Slide 1: Arrow Electronics Earnings Presentation Third Quarter 2025
Arrow Electronics Earnings Presentation Third Quarter 2025 October 30, 2025 William Austen, Interim President and CEO Raj Agrawal, Senior Vice President and CFO
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: Q3 2025 highlights
Q3 2025 highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 7.7 Billion 2.8 Percent $ 2.41 • Consolidated and segment revenue exceeded midpoint of guidance range • Earnings per share exceeded high end of guidance range • Additional Q3 2025 financial information: • $217 mill
Slide 4: Why Arrow
Why Arrow As the premier orchestrator of technology solutions, we guide innovation forward Strong Position in Differentiated Diversified Business Focused Large and Growing Capabilities Driving Model Provides Capital Allocation Markets Profitable Growth Financial Flexibility Strategy • Superior produ
Slide 5: Q3 2025 Financial Metrics
Q3 2025 Financial Metrics 10.0 Sales & Non-GAAP Gross Margin1 15.5% 800Non-GAAP Operating Expenses1 12.0% 9.0 7.7 7.6 14.5% 700 11.0% 8.0 6.8 631 616 7.0 13.5% 568 10.0% 600 6.0 12.5% 9.0% 5.0 500 11.5% 4.0 8.0% 11.5% 10.5% 400 8.3% 8.3% 3.0 11.2% 8.0% 7.0% 10.8% 9.5% 2.0 300 8.5% 6.0% 1.0 - 7.5% 20
Slide 6: Q3 2025 Global Components
Q3 2025 Global Components Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 6.5 5.6 5.3 14.5% 250 8.0% 5.5 4.9 193 189 199 7.0% 13.5% 200 4.5 6.0% 12.5% 3.5 150 5.0% 11.5% 4.0% 2.5 100 11.4% 11.2% 10.5% 3.9% 3.0% 1.5 10.9% 3.6% 3.6% 50 2.0% 0.5 9.5% - 1.0% (0.5) 8.5% Q3 '24 Q2 '25 Q3 '25 Q3
Slide 7: Q3 2025 Enterprise Computing Solutions
Q3 2025 Enterprise Computing Solutions 8.0% 3.0 Sales & Non-GAAP Gross Margin14.5% 1 140 Non-GAAP Operating Income1 7.0% 120 2.5 2.3 13.5% 2.2 98 6.0% 1.9 100 2.0 12.5% 77 5.0% 80 65 1.5 11.5% 4.0% 11.7% 60 4.3% 4.1% 1.0 11.2% 10.5% 3.0% 40 10.5% 3.0% 0.5 9.5% 20 2.0% - 8.5% - 1.0% Q3 '24 Q2 '25 Q3
Slide 8: Q3 2025 balance sheet and cash highlights
Q3 2025 balance sheet and cash highlights Net Working Capital ($B) • Non-GAAP Return on Working Capital 15.3 15.7 (ROWC)1 was 12.0% in the third quarter, down 11.7 Accounts 50 basis points year on year. The decrease in 6.9 6.8 7.3 Receivable 4.5 4.7 4.7 ROWC related primarily to lower operating Inve
Slide 9: Q4 2025 guidance
Q4 2025 guidance Consolidated Sales $7.80 billion to $8.40 billion Global components $5.10 billion to $5.50 billion Global ECS $2.70 billion to $2.90 billion Diluted Earnings Per Share $3.08 to $3.28 Non-GAAP Diluted Earnings Per Share 1 $3.44 to $3.64 Interest and other expense, net Approximately $
Slide 10: Looking forward
Looking forward • Global Components cyclical recovery underway • Secular trends in cloud and AI driving growth across both operating segments • Deliver profitable growth • Allocate capital to higher return on investment opportunities • Drive shareholder value 10
Slide 11: Thank You Q&A
Thank You Q&A ANOW
Slide 12: Additional information and financial tables
Additional information and financial tables 12
Slide 13: Consolidated third-quarter overview
Consolidated third-quarter overview ($ in millions, except per share data) Q3 2025 Q3 2024 Y/Y CHANGE Q3 2024 IN Y/Y CHANGE IN Q2 2025 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights* Sales $7,713 $6,823 13.0% $6,952 10.9% $7,580 1.7% Gross Profit Margin 10.8% 11.5% -70 bps 11.5% -70 b
Slide 14: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY QoQ Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 change change Global Components Total 4,946 4,814 4,778 5,285 5,556 12% 5% Americas 1,638 1,604 1,569 1,708 1,709 4% 0% Europe, Middle East & Africa 1,290 1,262 1,340 1,427 1,444 12% 1% Asia Pacific 2,018 1,9
Slide 15: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $160 $161 $197 $199 $189 $193 $187 $189 $173 $171 $173 $97 $98 $117 $76 $77 $77 $78 $64 $65 Q3-'24 Q4-'24 Q1-'25 Q2-'25 Q3-'25 Q3-'24 Q4-'24 Q1-'25 Q2-'25 Q3-'25* GAAP Non-GAAP GAAP Non-GAAP * Q3-’25 ECS operating in
Slide 16: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-G
Slide 17: Fourth-quarter 2025 GAAP to non-GAAP outlook reconciliation
Fourth-quarter 2025 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 31-Dec-25 31-Dec-24 % Change 31-Dec-25 27-Sep-25 % Change Global components sales, GAAP $ $ 4.81 6% - 14% 5.10 - 5.50 $ 5.56 (8)% - (1)% 5.10 -
Slide 18: Non-GAAP third-quarter sales reconciliation
Non-GAAP third-quarter sales reconciliation ($ in thousands) Quarter Ended 27-Sep-25 28-Sep-24 % Change Consolidated sales, as reported $ 7,712,541 $ 6,823,319 13.0% Impact of changes in foreign currencies - 128,227 Consolidated sales, constant currency $ 7,712,541 $ 6,951,546 10.9% Global component
Slide 19: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended September 27, 2025 Intangible Reported GAAP Amortization Restructuring & Impact of Wind Down Non- recurring tax (1) Includes write-downs (recoveries) of measure Expense Integration charges (1) items
Slide 20: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) Quarter Ended 9/28/2024 12/31/2024 3/29/2025 6/28/2025 9/27/2025 Consolidated Gross Profit $ 784,828 $ 803,310 $ 773,992 $ 848,657 $ 835,314 Impact of wind down to inventory (1,857) 50,344 (2,467) (2,172) (1,989) Other - - - 172 - Co
Slide 21: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended September 27, 2025 September 28, 2024 Numerator: Consolidated operating income, as reported $ 179,007 $ 175,262 x4 x4 Annualized consolidated operating income $ 716,028 $ 701,048 Non-GAAP consolidated operating income $ 217,432
Slide 22: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended September 27, 2025 September 28, 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 $ 179,
Slide 23: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) Quarter Ended 9/28/2024 12/31/2024 3/29/2025 6/28/2025 9/27/2025 Global components operating income, as reported $ 188,600 $ 116,910 $ 171,385 $ 186,808 $ 197,355 Intangible assets amortization expense 6,247 6,162 4,438 3,945 3,838 Impact of wind down
Slide 24: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) Quarter Ended 9/28/2024 12/31/2024 3/29/2025 6/28/2025 6/28/2025 Global components gross profit, as reported $ 564,460 $ 497,324 $ 554,945 $ 591,454 $ 609,101 Impact of wind down to inventory (1,857) 50,344 (2,467) (2,172) (1,989) Other -