Avnet(AVT) - 2025 Q2 - Quarterly Report

Financial Performance - Sales for Q2 2025 were $5.66 billion, a decrease of$541.5 million or 8.7% compared to Q2 2024 sales of $6.20 billion[80] - Gross profit for Q2 2025 was$596 million, down $110 million or 15.6$155 million, a decline of $81 million or 34.3$236 million in Q2 2024[76] - Adjusted operating income for Q2 2025 was $159 million, down$83 million or 34.2% from $242 million in Q2 2024[76] - Net income for Q2 2025 was$87 million, a decrease of $31 million or 26.0$118 million in Q2 2024[76] - Operating income for the second quarter of fiscal 2025 was $155.3 million, a decrease of$80.9 million or 34.3% year over year, with an operating income margin of 2.7%[94] - Adjusted operating income for the first six months of fiscal 2025 was $328.4 million, a decrease of$175.5 million or 34.8% from the prior year[96] - Net income for the second quarter of fiscal 2025 was $87.3 million, or$0.99 per share on a diluted basis, compared to $117.9 million, or$1.28 per share in the same quarter of fiscal 2024[103] Expenses and Costs - SG&A expenses for Q2 2025 were $437 million, a decrease of$28 million or 6.0% from Q2 2024[86] - The Company incurred restructuring, integration, and other expense costs of $30.1 million in the first six months of fiscal 2025, with an after-tax impact of$22.3 million or $0.25 per share on a diluted basis[92] Taxation - The effective tax rate for Q2 2025 was 3.4$18.8 million, reflecting an effective tax rate of 11.4%, down from 23.7% in the prior year[102] Future Projections - The Company expects sales in Q3 2025 to decline by 6% to 11% compared to Q2 2025[74] Cash Flow and Debt - Net cash provided by operating activities was $444.2 million for the first six months of fiscal 2025, a significant increase of$527.7 million compared to the prior year[106] - The Company had net repayments of debt totaling $307.7 million during the first six months of fiscal 2025, compared to$362.1 million of net borrowing in the same period of the prior year[107] - The Company held cash and cash equivalents of $172.1 million as of December 28, 2024, down from$310.9 million as of June 29, 2024[113] - The Company repurchased $152.2 million of common stock under the share repurchase plan during the first six months of fiscal 2025, compared to$86.0 million in the same period of the prior year[107] Sales Breakdown - EC sales for Q2 2025 were $5.32 billion, down$494.3 million or 8.5% from Q2 2024[81] - Farnell sales for Q2 2025 were $345.6 million, reflecting a decrease of$47.2 million or 12.0% compared to the same period in the prior year[82] Borrowing Capacity - The Company has a combined total borrowing capacity of $2.00 billion under the Credit Facility and the Securitization Program, with approximately$1.09 billion of total committed availability as of December 28, 2024[116]