EX-99.12arw-20251030xex99d1.htmEX-99.1
ARROW ELECTRONICS, INC.
9151 EAST PANORAMA CIRCLE
CENTENNIAL, CO 80112
303-824-4000
NEWS
Exhibit 99.1
Arrow Electronics Reports Third-Quarter 2025 Results
--T1Total Revenue Increased 13% Year over Year--
--T2Third-Quarter Earnings Per Share of $2.09 and Non-GAAP Earnings Per Share of $2.41, Both Above High End of Guidance--
CENTENNIAL, Colo.--(BUSINESS WIRE)- October 30, 2025--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its third quarter of 2025.
“The third quarter marked another period of progress for Arrow as we executed against our strategic priorities,” said Bill Austen, Arrow’s interim president and chief executive officer. “I’m pleased to share that we delivered solid revenue and earnings per share during the quarter, bolstered by meaningful contributions from both our global components and enterprise computing solutions segments as we delivered high-quality, innovative technology solutions to our customers.”
“T3These results were especially notable as they were achieved within a market that continues to gradually recover from a prolonged cyclical correction," said Mr. Austen. "The fundamentals across our business remain resilient, and we are well-positioned to emerge from this environment with improved momentum, underpinned by the decisive actions we are taking to continue driving strong operational and financial performance. As we head into the fourth quarter, I remain confident in Arrow’s path forward and the long-term growth opportunities ahead as we drive disciplined execution, strengthen our customer partnerships and deliver sustainable value for our shareholders.”
Arrow Consolidated
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
(in millions except per share data)
2025
2024
Change
2025
2024
Change
Consolidated sales
$
7,713
$
6,823
13
%
$
22,107
$
20,640
7
%
Net income attributable to shareholders
109
101
9
%
377
293
29
%
Net income per diluted share
2.09
1.88
11
%
7.19
5.42
33
%
Non-GAAP net income attributable to shareholders (1)
126
128
(1)
%
348
410
(15)
%
Non-GAAP net income per diluted share (1)
2.41
2.38
1
%
6.64
7.59
(13)
%
In the third quarter of 2025, sales increased 13 percent year over year, and increased 11 percent year over year on a constant currency basis. T4Changes in foreign currencies had a positive impact on growth of $128 million on sales and $0.08 on earnings per share on a diluted basis compared to the third quarter of 2024.
Global Components
Global Components
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
(in millions)
2025
2024
Change
2025
2024
Change
Global components sales
$
5,556
$
4,946
12
%
$
15,619
$
15,170
3
%
Global components operating income
197
189
5
%
556
624
(11)
%
Global components non-GAAP operating income (1)
199
193
3
%
561
654
(14)
%
In the third quarter of 2025, global components sales increased 12 percent year over year, and increased 11 percent year over year on a constant currency basis. Americas components third-quarter sales increased 4 percent year over year. EMEA components third-quarter sales increased 12 percent year over year and increased 6 percent year over year on a constant currency basis. Asia-Pacific components third-quarter sales increased 19 percent year over year.
1
ARROW ELECTRONICS, INC.
9151 EAST PANORAMA CIRCLE
CENTENNIAL, CO 80112
303-824-4000
NEWS
Global Enterprise Computing Solutions
Global Enterprise Computing Solutions (ECS)
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
(in millions)
2025
2024
Change
2025
2024
Change
Global ECS sales
$
2,156
$
1,877
15
%
$
6,487
$
5,471
19
%
Global ECS operating income
64
76
(16)
%
238
250
(5)
%
Global ECS non-GAAP operating income (1)
65
77
(16)
%
241
253
(5)
%
In the third quarter of 2025, global ECS sales increased 15 percent year over year, and increased 12 percent year over year on a constant currency basis. Global ECS billings increased 14 percent year over year. T5Global ECS third-quarter operating income and non-GAAP operating income decreased 16 percent year over year due to $21 million of charges on multi-year contracts that have underperformed. EMEA ECS third-quarter sales increased 34 percent year over year and increased 27 percent year over year on a constant currency basis. Americas ECS third-quarter sales decreased 1 percent year over year.
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
2
Fourth-Quarter 2025 Outlook
●
T6Consolidated sales of $7.80 billion to $8.40 billion, with global components sales of $5.10 billion to $5.50 billion, and global enterprise computing solutions sales of $2.70 billion to $2.90 billion
●
Net income per share on a diluted basis of $3.08 to $3.28, and non-GAAP net income per share on a diluted basis of $3.44 to $3.64
●
Average tax rate in the range of 23 percent to 25 percent
●
Interest expense of approximately $60 million
●
Changes in foreign currencies to increase sales by approximately $226 million, and earnings per share on a diluted basis by $0.22 compared to the fourth quarter of 2024
●
Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $12 million, and earnings per share on a diluted basis will be flat compared to the third quarter of 2025
Fourth-Quarter 2025 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
December 31,
December 31,
December 31,
September 27,
(in billions)
2025
2024
% Change
2025
2025
% Change
Global components sales, GAAP
$
5.10 - 5.50
$
4.81
6% - 14%
$
5.10 - 5.50
$
5.56
(8)% - (1)%
Impact of changes in foreign currencies
—
0.11
—
(0.01)
Global components sales, constant currency
$
5.10 - 5.50
$
4.92
4% - 12%
$
5.10 - 5.50
$
5.55
(8)% - (1)%
Global ECS sales, GAAP
$
2.70 - 2.90
$
2.47
9% - 17%
$
2.70 - 2.90
$
2.16
25% - 34%
Impact of changes in foreign currencies
—
0.12
—
(0.01)
Global ECS sales, constant currency
$
2.70 - 2.90
$
2.59
4% - 12%
$
2.70 - 2.90
$
2.15
26% - 35%
NON-GAAP EARNINGS RECONCILIATION
Reported
Intangible amortization
Restructuring &
GAAP measure
expense
integration charges
Non-GAAP measure
Net income per diluted share
$3.08 to $3.28
$0.07
$0.29
$3.44 to $3.64
3
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 third-quarter 2025 financial results on October 30, 2025, at 4:30 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/735530136. 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 or current 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 fourth 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 impact on global components fourth quarter sales of certain Arrow Chinese subsidiaries being placed on the BIS Entity List , 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; T7trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; non-compliance with certain regulations, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; management transitions, including the separation of Mr.
Sean Kerins from the company and the appointment of Mr. Austen as the company’s interim president and chief executive officer; 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 company’s restructuring initiatives; 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; 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
4
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 (losses) on investments; impact from tax settlements related to the U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act (“impact of Tax Act settlements”); 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:
Michael Nelson,
Investor Relations
720-654-9893
Media:
John Hourigan,
Vice President, Public Affairs and Corporate Marketing
303-824-4586
5
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
Quarter Ended
Nine Months Ended
September 27, 2025
September 28, 2024
September 27, 2025
September 28, 2024
Sales
$
7,712,541
$
6,823,319
$
22,106,505
$
20,640,447
Cost of sales
6,877,227
6,038,491
19,648,542
18,151,349
Gross profit
835,314
784,828
2,457,963
2,489,098
Operating expenses:
Selling, general, and administrative
587,866
534,508
1,751,172
1,670,429
Depreciation and amortization
32,793
40,592
103,765
123,356
Restructuring, integration, and other
35,648
34,466
74,880
121,859
656,307
609,566
1,929,817
1,915,644
Operating income
179,007
175,262
528,146
573,454
Equity in earnings of affiliated companies
463
1,002
1,124
1,912
Gain (loss) on investments, net
4,859
3,757
108,975
(760)
Loss on extinguishment of debt
—
—
—
(1,657)
Post-retirement expense
(664)
(979)
(1,950)
(2,892)
Interest and other financing expense, net
(54,875)
(62,947)
(171,340)
(209,442)
Income before income taxes
128,790
116,095
464,955
360,615
Provision for income taxes
19,528
15,198
88,807
66,996
Consolidated net income
109,262
100,897
376,148
293,619
Noncontrolling interests
69
330
(514)
753
Net income attributable to shareholders
$
109,193
$
100,567
$
376,662
$
292,866
Net income per share:
Basic
$
2.11
$
1.90
$
7.25
$
5.48
Diluted
$
2.09
$
1.88
$
7.19
$
5.42
Weighted-average shares outstanding:
Basic
51,695
53,010
51,935
53,476
Diluted
52,141
53,475
52,381
53,999
6
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
(Unaudited)
September 27, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
213,612
$
188,807
Accounts receivable, net
15,656,816
13,030,991
Inventories
4,728,011
4,709,706
Other current assets
539,863
471,909
Total current assets
21,138,302
18,401,413
Property, plant, and equipment, at cost:
Land
5,691
5,691
Buildings and improvements
194,658
194,061
Machinery and equipment
1,709,467
1,623,228
1,909,816
1,822,980
Less: Accumulated depreciation and amortization
(1,434,017)
(1,353,720)
Property, plant, and equipment, net
475,799
469,260
Investments in affiliated companies
58,136
57,299
Intangible assets, net
81,786
96,706
Goodwill
2,117,017
2,055,295
Other assets
655,448
677,734
Total assets
$
24,526,488
$
21,757,707
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
13,126,538
$
11,047,470
Accrued expenses
1,304,479
1,238,714
Short-term borrowings, including current portion of long-term debt
10,818
349,978
Total current liabilities
14,441,835
12,636,162
Long-term debt
3,118,668
2,773,783
Other liabilities
490,366
516,234
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2025 and 2024
Issued - 55,827 and 55,592 shares in 2025 and 2024, respectively
55,827
55,592
Capital in excess of par value
579,672
562,080
Treasury stock (4,316 and 3,420 shares in 2025 and 2024, respectively), at cost
(432,809)
(328,078)
Retained earnings
6,357,488
5,980,826
Accumulated other comprehensive loss
(159,447)
(509,269)
Total shareholders’ equity
6,400,731
5,761,151
Noncontrolling interests
74,888
70,377
Total equity
6,475,619
5,831,528
Total liabilities and equity
$
24,526,488
$
21,757,707
7
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended
September 27, 2025
September 28, 2024
Cash flows from operating activities:
Consolidated net income:
$
109,262
$
100,897
Adjustments to reconcile consolidated net income to net cash (used for) provided by operations:
Depreciation and amortization
32,793
40,592
Amortization of stock-based compensation
(9,752)
8,487
Equity in earnings of affiliated companies
(463)
(1,002)
Deferred income taxes
(66)
(12,889)
Gain on investments, net
(5,540)
(3,686)
Other
225
(670)
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net
(395,610)
(701,168)
Inventories
18,776
169,211
Accounts payable
(78,464)
550,797
Accrued expenses
(12,657)
(83,506)
Other assets and liabilities
59,812
13,495
Net cash (used for) provided by operating activities
(281,684)
80,558
Cash flows from investing activities:
Acquisition of property, plant, and equipment
(30,276)
(18,519)
Other
—
10,677
Net cash used for investing activities
(30,276)
(7,842)
Cash flows from financing activities:
Change in short-term and other borrowings
(444,953)
549,451
Proceeds from (repayments of) long-term bank borrowings, net
751,880
(613,449)
Redemption of notes
—
(500,000)
Net proceeds from note offering
—
494,886
Proceeds from exercise of stock options
226
585
T8Repurchases of common stock
(630)
(51,051)
Other
—
(899)
Net cash used for financing activities
306,523
(120,477)
Effect of exchange rate changes on cash
(2,921)
82,752
Net (decrease) increase in cash and cash equivalents
(8,358)
34,991
Cash and cash equivalents at beginning of period
221,970
213,009
Cash and cash equivalents at end of period
$
213,612
$
248,000
8
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 27, 2025
September 28, 2024
Cash flows from operating activities:
Consolidated net income:
$
376,148
$
293,619
Adjustments to reconcile consolidated net income to net cash (used for) provided by operations:
Depreciation and amortization
103,765
123,356
Amortization of stock-based compensation
20,448
30,187
Equity in earnings of affiliated companies
(1,124)
(1,912)
Deferred income taxes
5,185
(20,287)
Loss on extinguishment of debt
—
1,657
(Gain) loss on investments, net
(109,435)
925
Other
(77)
4,346
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net
(2,292,091)
512,394
Inventories
65,225
662,685
Accounts payable
1,871,455
(687,015)
Accrued expenses
(94,367)
189,537
Other assets and liabilities
(81,033)
(305,543)
Net cash (used for) provided by operating activities
(135,901)
803,949
Cash flows from investing activities:
Acquisition of property, plant, and equipment
(73,873)
(70,155)
Proceeds from settlement of net investment hedges
24,858
10,635
Proceeds from sale of investments in equity securities
100,000
—
Other
—
6,494
Net cash provided by (used for) investing activities
50,985
(53,026)
Cash flows from financing activities:
Change in short-term and other borrowings
9,852
(595,069)
Proceeds from long-term bank borrowings, net
338,223
60,158
Redemption of notes
(350,000)
(1,000,000)
Net proceeds from note offering
—
989,564
Proceeds from exercise of stock options
3,427
5,353
Repurchases of common stock
(110,779)
(214,352)
Other
(148)
(1,040)
Net cash used for financing activities
(109,425)
(755,386)
Effect of exchange rate changes on cash
219,146
34,410
Net increase in cash and cash equivalents
24,805
29,947
Cash and cash equivalents at beginning of period
188,807
218,053
Cash and cash equivalents at end of period
$
213,612
$
248,000
9
ARROW ELECTRONICS, INC.
ECS Gross Billings
(In thousands)
(Unaudited)
Global Enterprise Computing Solutions - Gross Billings(1)
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
2025
2024
Change
2025
2024
Change
Gross billings:
Americas ECS
$
2,713,373
$
2,576,302
5
%
$
7,564,869
$
7,381,257
2
%
EMEA ECS
2,476,599
1,983,482
25
%
7,404,025
6,060,010
22
%
Global ECS
$
5,189,972
$
4,559,784
14
%
$
14,968,894
$
13,441,267
11
%
(1)
Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.
b
10
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
September 27, 2025
September 28, 2024
% Change
Consolidated sales, as reported
$
7,712,541
$
6,823,319
13.0
%
Impact of changes in foreign currencies
—
128,227
Consolidated sales, constant currency
$
7,712,541
$
6,951,546
10.9
%
Global components sales, as reported
$
5,556,392
$
4,946,059
12.3
%
Impact of changes in foreign currencies
—
77,535
Global components sales, constant currency
$
5,556,392
$
5,023,594
10.6
%
Americas components sales, as reported
$
1,708,840
$
1,638,459
4.3
%
Impact of changes in foreign currencies
—
541
Americas components sales, constant currency
$
1,708,840
$
1,639,000
4.3
%
EMEA components sales, as reported
$
1,443,607
$
1,289,786
11.9
%
Impact of changes in foreign currencies
—
78,042
EMEA components sales, constant currency
$
1,443,607
$
1,367,828
5.5
%
Asia components sales, as reported
$
2,403,945
$
2,017,814
19.1
%
Impact of changes in foreign currencies
—
(1,048)
Asia components sales, constant currency
$
2,403,945
$
2,016,766
19.2
%
Global ECS sales, as reported
$
2,156,149
$
1,877,260
14.9
%
Impact of changes in foreign currencies
—
50,692
Global ECS sales, constant currency
$
2,156,149
$
1,927,952
11.8
%
Americas ECS sales, as reported
$
1,021,950
$
1,033,115
(1.1)
%
Impact of changes in foreign currencies
—
(877)
Americas ECS sales, constant currency
$
1,021,950
$
1,032,238
(1.0)
%
EMEA ECS sales, as reported
$
1,134,199
$
844,145
34.4
%
Impact of changes in foreign currencies
—
51,569
EMEA ECS sales, constant currency
$
1,134,199
$
895,714
26.6
%
11
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Nine Months Ended
September 27, 2025
September 28, 2024
% Change
Consolidated sales, as reported
$
22,106,505
$
20,640,447
7.1
%
Impact of changes in foreign currencies
—
167,185
Consolidated sales, constant currency
$
22,106,505
$
20,807,632
6.2
%
Global components sales, as reported
$
15,619,012
$
15,169,507
3.0
%
Impact of changes in foreign currencies
—
96,532
Global components sales, constant currency
$
15,619,012
$
15,266,039
2.3
%
Americas components sales, as reported
$
4,984,932
$
4,807,991
3.7
%
Impact of changes in foreign currencies
—
44
Americas components sales, constant currency
$
4,984,932
$
4,808,035
3.7
%
EMEA components sales, as reported
$
4,210,552
$
4,385,787
(4.0)
%
Impact of changes in foreign currencies
—
104,962
EMEA components sales, constant currency
$
4,210,552
$
4,490,749
(6.2)
%
Asia components sales, as reported
$
6,423,528
$
5,975,729
7.5
%
Impact of changes in foreign currencies
—
(8,474)
Asia components sales, constant currency
$
6,423,528
$
5,967,255
7.6
%
Global ECS sales, as reported
$
6,487,493
$
5,470,940
18.6
%
Impact of changes in foreign currencies
—
70,653
Global ECS sales, constant currency
$
6,487,493
$
5,541,593
17.1
%
Americas ECS sales, as reported
$
2,984,638
$
2,904,933
2.7
%
Impact of changes in foreign currencies
—
(8,936)
Americas ECS sales, constant currency
$
2,984,638
$
2,895,997
3.1
%
EMEA ECS sales, as reported
$
3,502,855
$
2,566,007
36.5
%
Impact of changes in foreign currencies
—
79,589
EMEA ECS sales, constant currency
$
3,502,855
$
2,645,596
32.4
%
12
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Three months ended September 27, 2025
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items(2)
Other(3)
measure
Operating income
$
179,007
$
4,766
$
35,648
$
(1,989)
$
—
$
—
$
217,432
Income before income taxes
128,790
4,766
35,648
(1,989)
—
(4,859)
162,356
Provision for income taxes
19,528
1,162
9,302
(629)
8,359
(1,166)
36,556
Consolidated net income
109,262
3,604
26,346
(1,360)
(8,359)
(3,693)
125,800
Noncontrolling interests
69
—
—
—
—
—
69
Net income attributable to shareholders
$
109,193
$
3,604
$
26,346
$
(1,360)
$
(8,359)
$
(3,693)
$
125,731
Net income per diluted share (6)
$
2.09
$
0.07
$
0.51
$
(0.03)
$
(0.16)
$
(0.07)
$
2.41
Effective tax rate (7)
15.2
%
22.5
%
1
Three months ended September 28, 2024
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(3)
measure
Operating income
$
175,262
$
7,308
$
34,466
$
(1,857)
$
—
$
—
$
215,179
Income before income taxes
116,095
7,308
34,466
(1,857)
—
(3,757)
152,255
Provision for income taxes
15,198
1,819
8,592
(444)
—
(902)
24,263
Consolidated net income
100,897
5,489
25,874
(1,413)
—
(2,855)
127,992
Noncontrolling interests
330
136
—
—
—
—
466
Net income attributable to shareholders
$
100,567
$
5,353
$
25,874
$
(1,413)
$
—
$
(2,855)
$
127,526
Net income per diluted share (6)
$
1.88
$
0.10
$
0.48
$
(0.03)
$
—
$
(0.05)
$
2.38
Effective tax rate (7)
13.1
%
15.9
%
13
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Nine months ended September 27, 2025
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items(2)
Other(4)
measure
Operating income
$
528,146
$
14,996
$
74,880
$
(6,628)
$
—
$
172
$
611,566
Income before income taxes
464,955
14,996
74,880
(6,628)
—
(108,803)
439,400
Provision for income taxes
88,807
3,686
19,400
(2,099)
8,143
(26,102)
91,835
Consolidated net income
376,148
11,310
55,480
(4,529)
(8,143)
(82,701)
347,565
Noncontrolling interests
(514)
156
—
—
—
—
(358)
Net income attributable to shareholders
$
376,662
$
11,154
$
55,480
$
(4,529)
$
(8,143)
$
(82,701)
$
347,923
Net income per diluted share (6)
$
7.19
$
0.21
$
1.06
$
(0.09)
$
(0.16)
$
(1.58)
$
6.64
Effective tax rate (7)
19.1
%
20.9
%
Nine months ended September 28, 2024
Reported
Intangible
Restructuring,
Impact of
Non
GAAP
amortization
Integration
Wind
recurring
Non-GAAP
measure
expense
and other
Down(1)
tax items
Other(5)
measure
Operating income
$
573,454
$
22,310
$
121,859
$
10,229
$
—
$
—
$
727,852
Income before income taxes
360,615
22,310
121,859
10,229
—
2,417
517,430
Provision for income taxes
66,996
5,562
30,820
2,447
—
580
106,405
Consolidated net income
293,619
16,748
91,039
7,782
—
1,837
411,025
Noncontrolling interests
753
406
—
—
—
—
1,159
Net income attributable to shareholders
$
292,866
$
16,342
$
91,039
$
7,782
$
—
$
1,837
$
409,866
Net income per diluted share (6)
$
5.42
$
0.30
$
1.69
$
0.14
$
—
$
0.03
$
7.59
Effective tax rate (7)
18.6
%
20.6
%
(1) Includes write-downs (recoveries) of inventory related to the wind down of businesses.
(2) Includes impacts from tax settlements related to U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act.
(3) Other includes gain on investments, net.
(4) Other includes gain on investments, net, and employee severance and benefits costs not related to restructuring initiatives presented in cost of sales.
(5) Other includes (gain) loss on investments, net and loss on extinguishment of debt.
(6) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(7) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.
14
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
2025
2024
2025
2024
Sales:
Global components
$
5,556,392
$
4,946,059
$
15,619,012
$
15,169,507
Global ECS
2,156,149
1,877,260
6,487,493
5,470,940
Consolidated
$
7,712,541
$
6,823,319
$
22,106,505
$
20,640,447
Operating income (loss):
Global components (a)
$
197,355
$
188,600
$
555,548
$
624,363
Global ECS (b)
63,744
75,614
238,027
249,654
Corporate (c)
(82,092)
(88,952)
(265,429)
(300,563)
Consolidated
$
179,007
$
175,262
$
528,146
$
573,454
(a)
Global components operating income includes recoveries of $2.0 million and $6.6 million in inventory write-downs related to the wind down of a business for the third quarter and first nine months of 2025, respectively, and a reversal of $1.9 million and charges of $10.2 million in inventory write-downs related to the wind down of a business for the third quarter and first nine months of 2024, respectively.
(b)
During the third quarter and first nine months of 2025, global ECS operating income includes $21.4 million and $25.2 million in losses related to under performance of the non-cancellable multi-year purchase obligaions. For the first nine months of 2024, global ECS operating income includes a reversal of $20.0 million for aged receivables that were collected, related to the same customer, which was taken during the second quarter of 2024
(c)
Corporate operating loss includes restructuring, integration, and other charges of $35.6 million and $74.9 million for the third quarter and first nine months of 2025, respectively, and $34.5 million and $121.9 million for the third quarter and first nine months of 2024, respectively.
15
ARROW ELECTRONICS, INC.
NON-GAAP SEGMENT RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
2025
2024
2025
2024
Global components gross profit, as reported
$
609,101
$
564,460
$
1,755,500
$
1,835,034
Impact of wind down to inventory
(1,989)
(1,857)
(6,628)
10,229
Other
—
—
172
—
Global components non-GAAP gross profit
$
607,112
$
562,603
$
1,749,044
$
1,845,263
Global components gross profit as a percentage of sales, as reported
11.0
%
11.4
%
11.2
%
12.1
%
Global components non-GAAP gross profit as a percentage of sales
10.9
%
11.4
%
11.2
%
12.2
%
Global ECS gross profit, as reported
$
226,213
$
220,368
$
702,463
$
654,064
Global ECS gross profit as a percentage of sales, as reported
10.5
%
11.7
%
10.8
%
12.0
%
Quarter Ended
Nine Months Ended
September 27,
September 28,
September 27,
September 28,
2025
2024
2025
2024
Global components operating income, as reported
$
197,355
$
188,600
$
555,548
$
624,363
Intangible assets amortization expense
3,838
6,247
12,221
19,134
Impact of wind down to inventory
(1,989)
(1,857)
(6,628)
10,229
Other
—
—
172
—
Global components non-GAAP operating income
$
199,204
$
192,990
$
561,313
$
653,726
Global components operating income as a percentage of sales, as reported
3.6
%
3.8
%
3.6
%
4.1
%
Global components non-GAAP operating income as a percentage of sales
3.6
%
3.9
%
3.6
%
4.3
%
Global ECS operating income, as reported
$
63,744
$
75,614
$
238,027
$
249,654
Intangible assets amortization expense
928
1,061
2,775
3,176
Global ECS non-GAAP operating income
$
64,672
$
76,675
$
240,802
$
252,830
Global ECS operating income as a percentage of sales, as reported
3.0
%
4.0
%
3.7
%
4.6
%
Global ECS non-GAAP operating income as a percentage of sales
3.0
%
4.1
%
3.7
%
4.6
%
14
NON-GAAP SEGMENT RECONCILIATIONS
16
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 | — | 1 |
| 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 | 1 | — | 1 |
| 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