Shares of Wesco International Inc (WCC) are soaring 5.64% in pre-market trading on Friday following the company's impressive first-quarter 2025 earnings report and positive outlook for the year. The industrial distribution and services company reported strong organic sales growth, particularly in its data center business, and announced plans to redeem its preferred stock.

Wesco reported organic sales growth of 6% in the first quarter, driven by exceptional performance in its data center, broadband, and OEM businesses. The company's data center segment was a standout, with growth of 70% year-over-year, now representing approximately 16% of Wesco's total sales. This strong growth in high-margin segments helped offset temporary weakness in utility end markets.

John Engel, Wesco's Chairman, President, and CEO, stated, "We're pleased that our positive sales momentum in the fourth quarter last year carried into 2025, and that we're posting 6% organic sales growth in the first quarter. This was ahead of our expectations coming into the year." The company also reaffirmed its full-year 2025 outlook, expecting sales to be above the midpoint of its previously announced range.

Adding to investor optimism, Wesco announced plans to redeem its $540 million Series A preferred stock in June, which is expected to strengthen its balance sheet and reduce total financing costs. This move is anticipated to provide a net income and cash flow benefit of approximately $30 million on an annualized basis, or roughly $0.65 per diluted share.