Thu, Apr 24, 7:02 PM (17 days ago)
**Graybar Electric Company, Inc. (GLB) Q1 2025 Financial Summary** **Financial Health and Performance:** Graybar Electric Company, Inc. (GLB) reported a solid first quarter with notable improvements in revenue and cash flow. The company's net sales increased by 7.9% to $2,949.8 million, driven by growth across all vertical markets: construction (9.2%), CIG (5.1%), and industrial & utility (7.5%). Gross margin rose by 4.9% to $575.0 million, although the gross margin rate slightly decreased to 19.5% due to competitive pricing pressures. **Profit Margins:** The company's operating income decreased by 3.2% to $138.2 million, primarily due to a 7.6% increase in selling, general, and administrative (SG&A) expenses. This increase was driven by higher compensation, employee benefits, rent, maintenance, and planned increases in professional fees and IT expenses related to the Graybar Connect project. Net income attributable to Graybar decreased by 4.1% to $100.9 million. **Cash Flow:** Graybar's cash flow from operating activities improved by 10.5% to $182.7 million, reflecting strong working capital management. The company ended the quarter with $250.5 million in cash and cash equivalents, up from $90.4 million at the end of 2024. This increase allowed Graybar to repay short-term borrowings and maintain a strong liquidity position. **Earnings Changes and Trends:** Despite the increase in SG&A expenses, Graybar's strategic investments in Graybar Connect are expected to support long-term growth and profitability. The company continues to see demand in key areas such as data centers, electrification, and industrial automation. However, ongoing economic uncertainty and competitive pricing pressures may impact future performance. **Future Operations and Uncertainties:** Graybar's future operations will focus on transforming the company through Graybar Connect, which aims to enhance the customer experience and solidify its industry leadership position. The company's strong financial condition enables it to invest in growth, meet debt obligations, and finance capital expenditures. However, risks such as economic conditions, supply disruptions, and regulatory changes may impact future results. **Key Financial Metrics (in millions):** - **Revenue:** $2,949.8 (up 7.9%) - **Gross Margin:** $575.0 (up 4.9%) - **Operating Income:** $138.2 (down 3.2%) - **Net Income:** $100.9 (down 4.1%) - **Cash Flow from Operations:** $182.7 (up 10.5%) - **Cash and Cash Equivalents:** $250.5 (up 177.3%) **Ticker:** GLB