Slide 1: Arrow Electronics Earnings Presentation First Quarter 2025
Arrow Electronics Earnings Presentation First Quarter 2025 May 1, 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 fact. These forward-looking statements can be identified by forward-looking words such
Slide 3: Sean Kerins, President and CEO
Sean Kerins President and CEO 3
Slide 4: Q1 2025 highlights
Q1 2025 highlights CONSOLIDATED SALES OPERATING MARGIN1 DILUTED EARNINGS PER SHARE1 $ 6.8 Billion 2.6 Percent $ 1.80 • Consolidated and segment revenue as well as earnings per share exceeded high end of guidance range • Additional Q1 2025 financial information: • $179 million operating income1 • $95
Slide 5: Global components
Global components • All three regions performed ahead of typical seasonal patterns • Momentum in EMEA, Industrial strength, resilient Transportation, growth in IP&E, and accretive value- added offerings • On a regional basis: • Americas – growth in Industrial and Transportation • APAC – momentum in
Slide 6: Enterprise computing solutions
Enterprise computing solutions • Year-over-year growth in billings, gross profit, and operating income • Strength in Cloud, Hybrid-Cloud, and Infrastructure Software • On a regional basis: • EMEA – broad-based growth • Americas – Improving Data Center and accelerating Cloud • Backlog grew 50%+ year
Slide 7: Closing thoughts
Closing thoughts • Positive momentum across both segments • Improving demand trends • Focused on the factors within our control • Resilient Arrow teams across the globe 7
Slide 8: Raj Agrawal, Senior Vice President and CFO
Raj Agrawal Senior Vice President and CFO 8
Slide 9: Q1 2025 revenue ($6.8B consolidated)
Q1 2025 revenue ($6.8B consolidated) Global Components Enterprise Computing Solutions Asia Pacific 1.6 $ B 2% 0.9 $ 0% 1.9 B $ Americas B 4% $4.8 B $ 2.0 B Americas 8% 18% EMEA EMEA $1.1 B 37% 1.3 $ B 19% Revenue figures are GAAP and reflect year-on-year performance changes Amounts may not calculate
Slide 10: Q1 2025 financial metrics
Q1 2025 financial metrics Sales & Non-GAAP Gross Margin1 Non-GAAP Operating Expenses1 7.3 618 6.9 6.8 580 593 12.5% 8.9% 8.7% 11.7% 8.0% 11.3% Q1 '24 Q4 '24 Q1 '25 Q1 '24 Q4 '24 Q1 '25 Sales ($B) Gross Margin (%) Opex ($M) Opex (%) Non-GAAP Operating Income1 Non-GAAP Diluted EPS1 2.97 274 251 2.41 1
Slide 11: Q1 2025 working capital
Q1 2025 working capital Net Working Capital ($B) • Non-GAAP Return on Working Capital 13.0 12.4 (ROWC)1 was 11.3% in the first quarter, down 11.1 6.9 Accounts 320 basis points year on year. The decrease in 6.7 6.4 Receivable 4.8 4.7 4.8 ROWC related primarily to lower operating Inventory income in G
Slide 12: Q1 2025 balance sheet and cash highlights
Q1 2025 balance sheet and cash highlights Operating Cashflow was $352M Gross Debt was $2.8B Repurchased $50M in shares 12
Slide 13: Q2 2025 guidance
Q2 2025 guidance Consolidated Sales $6.70 billion to $7.30 billion Global components $4.80 billion to $5.20 billion Global ECS $1.90 billion to $2.10 billion Diluted Earnings Per Share 1 $2.80 to $3.00 Non-GAAP Diluted Earnings Per Share 1 $1.90 to $2.10 Interest and other expense, net Approximately
Slide 14: Thank You Q&A
Thank You Q&A ANOW
Slide 15: Additional information and financial tables
Additional information and financial tables 15
Slide 16: Consolidated first-quarter overview
Consolidated first-quarter overview ($ in millions, except per share data) Q1 2025 Q1 2024 Y/Y CHANGE Q1 2024 IN Y/Y CHANGE IN Q4 2024 Q/Q CHANGE CONSTANT CONSTANT CURRENCY CURRENCY P&L Highlights* Sales $6,814 $6,924 -1.6% $6,840 -0.4% $7,283 -6.4% Gross Profit Margin 11.4% 12.4% -100 bps 12.4% -10
Slide 17: Revenue history
Revenue history ($ in millions, may reflect rounding) YoYYoY QoQ YoY QoQQoQ Q1’24 Q2’23 Q4’23 Q3Q2’24 Q1’24 ’23 Q3’24 Q4’23 Q2’24 Q4’24 Q3’24 Q1’24 Q1’25 Q4’24 Q2’24 change change change change change change Global Components Global Components Total Total 5,191 $5,636 5,032 $5,191 4,946 $5,032 4,814
Slide 18: Operating income history
Operating income history Global Components ($M) Enterprise Computing Solutions ($M) $160 $161 $243 $226 $210 $218 $189 $193 $103 $104 $173 $171 $173 $76 $77 $77 $78 $71 $73 $117 Q1-'24 Q2-'24 Q3-'24 Q4-'24 Q1-'25 Q1-'24 Q2-'24* Q3-'24 Q4-'24 Q1-'25 GAAP Non-GAAP GAAP Non-GAAP * Q2-’24 ECS operating
Slide 19: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 20: Second-quarter 2025 GAAP to non-GAAP outlook reconciliation
Second-quarter 2025 GAAP to non-GAAP outlook reconciliation ($ in billions, except per share data) NON-GAAP SALES NON-GAAP SALES RECONCILIATION RECONCILIATION Quarter Quarter Ended Ended Quarter Quarter Ended Ended 29-Mar-25 28-Jun-25 30-Mar-24 29-Jun-24 %% Change Change 29-Mar-25 28-Jun-25 31-Dec-2
Slide 21: Non-GAAP first-quarter sales reconciliation
Non-GAAP first-quarter sales reconciliation ($ in thousands) Quarter Ended 29-Mar-25 31-Dec-24 30-Mar-24 31-Dec-23 % % Change Change Consolidated sales, as reported $ 6,814,017 $ 6,924,260 (1.6)% Consolidated sales, as reported $ 7,282,877 $ 7,849,157 (7.2)% Impact of changes Impact of changes in in
Slide 22: Quarterly GAAP to non-GAAP reconciliation
Quarterly GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Three months ended March 29, 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 in
Slide 23: Gross profit and operating expense reconciliation
Gross profit and operating expense reconciliation ($ in thousands) Quarter Ended 3/30/2024 6/29/2024 9/28/2024 12/31/2024 3/29/2025 Consolidated Gross Profit $ 857,826 $ 846,444 $ 784,828 $ 803,310 $ 773,992 Impact of wind down to inventory 10,459 1,627 (1,857) 50,344 (2,467) Consolidated non-GAAP g
Slide 24: Return on working capital reconciliation
Return on working capital reconciliation ($ in thousands) Quarter Ended March 29, 2025 March 30, 2024 Numerator: Consolidated operating income, as reported $ 158,553 $ 185,917 x4 x4 Annualized consolidated operating income $ 634,212 $ 743,668 Non-GAAP consolidated operating income $ 178,759 $ 250,77
Slide 25: Return on invested capital reconciliation
Return on invested capital reconciliation ($ in thousands) Quarter Ended March 29, 2025 March 30, 2024 (1) Operating income, as reported, and non- Numerator: GAAP operating income is adjusted for noncontrolling interest and equity in earnings Consolidated operating income, as reported $ 158,553 $ 18
Slide 26: Non-GAAP segment reconciliation
Non-GAAP segment reconciliation ($ in thousands) Quarter Ended 3/30/2024 6/29/2024 9/28/2024 12/31/2024 3/29/2025 Global components operating income, as reported $ 225,562 $ 210,201 $ 188,600 $ 116,910 $ 171,385 Intangible assets amortization expense 6,488 6,399 6,247 6,162 4,438 Impact of wind down
Slide 27: Non-GAAP segment reconciliation (continued)
Non-GAAP segment reconciliation (continued) ($ in thousands) Quarter Ended 3/30/2024 6/29/2024 9/28/2024 12/31/2024 3/29/2025 Global components gross profit, as reported $ 645,714 $ 624,860 $ 564,460 $ 497,324 $ 554,945 Impact of wind down to inventory 10,459 1,627 (1,857) 50,344 (2,467) Global comp