Westcon-Comstor reports gross sales increase in FY25

Deeper relationships with vendors and cybersecurity performance boosted the distributor’s results

Distributor Westcon-Comstor shared results for the year ended 28 February 2025, reaching new heights thanks to strong performances in hardware, software, and cybersecurity.

The distributor's reported revenues reached $1.97bn (£1.45bn) in its most recent annual report, attributed largely to an accounting policy change.

The organisation also published gross margins standing at 22.4 per cent, from 18.2 per cent per cent in FY24.

Adjusted EBITDA ramped up nearly 25 per cent to $149.9m (FY24: $120.2m).

Fuelled by strong performance in cybersecurity, hardware, and software, gross sales increased 3.3 per cent year-on-year, reaching $5.24bn compared to $5.08bn the year prior.

Gross sales from cybersecurity climbed 19.3 per cent, accounting for more than half (51 per cent) of Westcon-Comstor’s gross sales in FY25.

Hardware contributed 32 per cent of gross sales as Westcon-Comstor.

Gross sales from software went from $1.91bn to $2.33bn, a 22.2 per cent increase year-on-year, representing 44 per cent of gross sales.

Recurring sales accounted for 66 per cent of gross sales.

Deeper vendor relationships

This upward evolution in FY25 comes as the distie strengthened its relationships with cybersecurity, networking, and cloud vendors.

This group of nine vendors accounted for 80 per cent of gross sales during the year at $4.2bn, with year-on-year growth of 4.9 per cent.

Westcon-Comstor also aimed to deliver greater value by increasing distribution-led sales.

In addition to the deepened relationships with vendors, growth in cybersecurity was propelled by the company’s value-added offerings for partners and vendors across data, enablement and education.

“Distribution is evolving and we’re proud to be at the forefront of this change, enabling partners and vendors to grow through our suite of value-added services and market-leading programmes,” said David Grant, CEO at Westcon-Comstor (pictured).

“In a changing world, we are proud to be a future-ready business that combines best-in-class data and digital platforms with deep relationships, leading market shifts and anticipating change to empower our partners and vendors to stay ahead of the curve.”

Callum McGregor, CFO and COO at Westcon-Comstor added: “With strong fundamentals and positive performance across key metrics, FY25 saw us maintain the growth trajectory that has characterised our business for the best part of a decade.

“Despite the challenging backdrop of geopolitical and macroeconomic uncertainty, FY26 offers opportunities for further growth thanks to our healthy sales pipeline, track record of innovation and strong relationships with partners and vendors.”