Arrow Electronics Reports Fourth-Quarter and Full-Year 2025 Results

-- Fourth-Quarter Sales of $8.7 billion, up 20%, Above High End of Guidance --

-- Fourth-Quarter Earnings Per Share of $3.75 and Non-GAAP Earnings Per Share of $4.39, Both Above High End of Guidance --

-- Full-Year Sales of $30.9 billion, up 10% --

-- Full-Year Earnings Per Share of $10.93 and Non-GAAP Earnings Per Share of $11.02 --

Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its fourth quarter and fiscal year ended Dec. 31, 2025.

"Arrow delivered a strong fourth quarter, reflecting disciplined execution across the business and continued progress against our strategic priorities," said Bill Austen, Arrow's interim president and chief executive officer. "We saw meaningful momentum across both Global Components and ECS, supported by improving leading indicators, strong performance in our value-added offerings, and continued momentum in cloud, AI, and datacenter activity."

"We are pleased with how the organization performed as we closed the year, amid an environment that continues to recover gradually. We enter 2026 with positive momentum and remain cautiously optimistic as the business remains in the early stages of a modest cyclical upturn. Our focus remains on accelerating profitable growth, expanding our higher-margin, value-added capabilities, and maintaining financial discipline. With a diversified business model, improving profitability, and a talented global team, we believe Arrow is well positioned to execute through the recovery and create long-term value for our customers and shareholders."

In the fourth quarter of 2025, sales increased 20 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $232 million on sales and $0.23 on earnings per share on a diluted basis compared to the fourth quarter of 2024.

Full-year 2025 sales increased 10 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $399 million on sales and $0.31 on earnings per share on a diluted basis compared to 2024.

Global Components

In the fourth quarter of 2025, global component sales increased 22 percent year over year and increased 19 percent year over year on a constant currency basis. Americas components fourth-quarter sales increased 22 percent year over year. EMEA⁽²⁾ components fourth-quarter sales increased 16 percent year over year and increased 7 percent year over year on a constant currency basis. Asia-Pacific components fourth-quarter sales increased 26 percent year over year.

Global Enterprise Computing Solutions

In the fourth quarter of 2025, global enterprise computing solutions ("ECS") sales increased 16 percent year over year and increased 11 percent year over year on a constant currency basis. Global ECS billings increased 16 percent year over year. EMEA ECS fourth-quarter sales increased 24 percent year over year and increased 13 percent year over year on a constant currency basis. Americas ECS fourth-quarter sales increased 7 percent year over year.

Other Financial Information

In the fourth quarter of 2025, Arrow generated $200 million of cash flow from operations and repurchased $50 million of shares.

First-Quarter 2026 Outlook

• Consolidated sales of $7.95 billion to $8.55 billion, with global components sales of $5.75 billion to $6.15 billion, and global enterprise computing solutions sales of $2.20 billion to $2.40 billion
• Net income per share on a diluted basis of $2.13 to $2.33, and non-GAAP net income per share on a diluted basis of $2.70 to $2.90
• Average tax rate in the range of 23 percent to 25 percent
• Interest expense of approximately $60 million
• Changes in foreign currencies to increase sales by approximately $263 million, and earnings per share on a diluted basis by $0.10 compared to the first quarter of 2025
• Changes in foreign currencies to increase quarter-over-quarter growth in sales by $17 million and earnings per share on a diluted basis will have no impact compared to the fourth quarter of 2025

Earnings Presentation

Please refer to the earnings presentation, that can be found at investor.arrow.com, as a supplement to the company's earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss fourth-quarter and full-year 2025 financial results on Feb. 5, 2026, at 4:30 PM ET.

A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/176417710. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.

About Arrow Electronics

Arrow Electronics sources and engineers technology solutions for thousands of leading technology manufacturers and service providers. With 2025 sales of $31 billion, Arrow's portfolio enables technology across major industries and markets. Learn more at arrow.com.

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information to the reader in evaluating the overall performance of the global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release 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 words such as "expects," "anticipates," "intends," "plans," "may," "will," "would," "could," "believes," "seeks," "projected," "potential," "estimates," and similar expressions, and include, but are not limited to, statements regarding: Arrow's future financial performance, including its outlook on financial results for the first quarter of fiscal 2026 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, the timing of the completion of the Operating Expense Efficiency Plan (the "Plan") and Arrow's estimated costs and expected operating expense reductions from the Plan, industry trends and expectations regarding market demand and conditions and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; political instability and changes; impacts of military conflict and sanctions; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; management transitions, including the company's search for a permanent CEO; the incurrence of unanticipated charges or failure to realize contemplated cost savings in connection with the Operating Expense Efficiency Plan; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; changes in relationships with key suppliers; other vagaries in the global components and the global ECS markets; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company's information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

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-GAAP metrics: sales, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as "changes in foreign currencies" or "on a constant currency basis") by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains and losses on investments; inventory write downs related to the wind down of businesses within the global components reportable segment ("impact of wind down"); loss on extinguishment of debt; and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company's operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For further discussion of our non-GAAP measures and related adjustments, refer to the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K.