Arrow Electronics, Inc. · NYSE:ARW
Arrow Electronics — Investor Presentation (June 2025)
46 slides from Arrow Electronics's investor presentation, June 2025
Slide 1: Arrow Electronics Investor Presentation June 2025
Arrow Electronics Investor Presentation June 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: Agenda
Agenda 1. Overview 2. Business detail – global components 3. Business detail – global enterprise computing solutions 4. Financials 5. Additional information and financial tables 3
Slide 4: Overview
Overview AWOW
Slide 5: Our noble purpose
Our noble purpose We enable technology solutions that make a positive difference in people’s lives; we guide the power of innovation to make the world better. 5 55
Slide 6: Our history
Our history 2005 2024 1946 1986 1935 1979 1961 2011 Arrow Radio Incorporated Arrow goes Listed on 50+ Arrow expands Arrow moves Arrow tops opens on as Arrow public NYSE (ARW) acquisitions computer HQ from category in Radio Row Electronics and products New York to FORTUNE’s in New expansion business
Slide 7: Executive leadership & core values
Executive leadership & core values Ethical We believe in and are committed to behaving with integrity and respect at all times, when everyone is watching and when no one is watching. Open-Minded and Courageous Sean J. Kerins President and Chief We believe in and are committed to behaving with well-i
Slide 8: Arrow Electronics at a glance
Arrow Electronics at a glance We enable technology solutions that make a positive difference in people’s lives; we guide the power of innovation to make the world better Global provider of products, services, and Centennial, CO ARW (NYSE) • solutions to industrial and commercial users of HEADQUARTER
Slide 9: We specialize in managing complexity
We specialize in managing complexity 85 Countries 36 Distribution & Value Added Centers 140 Sales Facilities 9
Slide 10: Serving diverse end markets with enabling technology
Serving diverse end markets with enabling technology End Markets Arrow Technologies / Solutions Arrow Businesses* GLOBAL COMPONENTS SALES $ 20.0B Semiconductors IP&E Industrial / Automation Healthcare / Medical Engineering Supply Chain Services Services GLOBAL ENTERPRISE COMPUTING SOLUTIONS SALES Co
Slide 11: Business detail: Global components
Business detail Global components 11
Slide 12: Electronic components value chain overview
Electronic components value chain overview Components Manufacturers Distributors End Customers Original Equipment Manufacturers (OEMs) Original Component Franchise Obtain components from OCMs and Manufacturers (OCMs) Distributors distributors for use in end-product manufacturing Produce and sell com
Slide 13: Global components
Global components The foundation of the components business is the distribution of semiconductor components as well as interconnects, passives & electromechanical devices (IP&E) Global reach Hundreds of suppliers Semiconductors Thousands of customers No one customer accounts for > 2% of sales 140 sa
Slide 14: Global components
Global components Semiconductors • Arrow suppliers are the major device manufacturers who provide logic (CPUs, GPUs, FPGAs) and memory (DRAM, Flash) IP&E – interconnects, passives & electromechanical • A fragmented supplier base provides the non-active components in an electronic system. “interconne
Slide 15: Global components: Engineering Services
Global components Engineering Services We help customers (EMS companies and OEMs) get to market quickly, and enable our suppliers’ technology in the market Complex, custom solutions Turnkey R&D eInfochips services New Product Introductions Design Registrations Engineering Design Wins Service Centers
Slide 16: Global components: Supply Chain Services
Global components Supply Chain Services We manage highly complex, high-volume global supply chains for large OEMs and suppliers with our: • seasoned industry experts • best-in-class processes • world-class systems and infrastructure • extensive global footprint and reach 16
Slide 17: Business detail: Global enterprise computing solutions
Business detail Global enterprise computing solutions 17
Slide 18: Enterprise computing solutions value chain overview
Enterprise computing solutions value chain overview Makers of Technology Enterprise Computing Solutions Channel End Partners Customers IT DISTRIBUTION 18
Slide 19: Global enterprise computing solutions
Global enterprise computing solutions With access to hundreds of vendors, we enable our community of thousands of channel partners to deliver modern IT solutions for their customers. Software Infrastructure (Infrastructure, Data Hardware (Storage, Intelligence, Security) Compute, Networking) We deli
Slide 20: Global enterprise computing solutions: ArrowSphere
Global enterprise computing solutions Our ArrowSphere platform is at the center of our strategy Market We target enterprise and mid-market Enterprise and customers through channel partners on Mid-Market behalf of our suppliers Channel partners enjoy • Cloud and “everything-as-a-service” enablement •
Slide 21: Financials
ials Tarelare F ANOW 21
Slide 22: FY 2024 financial metrics
FY 2024 financial metrics Sales & Gross Margin Non-GAAP Operating Expenses1 37.1 34.5 33.1 2.6 2.7 2.6 28.7 27.9 2.4 2.2 8.4% 13.0% 7.7% 12.2% 12.5% 7.8% 11.8% 7.5% 11.1% 7.3% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Sales ($B) Gross Margin (%) Opex ($B) Opex (%) Non-GAAP Operating Income1
Slide 23: History of strong financial returns
History of strong financial returns Return on Working Capital (Non-GAAP)1 Return on Invested Capital (Non-GAAP)1 20.0% 30.0% 15.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (1) Refer to backup section of this document for comparable GAAP figures and a reconci
Slide 24: Disciplined approach to capital allocation
Disciplined approach to capital allocation $1,200 90 Capital priorities within the $1,000 framework of an investment- 80 grade credit rating $800 $600 70 Invest in the business for organic growth $400 60 Acquire companies that meet our value criteria to $200 strategically accelerate growth $0 50 202
Slide 25: Thank You
Thank You For more information: email: investor@arrow.com
Slide 26: Additional information and financial tables
Additional information and financial tables
Slide 27: Our network in numbers: FY 2024
Our network in numbers: FY 2024 CONSOLIDATED SALES GROSS PROFIT AMERICAS COMPONENTS SALES $ 27.9B $ 3.3B 6.4B $ 19% 21% EMEA COMPONENTS SALES 16% 5.6B OPERATING INCOME $ 0.8B 30% GLOBAL COMPONENTS SALES $ 20.0B 48% ASIA PACIFIC COMPONENTS SALES $ NET INCOME $ 7.9B 16% 21% GLOBAL ENTERPRISE COMPUTING
Slide 28: 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 29: Q2 2025 revenue
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 30: 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 31: 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 32: Q2 2025 balance sheet and cash highlights
Q2 2025 balance sheet and cash highlights Operating Cashflow was $(206M) Gross Debt was $2.8B Repurchased $50M in shares 32
Slide 33: Revenue history
Revenue history ($ 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 34: 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 $78 Q2-'24 Q3-'24 Q4-'24 Q1-'25 Q2-'25 Q2-'24* Q3-'24 Q4-'24 Q1-'25 Q2-'25 GAAP Non-GAAP GAAP Non-GAAP * Q2-’24 ECS operating
Slide 35: Certain Non-GAAP financial information
Certain Non-GAAP financial information In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, gross profit, operatin
Slide 36: Third-quarter 2025 GAAP to non-GAAP outlook reconciliation
Third-quarter 2025 GAAP to non-GAAP outlook reconciliation ($ 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-Jun-25 % Change Global components sales, GAAP $ 5.30 - 5.70 $ 4.95 7% - 15% 5.30 - 5.70 $ 5.28 0% - 8%
Slide 37: 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 38: 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 39: Full-year GAAP to non-GAAP reconciliation
Full-year GAAP to non-GAAP reconciliation ($ in thousands, except per share data) Year ended December 31, 2024 Year ended December 31, 2023 (1) Includes write downs of inventory related Intangible to the wind down of businesses. Reported GAAP Amortization Intangible Restructuring & Impact of Wind Do
Slide 40: Full-year GAAP to non-GAAP reconciliation (cont.)
Full-year GAAP to non-GAAP reconciliation (cont.) ($ in thousands, except per share data) Year ended December 31, 2022 Intangible Intangible (1) Other includes (gain) loss on investments, Reported GAAP Reported GAAP Amortization Amortization Restructuring & Restructuring & Impact of Impact of Wind W
Slide 41: 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 42: 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 43: 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 44: Annual ROWC and ROIC reconciliation
Annual ROWC and ROIC reconciliation ($ in thousands) 2024 2023 2022 2021 2020 Numerator: Consolidated operating income, as reported 768,557 1,471,164 2,068,494 1,556,822 894,511 (1) Operating income, as reported, and non- Equity in earnings of affiliated companies (1) 1,368 6,407 7,664 3,508 (531) G
Slide 45: 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 46: 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 $
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