Westcon-Comstor posts record first-half sales on AI demand

Westcon-Comstor reported first-half gross sales of USD $3.37 billion and record adjusted EBITDA of USD $86.7 million.

That was up 21.3% year on year in gross sales and 13.5% in adjusted EBITDA for the six months to the end of August. In the same period a year earlier, gross sales were USD $2.78 billion and adjusted EBITDA was USD $76.4 million.

The distributor, which focuses on cybersecurity, networking and hybrid cloud, recorded growth across all three operating regions. Europe, the Middle East and Africa, and Asia-Pacific all posted double-digit gains, indicating demand remained firm across its footprint despite wider economic and geopolitical pressure.

Recurring gross sales rose 20% to USD $2.25 billion, accounting for 67% of total gross sales. The mix highlights the company's continued shift towards software- and services-led business, while hardware made up 28% of sales in the half.

Cybersecurity remained the largest technology category, with sales up 21.6%, while networking grew 11.9%.

Data centre and cloud infrastructure was the fastest-growing segment, with sales up 75%. Westcon-Comstor linked the increase to customer spending on systems needed for cloud adoption, artificial intelligence workloads and more complex digital environments.

Hardware sales also increased, rising nearly 24% year on year during a broader refresh cycle and amid tighter inventory planning in response to pricing volatility.

The results show how distributors are benefiting from demand tied to cyber resilience, digital transformation and AI-related investment, even as customers remain cautious in other areas. They also suggest partners are placing greater emphasis on repeatable revenue and lifecycle services as market conditions remain uneven.

Chief Executive Officer David Grant said the company's model had benefited from the current shape of demand.

"AI is driving demand for the technologies at the heart of our business, but capturing that opportunity requires more than products alone," Grant said.

"Our first-half performance reflects the strength of our specialist model and the role we play in helping partners build capability, develop repeatable revenue streams and deliver greater value throughout the customer lifecycle. This is where Westcon-Comstor continues to differentiate as partners and their customers respond to challenging market conditions by becoming more selective about where they invest."

Regional spread

Westcon-Comstor operates in more than 50 countries through Westcon, Comstor and Rebura. Its latest figures suggest momentum was not confined to a single market or product line, but extended across regions and several technology categories.

That broad base may matter as pricing pressure, geopolitical tension and macroeconomic uncertainty continue to affect technology spending patterns. Distribution groups with greater exposure to subscriptions, software and services have been seeking to reduce reliance on more cyclical hardware demand.

Westcon-Comstor's sales mix suggests that transition is continuing, although the latest half also showed a recovery in hardware volumes. With hardware representing just over a quarter of sales, software and recurring business account for the larger share of activity.

Chief Financial Officer and Chief Operating Officer Callum McGregor said the company saw strength across the business despite the external backdrop.

"Delivering record first-half gross sales and adjusted EBITDA demonstrates the resilience of our business against a complex external backdrop," McGregor said.

"The breadth of the performance across regions and technology categories gives us a strong platform for the second half, even as macroeconomic uncertainty, geopolitical tensions and pricing pressures continue to shape the market. We remain focused on disciplined execution, while helping partners develop more predictable, services-led business models and capture opportunities across the technology lifecycle."