分组1 - Arrow Electronics reported quarterly earnings of $4.39 per share, exceeding the Zacks Consensus Estimate of $3.55 per share, and showing an increase from $2.97 per share a year ago, resulting in an earnings surprise of +23.66% [1] - The company achieved revenues of $8.75 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.97%, and up from $7.28 billion year-over-year [2] - Arrow Electronics has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong financial performance [2] 分组2 - The stock has gained approximately 25.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.30 on revenues of $7.48 billion, and for the current fiscal year, it is $11.95 on revenues of $31.53 billion [7] - The Electronics - Parts Distribution industry, to which Arrow Electronics belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $30.9 billion, up 10% year-over-year, with a 9% increase on a constant currency basis [17] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [17] - Fourth quarter revenue increased 20% year-over-year to $8.7 billion, exceeding guidance [18] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, above guidance [20] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% [17] - Global Components sales in the fourth quarter were $5.9 billion, up 6% sequentially [21] - ECS sales in the fourth quarter increased to $2.9 billion, up 16% year-over-year [25] Market Data and Key Metrics Changes - Demand trends improved across core markets such as transportation, industrial, and aerospace and defense [21] - Backlog in ECS grew by over 75% year-over-year, reaching an all-time high [25] - Inventory management improved, with inventory turns reflecting disciplined working capital management [27] Company Strategy and Development Direction - The company focuses on expanding higher-margin value-added services, which now account for roughly 30% of total operating income [9] - Arrow aims to deepen customer engagement and improve returns through strategic outsourcing and recurring revenue models [12] - The company is committed to a disciplined capital allocation strategy, including share repurchases and investments in organic growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about gradual recovery in 2026, with demand levels improving in many markets [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [76] - The company is focused on executing with discipline while managing costs and working capital carefully [32] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [14] - The search for a permanent CEO is ongoing, with the board evaluating candidates [34] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [41][42] Question: What drove strong sales in the Americas and ECS segment revenue growth in EMEA? - Management noted healthy demand in key verticals such as transportation and aerospace, with gradual improvements in the Western regions [54][56] Question: Can you discuss the strength in hardware categories and value-added services? - Hardware comprises 25% of ECS revenue, with growth driven by networking and security segments, while value-added services are being extended across multiple vertical markets [59][60] Question: How should working capital investment be viewed in relation to interest expense? - Management acknowledged that interest expense was lower than expected due to timing of cash flows and a favorable debt position, with expectations of increased working capital usage in the first quarter [71][72] Question: Will Western markets see above seasonal results in the recovery cycle? - Management confirmed that they expect above seasonal performance in Q1 across all regions, although visibility remains limited [78]

Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $30.9 billion, up 10% year-over-year, or 9% on a constant currency basis [17] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [17] - Fourth quarter revenue increased 20% year-over-year to $8.7 billion, exceeding guidance [18] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, above guidance [20] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% [17] - Global Components sales in the fourth quarter were $5.9 billion, up 6% sequentially [21] - ECS sales increased 16% year-over-year to $2.9 billion, with total ECS billings at $7.1 billion, also up 16% [25] Market Data and Key Metrics Changes - Demand trends improved across core markets such as transportation, industrial, and aerospace and defense [22] - Book-to-bill ratios improved across all regions, indicating a healthy backlog growth [22] - Inventory at the end of the fourth quarter was $5.1 billion, with improved inventory turns reflecting disciplined working capital management [28] Company Strategy and Development Direction - The company focuses on growing higher-margin value-added services, which now account for roughly 30% of total operating income, up from less than 20% historically [9] - The strategic priority includes shifting towards higher quality results and profitable growth as the market gradually recovers [7] - The company aims to expand its role from traditional distribution to strategic partnerships, particularly in the ECS segment [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about gradual recovery in 2026, with expectations of profitable growth [15][30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [77] - The company is focused on managing costs and working capital carefully while aligning investments with demand [32] Other Important Information - The company repurchased $50 million in stock in Q4 and $150 million in 2025, reflecting confidence in its business model [14] - The search for a permanent CEO is ongoing, with updates to be provided when the process is complete [34] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [41][42] Question: What drove strong sales in the Americas and ECS segment in EMEA? - Demand trends in key verticals such as transportation and aerospace are healthy, with gradual improvements noted in Western regions [55][58] Question: Can you elaborate on the strength in ECS hardware and value-added services? - ECS hardware comprises 25% of revenue, primarily from storage, compute, and networking, with growth driven by security and networking segments [60] - Value-added services are an extension of existing offerings across multiple verticals, contributing significantly to operating income [61][62]

Financial Data and Key Metrics Changes - Revenue for full year 2025 was $30.9 billion, up 10% year-over-year, or up 9% on a constant currency basis [15] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [15] - Fourth quarter sales increased $1.5 billion year-over-year to $8.7 billion, up 20% versus the prior year, or up 16% on a constant currency basis [16] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, driven by favorable sales results and a higher mix of value-added services [18] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% year-over-year [15] - Global Components sales in the fourth quarter were $5.9 billion, up 6% versus the prior quarter [18] - Global ECS sales increased approximately $400 million year-over-year to $2.9 billion, up 16% versus the prior year [23] Market Data and Key Metrics Changes - Demand trends improved sequentially across regions, with healthy activity levels in transportation, industrial, and aerospace and defense markets [19] - Book-to-bill ratios improved in all three regions and are above parity, indicating a strengthening market environment [19] - Backlog growth was strong, finishing 2025 at an all-time high with over 75% year-over-year growth in ECS [23] Company Strategy and Development Direction - The company is focused on executing a strategy that emphasizes higher-margin value-added services, which now account for roughly 30% of total operating income [8][12] - The investment thesis includes a diversified business model that provides financial flexibility and resilience through cycles [9][10] - The company aims to expand its addressable market by moving beyond traditional distribution to become a go-to-market partner for suppliers [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a gradual recovery in 2026, with demand levels improving in many markets [28] - The company is focused on managing costs and working capital carefully while aligning investment levels with demand [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [72] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [12] - The board is actively searching for a permanent CEO, with updates to be provided once the process is complete [31] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [39][40] Question: What drove strong sales in the Americas and EMEA regions? - Management noted healthy demand in key vertical segments such as transportation and aerospace, with gradual improvements in the Western regions [51][52] Question: Can you elaborate on the strength in ECS hardware and value-added services? - ECS hardware primarily includes storage, compute, and networking, with the highest growth in networking and security [56] - Value-added services are being extended across multiple vertical markets, contributing significantly to operating income [58][60] Question: How should we think about working capital investment and interest expense? - Management acknowledged that working capital investment typically increases during growth periods, impacting interest expense forecasts [66][68] Question: Will Western markets see above seasonal results in the recovery cycle? - Management stated that visibility is improving, and they expect above seasonal performance in Q1 across all regions [72][74]

This presentation 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. These forward-looking statements are subject ...

Financial Performance - Fourth-quarter sales reached $8.7 billion, a 20% increase year-over-year, exceeding the high end of guidance[1] - Fourth-quarter earnings per share (EPS) were $3.75, a 101% increase from $1.86 in the same quarter last year[2] - Full-year sales totaled $30.9 billion, reflecting a 10% increase compared to the previous year[1] - Full-year non-GAAP EPS was $11.02, up 4% from $10.56 in 2024[1] - Sales for Q4 2025 reached $8,746.43 million, a 20.1% increase from $7,282.88 million in Q4 2024[22] - Consolidated sales for the year ended December 31, 2025, were reported at $30,852,935, reflecting a 10.5% increase from $27,923,324 in 2024[40] - Global components sales for the year ended December 31, 2025, were $21,501,289, a 7.6% increase from $19,983,267 in 2024[40] - Global ECS gross billings for the year ended December 31, 2025, reached $22,050,174, a 13% increase compared to $19,528,208 in 2024[34] Income and Profitability - Operating income for Q4 2025 was $294.08 million, representing a 50.7% increase compared to $195.10 million in Q4 2024[22] - Net income attributable to shareholders for the year ended December 31, 2025, was $571.27 million, a 45.7% increase from $392.07 million in 2024[22] - The company reported a diluted net income per share of $10.93 for the year ended December 31, 2025, compared to $7.29 in 2024, a 50.5% increase[22] - The total operating income for the fourth quarter of 2025 was $294.077 million, compared to $195.103 million in the fourth quarter of 2024, a 51% increase[43] - The operating income for the year ended December 31, 2025, was $822.223 million, up from $768.557 million in 2024, reflecting a growth of 7%[46] Cash Flow and Assets - Cash flow from operations in Q4 2025 was $200 million, with $50 million used for share repurchases[6] - Cash and cash equivalents at the end of Q4 2025 were $306.47 million, up from $188.81 million at the end of Q4 2024[28] - Total current assets increased to $25,660.03 million in 2025 from $18,401.41 million in 2024, reflecting a growth of 39.5%[25] - Total assets grew to $29,078.14 million in 2025, compared to $21,757.71 million in 2024, marking a 33.5% increase[25] - Net cash provided by operating activities for the year ended December 31, 2025, was $64,049, a significant decrease from $1,130,413 in 2024[31] Debt and Liabilities - Long-term debt increased to $3,084.72 million in 2025 from $2,773.78 million in 2024, an increase of 11.2%[25] - The company reported a net cash used for financing activities of $206,137 for the year ended December 31, 2025, compared to $956,827 in 2024[31] Segment Performance - Global Components sales in Q4 2025 were $5.88 billion, a 22% increase year-over-year[4] - Global ECS sales in Q4 2025 were $2.86 billion, an 18% increase year-over-year[5] - Americas ECS sales for the year ended December 31, 2025, were $4,230,746, up 4% from $4,067,160 in 2024[40] - EMEA ECS sales for the year ended December 31, 2025, increased by 32.2% to $5,120,900 from $3,872,897 in 2024[40] Tax and Other Financial Metrics - The effective tax rate for the year ended December 31, 2025, was 20.6%, a decrease from 21.8% in 2024[46] - The company reported a provision for income taxes of $148.234 million for the year ended December 31, 2025, compared to $95.812 million in 2024, reflecting a 55% increase[46] Future Outlook - For Q1 2026, the company projects GAAP sales between $7.95 billion and $8.55 billion, with global components sales expected between $5.75 billion and $6.15 billion[10] - Changes in foreign currencies are anticipated to positively impact Q1 2026 sales by approximately $263 million[10] - The company remains cautiously optimistic about entering 2026, focusing on accelerating profitable growth and expanding higher-margin capabilities[2]

Group 1 - Arrow Electronics (ARW) shares increased by 6% to $128.41 in the last trading session, with a notable trading volume, and have gained 7.2% over the past four weeks [1] - The company is a key distributor of AI infrastructure components, benefiting from strong enterprise demand for high-performance computing hardware and AI-accelerated servers for data center and edge computing [2] - Arrow Electronics is expected to report quarterly earnings of $3.55 per share, reflecting a year-over-year increase of 19.5%, with revenues projected at $8.1 billion, up 11.2% from the previous year [2] Group 2 - The consensus EPS estimate for Arrow Electronics has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Arrow Electronics holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [4] - The company operates within the Zacks Electronics - Parts Distribution industry, which includes Wesco International (WCC), another stock that has shown a 1.2% increase in the last trading session and a 15.2% return over the past month [4]

Core Insights - Arrow Electronics, Inc. has been recognized for the 26th time on Fortune's World's Most Admired Companies list, highlighting its strong reputation in the industry [1] - The company is ranked among the top firms in the "Wholesalers: Electronics and Office Equipment" category, indicating its competitive position within this sector [1] - Arrow Electronics received accolades for its financial soundness and the quality of its products and services, reflecting its operational excellence [1] Summary by Category Recognition - Arrow Electronics has achieved a significant milestone by being named to Fortune's list for the 26th time [1] - The company is positioned in the "Wholesalers: Electronics and Office Equipment" category, showcasing its industry leadership [1] Performance Metrics - The recognition is based on evaluations from thousands of executives, directors, and financial community members, underscoring the credibility of the assessment [1] - High performance in financial soundness and product/service quality were key factors in Arrow's recognition [1]

Core Insights - Arrow Electronics, Inc. is recognized as one of the most undervalued tech stocks to consider for investment in 2026 [1] - The company has partnered with .lumen, a Romanian startup, to enhance the production of innovative glasses designed for the visually impaired [1] Partnership and Product Details - The glasses function similarly to a guide dog, utilizing AI, cameras, and haptic feedback to assist visually impaired users in navigating independently by detecting obstacles and providing vibration-based directions [2] - A six-camera setup enables real-time environmental scanning, identifying safe paths without reliance on cloud services, while edge computing ensures ultra-low latency, which is essential for dynamic environments like busy streets [2] - Arrow Electronics will support the partnership by sourcing components, optimizing engineering, managing inventory, controlling costs, and enhancing performance [3] Market Position and Analyst Insights - The glasses were presented at CES 2026, highlighting their innovative technology and potential market impact [3] - William Stein from Truist Financial has reiterated a Hold rating on Arrow Electronics' stock with a price target of $120 [3] - While Arrow Electronics shows investment potential, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Insights - Arrow Electronics is collaborating with Romanian startup .lumen to develop intelligent guide glasses that replicate the functions of a guide dog, utilizing proprietary Pedestrian Autonomous Driving AI technology [1][6]. - The glasses feature six integrated cameras and provide real-time haptic feedback, enabling users to navigate their environment by detecting obstacles and identifying safe paths [1][6]. - The navigation system operates locally on the device, ensuring ultra-low latency for reliable navigation in dynamic environments [2]. Company Collaboration - Arrow is providing engineering and supply chain services to .lumen, assisting in the sourcing and integration of necessary electronic components for efficient production [3]. - The collaboration aims to enhance inventory reliability, cost control, and performance of the wearable technology [3]. Technological Development - The glasses are designed to offer unprecedented mobility and freedom for visually impaired users, with future software updates planned to enhance navigation capabilities [6]. - Arrow's involvement in this project aligns with its existing initiatives in Semi-Autonomous Mobility, which focus on providing greater independence to individuals with physical disabilities [4]. Company Background - Arrow Electronics reported global sales of $28 billion in 2024, providing technology solutions across various industries [8]. - .lumen is a startup focused on developing Pedestrian Autonomous Driving technology, with applications extending beyond mobility aids to include delivery robots [9].