Avnet(US:AVT)2026-01-28 13:04Financial Performance - Achieved sales of $6.3 billion, representing an 11.6% year-over-year growth and a 7.1% quarter-over-quarter growth[4] - Diluted EPS of $0.75, down 24.2% year-over-year, while adjusted diluted EPS increased by 20.7% to $1.05[4] - Operating income margin of 2.3%, with adjusted operating income margin at 2.7%[4] - Net income for the six months ended December 27, 2025, was $113,478 thousand, a decrease of 22.4% compared to $146,209 thousand for the same period in 2024[18] - GAAP diluted earnings per share for the six months ended December 27, 2025, was $1.36, up from $0.75 in the same period last year, representing an increase of 81.3%[26] - GAAP net income for the quarter was $240,217, up from $6,089 in the previous quarter[27] - Adjusted net income for the quarter was $300,283, compared to $69,023 in the previous quarter[27] Cash Flow and Assets - Generated $208 million in cash flow from operations and returned $28 million to shareholders in dividends[3] - Cash and cash equivalents rose to $286,547 thousand at the end of the period, compared to $192,428 thousand at the beginning, reflecting an increase of 48.9%[18] - Cash flows provided by operating activities totaled $63,658 thousand, a significant decrease of 85.7% from $444,152 thousand in the prior year[18] - Long-term debt decreased to $2,474,100 thousand from $2,574,729 thousand, reflecting a reduction of 3.9%[16] - The company issued convertible notes totaling $633,750 thousand during the period, contributing to financing activities[18] Inventory and Liabilities - Reduced inventories by $126 million, resulting in a decrease of days of inventory to 86 days, with EC business days of inventory below 80 days[3] - Total current liabilities increased to $5,333,960 thousand, up from $4,128,104 thousand, marking a rise of 29.2%[16] Sales Growth by Region - Asia recorded sales of $3.2 billion, marking a 16.9% year-over-year increase, and the sixth consecutive quarter of growth in this region[4] - Farnell sales increased by 23.6% year-over-year to $427.1 million, with an operating margin improvement to 4.7%[4] - Americas and EMEA regions also showed sales growth, with EMEA sales up 8.3% year-over-year[4] - Sales for the Electronic Components segment reached $5,891.8 million, up from $5,317.8 million year-over-year[30] - Sales in the Asia region increased by 16.9% year-over-year, with a constant currency change of 17.0%[29] - Farnell segment sales grew by 23.6% year-over-year, with a gross profit margin of 26.8%[30] Future Guidance - Guidance for Q3 2026 sales is projected between $6.20 billion and $6.50 billion, with an adjusted diluted EPS range of $1.20 to $1.30[5] - The company expects above-trend seasonal growth and improving margins in the third quarter[2] - Adjusted diluted earnings per share guidance for Q3 fiscal 2026 is set between $1.20 and $1.30, with GAAP diluted earnings per share guidance ranging from $0.95 to $1.15[32] Operating Income - Adjusted operating income for the fiscal year to date December 27, 2025, was $322,418 thousand, compared to $171,731 thousand for the same period in 2024, indicating an increase of 88%[26] - GAAP operating income for the quarter ended June 28, 2025, was $514,254, compared to $73,452 in the previous quarter[27] - Adjusted operating income for the same quarter was $624,033, reflecting a significant increase from $142,877 in the previous quarter[27] Profit Margins - The gross profit margin for the Electronic Components segment was 9.3%, slightly down from 9.6% in the previous year[30]