Avnet(US:AVT)2025-10-30 22:04Financial Performance - Sales for the first quarter of fiscal 2026 were $5.90 billion, an increase of $294.4 million, or 5.3%, compared to $5.60 billion in the same quarter last year[91] - Adjusted operating income for the first quarter of fiscal 2026 was $150.7 million, a decrease of $18.3 million, or 10.8%, from $168.9 million in the first quarter of fiscal 2025[101] - The gross profit margin decreased by 42 basis points to 10.4% for the first quarter of fiscal 2026 compared to 10.8% in the first quarter of fiscal 2025[95] - SG&A expenses increased by $25.7 million, or 5.9%, from the first quarter of fiscal 2025, representing 7.9% of sales[97] - Operating income for the first quarter of fiscal 2026 was $142.0 million, a decrease of $0.2 million, or 0.1%, year over year[101] - The effective tax rate for the first quarter of fiscal 2026 was 32.6%, compared to 21.1% in the first quarter of fiscal 2025[105] - The Company's net income for Q1 fiscal 2026 was $51.7 million, or $0.61 per share, down from $59.0 million, or $0.66 per share in Q1 fiscal 2025, reflecting a 5.5% reduction in diluted shares outstanding due to share repurchases[106] Sales and Revenue - EC sales for the first quarter of fiscal 2026 were $5.50 billion, an increase of $242.6 million, or 4.6%, from the prior year[92] - Farnell sales for the first quarter of fiscal 2026 were $398.9 million, reflecting an increase of $51.8 million, or 14.9%, compared to the same period in the prior year[93] - The Company expects sales in the second quarter of fiscal 2026 to increase approximately 2% compared to first quarter sales of fiscal 2026[86] Cash Flow and Operating Activities - Net cash used for operating activities increased by $250.9 million year-over-year to $144.6 million in Q1 fiscal 2026, primarily due to cash used for working capital, which was $217.5 million compared to $0.8 million generated in Q1 fiscal 2025[108] - The Company generated $473.6 million in cash flows from operating activities over the trailing four fiscal quarters ended September 27, 2025[116] Debt and Financing - The Company reported net proceeds of debt totaling $320.8 million in Q1 fiscal 2026, including $633.8 million from Convertible Notes issuance, compared to $15.7 million in the same period of the prior fiscal year[109] - As of September 27, 2025, the Company had a total borrowing capacity of $2.0 billion under the Credit Facility and Securitization Program, with approximately $1.68 billion of total committed availability[119] - Approximately 77% of the Company's debt bears interest at a fixed rate, and a hypothetical 1.0% increase in interest rates would result in a $1.7 million decrease in income before income taxes for Q1 fiscal 2026[128] Shareholder Returns - Cash dividends paid during Q1 fiscal 2026 were $0.35 per share, totaling $28.5 million, slightly down from $0.33 per share, or $28.9 million in Q1 fiscal 2025[123] - The Company repurchased $138.3 million of common stock in Q1 fiscal 2026, compared to $100.0 million in the same period of the prior fiscal year[109] - The Company does not expect to repurchase additional shares until its consolidated leverage ratio returns to historical levels, with $225.8 million of share repurchase capacity remaining[122] Interest and Expenses - Interest and other financing expenses in the first quarter of fiscal 2026 were $59.8 million, a decrease of $4.7 million compared to $64.4 million in the first quarter of fiscal 2025[103] - The Company held cash and cash equivalents of $175.5 million as of September 27, 2025, down from $192.4 million as of June 28, 2025[115]