EX-99.12arw-20250731xex99d1.htmEX-99.1

ARROW ELECTRONICS, INC.

9151 EAST PANORAMA CIRCLE

CENTENNIAL, CO 80112

303-824-4000

NEWS

Exhibit 99.1

Arrow Electronics Reports Second-Quarter 2025 Results

--T1Consolidated, Global Components, and ECS Segment Sales Above High End of Guidance--

--Second-Quarter Earnings Per Share of $3.59 and Non-GAAP Earnings Per Share of $2.43, Both Above High End of Guidance--

CENTENNIAL, Colo.--(BUSINESS WIRE)- July 31, 2025--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its second quarter of 2025.

“I am pleased to report we delivered both consolidated and segment revenues, as well as earnings per share, that exceeded our guidance ranges,” said Sean Kerins, Arrow’s president and chief executive officer.

Arrow Consolidated

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

(in millions except per share data)

2025

2024

Change

2025

2024

Change

Consolidated sales

7,580

6,893

14,394

13,817

Net income attributable to shareholders

188

109

267

192

Net income per diluted share

3.59

2.01

5.09

3.53

Non-GAAP net income attributable to shareholders (1)

127

150

(15)

222

282

(21)

Non-GAAP net income per diluted share (1)

2.43

2.78

(13)

4.23

5.18

(18)

In the second quarter of 2025, sales exceeded the high end of guidance range, increased 10 percent year over year, and increased 8 percent year over year on a constant currency basis. Changes in foreign currencies had a positive impact on growth of approximately $123.3 million on sales and $0.07 on earnings per share on a diluted basis compared to the second quarter of 2024.

Global Components

“In our global components business, while momentum in Asia was especially strong, we enjoyed sequential growth in all three operating regions,” said Mr. Kerins. “In addition, T2our leading indicators continue to suggest that a modest cyclical recovery is in flight.”

Global Components

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

(in millions)

2025

2024

Change

2025

2024

Change

Global components sales

5,285

5,032

10,063

10,223

(2)

Global components operating income

187

210

(11)

358

436

(18)

Global components non-GAAP operating income (1)

189

218

(13)

362

461

(21)

In the second quarter of 2025, global components sales exceeded the high end of guidance range, increased 5 percent year over year, and increased 3 percent year over year on a constant currency basis. Americas components second-quarter sales increased 9 percent year over year. EMEA components second-quarter sales decreased 1 percent year over year and decreased 6 percent year over year on a constant currency basis. Asia-Pacific components second-quarter sales increased 6 percent year over year.

ARROW ELECTRONICS, INC.

9151 EAST PANORAMA CIRCLE

CENTENNIAL, CO 80112

303-824-4000

NEWS

Global Enterprise Computing Solutions

“T3In our global ECS business, we delivered year-over-year growth in billings and gross profit. Additionally we saw robust growth in our IT as-a-service backlog, alongside continued adoption of our digital platform, Arrowsphere. Our strategy to concentrate on the higher growth demand trends throughout enterprise IT is gaining momentum,” said Mr. Kerins.

Global Enterprise Computing Solutions (ECS)

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

(in millions)

2025

2024

Change

2025

2024

Change

Global ECS sales

2,295

1,861

4,331

3,594

Global ECS operating income

103

(5)

174

flat

Global ECS non-GAAP operating income (1)

104

(6)

176

flat

In the second quarter of 2025, global ECS sales exceeded the high end of guidance range and increased 23 percent year over year, and increased 20 percent year over year on a constant currency basis. Global ECS billings increased 15 percent year over year. EMEA ECS second-quarter sales increased 39 percent year over year and increased 31 percent year over year on a constant currency basis. Americas ECS second-quarter sales increased 9 percent year over year.

Other Financial Information

“In the second quarter, T4we increased our inventory turns, reduced our cash conversion cycle and improved our returns on capital,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer. “T5We were also able to repurchase another $50 million of shares.”

1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

Third-Quarter 2025 Outlook

●

Consolidated sales of $7.30 billion to $7.90 billion, with global components sales of $5.30 billion to $5.70 billion, and global enterprise computing solutions sales of $2.00 billion to $2.20 billion

●

Net income per share on a diluted basis of $1.49 to $1.69, and non-GAAP net income per share on a diluted basis of $2.16 to $2.36

●

Average tax rate in the range of 23 percent to 25 percent

●

Interest expense of approximately $65 million

●

Changes in foreign currencies to increase sales by approximately $135 million, and earnings per share on a diluted basis by $0.11 compared to the third quarter of 2024

●

Changes in foreign currencies to increase quarter-over-quarter growth in sales by $89 million, and earnings per share on a diluted basis by $0.05 compared to the second quarter of 2025

●

T6Global components second-quarter sales included a 1% incremental billing impact from tariffs. The company has assumed a similar amount in its third-quarter outlook.

Third-Quarter 2025 GAAP to non-GAAP Outlook Reconciliation

NON-GAAP SALES RECONCILIATION

Quarter Ended

September 27,

September 28,

September 27,

June 28,

(in billions)

2025

2024

% Change

2025

% Change

Global components sales, GAAP

5.30 - 5.70

4.95

7% - 15%

5.30 - 5.70

5.28

0% - 8%

Impact of changes in foreign currencies

—

0.08

—

0.05

Global components sales, constant currency

5.30 - 5.70

5.03

5% - 13%

5.30 - 5.70

5.33

(1%) - 7%

Global ECS sales, GAAP

2.00 - 2.20

1.88

6% - 17%

2.00 - 2.20

2.30

(13%) - (4%)

Impact of changes in foreign currencies

—

0.05

—

0.04

Global ECS sales, constant currency

2.00 - 2.20

1.93

4% - 14%

2.00 - 2.20

2.34

(15%) - (6%)

NON-GAAP EARNINGS RECONCILIATION

Reported

Intangible amortization

Restructuring &

GAAP measure

expense

integration charges

Non-GAAP measure

Net income per diluted share

$1.49 to $1.69

$0.07

$ 0.60

$2.16 to $2.36

Earnings Presentation

Please refer to the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company may use this website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the website noted above, in addition to following the company’s press releases, SEC filings, and public conference calls and webcasts.

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss second-quarter 2025 financial results on July 31, 2025, at 1:00 p.m. ET.

A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/323584746. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.

About Arrow Electronics

Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2024 sales of $28 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information to the reader in evaluating the overall performance of the global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a specified period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking” statements, as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions. Such forward-looking statements in this press release include, but are not limited to, statements regarding: Arrow’s future financial performance, including its outlook on financial results for the second quarter of fiscal 2025 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, the timing of the completion of the company’s restructuring initiatives (the “Operating Expense Efficiency Plan”) and Arrow’s estimated costs and expected operating expense reductions associated therewith, industry trends and expectations regarding market demand and conditions, and shareholder returns.

These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions, shortages, or inefficiencies in the supply chain; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; the incurrence of additional charges not currently contemplated and failure to realize contemplated cost savings due to unanticipated events that may occur in connection with the implementation of the Operating Expense Efficiency Plan; political instability and changes; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as trade, export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information and information system failures, including related to current or future implementations, integrations and upgrades; outbreaks, epidemics, pandemics, or public health crises; executive orders and regulatory trends and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; and the company's ability to generate positive cash flow.

For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, net income attributable to shareholders, effective tax rate, and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization, restructuring, integration, and other; net gains on investments; and inventory write downs (recoveries) related to the wind down of a businesses within the global components reportable segment (“impact of wind down”). Management believes that providing this additional information is useful to the reader to better assess and understand

the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP.

Contacts

Investors:

Rick Seidlitz,

Vice President, Investor Relations

303-305-4936

Media:

John Hourigan,

Vice President, Public Affairs and Corporate Marketing

303-824-4586

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)

Quarter Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Sales

7,579,947

6,892,868

14,393,964

13,817,128

Cost of sales

6,731,290

6,046,424

12,771,315

12,112,858

Gross profit

848,657

846,444

1,622,649

1,704,270

Operating expenses:

Selling, general, and administrative

600,990

552,595

1,163,306

1,135,921

Depreciation and amortization

35,162

41,037

70,972

82,764

Restructuring, integration, and other

21,919

40,537

39,232

87,393

658,071

634,169

1,273,510

1,306,078

Operating income

190,586

212,275

349,139

398,192

Equity in (losses) earnings of affiliated companies

(659)

1,254

661

910

Gain (loss) on investments, net

103,976

(4,615)

104,116

(4,517)

Loss on extinguishment of debt

—

(1,657)

—

(1,657)

Post-retirement expense

(664)

(980)

(1,286)

(1,913)

Interest and other financing expense, net

(60,283)

(66,891)

(116,465)

(146,495)

Income before income taxes

232,956

139,386

336,165

244,520

Provision for income taxes

45,934

29,762

69,279

51,798

Consolidated net income

187,022

109,624

266,886

192,722

Noncontrolling interests

(727)

926

(583)

423

Net income attributable to shareholders

187,749

108,698

267,469

192,299

Net income per share:

Basic

3.62

2.03

5.14

3.56

Diluted

3.59

2.01

5.09

3.53

Weighted-average shares outstanding:

Basic

51,856

53,640

52,057

53,944

Diluted

52,342

54,181

52,504

54,496

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)

June 28, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

221,970

188,807

Accounts receivable, net

15,271,349

13,030,991

Inventories

4,749,431

4,709,706

Other current assets

603,670

471,909

Total current assets

20,846,420

18,401,413

Property, plant, and equipment, at cost:

Land

5,691

Buildings and improvements

196,556

194,061

Machinery and equipment

1,691,823

1,623,228

1,894,070

1,822,980

Less: Accumulated depreciation and amortization

(1,419,472)

(1,353,720)

Property, plant, and equipment, net

474,598

469,260

Investments in affiliated companies

57,766

57,299

Intangible assets, net

86,552

96,706

Goodwill

2,123,994

2,055,295

Other assets

663,248

677,734

Total assets

24,252,578

21,757,707

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

13,213,323

11,047,470

Accrued expenses

1,309,323

1,238,714

Short-term borrowings, including current portion of long-term debt

455,612

349,978

Total current liabilities

14,978,258

12,636,162

Long-term debt

2,365,812

2,773,783

Other liabilities

499,434

516,234

Equity:

Shareholders’ equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2025 and 2024

Issued - 55,815 and 55,592 shares in 2025 and 2024, respectively

55,815

55,592

Capital in excess of par value

589,480

562,080

Treasury stock (4,314 and 3,420 shares in 2025 and 2024, respectively), at cost

(432,447)

(328,078)

Retained earnings

6,248,295

5,980,826

Accumulated other comprehensive loss

(127,253)

(509,269)

Total shareholders’ equity

6,333,890

5,761,151

Noncontrolling interests

75,184

70,377

Total equity

6,409,074

5,831,528

Total liabilities and equity

24,252,578

21,757,707

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Quarter Ended

June 28, 2025

June 29, 2024

Cash flows from operating activities:

Consolidated net income

187,022

109,624

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization

35,162

41,037

Amortization of stock-based compensation

11,641

8,253

Equity in losses (earnings) of affiliated companies

659

(1,254)

Deferred income taxes

11,092

(4,597)

Loss on extinguishment of debt

—

1,657

(Gain) loss on investments, net

(103,863)

4,639

Other

376

3,786

Change in assets and liabilities, net of effects of acquired businesses:

Accounts receivable, net

(2,627,707)

155,886

Inventories

108,833

130,661

Accounts payable

2,200,976

(160,026)

Accrued expenses

(2,027)

251,990

Other assets and liabilities

(28,060)

(221,475)

Net cash (used for) provided by operating activities

(205,896)

320,181

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(18,618)

(22,101)

Proceeds from settlement of net investment hedges

24,858

—

Proceeds from sale of investments in equity securities

100,000

—

Other

—

1,313

Net cash provided by (used for) investing activities

106,240

(20,788)

Cash flows from financing activities:

Change in short-term and other borrowings

274,187

(434,845)

(Repayments of) proceeds from long-term bank borrowings, net

50,566

196,575

Redemption of notes

(350,000)

(500,000)

Net proceeds from note offering

—

494,678

Proceeds from exercise of stock options

2,299

1,839

Repurchases of common stock

(50,736)

(75,353)

Settlement of forward-starting interest rate swap

—

Other

(148)

(141)

Net cash used for financing activities

(73,832)

(317,247)

Effect of exchange rate changes on cash

163,576

(11,947)

Net decrease in cash and cash equivalents

(9,912)

(29,801)

Cash and cash equivalents at beginning of period

231,882

242,810

Cash and cash equivalents at end of period

221,970

213,009

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Six Months Ended

June 28, 2025

June 29, 2024

Cash flows from operating activities:

Consolidated net income

266,886

192,722

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization

70,972

82,764

Amortization of stock-based compensation

30,200

21,700

Equity in losses (earnings) of affiliated companies

(661)

(910)

Deferred income taxes

5,251

(7,398)

Loss on extinguishment of debt

—

1,657

(Gain) loss on investments, net

(103,895)

4,652

Other

(302)

4,975

Change in assets and liabilities, net of effects of acquired businesses:

Accounts receivable, net

(1,896,481)

1,213,562

Inventories

46,449

493,474

Accounts payable

1,949,919

(1,237,812)

Accrued expenses

(81,710)

273,043

Other assets and liabilities

(140,845)

(319,038)

Net cash provided by operating activities

145,783

723,391

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(43,597)

(51,636)

Proceeds from settlement of net investment hedges

24,858

—

Proceeds from sale of investments in equity securities

100,000

—

Other

—

6,452

Net cash provided by (used for) investing activities

81,261

(45,184)

Cash flows from financing activities:

Change in short-term and other borrowings

454,803

(1,144,520)

(Repayments of) proceeds from long-term bank borrowings, net

(413,657)

673,607

Redemption of notes

(350,000)

(500,000)

Net proceeds from note offering

—

494,678

Proceeds from exercise of stock options

3,203

4,768

Repurchases of common stock

(110,149)

(163,301)

Other

(148)

(141)

Net cash used for financing activities

(415,948)

(634,909)

Effect of exchange rate changes on cash

222,067

(48,342)

Net increase (decrease) in cash and cash equivalents

33,163

(5,044)

Cash and cash equivalents at beginning of period

188,807

218,053

Cash and cash equivalents at end of period

221,970

213,009

ARROW ELECTRONICS, INC.

ECS Gross Billings

(In thousands)

(Unaudited)

Global Enterprise Computing Solutions - Gross Billings(1)

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

2025

2024

Change

2025

2024

Change

Gross billings:

Americas ECS

2,543,759

2,441,126

4,851,496

4,804,955

EMEA ECS

2,596,209

2,031,939

4,927,426

4,076,528

Global ECS

5,139,968

4,473,065

9,778,922

8,881,483

(1)

Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

June 28, 2025

June 29, 2024

% Change

Consolidated sales, as reported

7,579,947

6,892,868

10.0

Impact of changes in foreign currencies

—

123,311

Consolidated sales, constant currency

7,579,947

7,016,179

8.0

Global components sales, as reported

5,284,898

5,032,031

5.0

Impact of changes in foreign currencies

—

75,437

Global components sales, constant currency

5,284,898

5,107,468

3.5

Americas components sales, as reported

1,707,522

1,572,840

8.6

Impact of changes in foreign currencies

—

544

Americas components sales, constant currency

1,707,522

1,573,384

8.5

Asia components sales, as reported

2,150,432

2,019,697

6.5

Impact of changes in foreign currencies

—

1,228

Asia components sales, constant currency

2,150,432

2,020,925

6.4

EMEA components sales, as reported

1,426,944

1,439,494

(0.9)

Impact of changes in foreign currencies

—

73,665

EMEA components sales, constant currency

1,426,944

1,513,159

(5.7)

Global ECS sales, as reported

2,295,049

1,860,837

23.3

Impact of changes in foreign currencies

—

47,874

Global ECS sales, constant currency

2,295,049

1,908,711

20.2

Americas ECS sales, as reported

1,052,785

964,070

9.2

Impact of changes in foreign currencies

—

(1,263)

Americas ECS sales, constant currency

1,052,785

962,807

9.3

EMEA ECS sales, as reported

1,242,264

896,767

38.5

Impact of changes in foreign currencies

—

49,137

EMEA ECS sales, constant currency

1,242,264

945,904

31.3

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Six Months Ended

June 28, 2025

June 29, 2024

% Change

Consolidated sales, as reported

14,393,964

13,817,128

4.2

Impact of changes in foreign currencies

—

38,958

Consolidated sales, constant currency

14,393,964

13,856,086

3.9

Global components sales, as reported

10,062,620

10,223,448

(1.6)

Impact of changes in foreign currencies

—

18,997

Global components sales, constant currency

10,062,620

10,242,445

(1.8)

Americas components sales, as reported

3,276,092

3,169,532

3.4

Impact of changes in foreign currencies

—

(497)

Americas components sales, constant currency

3,276,092

3,169,035

3.4

Asia components sales, as reported

4,019,583

3,957,915

1.6

Impact of changes in foreign currencies

—

(7,426)

Asia components sales, constant currency

4,019,583

3,950,489

1.7

EMEA components sales, as reported

2,766,945

3,096,001

(10.6)

Impact of changes in foreign currencies

—

26,920

EMEA components sales, constant currency

2,766,945

3,122,921

(11.4)

Global ECS sales, as reported

4,331,344

3,593,680

20.5

Impact of changes in foreign currencies

—

19,961

Global ECS sales, constant currency

4,331,344

3,613,641

19.9

Americas ECS sales, as reported

1,962,688

1,871,818

4.9

Impact of changes in foreign currencies

—

(8,059)

Americas ECS sales, constant currency

1,962,688

1,863,759

5.3

EMEA ECS sales, as reported

2,368,656

1,721,862

37.6

Impact of changes in foreign currencies

—

28,020

EMEA ECS sales, constant currency

2,368,656

1,749,882

35.4

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Three months ended June 28, 2025

Reported

Intangible

Restructuring,

Impact of

GAAP

amortization

Integration

Wind

Non-GAAP

measure

expense

and other

Down(1)

Other(2)

measure

Operating income

190,586

4,870

21,919

(2,172)

172

215,375

Income before income taxes

232,956

4,870

21,919

(2,172)

(103,804)

153,769

Provision for income taxes

45,934

1,208

5,747

(689)

(25,119)

27,081

Consolidated net income

187,022

3,662

16,172

(1,483)

(78,685)

126,688

Noncontrolling interests

(727)

—

(703)

Net income attributable to shareholders

187,749

3,638

16,172

(1,483)

(78,685)

127,391

Net income per diluted share (4)

3.59

0.07

0.31

(0.03)

(1.50)

2.43

Effective tax rate (5)

19.7

17.6

Three months ended June 29, 2024

Reported

Intangible

Restructuring,

Impact of

GAAP

amortization

Integration

Wind

Non-GAAP

measure

expense

and other

Down(1)

Other(3)

measure

Operating income

212,275

7,456

40,537

1,627

—

261,895

Income before income taxes

139,386

7,456

40,537

1,627

6,272

195,278

Provision for income taxes

29,762

1,864

10,214

389

1,506

43,735

Consolidated net income

109,624

5,592

30,323

1,238

4,766

151,543

Noncontrolling interests

926

135

—

1,061

Net income attributable to shareholders

108,698

5,457

30,323

1,238

4,766

150,482

Net income per diluted share (4)

2.01

0.10

0.56

0.02

0.09

2.78

Effective tax rate (5)

21.4

22.4

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Six months ended June 28, 2025

Reported

Intangible

Restructuring,

Impact of

GAAP

amortization

Integration

Wind

Non-GAAP

measure

expense

and other

Down(1)

Other(2)

measure

Operating income

349,139

10,230

39,232

(4,639)

172

394,134

Income before income taxes

336,165

10,230

39,232

(4,639)

(103,944)

277,044

Provision for income taxes

69,279

2,524

10,098

(1,470)

(25,152)

55,279

Consolidated net income

266,886

7,706

29,134

(3,169)

(78,792)

221,765

Noncontrolling interests

(583)

156

—

(427)

Net income attributable to shareholders

267,469

7,550

29,134

(3,169)

(78,792)

222,192

Net income per diluted share (4)

5.09

0.14

0.55

(0.06)

(1.50)

4.23

Effective tax rate (5)

20.6

20.0

Six months ended June 29, 2024

Reported

Intangible

Restructuring,

Impact of

GAAP

amortization

Integration

Wind

Non-GAAP

measure

expense

and other

Down(1)

Other(3)

measure

Operating income

398,192

15,002

87,393

12,086

—

512,673

Income before income taxes

244,520

15,002

87,393

12,086

6,174

365,175

Provision for income taxes

51,798

3,743

22,228

2,891

1,482

82,142

Consolidated net income

192,722

11,259

65,165

9,195

4,692

283,033

Noncontrolling interests

423

270

—

693

Net income attributable to shareholders

192,299

10,989

65,165

9,195

4,692

282,340

Net income per diluted share (4)

3.53

0.20

1.20

0.17

0.09

5.18

Effective tax rate (5)

21.2

22.5

(1) Includes write downs (recoveries) of inventory related to the wind down of businesses.

(2) Other includes gain on investments, net, non-recurring tax items, and employee severance and benefits costs not related to restructuring initiative presented in cost of sales.

(3) Other includes loss (gain) on investments, net and loss on extinguishment of debt.

(4) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

(5) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

2025

2024

2025

2024

Sales:

Global components

5,284,898

5,032,031

10,062,620

10,223,448

Global ECS

2,295,049

1,860,837

4,331,344

3,593,680

Consolidated

7,579,947

6,892,868

14,393,964

13,817,128

Operating income (loss):

Global components (a)

186,808

210,201

358,193

435,763

Global ECS (b)

96,969

102,581

174,283

174,040

Corporate (c)

(93,191)

(100,507)

(183,337)

(211,611)

Consolidated

190,586

212,275

349,139

398,192

(a)

Global components operating income includes recoveries of $2.2 million and $4.6 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2025, respectively, and charges of $1.6 million and $12.1 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2024, respectively.

(b)

Global ECS operating income includes a $20.0 million benefit related to the reversal of an allowance for credit losses due to the collection of certain aged receivables related to one customer for the second quarter and first six months of 2024.

(c)

Corporate operating loss includes restructuring, integration, and other charges of $21.9 million and $39.2 million for the second quarter and first six months of 2025, respectively, and $40.5 million and $87.4 million for the second quarter and first six months of 2024, respectively.

ARROW ELECTRONICS, INC.

NON-GAAP SEGMENT RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

2025

2024

2025

2024

Global components gross profit, as reported

591,454

624,860

1,146,399

1,270,574

Impact of wind down to inventory

(2,172)

1,627

(4,639)

12,086

Other

172

—

172

—

Global components non-GAAP gross profit

589,454

626,487

1,141,932

1,282,660

Global components gross profit as a percentage of sales, as reported

11.2

12.4

11.4

12.4

Global components non-GAAP gross profit as a percentage of sales

11.2

12.4

11.3

12.5

Global ECS gross profit, as reported

257,203

221,584

476,250

433,696

Global ECS gross profit as a percentage of sales, as reported

11.2

11.9

11.0

12.1

Quarter Ended

Six Months Ended

June 28,

June 29,

June 28,

June 29,

2025

2024

2025

2024

Global components operating income, as reported

186,808

210,201

358,193

435,763

Intangible assets amortization expense

3,945

6,399

8,383

12,887

Impact of wind down to inventory

(2,172)

1,627

(4,639)

12,086

Other

172

—

172

—

Global components non-GAAP operating income

188,753

218,227

362,109

460,736

Global components operating income as a percentage of sales, as reported

3.5

4.2

3.6

4.3

Global components non-GAAP operating income as a percentage of sales

3.6

4.3

3.6

4.5

Global ECS operating income, as reported

96,969

102,581

174,283

174,040

Intangible assets amortization expense

925

1,057

1,847

2,115

Global ECS non-GAAP operating income

97,894

103,638

176,130

176,155

Global ECS operating income as a percentage of sales, as reported

4.2

5.5

4.0

4.8

Global ECS non-GAAP operating income as a percentage of sales

4.3

5.6

4.1

4.9

NON-GAAP SEGMENT RECONCILIATIONS

Mentions · how they’re counted

Category	Underlined	Word counter	Model’s count
AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM	1	—	0
Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring	10	—	0
Recession recession, downturn, contraction, slowdown	1	—	0
Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy	2	—	2
Buybacks share repurchase, buyback program	0	—	1

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor