Financial Performance - Net sales for Q3 2025 reached $12.6 billion, representing a 7.2% increase compared to $11.8 billion in Q3 2024[5] - Gross profit increased to $869.6 million, with a gross margin of 6.90%, down from 7.19% in the prior year[5] - Net income on a GAAP basis was $99.5 million, or $0.42 per share, while non-GAAP net income was $168.7 million, or $0.72 per share[3] - Net income for the thirteen weeks ended September 27, 2025, was $99,457, representing a 29.1% increase from $76,969 in the same period of 2024[31] - Basic earnings per share for the thirty-nine weeks ended September 27, 2025, were $0.88, up from $0.81 in the prior year, indicating a growth of 8.6%[31] - Adjusted EBITDA for the thirty-nine weeks ended September 27, 2025, was $926,958,000, an increase from $900,573,000 in the prior year, representing a growth of 2.9%[38] - The net income for the thirteen weeks ended September 27, 2025, was $99,457,000, up from $76,969,000 in the same period last year, indicating a year-over-year increase of 29.1%[39] - Adjusted net income for the thirty-nine weeks ended September 27, 2025, was $488,461,000, compared to $506,929,000 in the previous year, showing a decrease of 3.6%[39] Sales by Region - North America net sales were $4.4 billion, a 3.3% year-over-year increase, driven by sales of notebooks and servers[6] - EMEA net sales increased by 5.5% to $3.7 billion, with a positive currency translation impact of 5%[9] - Asia-Pacific net sales grew by 12.5% to $3.5 billion, primarily due to strong demand for client and endpoint solutions[11] - Latin America net sales rose by 13.0% to $1.0 billion, supported by growth in client and endpoint solutions[14] Future Guidance - The company expects Q4 2025 net sales guidance between $14.0 billion and $14.35 billion, with non-GAAP diluted EPS projected between $0.85 and $0.95[17] - The company provided guidance for future performance, emphasizing ongoing market expansion and new product development initiatives[36] Dividends and Shareholder Returns - A quarterly dividend of $0.08 per share was declared, reflecting a 2.6% increase from the previous dividend[18] Assets and Liabilities - Total current assets increased to $16,220,383 as of September 27, 2025, compared to $15,801,177 as of December 28, 2024, marking a growth of 2.6%[29] - Total liabilities stood at $15,121,538 as of September 27, 2025, slightly up from $15,045,815 as of December 28, 2024[29] - The company reported a total stockholders' equity of $4,102,375 as of September 27, 2025, an increase from $3,733,875 as of December 28, 2024[29] Operating Expenses - Operating expenses for the thirteen weeks ended September 27, 2025, were $646,134, compared to $627,318 for the same period in 2024, reflecting an increase of 3.9%[31] Cash Flow and Investments - Cash provided by investing activities was $66,139 million for the thirteen weeks ended September 27, 2025, compared to $29,941 million for the same period in 2024, representing a 121.1% increase[35] - Cash used in operating activities was $(146,038) million for the thirteen weeks ended September 27, 2025, compared to $(277,040) million for the same period in 2024, showing a 47.3% improvement[34] - Capital expenditures for the thirteen weeks ended September 27, 2025, were $(28,968) million, down from $(37,955) million in the same period in 2024, indicating a 23.6% decrease[34] - The company reported a decrease in cash and cash equivalents of $(54,038) million for the thirteen weeks ended September 27, 2025, compared to $(79,290) million for the same period in 2024, reflecting a 31.7% improvement[35] - The company reported cash and cash equivalents at the end of the period of $802,630 million, down from $849,472 million at the end of the same period in 2024[35] Risks and Challenges - The company faces various risks including market volatility, supply constraints, and competition, which could impact future performance[25] Operational Efficiency - Adjusted EBITDA and other non-GAAP financial measures were discussed, highlighting the company's focus on operational efficiency and cost structure alignment[36] - The company continues to focus on expanding its market presence and integrating new technologies into its platform, including the development of Ingram Micro Xvantage™[25] Stockholder Equity and Debt - Stockholders' equity as of September 27, 2025, was $4,102,375,000, an increase from $3,613,905,000 in the previous year[39] - The company’s long-term debt as of September 27, 2025, was $3,059,612,000, a decrease from $3,344,033,000 in the previous year[39] Earnings Per Share (EPS) - GAAP diluted EPS for the thirteen weeks ended September 27, 2025, was $0.42, compared to $0.35 for the same period in 2024, representing a 20% increase[44] - Non-GAAP diluted EPS for the thirty-nine weeks ended September 27, 2025, was $1.94, up from $1.87 in 2024, indicating a 3.74% growth[44] - Amortization of intangibles contributed $0.08 to GAAP EPS for the thirteen weeks ended September 27, 2025, down from $0.10 in 2024[44] - Integration, transition, and operational improvement costs added $0.22 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.21 in 2024[44] - The tax impact of pre-tax adjustments reduced GAAP EPS by $0.10 for the thirteen weeks ended September 27, 2025, compared to a reduction of $0.13 in 2024[44] - Restructuring costs contributed $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, consistent with the previous year[44] - Cash-based compensation expense added $0.02 to GAAP EPS for the thirteen weeks ended September 27, 2025, compared to $0.03 in 2024[44] Currency Impact - The company reported a net foreign currency exchange loss of $0.04 for the thirteen weeks ended September 27, 2025, compared to a gain of $0.05 in 2024[44] Forward-Looking Statements - The company is unable to provide a reconciliation of forward-looking GAAP diluted EPS to non-GAAP diluted EPS for fiscal fourth quarter 2025 due to uncertainties[45] - The forward-looking estimates of both GAAP and non-GAAP measures may differ materially from actual results, indicating potential volatility in future financial performance[45]
Ingram Micro Holding Corporation(INGM) - 2025 Q3 - Quarterly Results