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Arrow Electronics(ARW) - 2025 Q1 - Quarterly Results
ARWArrow Electronics(ARW)2025-05-01 12:01

Financial Performance - Consolidated sales for Q1 2025 were 6.814billion,adecreaseof26.814 billion, a decrease of 2% year-over-year, and flat on a constant currency basis[3] - Global components sales were 4.778 billion, down 8% year-over-year, and down 7% on a constant currency basis[5] - Global ECS sales increased to 2.036billion,representingan182.036 billion, representing an 18% year-over-year growth and a 19% increase on a constant currency basis[8] - Net income attributable to shareholders was 80 million, with a diluted EPS of 1.51,comparedto1.51, compared to 84 million and 1.53inQ12024[3]−Non−GAAPnetincomeattributabletoshareholderswas1.53 in Q1 2024[3] - Non-GAAP net income attributable to shareholders was 95 million, with a non-GAAP diluted EPS of 1.80,downfrom1.80, down from 132 million and 2.41inQ12024[3]−ForQ22025,thecompanyexpectsGAAPsalesof2.41 in Q1 2024[3] - For Q2 2025, the company expects GAAP sales of 4.80 billion to 5.20billionforglobalcomponentsand5.20 billion for global components and 1.90 billion to 2.10billionforglobalECS[15]−ConsolidatedsalesforthequarterendedMarch29,2025,were2.10 billion for global ECS[15] - Consolidated sales for the quarter ended March 29, 2025, were 6,814,017, a decrease of 1.6% compared to 6,924,260forthesameperiodin2024[25]−Grossprofitforthequarterwas6,924,260 for the same period in 2024[25] - Gross profit for the quarter was 773,992, down from 857,826intheprioryear,reflectingadeclineofapproximately9.8857,826 in the prior year, reflecting a decline of approximately 9.8%[25] - Operating income decreased to 158,553 from 185,917,representingadeclineof14.7185,917, representing a decline of 14.7% year-over-year[25] - Net income attributable to shareholders was 79,720, down 4.5% from 83,601inthepreviousyear[25]−ForthethreemonthsendedMarch29,2025,consolidatednetincomewas83,601 in the previous year[25] - For the three months ended March 29, 2025, consolidated net income was 95,077,000, a decrease from 131,490,000forthesameperiodin2024,representingadeclineofapproximately27.7131,490,000 for the same period in 2024, representing a decline of approximately 27.7%[41] - Operating income for the first quarter of 2025 was 158,553,000, down from 185,917,000inthefirstquarterof2024,reflectingadecreaseofabout14.7185,917,000 in the first quarter of 2024, reflecting a decrease of about 14.7%[41] Cash Flow and Capital Management - The company generated approximately 350 million in cash flow from operations and repurchased 50millionofsharesinQ12025[9]−Totalnetworkingcapitalwasreducedbyapproximately50 million of shares in Q1 2025[9] - Total net working capital was reduced by approximately 340 million, and gross balance sheet debt decreased by approximately 280million[9]−Cashandcashequivalentsattheendoftheperiodwere280 million[9] - Cash and cash equivalents at the end of the period were 231,882, an increase from 188,807atthebeginningoftheperiod[31]−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof188,807 at the beginning of the period[31] - The company reported a net cash provided by operating activities of 351,679, down from 403,210inthepreviousyear[31]SalesandMarketTrends−GlobalEnterpriseComputingSolutions(ECS)grossbillingsincreasedto403,210 in the previous year[31] Sales and Market Trends - Global Enterprise Computing Solutions (ECS) gross billings increased to 4,638,954, up 5.2% from 4,408,418intheprioryear[34]−EMEAECSsalessawasignificantincreaseof36.54,408,418 in the prior year[34] - EMEA ECS sales saw a significant increase of 36.5%, reaching 1,126,392 compared to 825,095inthesamequarterlastyear[38]−Globalcomponentssalesdecreasedto825,095 in the same quarter last year[38] - Global components sales decreased to 4,777,722,000 in Q1 2025 from 5,191,417,000inQ12024,adeclineofapproximately7.95,191,417,000 in Q1 2024, a decline of approximately 7.9%[45] - Global ECS sales increased to 2,036,295,000 in Q1 2025 from 1,732,843,000inQ12024,representingagrowthofapproximately17.51,732,843,000 in Q1 2024, representing a growth of approximately 17.5%[45] Tax and Liabilities - The average tax rate is projected to be in the range of 23% to 25% for Q2 2025[15] - The effective tax rate for the first quarter of 2025 was 22.6%, compared to 21.0% in the same quarter of 2024[41] - Total current liabilities slightly decreased to 12,603,036 from 12,636,162,areductionofabout0.312,636,162, a reduction of about 0.3%[28] Restructuring and Integration Costs - The company incurred restructuring and integration charges of 17,313,000 in Q1 2025, compared to 46,856,000inQ12024,indicatingareductioninrestructuringcosts[46]−CorporateoperatinglossforQ12025was46,856,000 in Q1 2024, indicating a reduction in restructuring costs[46] - Corporate operating loss for Q1 2025 was 90,146,000, an improvement from a loss of 111,104,000inQ12024[45]ProfitabilityMetrics−Globalcomponentsgrossprofitasapercentageofsaleswas11.6111,104,000 in Q1 2024[45] Profitability Metrics - Global components gross profit as a percentage of sales was 11.6% in Q1 2025, down from 12.4% in Q1 2024[49] - Non-GAAP operating income for global components in Q1 2025 was 173,356,000, down from 242,509,000inQ12024,adecreaseofabout28.5242,509,000 in Q1 2024, a decrease of about 28.5%[49] - Net income per diluted share for Q1 2025 was 1.80, compared to $2.41 in Q1 2024, a decrease of about 25.4%[41]