U.S. distributors are heading into third-quarter earnings season with a clear divide: industrial and electrical channels are growing briskly thanks to massive datacenter and infrastructure projects, while building-products and HVAC suppliers are facing flatter demand and cautious pricing.
Fastenal led off with a strong result. The Minnesota-based supplier said Q3 sales rose 11.7% year over year, driven by higher demand for safety supplies and industrial fasteners. The company credited its on-site programs and vending systems for keeping orders steady even as factory activity softened.
Wesco International is showing the biggest momentum in datacenter and electrification projects. In its latest update, the company said data-center sales topped $1 billion, up about 65% from a year earlier. “Sales growth is accelerating,” CEO John Engel said in July. “Bid activity is very strong and backlog is at record levels.” That strength positions Wesco well, heading into its Q3 results later this month.
At W.W. Grainger, management expects sales to stay solid but is keeping a close eye on costs. “Our headline results finished largely in line with expectations, although performance was impacted by some tariff-related factors,” CEO D.G. Macpherson said in August. Grainger still sees mid-single-digit growth for 2025 but warned that higher shipping and import costs could trim profits.
Global Industrial Company, which focuses on small- and mid-size businesses, is preparing its Oct. 28 report under new leadership. CEO Anesa Chaibi, who took the helm in February, said the company’s goal is to “build ourselves around our customers and understand them at a more intimate level.” She added that Global Industrial has “a unique go-to-market platform, strong customer relationships and an exceptional team,” underscoring her plan to expand private-label offerings and strengthen customer service.
Among building-products distributors, the tone is more subdued. SiteOne Landscape Supply said pricing remains flat and demand is “flat to slightly down.” “We expect our end markets to remain soft during the remainder of the year,” CEO Doug Black said in July. Maintenance work remains steady, but new construction projects and discretionary upgrades have slowed.
Watsco Inc., one of the nation’s largest HVAC distributors, reports Oct. 29. CEO Albert Nahmad said the company is managing through “softer market conditions and the complexities associated with the industry-wide transition to new A2L refrigerants.” He added that Watsco achieved record gross margins in Q2 and continues to “boost sales, sustain margins and improve operating efficiencies.”
Taken together, the third quarter points to steady performance across the sector, with some clear leaders in industrial and electrical distribution and more muted trends in building-related lines.
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