Slide 1: Arrow Electronics Earnings Presentation, Q4 & Full Year 2025
Arrow Electronics Earnings Presentation Fourth Quarter & Full Year 2025 February 5, 2026 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: Q4 2025 Highlights
Q4 2025 Highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 8.7 Billion 3.8 Percent $ 4.39 Up 20% Y/Y Up 48% Y/Y • Consolidated revenue and earnings per share exceeded high end of guidance range • Global Components segment revenue exceeded high end of guidance range • Globa
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: Overview
Overview • Execute through gradual recovery with discipline • Deliver profitable growth • Expand value-added offerings • Position Arrow through strategy, differentiated capabilities, and diversified business model 5
Slide 6: FY 2025 Financial Metrics
FY 2025 Financial Metrics CONSOLIDATED SALES GLOBAL COMPONENTS SALES GLOBAL ECS SALES DILUTED EARNINGS PER SHARE1 $ 30.9 Billion $ 21.5 Billion $ 9.4 Billion $ 11.02 Up 10% Y/Y Up 8% Y/Y Up 18% Y/Y Up 4% Y/Y • Key Takeaways: • Growth in accretive value-added services • Productivity initiatives drivi
Slide 7: Q4 2025 Financial Metrics
Q4 2025 Financial Metrics $ in millions except for EPS Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 10,000.0 $8,746 14.0% 100.0% $7,713 700.0 $669 $7,283 90.0% 8,000.0 13.0% $616 $580 600.0 80.0% 6,000.0 12.0% 70.0% 500.0 74% 4,000.0 11.0% 11.7% 11.5% 68% 67% 60.0% 2,000.0 10.8% 10.0%
Slide 8: Q4 2025 Global Components
Q4 2025 Global Components $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 7,000.0 14.0% $5,882 250.0 5.0% $5,556 $219 6,000.0 13.0% $199 $4,814 200.0 4.5% 5,000.0 $173 12.0% 4.0% 4,000.0 150.0 11.0% 3.5% 3,000.0 11.4% 3.6% 3.7% 10.9% 10.9% 100.0 3.6% 10.0% 3.0% 2,000.0 9.0% 5
Slide 9: Q4 2025 Enterprise Computing Solutions
Q4 2025 Enterprise Computing Solutions $ in millions Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Income1 3,000.0 $2,864 16.0% 7.0% 200.0 $189 6.9% $2,469 15.0% 2,500.0 $2,213 $161 6.8% 14.0% $146 6.7% 150.0 2,000.0 13.0% 6.6% 1,500.0 6.6% 6.5% 13.0% 12.0% 100.0 6.6% 12.4% 12.6% 6.5% 6.4% 1,000
Slide 10: Q4 2025 Balance Sheet and Cash Highlights
Q4 2025 Balance Sheet and Cash Highlights Net Working Capital ($B) • Non-GAAP Return on Working Capital 19.7 (ROWC)1 was 18.1% in the fourth quarter, rose 15.7 13.0 Accounts 170 basis points year on year. The increase in 7.4 Receivable 4.7 6.7 4.7 7.3 5.1 Inventory ROWC related primarily to higher o
Slide 11: Q1 2026 Guidance
Q1 2026 Guidance Consolidated Sales $7.95 billion to $8.55 billion Global components $5.75 billion to $6.15 billion Global ECS $2.20 billion to $2.40 billion Diluted Earnings Per Share $2.13 to $2.33 Non-GAAP Diluted Earnings Per Share 1 $2.70 to $2.90 Interest and other expense, net Approximately $
Slide 12: Looking Forward
Looking Forward • Strong execution as gradual recovery progresses • Encouraging leading indicators • Expanding value-added offerings • Drive profitable growth • Better align go to market organization to drive growth initiatives • Diversified business model, improving profitability, and focused capit
Slide 13: Thank You Q&A
Thank You Q&A ANOW
Slide 14: Additional information and financial tables
Additional information and financial tables 14
Slide 15: Consolidated fourth-quarter overview
Consolidated fourth-quarter overview ($ in millions, except per share data) Q4 2025 Q4 2024 Y/Y CHANGE Q4 2024 IN Y/Y CHANGE IN Q3 2025 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights Sales $8,746 $7,283 20.1% $7,514 16.4% $7,713 13.4% Gross Profit Margin 11.5% 11.0% 50 bps 11.1% 40 bp
Slide 16: Revenue history
Revenue history ($ in millions, may reflect rounding) YoY QoQ Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 change change Global Components Total 4,814 4,778 5,285 5,556 5,882 22% 6% Americas 1,604 1,569 1,708 1,709 1,960 22% 15% Europe, Middle East & Africa 1,262 1,340 1,427 1,444 1,460 16% 1% Asia Pacific 1,948 1
Slide 17: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $188 $189 $160 $161 $219 $219 $197 $199 $187 $189 $173 $171 $173 $97 $98 $117 $78 $77 $64 $65 Q4-'24 Q1-'25 Q2-'25 Q3-'25 Q4-'25 Q4-'24 Q1-'25 Q2-'25 Q3-'25 Q4-'25 GAAP Non-GAAP GAAP Non-GAAP 17 See the reconciliatio
Slide 18: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 19: First-quarter 2026 GAAP to non-GAAP outlook reconciliation
First-quarter 2026 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended 4-Apr-26 29-Mar-25 % Change 4-Apr-26 31-Dec-25 % Change Global components sales, GAAP $ 5.75 - 6.15 $ 4.78 20% - 29% $ 5.75 - 6.15 $ 5.88 (2)% -
Slide 20: Non-GAAP fourth-quarter sales reconciliation
Non-GAAP fourth-quarter sales reconciliation ($ in thousands) Quarter Quarter Ended Ended 31-Dec-25 31-Dec-24 % Change 31-Dec-24 31-Dec-23 % Change Consolidated sales, as reported $ 8,746,430 $ 7,282,877 20.1% Consolidated sales, as reported $ 7,282,877 $ 7,849,157 (7.2)% Impact of changes in foreig
Slide 21: Full Year GAAP to non-GAAP reconciliation
Full Year GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Year ended December 31, 2025 (1) Includes write-downs (recoveries) of inventory related to the wind down of Intangible businesses. Reported GAAP Restructuring & Impact of Wind Non- recurring tax Non-GAAP Amortization O
Slide 22: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended December 31, 2025 Reported GAAP Intangible Restructuring & Non- recurring tax items measure Amortization Expense Integration charges Impact of Wind Down (1) (2) Other (3) Non-GAAP measure (1) Include
Slide 23: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 Consolidated Gross Profit $ 803,310 $ 773,992 $ 848,657 $ 835,314 $ 1,008,756 Impact of wind down to inventory 50,344 (2,467) (2,172) (1,989) (3,638) Other - - 172 - - Consolidated
Slide 24: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended Year Ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Numerator: Consolidated operating income, as reported $ 294,077 $ 195,103 $ 822,223 $ 768,557 x4 x4 x1 x1 Annualized consolidated operating incom
Slide 25: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended Year Ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Numerator: (1) Operating income, as reported, and non- Consolidated operating income, as reported $ 294,077 $ 195,103 $ 822,223 $ 768,557 GAAP o
Slide 26: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) 12/31/2023 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 12/31/2023 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 Global components operating income, as reported $ 116,910 $ 171,385 $ 186,808 $ 197,355 $ 219,158 Global components operating
Slide 27: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) Quarter Ended Quarter Ended 12/31/2023 9/28/2024 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 12/31/2023 9/28/2024 12/31/2024 3/29/2025 6/28/2025 9/27/2025 12/31/2025 Global components gross profit, as reported $ 564,460 $ 497,324 $