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Mar 31
Arrow Electronics Q1 2025 Earnings Report
Arrow Electronics reported first-quarter 2025 financial results, with consolidated, global components, and ECS segment sales exceeding guidance, and earnings per share also above guidance.
Key Takeaways
Arrow Electronics exceeded its first-quarter 2025 guidance ranges for consolidated and segment revenue, as well as earnings per share. The outperformance was primarily driven by EMEA's momentum in both segments, a healthy contribution from value-added offerings, and continued performance in the ECS business.
Consolidated sales for Q1 2025 were $6.814 billion, exceeding the high end of guidance.
Diluted EPS for Q1 2025 was $1.51, and non-GAAP diluted EPS was $1.80, both above guidance.
Global components sales decreased 8% year-over-year but performed ahead of normal seasonal trends.
Global ECS sales increased 18% year-over-year, driven by strong growth in EMEA and a growing backlog for IT-as-a-service.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Segment
Arrow Electronics Revenue by Geographic Location
Revenue by Segment
Global Components Revenue
CapyFin.comGlobal ECS Revenue
CapyFin.comRevenue by Geographic Location
Americas Components Revenue
CapyFin.comAsiaPacific Components Revenue
CapyFin.comEMEA Components Revenue
CapyFin.comAmericas ECS Revenue
CapyFin.comEMEA ECS Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, Arrow Electronics anticipates consolidated sales between $6.70 billion and $7.30 billion, with diluted EPS ranging from $2.80 to $3.00.
Positive Outlook
- Consolidated sales are projected to be between $6.70 billion and $7.30 billion.
- Global components sales are expected to be between $4.80 billion and $5.20 billion.
- Global enterprise computing solutions sales are anticipated to be between $1.90 billion and $2.10 billion.
- Net income per diluted share is forecasted to be between $2.80 and $3.00.
- Non-GAAP net income per diluted share is expected to be between $1.90 and $2.10.
Challenges Ahead
- The outlook does not include an expected 2% to 4% increase from newly implemented tariffs on global components sales.
- Changes in foreign currencies are expected to increase sales by approximately $58 million compared to Q2 2024, which could be a negative if the actual impact is lower.
- Changes in foreign currencies are expected to increase quarter-over-quarter growth in sales by $109 million, which could be a negative if the actual impact is lower.
- Interest expense is estimated at approximately $60 million, which is a cost.
- The GAAP outlook includes a gain on the sale of a minority investment, which is a one-time gain and not indicative of recurring operational performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income