Arrow Electronics Reports First-Quarter 2025 Results

Arrow Electronics, a global provider of technology solutions, has released its financial results for the first quarter of 2025. The company reported consolidated and segment revenue, as well as earnings per share, that exceeded their guidance ranges.

Financial Highlights

For the first quarter of 2025, Arrow Electronics reported:

• Consolidated sales of $6.81 billion, a slight decrease from $6.92 billion in the same period last year.
• Net income attributable to shareholders of $80 million, down from $84 million in the first quarter of 2024.
• Net income per diluted share of $1.51, compared to $1.53 in the previous year.
• Non-GAAP net income per diluted share of $1.80, down from $2.41 in the first quarter of 2024.

Business and Operational Highlights

Arrow's Global Components segment saw sales of $4.78 billion, an 8% decrease year-over-year. The segment's operating income was $171 million, with a non-GAAP operating income of $173 million. The Global Enterprise Computing Solutions (ECS) segment reported sales of $2.04 billion, an 18% increase year-over-year, and an operating income of $77 million, with a non-GAAP operating income of $78 million.

Strategic Initiatives and Corporate Developments

During the first quarter, Arrow generated approximately $350 million in cash flow from operations and repurchased $50 million of shares. The company also reduced its total net working capital by approximately $340 million and decreased gross balance sheet debt by approximately $280 million.

Management's Perspective

Sean Kerins, Arrow’s president and CEO, expressed satisfaction with the company's performance, highlighting the momentum in EMEA and the contributions from value-added offerings and the ECS business. Raj Agrawal, Arrow’s CFO, noted the significant cash flow generation and the reduction in debt and working capital.

Future Outlook

For the second quarter of 2025, Arrow Electronics expects consolidated sales between $6.70 billion and $7.30 billion. The company forecasts net income per diluted share to be between $2.80 and $3.00, with non-GAAP net income per diluted share ranging from $1.90 to $2.10. The average tax rate is expected to be between 23% and 25%, with interest expenses around $60 million. Changes in foreign currencies are anticipated to increase sales by approximately $58 million and earnings per share by $0.03 compared to the second quarter of 2024.

SEC Filing: ARROW ELECTRONICS, INC. [ ARW ] - 8-K - May. 01, 2025