ARROW ELECTRONICS, INC. SEC 10-Q Report

Arrow Electronics, Inc., a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial growth and operational achievements, reflecting the company's strategic initiatives and market dynamics.

Financial Highlights

• Sales: $7,580 million, increased by 10.0% compared to the same quarter last year, driven by a 23.3% increase in Global ECS sales.
• Gross Profit: $848.7 million, with a gross profit margin of 11.2%, reflecting a decrease of 110 basis points from the previous year.
• Operating Income: $191 million, decreased by 10.2% from the prior year, with an operating income margin of 2.5%.
• Net Income Attributable to Shareholders: $188 million, representing a 72.7% increase from the previous year.
• Diluted Net Income Per Share: $3.59, up 78.6% from the same quarter last year, reflecting strong earnings growth.

Business Highlights

• Revenue Segments: The global components segment, which includes sales of semiconductor, interconnect, passive & electromechanical components, accounted for approximately 70% of the company's sales in the second quarter of 2025. The global ECS segment, focusing on comprehensive computing solutions, contributed to 30% of sales.
• Geographical Performance:
  • Americas: Sales of $1,707.5 million in the global components segment and $1,052.8 million in the global ECS segment for the quarter ended June 28, 2025.
  • EMEA: Slight decline in the global components segment but significant growth in the ECS segment, with sales increasing to $1,242.3 million.
  • Asia/Pacific: Sales of $2,150.4 million in the global components segment, indicating a recovery and growth ahead of the Americas and EMEA regions, consistent with historical trends from past cyclical downturns.
• Business Environment: The global components segment is experiencing a modest recovery from a cyclical downturn in 2024, with positive demand trends and customers replenishing inventory. The company anticipates the Asia/Pacific region to lead the recovery.
• Business Environment: The U.S. Federal Government's tariffs on imports and potential retaliatory tariffs from other countries are creating uncertainty. These tariffs may increase product prices, potentially affecting demand and operational costs.
• Future Outlook: The company expects to continue its strategic initiatives, including optimizing operating expenses through the Operating Expense Efficiency Plan, which aims to improve operational efficiency by consolidating operations and enhancing logistics and IT systems.
• Future Outlook: The company is focused on capturing growth opportunities across products, markets, and geographies, with an emphasis on increasing market penetration and expanding its geographic reach through strategic acquisitions.

SEC Filing: ARROW ELECTRONICS, INC. [ ARW ] - 10-Q - Jul. 31, 2025