Westcon-Comstor has announced annual gross sales of $5.24 billion as a result of strong growth in cybersecurity and a speed up in its shift to software and services.illio
The gross sales figure for the year ended 28 February 2025 (FY25) represents a 3.3 per cent yoy increase (FY24: $5.08 bn).
Gross profit jumped 9.4 per cent to $441 million (FY24: $403 million), with strong and consistent growth in profitability in each of Westcon-Comstor’s three operating regions: Europe, Middle East and Africa and Asia-Pacific.
Gross margin rose to 22.4 per cent (FY24: 18.2 per cent) on revenue of $1.97 billion.
Adjusted EBITDA increased by almost 25 per cent to $149.9 million (FY24: $120.2 million), with a further improvement in adjusted EBITDA margin to 7.6 per cent (FY24: 5.4 per cent).
Gross sales from cybersecurity increased 19.3 per cent yoy and accounted for more than half (51 per cent) of Westcon-Comstor’s gross sales in FY25. Growth was driven by an expansion of collaborations with cybersecurity vendors and the success of the distributor’s value-added offerings for partners and vendors, spanning data, enablement and education.
Hardware now accounts for just one third (32 per cent) of gross sales as Westcon-Comstor speeds up its transition away from traditional hardware towards recurring revenues based on annual subscriptions and cloud-based software-as-a-service models.
Gross sales from software increased 22.2 per cent to $2.33 billion (FY24: $1.91 billion), with software making up 44 per cent of gross sales (FY24: 38 per cent).
Recurring sales, for example from software and services, now represent 66 per cent of gross sales (FY24: 60 per cent), as Westcon-Comstor has increasingly adopted solution lifecycle selling and moves to a recurring revenue model, in line with the transformation journey being pursued by its partners and vendors.
The distributor also deepened relationships with core vendors across cybersecurity, networking and cloud in FY25, with a focus on delivering value by increasing distribution-led sales.
This group of nine vendors accounted for 80 per cent of gross sales during the year at $4.20 billion, with year-on-year growth of 4.9 per cent outstripping overall gross sales growth.
“I’m thrilled to mark another year of exceptional financial and operational performance, with strong progress against our core strategic objectives and a continued relentless focus on delivering partner success,” said David Grant, CEO at Westcon-Comstor. “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.
“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. I’d like to pay tribute to our 3,700-plus employees around the world for their dedication and creativity. Without our people and the ambitious culture they embody, results like this wouldn’t be possible.”
Callum McGregor, chief financial officer and chief operating officer at Westcon-Comstor, said, “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.”