Slide 1: Arrow Electronics Earnings Presentation Second Quarter 2025
Arrow Electronics Earnings Presentation Second Quarter 2025 July 31, 2025
Slide 2: Safe harbor
Safe harbor This presentation includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking
Slide 3: Sean Kerins, President and CEO
Sean Kerins President and CEO 3
Slide 4: Q2 2025 highlights
Q2 2025 highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 7.6 Billion 2.8 Percent $ 2.43 • Consolidated and segment revenue as well as earnings per share exceeded high end of guidance range • Additional Q2 2025 financial information: • $215 million operating income1 • $12
Slide 5: Global components
Global components • All three regions performed ahead of typical seasonal patterns • Industrial and Transportation improving • Continued strength in IP&E • On a regional basis: • Americas – sequential strength in Industrial and Aerospace & Defense and resilience in Transportation • APAC – sequential
Slide 6: Enterprise computing solutions
Enterprise computing solutions • Year-over-year growth in billings and gross profit • Solid contribution from both regions • On a regional basis: • EMEA – broad-based growth • Americas – Strength in Cloud, Infrastructure Software, and Data Storage • Backlog remains more than 50% higher year over yea
Slide 7: Closing thoughts
Closing thoughts • Alignment to attractive end markets in both segments gives confidence for growth potential • In Global Components, cyclical recovery suggests better than seasonal sales patterns • In ECS, momentum will continue to build • Across the organization, productivity initiatives will bene
Slide 8: Raj Agrawal, Senior Vice President and CFO
Raj Agrawal Senior Vice President and CFO 8
Slide 9: Q2 2025 revenue ($7.6B consolidated)
Q2 2025 revenue ($7.6B consolidated) Global Components Enterprise Computing Solutions Asia Pacific 1.7 $ B 9% 1.1 $ 9% 2.2 B $ Americas B 6% $5.3 B $ 2.3 B Americas 5% 23% EMEA EMEA $1.2 B 39% 1.4 $ B 1% Revenue figures are GAAP and reflect year-on-year performance changes Amounts may not calculate
Slide 10: Q2 2025 financial metrics
Q2 2025 financial metrics Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 7.6 631 6.9 6.8 593 586 12.3% 8.5% 8.7% 8.3% 11.3% 11.2% Q2 '24 Q1 '25 Q2 '25 Q2 '24 Q1 '25 Q2 '25 Sales ($B) Gross Margin (%) Opex ($M) Opex (%) Non-GAAP Operating Income1 Non-GAAP Diluted EPS1 262 2.78 2.43 215 1
Slide 11: Q2 2025 working capital
Q2 2025 working capital Net Working Capital ($B) • Non-GAAP Return on Working Capital 15.3 (ROWC)1 was 12.7% in the second quarter, 10.9 12.4 Accounts down 280 basis points year on year. The Receivable 4.7 6.8 4.8 6.4 4.7 6.8 decrease in ROWC related primarily to lower Inventory operating income in
Slide 12: Q2 2025 balance sheet and cash highlights
Q2 2025 balance sheet and cash highlights Operating Cashflow was $(206M) Gross Debt was $2.8B Repurchased $50M in shares 12
Slide 13: Q3 2025 guidance
Q3 2025 guidance Consolidated Sales $7.30 billion to $7.90 billion Global components $5.30 billion to $5.70 billion Global ECS $2.00 billion to $2.20 billion Diluted Earnings Per Share $1.49 to $1.69 Non-GAAP Diluted Earnings Per Share 1 $2.16 to $2.36 Interest and other expense, net Approximately $
Slide 14: Thank You Q&A
Thank You Q&A ANOW
Slide 15: Additional information and financial tables
Additional information and financial tables 15
Slide 16: Consolidated second-quarter overview
Consolidated second-quarter overview ($ in millions, except per share data) Q2 2025 Q2 2024 Y/Y CHANGE Q2 2024 IN Y/Y CHANGE IN Q1 2025 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights* Sales $7,580 $6,893 10.0% $7,016 8.0% $6,814 11.2% Gross Profit Margin 11.2% 12.3% -110 bps 12.3% -11
Slide 17: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY QoQ Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 change change Global Components Total 5,032 4,946 4,814 4,778 5,285 5% 11% Americas 1,573 1,638 1,604 1,569 1,708 9% 9% Europe, Middle East & Africa 1,439 1,290 1,262 1,340 1,427 -1% 6% Asia Pacific 2,020 2,0
Slide 18: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $160 $161 $218 $210 $189 $193 $187 $189 $173 $171 $173 $103 $104 $97 $98 $117 $76 $77 $77 $78 Q2-'24 Q3-'24 Q4-'24 Q1-'25 Q2-'25 Q2-'24* Q3-'24 Q4-'24 Q1-'25 Q2-'25 GAAP Non-GAAP GAAP Non-GAAP * Q2-’24 ECS operating
Slide 19: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 20: Third-quarter 2025 GAAP to non-GAAP outlook reconciliation
Third-quarter 2025 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 27-Sep-25 28-Sep-24 % Change 27-Sep-25 28-June-25 % Change Global components sales, GAAP $ 5.30 - 5.70 $ 4.95 7% - 15% 5.30 - 5.70 $ 5.28 0% - 8
Slide 21: Non-GAAP second-quarter sales reconciliation
Non-GAAP second-quarter sales reconciliation ($ in thousands) Quarter Ended Quarter Ended 28-Jun-25 29-Jun-24 % Change 29-Mar-25 31-Dec-24 30-Mar-24 31-Dec-23 % % Change Change Consolidated sales, as reported $ 7,579,947 $ 6,892,868 10.0% Consolidated sales, as reported $ 6,814,017 $ 6,924,260 (1.6)
Slide 22: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended June 28, 2025 Reported GAAP Intangible Restructuring & (1) Includes write downs (recoveries) of measure Amortization Expense Integration charges Impact of Wind Down (1) Other (2) Non-GAAP measure inv
Slide 23: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) Quarter Ended 6/29/2024 9/28/2024 12/31/2024 3/29/2025 6/28/2025 Consolidated Gross Profit $ 846,444 $ 784,828 $ 803,310 $ 773,992 $ 848,657 Impact of wind down to inventory 1,627 (1,857) 50,344 (2,467) (2,172) Other - - - - 172 Cons
Slide 24: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended June 28, 2025 June 29, 2024 Numerator: Consolidated operating income, as reported $ 190,586 $ 212,275 x4 x4 Annualized consolidated operating income $ 762,344 $ 849,100 Non-GAAP consolidated operating income $ 215,375 $ 261,895
Slide 25: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended June 28, 2025 June 29, 2024 (1) Operating income, as reported, and non- GAAP operating income is adjusted for Numerator: noncontrolling interest and equity in earnings Consolidated operating income, as reported $ 190,586 $ 212,
Slide 26: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) Quarter Ended 6/29/2024 9/28/2024 12/31/2024 3/29/2025 6/28/2025 Global components operating income, as reported $ 210,201 $ 188,600 $ 116,910 $ 171,385 $ 186,808 Intangible assets amortization expense 6,399 6,247 6,162 4,438 3,945 Impact of wind down
Slide 27: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) Quarter Quarter Ended Ended 6/29/2024 3/30/2024 9/28/2024 6/29/2024 12/31/2024 9/28/2024 3/29/2025 12/31/2024 6/28/2025 3/29/2025 Global Global components components gross gross profit, profit, as as reported reported $ $ 645,714 624,860 $