Arrow Electronics(ARW)2025-05-01 12:01Financial Performance - Consolidated sales for Q1 2025 were $6.814 billion, a decrease of 2% year-over-year, and flat on a constant currency basis[3] - Global components sales were $4.778 billion, down 8% year-over-year, and down 7% on a constant currency basis[5] - Global ECS sales increased to $2.036 billion, representing an 18% year-over-year growth and a 19% increase on a constant currency basis[8] - Net income attributable to shareholders was $80 million, with a diluted EPS of $1.51, compared to $84 million and $1.53 in Q1 2024[3] - Non-GAAP net income attributable to shareholders was $95 million, with a non-GAAP diluted EPS of $1.80, down from $132 million and $2.41 in Q1 2024[3] - For Q2 2025, the company expects GAAP sales of $4.80 billion to $5.20 billion for global components and $1.90 billion to $2.10 billion for global ECS[15] - Consolidated sales for the quarter ended March 29, 2025, were $6,814,017, a decrease of 1.6% compared to $6,924,260 for the same period in 2024[25] - Gross profit for the quarter was $773,992, down from $857,826 in the prior year, reflecting a decline of approximately 9.8%[25] - Operating income decreased to $158,553 from $185,917, representing a decline of 14.7% year-over-year[25] - Net income attributable to shareholders was $79,720, down 4.5% from $83,601 in the previous year[25] - For the three months ended March 29, 2025, consolidated net income was $95,077,000, a decrease from $131,490,000 for the same period in 2024, representing a decline of approximately 27.7%[41] - Operating income for the first quarter of 2025 was $158,553,000, down from $185,917,000 in the first quarter of 2024, reflecting a decrease of about 14.7%[41] Cash Flow and Capital Management - The company generated approximately $350 million in cash flow from operations and repurchased $50 million of shares in Q1 2025[9] - Total net working capital was reduced by approximately $340 million, and gross balance sheet debt decreased by approximately $280 million[9] - Cash and cash equivalents at the end of the period were $231,882, an increase from $188,807 at the beginning of the period[31] - The company reported a net cash provided by operating activities of $351,679, down from $403,210 in the previous year[31] Sales and Market Trends - Global Enterprise Computing Solutions (ECS) gross billings increased to $4,638,954, up 5.2% from $4,408,418 in the prior year[34] - EMEA ECS sales saw a significant increase of 36.5%, reaching $1,126,392 compared to $825,095 in the same quarter last year[38] - Global components sales decreased to $4,777,722,000 in Q1 2025 from $5,191,417,000 in Q1 2024, a decline of approximately 7.9%[45] - Global ECS sales increased to $2,036,295,000 in Q1 2025 from $1,732,843,000 in Q1 2024, representing a growth of approximately 17.5%[45] Tax and Liabilities - The average tax rate is projected to be in the range of 23% to 25% for Q2 2025[15] - The effective tax rate for the first quarter of 2025 was 22.6%, compared to 21.0% in the same quarter of 2024[41] - Total current liabilities slightly decreased to $12,603,036 from $12,636,162, a reduction of about 0.3%[28] Restructuring and Integration Costs - The company incurred restructuring and integration charges of $17,313,000 in Q1 2025, compared to $46,856,000 in Q1 2024, indicating a reduction in restructuring costs[46] - Corporate operating loss for Q1 2025 was $90,146,000, an improvement from a loss of $111,104,000 in Q1 2024[45] Profitability Metrics - Global components gross profit as a percentage of sales was 11.6% in Q1 2025, down from 12.4% in Q1 2024[49] - Non-GAAP operating income for global components in Q1 2025 was $173,356,000, down from $242,509,000 in Q1 2024, a decrease of about 28.5%[49] - Net income per diluted share for Q1 2025 was $1.80, compared to $2.41 in Q1 2024, a decrease of about 25.4%[41]