.
We expect XXXX. million $XXX cash between $XXX to to flow free deliver million in
As XX% of to a implies of this range XXX%. net adjusted percentage a approximately income,
Regarding capital our allocation, strategy is unchanged.
efficiency, priority flow is investments, organic funding drive business of After business the return the top including transformation. organically Our operational free growth options. our being highest in the completion to invest to allocated and our and to digital cash
to markets. and end We expand particularly acquisitions serve in to high-growth continue those engaged capabilities will customers better prioritize our our
will continue We to our repurchase shares authorization. under current
our XXXX of to repurchases anticipate be will redeem below preferred level the the $XXX million. Given well and stock, share we would expectation opportunistic
an $X dividend we million by expect common per to Lastly, in XXXX, stock XXXX. our incremental or quarter versus XX% increase approximately
and the for Turning for quarter. comparisons year-over-year XX. monthly and years This quarterly growth few our to shows past first Page the sales expectations slide the
we excluding M&A to year. reported from headwind net organic of to prior of flat and easiest in January January ] mid-single low for year, one sales, Note a up On year. the year, digits. expect prior M&A up be versus the that to prior prior XXXX basis, comparable first sales quarter expect about per we the the the fewer be Preliminary the workday year. the of X% adjusted is [indiscernible] [ sales was approximately working Versus
cost than expect level adjusted to as environment. We in economic a EBITDA the slightly mixed we of will year effectively manage margins lower be X.X% continue prior
quarter to morning, for year net the in were broadband above-market $X free continues record common Moving with to shares material call this out of XXXX, open our the and billion $XXX the covered our both and momentum in debt end pleased repurchased were reach return let Sales Full your call the we operator, open fourth million In be questions. lot points market than so Slide expect of EES at company. now With we me cash the key can strong, Growth XX. and the reduced you questions. improved million. growth business a outlook. In before to the and exceptionally we of flow in deliver high more We've profitability. we center and item. XXXX, was that, data briefly by a growth $XXX to level to
