If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Nearly a year ago, technology distributor Ingram Micro Holding Corporation (NYSE: INGM ) was going public again. My enthusiasm was tempered by sales declines, thin margins, and debt taken on, as t ...

Group 1 - Ingram Micro Holding Corporation is highlighted as a promising IPO tech stock, particularly following its strategic partnership with Keepit, a cloud-native data protection provider [1] - The partnership aims to enhance Keepit's market presence in Germany and Switzerland by providing access to its SaaS data protection solutions for value-added resellers, managed service providers, and managed security service providers [2] - Ingram Micro will assist Keepit in marketing, sales, and support in these regions, while also offering flexible purchasing and financing solutions [3] Group 2 - Ingram Micro operates as a distributor of IT products, cloud services, and other offerings across various global regions, including North America, Europe, the Middle East, Africa, Asia-Pacific, and Latin America [4]

Core Perspective - Keepit has entered into a strategic go-to-market agreement with Ingram Micro to enhance its market presence in Germany and Switzerland [1] Company Summary - Keepit is identified as the world's only independent, cloud-native data protection, backup, and recovery provider [1] - The partnership with Ingram Micro aims to intensify the joint go-to-market strategy in the specified markets [1] Industry Summary - The collaboration reflects a growing trend in the technology ecosystem where B2B platform companies are forming strategic alliances to expand market reach [1]

Summary of Key Points from the Conference Call Industry Overview - The conference focuses on the Hardware sector, particularly in the context of AI infrastructure and its impact on data center equipment spending. The demand for AI-related data center equipment is expected to increase significantly, with a projected 54% year-over-year growth in capital expenditures (capex) among the top six cloud providers, reaching $388 billion in 2025 [7][8][10]. Company Insights HP Inc. - HP Inc. is projected to generate $55.1 billion in revenue for fiscal year 2025, reflecting a 3% year-over-year increase. The revenue breakdown is expected to be approximately 70% from the Personal Systems Group and 30% from Printing [29][30]. - The company reported mixed earnings for Q3 2025, with strong PC demand driven by a refresh cycle, but weakness in hardware unit demand and pricing in the Printing segment. This led to a lowered EPS outlook for fiscal year 2025 [30][33]. - Personal Systems demand is bolstered by the Windows 11 refresh and AI PC adoption, with overall PC unit shipments up 5% year-over-year. The company anticipates continued growth in Personal Systems, expecting a 6% year-over-year increase in fiscal Q4 2025 [30][33]. Other Companies - The conference will feature discussions with various companies, including F5, Ingram Micro, NetApp, Axon Enterprise, and Arista Networks, focusing on their respective positions in the hardware and communications technology sectors [4][6]. Key Industry Themes 1. **AI Infrastructure Demand**: The demand for AI infrastructure is expected to grow faster in tier 2 cloud and enterprise sectors compared to hyperscalers, with projected growth rates of 58% and 48% respectively from 2024 to 2028 [12]. 2. **Traditional IT Equipment Recovery**: Traditional enterprise IT equipment is in the early stages of recovery, with server revenue growing by 15% year-over-year in Q1 2025. However, growth is primarily driven by higher average selling prices (ASPs) rather than unit growth [13]. 3. **PC Market Dynamics**: The global PC market is expected to grow by 4% year-over-year in 2025, driven by a refresh cycle and the end of Windows 10 support. HP expects industry unit growth in the second half of 2025 and into 2026 [27][38]. Financial Projections and Risks - HP's financial outlook includes a free cash flow (FCF) of approximately $2.8 billion for fiscal year 2025, with a target to return 100% of FCF to shareholders through dividends and buybacks [29][38]. - Key risks for HP include potential decreases in commercial PC demand due to hybrid work trends, pricing pressures from high channel inventory, and competition in the printing market [36][38]. Management Questions - Questions for management include inquiries about the outlook for PC unit demand, the pace of Windows 11 adoption, and expectations for the commercial print business [37]. This summary encapsulates the critical insights and projections discussed during the conference, highlighting the trends and challenges within the hardware sector, particularly for HP Inc. and its peers.

Core Insights - Ingram Micro reported $12.79 billion in revenue for the quarter ended June 2025, showing no year-over-year change, with an EPS of $0.61 compared to $0 a year ago, indicating a positive earnings surprise [1] - The revenue exceeded the Zacks Consensus Estimate of $11.96 billion by 7%, while the EPS surprise was 1.67% above the consensus estimate of $0.60 [1] Financial Performance - Ingram Micro's shares have returned -6.6% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change, and the stock currently holds a Zacks Rank 5 (Strong Sell) [3] - The company’s geographic revenue breakdown includes North America at $4.98 billion, Latin America at $853.48 million, Asia-Pacific at $3.48 billion, and EMEA at $3.48 billion, all surpassing analyst estimates [4]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 reached $12.79 billion, reflecting a year-over-year increase of 10.9% in U.S. dollars and 10.2% on an FX neutral basis [19] - Adjusted EBITDA for the quarter was $294 million, up nearly 6% in U.S. dollars and 5% in constant currency [27] - Non-GAAP net income increased to $142 million, an over 18% rise compared to $120 million in 2024 [28] - Non-GAAP diluted EPS was $0.61, up 12% from the prior year [28] Business Line Data and Key Metrics Changes - Client and Endpoint Solutions saw robust growth of nearly 14% on an FX neutral basis, driven by strong demand in desktop, notebook, and smartphone categories [19] - Advanced Solutions experienced mid-single-digit growth, supported by sales in servers, storage, and cybersecurity, particularly in Asia Pacific markets [19] - Cloud business continued to grow, contributing to overall positive performance across all business lines [9][19] Market Data and Key Metrics Changes - North America net sales were $4.98 billion, up 13.8% year-over-year on an FX neutral basis, driven by strong demand in servers, storage, and cybersecurity [22] - Asia Pacific demonstrated the highest net sales growth at 16.2% year-over-year in U.S. dollars, with significant contributions from lower margin mobility device sales [23] - Latin America returned to growth with net sales of $853 million, increasing 0.8% in U.S. dollars and 6.4% in constant currency [24] Company Strategy and Development Direction - The company is focusing on its xVantage platform to streamline operations and enhance customer experiences through AI and automation [12][14] - A strategic divestiture of non-core assets is underway to improve operational effectiveness and concentrate on core strengths [11] - The evolution into a platform company aims to provide a unified marketplace for hardware, software, cloud, and service solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of a ransomware attack in July but confirmed it did not affect Q2 results [5][9] - The company expects continued year-over-year top-line growth in Q3, with guidance reflecting some conservatism due to the cyber incident [31][34] - Management remains optimistic about the platform strategy's impact on the ecosystem and customer problem-solving capabilities [18] Other Important Information - The company ended Q2 with net working capital of $4.6 billion, an increase from $3.9 billion year-over-year, driven by higher sales and investment needs [29] - Adjusted free cash flow was an outflow of $263 million, reflecting investments to grow the business [30] Q&A Session Summary Question: Expectations for endpoint and advanced solutions revenue growth in Q3 - Management expects mid-single-digit growth for client and endpoint solutions, with stronger performance in desktop and notebook categories, while smartphone growth is anticipated to be lower [38][39] Question: Impact of government subsidies on mobility growth in China - Management noted that some growth in mobility was likely influenced by government subsidies, but overall demand has been strong [40][42] Question: Demand pull forward in North America - Management did not observe significant demand pull forward across categories, with some minor effects in desktop and notebook refresh [47] Question: Implications of the recent bill on customer discussions - Management indicated that the impact of the bill is not significant for their business, as public sector sales are a minor part of their overall revenue [49] Question: AI-driven hardware purchases - Management stated that while there is growing interest in AI-driven products, most current refreshes are not AI-driven but rather due to aging systems and Windows end-of-life [74][75] Question: Xvantage's impact on SMB growth - Management confirmed that Xvantage is contributing to growth in the SMB market by shortening sales cycles and enhancing customer engagement [96] Question: Future M&A or divestiture plans - Management remains open to opportunistic M&A but is currently focused on core capabilities and strategic divestitures [99]

Financial Data and Key Metrics Changes - Net sales for Q2 reached $12.79 billion, up 10.9% year over year in U.S. dollars and 10.2% on an FX neutral basis [17] - Adjusted EBITDA was $294 million, an increase of nearly 6% in U.S. dollars and 5% in constant currency [26] - Non-GAAP net income increased to $142 million from $120 million in 2024, representing an over 18% increase in U.S. dollars [27] Business Line Data and Key Metrics Changes - Client and Endpoint Solutions grew nearly 14% on an FX neutral basis, driven by strong demand in desktop, notebook, and smartphone categories [17] - Advanced Solutions saw mid-single digit growth, supported by servers, storage, and cybersecurity, particularly in Asia Pacific markets [17] - Cloud business continued to grow, contributing to overall positive performance across all business lines [7][16] Market Data and Key Metrics Changes - North America net sales were $4.98 billion, up 13.8% year over year on an FX neutral basis, driven by strong growth in servers, storage, and cybersecurity [20] - Asia Pacific demonstrated the highest net sales growth at 16.2% year over year in U.S. dollars, with strong performance in Client and Endpoint Solutions [21] - Latin America returned to growth with net sales of $853 million, increasing 0.8% in U.S. dollars and 6.4% in constant currency [22] Company Strategy and Development Direction - The company is focusing on its xVantage platform to streamline operations and enhance customer experiences through AI and automation [11][12] - Recent divestitures of non-core assets are part of a strategy to improve operational effectiveness and concentrate on core strengths [10] - The evolution into a platform company aims to provide customers with speed, scale, and service, enhancing overall business efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ransomware attack in July but confirmed it had no impact on Q2 results, emphasizing a strong recovery and operational resilience [4][6] - The company expects continued year-over-year top line growth in Q3, with guidance reflecting some conservatism due to the cyber incident [30][31] - Management remains optimistic about the impact of the platform strategy and the overall business environment moving forward [16] Other Important Information - The company ended Q2 with net working capital of $4.6 billion, an increase from $3.9 billion year over year, driven by higher sales and investment needs [28] - Adjusted free cash flow was an outflow of $263 million, reflecting investments to grow the business [29] - The company announced a 2.6% increase in its quarterly dividend to be paid in Q3 [29] Q&A Session Summary Question: Expectations for endpoint and advanced solutions revenue growth in Q3 - Management expects mid-single digit growth for client and endpoint solutions, with stronger performance in desktop and notebook categories, while smartphone growth is anticipated to be lower [36][38] Question: Impact of government subsidies on mobility growth in China - Management noted that some growth in mobility was likely driven by government subsidies, but overall demand remained strong [39][41] Question: Demand pull forward in North America - Management did not observe significant demand pull forward across categories, with some minor effects in desktop and notebook refresh [46][47] Question: Implications of the recent bill on customer discussions - Management indicated that the impact of the recent bill is not significant for their business, as public sector sales are a minor part of their overall revenue [49][50] Question: Market cycle positioning for various products - Management believes the market is in a mid-cycle phase, with growth observed in storage, server, and networking categories [57] Question: Cash flow dynamics and expectations for the year - Management expects Q3 cash flow to be neutral to slightly negative due to inventory investments, with a positive cash flow anticipated in Q4 as inventory converts to receivables [91][92]

Financial Performance - Q2 2025 - Net sales reached $128 billion, a 102% year-over-year increase and 52% above the high end of guidance[10] - Non-GAAP diluted EPS was $061, exceeding the midpoint of guidance by $003[10] - Non-GAAP net income increased by 177% year-over-year to $142 million[10] - Adjusted EBITDA grew by 49% year-over-year to $294 million[10] - Opex leverage improved by 17 bps year-over-year, with Opex at 544% of net sales[10] Financial Performance - H1 2025 - Net sales totaled $251 billion, a 105% year-over-year increase[14] - Non-GAAP net income increased by 144% year-over-year to $287 million[14] - Adjusted EBITDA grew by 39% year-over-year to $585 million[14] - Non-GAAP diluted EPS increased by $007 year-over-year to $122[14] - Opex leverage improved by 46 bps year-over-year, with Opex at 528% of net sales[14] Geographical Performance - Q2 2025 - North America accounted for 39% of net sales[35] - EMEA contributed 27% of net sales[35] - Asia Pacific represented 27% of net sales[35] - Latin America accounted for 7% of net sales[35] Geographical Performance - H1 2025 - North America accounted for 38% of net sales[35] - EMEA contributed 27% of net sales[35] - Asia Pacific represented 28% of net sales[35] - Latin America accounted for 7% of net sales[35] Q3 2025 Guidance - Net revenue is projected to be between $11875 billion and $12375 billion, representing year-over-year growth of 10% to 52%[41] - Gross profit is expected to be approximately $845 million[41] - Non-GAAP diluted EPS is projected to be between $061 and $073, with a midpoint of $067[41]

_________________________ FORM 10-Q _________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INGRAM MICRO HOLDING CORPORATION (Exact name of registrant as specified in its charter) _________________________ Delaware 86-2249729 (State or other jurisdiction of incorporation or organization) 3351 Michelson Drive, Suite 100 Irv ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Ingram Micro delivered strong Q2 2025 results, exceeding guidance for net sales and non-GAAP EPS [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Ingram Micro reported strong Q2 2025 results, with **$12.8 billion** net sales and **$0.61** non-GAAP diluted EPS, exceeding guidance Key Financial Metrics (Q2 2025) | Metric | Q2 2025 Value | YoY Change | Guidance Range | Guidance Comparison | | :----- | :------------ | :--------- | :------------- | :------------------ | | Net Sales | $12,794 million | +10.9% | $11,765 - $12,165 million | Above high end | | Gross Profit | $839.2 million | N/A | $800 - $850 million | At upper end | | Net Income (GAAP) | $37.8 million | N/A | N/A | N/A | | Non-GAAP Net Income | $142.3 million | N/A | N/A | N/A | | Diluted EPS (GAAP) | $0.16 | N/A | N/A | N/A | | Non-GAAP Diluted EPS | $0.61 | N/A | $0.53 - $0.63 | At higher end | - Term loan credit facility amended in June to reduce interest rate by **50 basis points**[3](index=3&type=chunk) - Divestiture of two non-core businesses expected to be completed in fiscal third quarter[3](index=3&type=chunk) - Quarterly dividend increased by **2.6%** to **$0.078 per share**[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized strong Q2 sales growth across all regions and business lines, highlighting Xvantage's role and positive Q3 outlook - CEO Paul Bay reported net sales growth in all four geographic regions and across three primary lines of business[2](index=2&type=chunk) - The ransomware attack in early July had no impact on June quarter results, with the Xvantage digital experience platform accelerating recovery and strengthening business[2](index=2&type=chunk) - CFO Mike Zilis noted net sales above guidance, with gross profit and non-GAAP EPS toward the upper end, driven by strength in Asia-Pacific, client and endpoint solutions, and large enterprise customers[2](index=2&type=chunk) - Momentum in the advanced solutions business was encouraging, and the company expects continued year-over-year top-line growth in Q3 2025[2](index=2&type=chunk) [Consolidated Fiscal Second Quarter 2025 Results](index=2&type=section&id=Consolidated%20Fiscal%20Second%20Quarter%202025%20Results) This section details Ingram Micro's Q2 2025 consolidated financial performance, highlighting sales growth and profitability shifts [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) Q2 2025 consolidated results show significant net sales growth, but GAAP net income and operating income decreased, while non-GAAP metrics improved Consolidated Fiscal Second Quarter 2025 Results (Thirteen Weeks Ended) | Metric ($ in thousands, except per share data) | June 28, 2025 | June 29, 2024 | 2025 vs. 2024 Change | | :--------------------------------------------- | :------------ | :------------ | :------------------- | | Net sales | $12,793,956 | $11,541,439 | $1,252,517 | | Gross profit | $839,159 | $828,430 | $10,729 | | Income from operations | $142,816 | $181,128 | $(38,312) | | Net income | $37,826 | $54,585 | $(16,759) | | Adjusted Income from Operations | $200,827 | $218,006 | $(17,179) | | Adjusted EBITDA | $293,949 | $278,629 | $15,320 | | Non-GAAP Net Income | $142,330 | $120,431 | $21,899 | | Diluted EPS | $0.16 | $0.25 | N/A | | Non-GAAP Diluted EPS | $0.61 | $0.54 | N/A | [Detailed Financial Highlights](index=2&type=section&id=Detailed%20Financial%20Highlights) Net sales grew **10.9%** to **$12.8 billion**, but gross margin declined to **6.56%** due to mix shifts and write-downs, impacting operating income - Net sales increased by **10.9%** to **$12.8 billion**, driven by growth across all geographic segments, with a **0.7%** positive foreign currency impact[5](index=5&type=chunk) - Gross profit was **$839.2 million**, a slight increase from **$828.4 million** in the prior year[5](index=5&type=chunk) - Gross margin decreased to **6.56%** (from **7.18%**) due to a sales mix shift towards lower-margin client and endpoint solutions, server and storage products, large enterprise customers, and the Asia-Pacific region, plus a **$10.5 million** write-down for non-core operations[5](index=5&type=chunk) - Income from operations decreased to **$142.8 million** (from **$181.1 million**), and adjusted income from operations decreased to **$200.8 million** (from **$218.0 million**), primarily due to sales mix and **$43.2 million** in write-downs for planned divestitures (CloudBlue and a North America non-core business), expected to close in Q3 2025[5](index=5&type=chunk) - Adjusted EBITDA increased to **$293.9 million** from **$278.6 million**[5](index=5&type=chunk) [Regional Fiscal Second Quarter 2025 Financial Highlights](index=3&type=section&id=Regional%20Fiscal%20Second%20Quarter%202025%20Financial%20Highlights) This section analyzes Ingram Micro's Q2 2025 financial performance across its North America, EMEA, Asia-Pacific, and Latin America regions [North America](index=3&type=section&id=North%20America) North America net sales grew **13.7%** to **$5.0 billion**, but operating income decreased significantly due to **$43.2 million** in write-downs North America Q2 2025 Financials | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Sales | $5.0 billion | $4.4 billion | +13.7% | | Income from Operations | $32.8 million | $63.8 million | -48.6% | | Income from Operations Margin | 0.66% | 1.46% | -80 bps | - Sales growth was primarily driven by server and storage products, as well as client and endpoint solutions (notebooks and desktops) in the United States[6](index=6&type=chunk) - Income from operations includes **$43.2 million** in write-down impacts from held-for-sale accounting for two non-core assets[7](index=7&type=chunk) - Income from operations margin was impacted by **87 basis points** from the held-for-sale accounting, partially offset by lower SG&A expenses due to prior year restructuring and efficiencies in lower-cost-to-serve businesses[8](index=8&type=chunk) [EMEA](index=3&type=section&id=EMEA) EMEA net sales grew **4.8%** to **$3.5 billion**, with improved operating income and margin driven by reduced SG&A and operating leverage EMEA Q2 2025 Financials | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Sales | $3.5 billion | N/A | +4.8% | | Income from Operations | $55.7 million | $52.6 million | +5.9% | | Income from Operations Margin | 1.60% | 1.58% | +2 bps | - Foreign currency translation had a **5%** positive impact on year-over-year net sales[9](index=9&type=chunk) - Growth was led by client and endpoint solutions (desktops, notebooks, components), advanced solutions (specialty and server sales), cloud-based solutions, and other services[9](index=9&type=chunk) - Improved income from operations margin was primarily due to reduced SG&A costs and better operating leverage, partially offset by a mix shift to lower-margin client and endpoint solutions[10](index=10&type=chunk) [Asia-Pacific](index=4&type=section&id=Asia-Pacific) Asia-Pacific net sales rose **16.2%** to **$3.5 billion**, but operating income and margin declined due to market shifts and competition Asia-Pacific Q2 2025 Financials | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Sales | $3.5 billion | $3.0 billion | +16.2% | | Income from Operations | $43.6 million | $61.3 million | -28.9% | | Income from Operations Margin | 1.25% | 2.05% | -80 bps | - Growth was driven by client and endpoint solutions, particularly mobility distribution (smartphones) and consumer electronics, partially offset by a decline in advanced solutions (servers)[12](index=12&type=chunk) - Foreign currency translation had a **1%** negative impact on year-over-year net sales[12](index=12&type=chunk) - The decrease in income from operations margin was due to a shift towards the lower-margin China market, higher concentration of mobility sales, and heightened competition in India[13](index=13&type=chunk) [Latin America](index=4&type=section&id=Latin%20America) Latin America net sales grew **0.8%** to **$0.9 billion**, with improved operating income and margin despite currency headwinds and mix shifts Latin America Q2 2025 Financials | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Sales | $0.9 billion | $0.8 billion | +0.8% | | Income from Operations | $25.1 million | $23.3 million | +7.7% | | Income from Operations Margin | 2.94% | 2.75% | +19 bps | - Sales growth was led by client and endpoint solutions (smartphones and tablets) and cloud-based solutions, offset by declines in advanced solutions (servers, specialty products, networking)[14](index=14&type=chunk) - Foreign currency translation had a **6%** negative impact on year-over-year net sales[14](index=14&type=chunk) - Improved income from operations margin was a result of decreased SG&A expenses as a percentage of net sales, partially offset by softer gross margins due to sales mix shifts[15](index=15&type=chunk) [Fiscal Third Quarter 2025 Outlook](index=4&type=section&id=Fiscal%20Third%20Quarter%202025%20Outlook) This section outlines Ingram Micro's financial projections and key assumptions for the fiscal third quarter of 2025 [Q3 2025 Guidance](index=4&type=section&id=Q3%202025%20Guidance) Ingram Micro projects Q3 2025 net sales between **$11.875 billion** and **$12.375 billion**, with non-GAAP diluted EPS between **$0.61** and **$0.73** Fiscal Third Quarter 2025 Guidance (Thirteen Weeks Ended September 27, 2025) | Metric ($ in millions, except per share data) | Low | High | | :-------------------------------------------- | :---- | :---- | | Net sales | $11,875 | $12,375 | | Gross profit | $815 | $875 | | Non-GAAP Diluted EPS | $0.61 | $0.73 | - The Q3 2025 guidance assumes an effective tax rate of approximately **30%** on a non-GAAP basis and **235.5 million** diluted shares outstanding[16](index=16&type=chunk) [Dividend Increase and Payment](index=5&type=section&id=Dividend%20Increase%20and%20Payment) Ingram Micro's board approved a **2.6%** increase in the quarterly cash dividend to **$0.078** per share [Quarterly Dividend Details](index=5&type=section&id=Quarterly%20Dividend%20Details) The board declared a **$0.078** per share cash dividend, a **2.6%** increase, payable September 2, 2025, to stockholders of record August 19, 2025 - The quarterly cash dividend increased by **2.6%** to **$0.078 per share** from **$0.076 per share**[17](index=17&type=chunk) - The dividend is payable on September 2, 2025, to stockholders of record as of August 19, 2025[17](index=17&type=chunk) [Earnings Call Details](index=5&type=section&id=Earnings%20Call%20Details) This section provides information regarding the Q2 2025 earnings call, including access details for investors [Q2 2025 Earnings Call Information](index=5&type=section&id=Q2%202025%20Earnings%20Call%20Information) Ingram Micro hosted its Q2 2025 earnings call on August 6, 2025, with webcast and telephonic replay options available - The earnings call was held on Wednesday, August 6, 2025, at 2:00 p.m. Pacific time (5:00 p.m. Eastern time)[18](index=18&type=chunk) - A live webcast was accessible from the Ingram Micro investor relations website (https://ir.ingrammicro.com)[18](index=18&type=chunk) - A telephonic replay was available through November 3, 2025, via specified numbers and access code[19](index=19&type=chunk) [About Ingram Micro](index=5&type=section&id=About%20Ingram%20Micro) This section provides an overview of Ingram Micro's position as a global IT ecosystem leader and its Xvantage digital platform [Company Overview](index=5&type=section&id=Company%20Overview) Ingram Micro is a leading global IT ecosystem technology company, connecting manufacturers and cloud providers via its AI-powered Xvantage platform - Ingram Micro is a leading technology company in the global information technology ecosystem, reaching nearly **90%** of the global population[20](index=20&type=chunk) - The company connects technology manufacturers and cloud providers to a diversified base of business-to-business technology experts[20](index=20&type=chunk) - Ingram Micro Xvantage™ is an AI-powered digital platform offering a comprehensive business-to-consumer-like experience, including hardware and cloud subscriptions, personalized recommendations, instant pricing, order tracking, and billing automation[20](index=20&type=chunk) - The company also provides technology services such as financing, specialized marketing, lifecycle management, and technical pre- and post-sales professional support[20](index=20&type=chunk) [Use of Non-GAAP Financial Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the purpose and limitations of Ingram Micro's non-GAAP financial measures for performance evaluation [Purpose and Limitations of Non-GAAP Measures](index=5&type=section&id=Purpose%20and%20Limitations%20of%20Non-GAAP%20Measures) Non-GAAP measures offer insights into business trends and acquired business impact, but are supplementary to GAAP and may not be comparable - Non-GAAP financial measures (e.g., adjusted income from operations, adjusted EBITDA, non-GAAP net income, non-GAAP EPS) are used to evaluate business and underlying trends, providing meaningful comparisons and an alternate view of acquired businesses' impact[21](index=21&type=chunk) - These measures are primary indicators used internally by management to conduct and measure business performance[21](index=21&type=chunk) - A material limitation is that non-GAAP measures may not be comparable to similarly titled items from other companies[21](index=21&type=chunk) - Non-GAAP measures should be considered a supplement to, not a substitute for or superior to, corresponding GAAP measures[21](index=21&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This section outlines the inherent risks and uncertainties associated with forward-looking statements in the report [Forward-Looking Statements and Risk Factors](index=6&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This release contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially from expectations - The release contains forward-looking statements concerning strategy, plans, projections, and intentions, identifiable by words like 'believes,' 'expects,' 'may,' 'will,' 'should,' 'seeks,' 'intends,' 'plans,' 'estimates,' or 'anticipates'[22](index=22&type=chunk) - Forward-looking statements are not guarantees of future performance and are subject to difficult-to-predict risks, uncertainties, assumptions, or changes in circumstances[22](index=22&type=chunk) - Actual results may vary materially from expectations due to factors such as general economic conditions, market size estimates, acquisition integration, Xvantage deployment, key personnel retention, competition, inflation, market volatility, supply constraints, litigation, global business laws, geopolitical issues, financing efforts, customer/supplier relationships, intellectual property, service security, and the company's ownership structure[23](index=23&type=chunk) - The company undertakes no obligation to publicly update or review any forward-looking statement, except as required by applicable securities laws[22](index=22&type=chunk) [Results of Operations - Financial Statements](index=7&type=section&id=Results%20of%20Operations%20-%20Financial%20Statements) This section presents Ingram Micro's condensed consolidated balance sheets, statements of income, and cash flows for Q2 2025 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets increased to **$19.45 billion**, with notable changes in inventory and short-term debt Condensed Consolidated Balance Sheets (Amounts in thousands) | ASSETS | June 28, 2025 | December 28, 2024 | | :------------------------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $856,668 | $918,401 | | Trade accounts receivable | $9,150,672 | $9,448,354 | | Inventory | $5,509,732 | $4,699,483 | | Total current assets | $16,461,959 | $15,801,177 | | Total assets | $19,453,234 | $18,779,690 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable | $10,049,387 | $10,005,824 | | Short-term debt and current maturities of long-term debt | $690,801 | $184,860 | | Total current liabilities | $11,805,964 | $11,306,531 | | Total liabilities | $15,405,588 | $15,045,815 | | Total stockholders' equity | $4,047,646 | $3,733,875 | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 saw increased net sales, but declining gross profit margin, operating income, and net income due to expenses and currency loss Condensed Consolidated Statements of Income (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net sales | $12,793,956 | $11,541,439 | | Cost of sales | $11,954,797 | $10,713,009 | | Gross profit | $839,159 | $828,430 | | Selling, general and administrative | $696,322 | $647,442 | | Income from operations | $142,816 | $181,128 | | Interest expense | $72,884 | $86,924 | | Net foreign currency exchange loss | $20,611 | $6,937 | | Income before income taxes | $59,885 | $83,163 | | Net income | $37,826 | $54,585 | | Diluted earnings per share | $0.16 | $0.25 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operating activities was **$(298.0 million)**, a significant decrease, driven by working capital changes, while financing activities turned positive Condensed Consolidated Statements of Cash Flows (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net income | $37,826 | $54,585 | | Cash (used in) provided by operating activities | $(297,960) | $401,184 | | Cash provided by investing activities | $58,427 | $22,960 | | Cash provided by (used in) financing activities | $176,214 | $(314,179) | | Effect of exchange rate changes on cash and cash equivalents | $38,350 | $(38,780) | | Decrease in cash and cash equivalents | $(24,969) | $71,185 | | Cash and cash equivalents at end of period | $856,668 | $928,762 | - The shift from cash provided to cash used in operating activities was largely driven by changes in working capital, specifically a decrease in trade accounts receivable and a significant increase in inventory[32](index=32&type=chunk) - Financing activities saw a positive cash flow primarily due to net proceeds from revolving and other credit facilities, contrasting with net repayments in the prior year[32](index=32&type=chunk) [Supplemental Information - Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Supplemental%20Information%20-%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides definitions and reconciliations of Ingram Micro's non-GAAP financial measures to their most directly comparable GAAP equivalents [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines key non-GAAP measures like Adjusted Income from Operations, Adjusted EBITDA, and Non-GAAP Net Income, detailing their adjustments - Adjusted Income from Operations adds back amortization of intangibles, restructuring costs, integration and transition costs, and advisory fees to income from operations[34](index=34&type=chunk) - Adjusted EBITDA adjusts EBITDA for restructuring costs, foreign currency gains/losses, integration/transition costs, advisory fees, cash-based compensation, stock-based compensation, and other credit agreement items[34](index=34&type=chunk) - Non-GAAP Net Income adjusts net income for amortization of intangibles, restructuring costs, foreign currency gains/losses, integration/transition costs, advisory fees, cash-based compensation, stock-based compensation, other items, and related tax impacts[35](index=35&type=chunk) - Adjusted Free Cash Flow adjusts net income for depreciation and amortization, other non-cash items, changes in working capital, proceeds from factored receivables, and capital expenditures[35](index=35&type=chunk) [Reconciliation of Income from Operations to Adjusted Income from Operations](index=12&type=section&id=Reconciliation%20of%20Income%20from%20Operations%20to%20Adjusted%20Income%20from%20Operations) Adjusted Income from Operations decreased to **$200.8 million** in Q2 2025, primarily due to higher integration and transition costs Reconciliation of Income from Operations to Adjusted Income from Operations (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Income from operations | $142,816 | $181,128 | | Amortization of intangibles | $21,867 | $21,704 | | Restructuring costs | $21 | $(140) | | Integration and transition costs | $36,123 | $9,064 | | Advisory fee | — | $6,250 | | Adjusted Income from Operations | $200,827 | $218,006 | [Reconciliation of Net Income to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA increased to **$293.9 million** in Q2 2025, driven by adjustments for integration, transition, and stock-based compensation Reconciliation of Net Income to Adjusted EBITDA (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net income | $37,826 | $54,585 | | EBITDA | $172,654 | $206,231 | | Restructuring costs | $21 | $(140) | | Net foreign currency exchange loss | $20,611 | $6,937 | | Integration, transition and operational improvement costs | $82,799 | $34,349 | | Advisory fee | — | $6,250 | | Cash-based compensation expense | $5,475 | $6,805 | | Stock-based compensation expense | $6,325 | — | | Other | $6,064 | $18,197 | | Adjusted EBITDA | $293,949 | $278,629 | [Reconciliation of Net Income to ROIC](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20ROIC) ROIC decreased to **2.2%** in Q2 2025 from **3.5%** in the prior year, reflecting lower net income despite increased invested capital Reconciliation of Net Income to ROIC (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net income | $37,826 | $54,585 | | Invested capital | $6,921,324 | $6,164,473 | | Return on Invested Capital | 2.2% | 3.5% | [Reconciliation of Net Income to Adjusted ROIC](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20ROIC) Adjusted ROIC declined to **8.4%** in Q2 2025 from **10.3%** in the prior year, despite increased adjusted net income and invested capital Reconciliation of Net Income to Adjusted ROIC (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net income | $37,826 | $54,585 | | Adjusted net income | $144,596 | $159,144 | | Invested Capital | $6,921,324 | $6,164,473 | | Adjusted Return on Invested Capital | 8.4% | 10.3% | [Reconciliation of Net Income to Non-GAAP Net Income](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Non-GAAP%20Net%20Income) Non-GAAP Net Income rose to **$142.3 million** in Q2 2025, driven by pre-tax adjustments for integration, transition, and stock-based compensation Reconciliation of Net Income to Non-GAAP Net Income (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net income | $37,826 | $54,585 | | Amortization of intangibles | $21,867 | $21,704 | | Restructuring costs | $21 | $(140) | | Net foreign currency exchange loss | $20,611 | $6,937 | | Integration, transition and operational improvement costs | $82,799 | $34,349 | | Advisory fee | — | $6,250 | | Cash-based compensation expense | $5,475 | $6,805 | | Stock-based compensation expense | $6,325 | — | | Other items | $4,218 | $15,450 | | Tax impact of pre-tax adjustments | $(36,608) | $(23,894) | | Other miscellaneous tax adjustments | $(204) | $(1,615) | | Non-GAAP Net Income | $142,330 | $120,431 | [Reconciliation of Net Income to Adjusted Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Free%20Cash%20Flow) Adjusted Free Cash Flow was **$(262.8 million)** in Q2 2025, a significant decrease due to increased working capital investment Reconciliation of Net Income to Adjusted Free Cash Flow (Thirteen Weeks Ended) | Metric ($ in thousands) | June 28, 2025 | June 29, 2024 | | :---------------------- | :------------ | :------------ | | Net Income | $37,826 | $54,585 | | Depreciation and amortization | $49,950 | $46,198 | | Other non-cash items and changes to non-working capital assets/liabilities | $(87,637) | $(115,095) |\n| Changes in working capital | $(298,099) | $415,496 | | Cash (used in) provided by operating activities | $(297,960) | $401,184 | | Capital expenditures | $(35,224) | $(33,109) | | Proceeds from deferred purchase price of factored receivables | $70,414 | $59,455 | | Adjusted free cash flow | $(262,770) | $427,530 | [Reconciliation of GAAP EPS to Non-GAAP EPS](index=15&type=section&id=Reconciliation%20of%20GAAP%20EPS%20to%20Non-GAAP%20EPS) Non-GAAP diluted EPS increased to **$0.61** in Q2 2025, despite lower GAAP EPS, due to significant operational and compensation adjustments Reconciliation of GAAP EPS to Non-GAAP EPS (Thirteen Weeks Ended) | Metric | June 28, 2025 (Dollars per share) | June 29, 2024 (Dollars per share) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Basic and Diluted EPS - GAAP | $0.16 | $0.25 | | Amortization of intangibles | $0.09 | $0.10 | | Restructuring costs | $0.00 | $0.00 | | Net foreign currency exchange loss | $0.09 | $0.03 | | Integration, transition and operational improvement costs | $0.35 | $0.15 | | Advisory fee | — | $0.03 | | Cash-based compensation expense | $0.02 | $0.03 | | Stock-based compensation expense | $0.03 | — | | Other items | $0.02 | $0.07 | | Tax impact of pre-tax adjustments | $(0.15) | $(0.11) | | Other miscellaneous tax adjustments | — | $(0.01) | | Non-GAAP Basic and Diluted EPS | $0.61 | $0.54 | - Non-GAAP diluted EPS for Q2 2025 includes an impact of **2.3 percentage points** of the effective tax rate related primarily to heightened withholding taxes on Latin America export business, translating to approximately **$0.02 per diluted share**[11](index=11&type=chunk) - The company is unable to provide a reconciliation of forward-looking GAAP diluted EPS to non-GAAP diluted EPS due to the difficulty in predicting and estimating certain information and its dependence on future events outside of control[43](index=43&type=chunk)