Arrow Electronics(US:ARW)2026-02-05 21:02Financial Performance - Fourth-quarter sales reached $8.7 billion, a 20% increase year-over-year, exceeding the high end of guidance[1] - Fourth-quarter earnings per share (EPS) were $3.75, a 101% increase from $1.86 in the same quarter last year[2] - Full-year sales totaled $30.9 billion, reflecting a 10% increase compared to the previous year[1] - Full-year non-GAAP EPS was $11.02, up 4% from $10.56 in 2024[1] - Sales for Q4 2025 reached $8,746.43 million, a 20.1% increase from $7,282.88 million in Q4 2024[22] - Consolidated sales for the year ended December 31, 2025, were reported at $30,852,935, reflecting a 10.5% increase from $27,923,324 in 2024[40] - Global components sales for the year ended December 31, 2025, were $21,501,289, a 7.6% increase from $19,983,267 in 2024[40] - Global ECS gross billings for the year ended December 31, 2025, reached $22,050,174, a 13% increase compared to $19,528,208 in 2024[34] Income and Profitability - Operating income for Q4 2025 was $294.08 million, representing a 50.7% increase compared to $195.10 million in Q4 2024[22] - Net income attributable to shareholders for the year ended December 31, 2025, was $571.27 million, a 45.7% increase from $392.07 million in 2024[22] - The company reported a diluted net income per share of $10.93 for the year ended December 31, 2025, compared to $7.29 in 2024, a 50.5% increase[22] - The total operating income for the fourth quarter of 2025 was $294.077 million, compared to $195.103 million in the fourth quarter of 2024, a 51% increase[43] - The operating income for the year ended December 31, 2025, was $822.223 million, up from $768.557 million in 2024, reflecting a growth of 7%[46] Cash Flow and Assets - Cash flow from operations in Q4 2025 was $200 million, with $50 million used for share repurchases[6] - Cash and cash equivalents at the end of Q4 2025 were $306.47 million, up from $188.81 million at the end of Q4 2024[28] - Total current assets increased to $25,660.03 million in 2025 from $18,401.41 million in 2024, reflecting a growth of 39.5%[25] - Total assets grew to $29,078.14 million in 2025, compared to $21,757.71 million in 2024, marking a 33.5% increase[25] - Net cash provided by operating activities for the year ended December 31, 2025, was $64,049, a significant decrease from $1,130,413 in 2024[31] Debt and Liabilities - Long-term debt increased to $3,084.72 million in 2025 from $2,773.78 million in 2024, an increase of 11.2%[25] - The company reported a net cash used for financing activities of $206,137 for the year ended December 31, 2025, compared to $956,827 in 2024[31] Segment Performance - Global Components sales in Q4 2025 were $5.88 billion, a 22% increase year-over-year[4] - Global ECS sales in Q4 2025 were $2.86 billion, an 18% increase year-over-year[5] - Americas ECS sales for the year ended December 31, 2025, were $4,230,746, up 4% from $4,067,160 in 2024[40] - EMEA ECS sales for the year ended December 31, 2025, increased by 32.2% to $5,120,900 from $3,872,897 in 2024[40] Tax and Other Financial Metrics - The effective tax rate for the year ended December 31, 2025, was 20.6%, a decrease from 21.8% in 2024[46] - The company reported a provision for income taxes of $148.234 million for the year ended December 31, 2025, compared to $95.812 million in 2024, reflecting a 55% increase[46] Future Outlook - For Q1 2026, the company projects GAAP sales between $7.95 billion and $8.55 billion, with global components sales expected between $5.75 billion and $6.15 billion[10] - Changes in foreign currencies are anticipated to positively impact Q1 2026 sales by approximately $263 million[10] - The company remains cautiously optimistic about entering 2026, focusing on accelerating profitable growth and expanding higher-margin capabilities[2]