Arrow Electronics(US:ARW)2025-10-30 20:04Financial Performance - Total revenue for Q3 2025 increased by 13% year over year to $7.713 billion, with a constant currency increase of 11%[2] - Net income attributable to shareholders rose by 9% to $109 million, with diluted earnings per share of $2.09, an 11% increase from the previous year[3] - The company reported a 29% increase in net income for the first nine months of 2025, totaling $377 million[3] - Consolidated net income for the nine months ended September 27, 2025, was $376,148, compared to $293,619 for the same period in 2024, representing a year-over-year increase of 28.1%[31] - The company reported a net income attributable to shareholders of $109,193 for the three months ended September 27, 2025, compared to $125,731 in the same period of 2024[41] Sales Performance - Global components sales increased by 12% year over year to $5.556 billion, with a 19% increase in Asia-Pacific sales[4] - Global enterprise computing solutions (ECS) sales grew by 15% year over year to $2.156 billion, despite a 16% decrease in operating income due to underperforming contracts[5] - EMEA ECS sales increased by 34% year over year in Q3 2025, indicating strong regional performance[5] - Gross billings for Global Enterprise Computing Solutions (ECS) reached $5,189,972 for the quarter ended September 27, 2025, a 14% increase from $4,559,784 in the same quarter of 2024[33] - Global components sales for the nine months ended September 27, 2025, were $15,619,012, reflecting a 3% increase from $15,169,507 in the previous year[39] Future Projections - The company expects Q4 2025 GAAP sales between $7.80 billion and $8.40 billion, with global components sales projected between $5.10 billion and $5.50 billion[11] - Non-GAAP net income per diluted share for Q4 2025 is projected to be between $3.44 and $3.64, reflecting anticipated growth despite challenges[11] - Changes in foreign currencies are expected to positively impact Q4 2025 sales by approximately $226 million and earnings per share by $0.22 compared to Q4 2024[11] Operational Metrics - Operating income for the quarter was $179,007, reflecting an increase of 2.0% from $175,262 in the prior year[21] - Operating income for Global ECS in the nine months ended September 27, 2025, was $238,027,000, a decrease from $249,654,000 in the same period last year[50] - Global ECS operating income for the third quarter of 2025 included losses of $21.4 million related to underperformance of non-cancellable multi-year purchase obligations[51] Asset and Liability Overview - Total current assets increased to $21,138,302 as of September 27, 2025, from $18,401,413 at the end of 2024, marking a growth of 9.4%[25] - Total liabilities increased to $18,050,503 as of September 27, 2025, compared to $15,425,979 at the end of 2024, indicating a rise of 10.5%[25] - Total assets as of September 27, 2025, were $24,526,488, up from $21,757,707 at the end of 2024, reflecting an increase of 12.7%[25] Profitability Metrics - Gross profit for the nine months ended September 27, 2025, was $2,457,963, a decrease of 1.3% from $2,489,098 for the same period in 2024[21] - Global components gross profit for Q3 2025 was $609.1 million, an increase from $564.5 million in Q3 2024, representing a growth of 7.5%[54] - Global ECS gross profit for Q3 2025 was reported at $226.2 million, up from $220.4 million in Q3 2024, marking a growth of 2.9%[54] Cash Flow Analysis - The company reported a net cash used for operating activities of $(281,684) for the quarter, compared to $80,558 provided in the same quarter last year[28] - Net cash used for operating activities was $(135,901) for the nine months ended September 27, 2025, a significant decrease from $803,949 in the same period of 2024[31] - Cash and cash equivalents at the end of the period were $213,612, a slight increase from $188,807 at the end of 2024[25]