Arrow Electronics Reports Fourth-Quarter and Full-Year 2024 Results

CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its fourth quarter and fiscal year ended Dec. 31, 2024. “In the fourth quarter, the company executed well relative to our original expectations, generating total sales and earnings per share that were beyond the high end of our guidance ranges,” said Sean Kerins, Arrow’s president and chief executive officer. “Reflecting on the past year, I believe that we were successful in taking several steps to strengthen our position in both segments,” said Mr. Kerins. “In global components, we expanded our linecard and customer base, realigned the business for global consistency, and remained committed to our value-added service offerings that differentiate us. And in enterprise computing solutions, we’ve unified our go-to-market strategy in both regions, and we’re poised to benefit from the growing demand trends in hybrid cloud and AI-related solutions.” Arrow Consolidated Quarter Ended Year Ended December 31, December 31, December 31, December 31, (in millions except per share data) 2024 2023 2024 2023 Consolidated sales $ 7,283 $ 7,849 $ 27,923 $ 33,107 Net income attributable to shareholders 99 195 392 904 Net income per diluted share 1.86 3.54 7.29 15.84 Non-GAAP net income attributable to shareholders (1) 158 219 568 977 Non-GAAP net income per diluted share 2.97 3.98 10.56 17.12 In the fourth quarter of 2024, sales decreased 7 percent year over year. Changes in foreign currencies had negative impacts on growth of approximately $27 million on sales and $0.11 on earnings per share on a diluted basis compared to the fourth quarter of 2023. Full-year 2024 sales decreased 16 percent year over year. Changes in foreign currencies had negative impacts on growth of approximately $33 million on sales and $0.13 on earnings per share on a diluted basis compared to 2023. Global Components “In our global components business, we continue to see incremental improvement in key leading indicators and, despite softer trends in the industrial and transportation markets, all three regions finished the quarter in line with or better than typical seasonal patterns,” said Mr. Kerins. Global Components Quarter Ended Year Ended December 31, December 31, December 31, December 31, (in millions) 2024 2023 2024 2023 Global components sales $ 4,814 $ 5,636 $ 19,983 $ 25,420 Global components operating income, as reported 117 281 741 1,459 Global components non-GAAP operating income 173 288 827 1,486 In the fourth quarter of 2024, global component sales decreased 15 percent year over year and decreased 14 percent year over year on a constant currency basis. Americas components fourth-quarter sales decreased 10 percent year over year. EMEA2 components fourth-quarter sales decreased 25 percent year over year. Asia-Pacific components fourth-quarter sales decreased 10 percent year over year. Global Enterprise Computing Solutions “In enterprise computing solutions, we delivered year-over-year billings, gross profit, and operating income growth,” said Mr. Kerins. “This strong performance reflects our alignment to the higher growth demand trends across enterprise IT along with our improving execution in North America.” Global Enterprise Computing Solutions Quarter Ended Year Ended December 31, December 31, December 31, December 31, (in millions) 2024 2023 2024 2023 Global ECS sales $ 2,469 $ 2,213 $ 7,940 $ 7,687 Global ECS operating income, as reported 160 145 410 367 Global ECS non-GAAP operating income 161 146 414 372 In the fourth quarter of 2024, global enterprise computing solutions (“ECS”) sales increased 12 percent year over year. EMEA ECS fourth-quarter sales increased 22 percent year over year and increased 24 percent year over year on a constant currency basis. Americas ECS fourth-quarter sales increased 1 percent year over year and increased 2 percent year over year on a constant currency basis. Other Financial Metrics “During 2024, we generated over $1.1 billion in cash flow from operations and managed working capital efficiently, including lowering inventory by $1.1 billion compared to prior peak levels. The company also returned $250 million to shareholders through stock repurchases,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer. 1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein. 2 Europe, the Middle East, and Africa. First-Quarter 2025 Outlook Consolidated sales of $5.98 billion to $6.58 billion, with global components sales of $4.35 billion to $4.75 billion, and global enterprise computing solutions sales of $1.63 billion to $1.83 billion Net income per share on a diluted basis of $0.98 to $1.18, and non-GAAP net income per share on a diluted basis of $1.30 to $1.50 Average tax rate in the range of 23 to 25 percent Interest expense of approximately $60 million to $65 million Changes in foreign currencies to decrease sales by approximately $138 million, and earnings per share on a diluted basis by $0.13 compared to the first quarter of 2024 Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $90 million and earnings per share on a diluted basis by $0.05 compared to the fourth quarter of 2024 First-Quarter 2025 GAAP to non-GAAP Outlook Reconciliation NON-GAAP SALES RECONCILIATION Quarter Ended Quarter Ended March 29, March 30, March 29, December 31, (in billions) 2025 2024 % Change 2025 2024 % Change Global components sales, GAAP $ 4.35 - 4.75 $ 5.19 (16%) - (8%) $ 4.35 - 4.75 $ 4.81 (10%) - (1%) Impact of changes in foreign currencies — (0.09) — (0.05) Global components sales, constant currency $ 4.35 - 4.75 $ 5.10 (15%) - (7%) $ 4.35 - 4.75 $ 4.76 (9%) - (0%) Global ECS sales, GAAP $ 1.63 - 1.83 $ 1.73 (6%) - 6% $ 1.63 - 1.83 $ 2.47 (34%) - (26%) Impact of changes in foreign currencies — (0.05) — (0.04) Global ECS sales, constant currency $ 1.63 - 1.83 $ 1.68 (3%) - 9% $ 1.63 - 1.83 $ 2.43 (33%) - (25%) NON-GAAP EARNINGS RECONCILIATION Reported GAAP measure Intangible amortization expense Restructuring & integration charges Non-GAAP measure Net income per diluted share $0.98 to $1.18 $0.07 $0.25 $1.30 to $1.50 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 2024 financial results on Feb. 6, 2025, at 1:00 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/886513367. 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 guides innovation forward for thousands of leading technology manufacturers and service providers. With 2024 sales of $28 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, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results for the first quarter of fiscal 2025 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: the incurrence of additional charges not currently contemplated and failure to realize contemplated cost savings due to unanticipated events that may occur, including in connection with the implementation of the Plan; unfavorable economic conditions; disruptions, shortages or inefficiencies in the supply chain; political instability and changes; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; trade protection measures, tariffs, and other restrictions, duties, and value-added taxes; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information and information system failures, including related to current or future implementations, integrations and upgrades; outbreaks, epidemics, pandemics, or public health crises; future regulatory trends and the resulting legal and reputation exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; 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 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. ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) Quarter Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 (Unaudited) (Unaudited) Sales $ 7,282,877 $ 7,849,157 $ 27,923,324 $ 33,107,120 Cost of sales 6,479,567 6,859,607 24,630,916 28,958,102 Gross profit 803,310 989,550 3,292,408 4,149,018 Operating expenses: Selling, general, and administrative 547,511 590,039 2,217,940 2,412,822 Depreciation and amortization 39,638 43,168 162,994 181,116 Restructuring, integration, and other 21,058 39,664 142,917 83,916 608,207 672,871 2,523,851 2,677,854 Operating income 195,103 316,679 768,557 1,471,164 Equity in (losses) earnings of affiliated companies (544) 2,034 1,368 6,407 (Loss) gain on investments, net (4,070) 14,635 (4,830) 19,284 Loss on extinguishment of debt — — (1,657) — Employee benefit plan expense, net (1,393) (1,267) (4,285) (3,777) Interest and other financing expense, net (60,392) (82,052) (269,834) (328,724) Income before income taxes 128,704 250,029 489,319 1,164,354 Provision for income taxes 28,816 53,823 95,812 254,991 Consolidated net income 99,888 196,206 393,507 909,363 Noncontrolling interests 680 1,669 1,433 5,858 Net income attributable to shareholders $ 99,208 $ 194,537 $ 392,074 $ 903,505 Net income per share: Basic $ 1.88 $ 3.58 $ 7.36 $ 16.03 Diluted $ 1.86 $ 3.54 $ 7.29 $ 15.84 Weighted-average shares outstanding: Basic 52,723 54,396 53,282 56,359 Diluted 53,214 55,015 53,797 57,035 ARROW ELECTRONICS, INC. CONSOLIDATED BALANCE SHEETS (In thousands except par value) December 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 188,807 $ 218,053 Accounts receivable, net 13,030,991 12,238,073 Inventories 4,709,706 5,187,225 Other current assets 471,909 684,126 Total current assets 18,401,413 18,327,477 Property, plant, and equipment, at cost: Land 5,691 5,691 Buildings and improvements 194,061 195,579 Machinery and equipment 1,623,228 1,632,606 1,822,980 1,833,876 Less: Accumulated depreciation and amortization (1,353,720 ) (1,303,136 ) Property, plant, and equipment, net 469,260 530,740 Investments in affiliated companies 57,299 62,741 Intangible assets, net 96,706 127,440 Goodwill 2,055,295 2,050,426 Other assets 677,734 627,344 Total assets $ 21,757,707 $ 21,726,168 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 11,047,470 $ 10,070,015 Accrued expenses 1,238,714 1,463,915 Short-term borrowings, including current portion of long-term debt 349,978 1,653,954 Total current liabilities 12,636,162 13,187,884 Long-term debt 2,773,783 2,153,553 Other liabilities 516,234 507,424 Equity: Shareholders’ equity: Common stock, par value $1: Authorized - 160,000 shares in both 2024 and 2023 Issued - 55,592 and 57,691 shares in 2024 and 2023, respectively 55,592 57,691 Capital in excess of par value 562,080 553,340 Treasury stock (3,420 and 3,880 shares in 2024 and 2023, respectively), at cost (328,078 ) (297,745 ) Retained earnings 5,980,826 5,790,217 Accumulated other comprehensive loss (509,269 ) (298,039 ) Total shareholders’ equity 5,761,151 5,805,464 Noncontrolling interests 70,377 71,843 Total equity 5,831,528 5,877,307 Total liabilities and equity $ 21,757,707 $ 21,726,168 ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Quarter Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Consolidated net income $ 99,888 $ 196,206 Adjustments to reconcile consolidated net income to net cash provided by operations: Depreciation and amortization 39,638 43,168 Amortization of stock-based compensation 4,444 6,701 Equity in losses (earnings) of affiliated companies 544 (2,034 ) Deferred income taxes (79,579 ) (40,942 ) Loss (gain) on investments, net 4,183 (7,817 ) Other 1,134 18,512 Change in assets and liabilities, net of effects of acquired businesses: Accounts receivable, net (1,525,485 ) (1,396,096 ) Inventories (241,622 ) 664,333 Accounts payable 1,779,503 898,395 Accrued expenses (330,408 ) 126,949 Other assets and liabilities 574,224 (220,633 ) Net cash provided by operating activities 326,464 286,742 Cash flows from investing activities: Acquisition of property, plant, and equipment (22,548 ) (25,510 ) Cash consideration paid for acquired businesses, net of cash acquired (18,909 ) — Other 41 — Net cash used for investing activities (41,416 ) (25,510 ) Cash flows from financing activities: Change in short-term and other borrowings (560,840 ) 63,980 Proceeds from (repayments of) long-term bank borrowings, net 410,189 (465,147 ) Proceeds from exercise of stock options — 186 Repurchases of common stock (50,790 ) (50,492 ) Net cash used for financing activities (201,441 ) (451,473 ) Effect of exchange rate changes on cash (142,800 ) 75,000 Net decrease in cash and cash equivalents (59,193 ) (115,241 ) Cash and cash equivalents at beginning of period 248,000 333,294 Cash and cash equivalents at end of period $ 188,807 $ 218,053 ARROW ELECTRONICS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Consolidated net income $ 393,507 $ 909,363 Adjustments to reconcile consolidated net income to net cash provided by operations: Depreciation and amortization 162,994 181,116 Amortization of stock-based compensation 34,631 41,569 Equity in earnings of affiliated companies (1,368 ) (6,407 ) Deferred income taxes (99,866 ) (93,980 ) Loss on extinguishment of debt 1,657 — Loss (gain) on investments, net 5,260 (12,466 ) Other 5,328 22,590 Change in assets and liabilities, net of effects of acquired businesses: Accounts receivable, net (1,013,091 ) 189,425 Inventories 421,063 139,313 Accounts payable 1,092,488 (457,382 ) Accrued expenses (140,871 ) 38,601 Other assets and liabilities 268,681 (246,293 ) Net cash provided by operating activities 1,130,413 705,449 Cash flows from investing activities: Acquisition of property, plant, and equipment (92,703 ) (83,285 ) Proceeds from sale of property, plant, and equipment 5,157 — Cash consideration paid for acquired businesses, net of cash acquired (34,834 ) — Proceeds from collections of notes receivable — 237 Proceeds from settlement of net investment hedge 10,635 10,725 Other 17,303 — Net cash used for investing activities (94,442 ) (72,323 ) Cash flows from financing activities: Change in short-term and other borrowings (1,155,909 ) 866,012 Proceeds from (repayments of) long-term bank borrowings, net 470,347 (1,031,881 ) Redemption of notes (1,000,000 ) (300,000 ) Net proceeds from note offering 989,564 496,268 Proceeds from exercise of stock options 5,354 17,010 Repurchases of common stock (265,142 ) (770,200 ) Settlement of forward-starting interest rate swap — 56,711 Other (1,041 ) (142 ) Net cash used for financing activities (956,827 ) (666,222 ) Effect of exchange rate changes on cash (108,390 ) 74,234 Net (decrease) increase in cash and cash equivalents (29,246 ) 41,138 Cash and cash equivalents at beginning of year 218,053 176,915 Cash and cash equivalents at end of year $ 188,807 $ 218,053 ARROW ELECTRONICS, INC. ECS Gross Billings (In thousands) (Unaudited) Global Enterprise Computing Solutions - Gross Billings(1) Quarter Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Gross billings: Americas ECS $ 2,942,118 $ 2,814,076 $ 10,323,375 $ 10,542,285 EMEA ECS 3,144,823 2,732,695 9,204,833 8,473,855 Global ECS $ 6,086,941 $ 5,546,771 $ 19,528,208 $ 19,016,140 ______________________________ (1) Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue. ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) Quarter Ended December 31, 2024 December 31, 2023 % Change Consolidated sales, as reported $ 7,282,877 $ 7,849,157 (7.2 ) % Impact of changes in foreign currencies — (27,280 ) Consolidated sales, constant currency $ 7,282,877 $ 7,821,877 (6.9 ) % Global components sales, as reported $ 4,813,760 $ 5,636,032 (14.6 ) % Impact of changes in foreign currencies — (11,106 ) Global components sales, constant currency $ 4,813,760 $ 5,624,926 (14.4 ) % Americas components sales, as reported $ 1,603,710 $ 1,784,764 (10.1 ) % Impact of changes in foreign currencies — (763 ) Americas components sales, constant currency $ 1,603,710 $ 1,784,001 (10.1 ) % Asia components sales, as reported $ 1,947,730 $ 2,163,421 (10.0 ) % Impact of changes in foreign currencies — (2,923 ) Asia components sales, constant currency $ 1,947,730 $ 2,160,498 (9.8 ) % EMEA components sales, as reported $ 1,262,320 $ 1,687,847 (25.2 ) % Impact of changes in foreign currencies — (7,420 ) EMEA components sales, constant currency $ 1,262,320 $ 1,680,427 (24.9 ) % Global ECS sales, as reported $ 2,469,117 $ 2,213,125 11.6 % Impact of changes in foreign currencies — (16,174 ) Global ECS sales, constant currency $ 2,469,117 $ 2,196,951 12.4 % Americas ECS sales, as reported $ 1,162,227 $ 1,145,754 1.4 % Impact of changes in foreign currencies — (2,914 ) Americas ECS sales, constant currency $ 1,162,227 $ 1,142,840 1.7 % EMEA ECS sales, as reported $ 1,306,890 $ 1,067,371 22.4 % Impact of changes in foreign currencies — (13,260 ) EMEA ECS sales, constant currency $ 1,306,890 $ 1,054,111 24.0 % ARROW ELECTRONICS, INC. NON-GAAP SALES RECONCILIATION (In thousands) (Unaudited) Year Ended December 31, 2024 December 31, 2023 % Change Consolidated sales, as reported $ 27,923,324 $ 33,107,120 (15.7 ) % Impact of changes in foreign currencies — (33,434 ) Consolidated sales, constant currency $ 27,923,324 $ 33,073,686 (15.6 ) % Global components sales, as reported $ 19,983,267 $ 25,419,899 (21.4 ) % Impact of changes in foreign currencies — (35,319 ) Global components sales, constant currency $ 19,983,267 $ 25,384,580 (21.3 ) % Americas components sales, as reported $ 6,411,701 $ 7,954,713 (19.4 ) % Impact of changes in foreign currencies — (3,758 ) Americas components sales, constant currency $ 6,411,701 $ 7,950,955 (19.4 ) % Asia components sales, as reported $ 7,923,459 $ 9,390,292 (15.6 ) % Impact of changes in foreign currencies — (42,456 ) Asia components sales, constant currency $ 7,923,459 $ 9,347,836 (15.2 ) % EMEA components sales, as reported $ 5,648,107 $ 8,074,894 (30.1 ) % Impact of changes in foreign currencies — 10,895 EMEA components sales, constant currency $ 5,648,107 $ 8,085,789 (30.1 ) % Global ECS sales, as reported $ 7,940,057 $ 7,687,221 3.3 % Impact of changes in foreign currencies — 1,885 Global ECS sales, constant currency $ 7,940,057 $ 7,689,106 3.3 % Americas ECS sales, as reported $ 4,067,160 $ 4,160,298 (2.2 ) % Impact of changes in foreign currencies — (6,098 ) Americas ECS sales, constant currency $ 4,067,160 $ 4,154,200 (2.1 ) % EMEA ECS sales, as reported $ 3,872,897 $ 3,526,923 9.8 % Impact of changes in foreign currencies — 7,983 EMEA ECS sales, constant currency $ 3,872,897 $ 3,534,906 9.6 % ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) Three months ended December 31, 2024 Impact Reported Intangible Restructuring of GAAP amortization & Integration Wind Non-GAAP measure expense charges Down(1) Other(2) measure Operating income $ 195,103 $ 7,219 $ 21,058 $ 50,344 $ — $ 273,724 Income before income taxes 128,704 7,219 21,058 50,344 4,070 211,395 Provision for income taxes 28,816 1,786 4,318 16,692 977 52,589 Consolidated net income 99,888 5,433 16,740 33,652 3,093 158,806 Noncontrolling interests 680 135 — — — 815 Net income attributable to shareholders $ 99,208 $ 5,298 $ 16,740 $ 33,652 $ 3,093 $ 157,991 Net income per diluted share (4) $ 1.86 $ 0.10 $ 0.31 $ 0.63 $ 0.06 $ 2.97 Effective tax rate (5) 22.4 % 24.9 % Three months ended December 31, 2023 Impact Reported Intangible Restructuring of GAAP amortization & Integration Wind Non-GAAP measure expense charges Down(1) Other(2) measure Operating income $ 316,679 $ 7,491 $ 39,664 $ — $ — $ 363,834 Income before income taxes 250,029 7,491 39,664 — (14,635) 282,549 Provision for income taxes 53,823 1,863 9,331 — (3,500) 61,517 Consolidated net income 196,206 5,628 30,333 — (11,135) 221,032 Noncontrolling interests 1,669 131 — — — 1,800 Net income attributable to shareholders $ 194,537 $ 5,497 $ 30,333 $ — $ (11,135) $ 219,232 Net income per diluted share (4) $ 3.54 $ 0.10 $ 0.55 $ — $ (0.20) $ 3.98 Effective tax rate (5) 21.5 % 21.8 % ARROW ELECTRONICS, INC. NON-GAAP EARNINGS RECONCILIATION (In thousands except per share data) (Unaudited) Year ended December 31, 2024 Impact Reported Intangible Restructuring of Non GAAP amortization & Integration Wind recurring Non-GAAP measure expense charges Down(1) tax items Other(3) measure Operating income $ 768,557 $ 29,529 $ 142,917 $ 60,573 $ — $ — $ 1,001,576 Income before income taxes 489,319 29,529 142,917 60,573 — 6,487 728,825 Provision for income taxes 95,812 7,348 35,138 19,139 — 1,557 158,994 Consolidated net income 393,507 22,181 107,779 41,434 — 4,930 569,831 Noncontrolling interests 1,433 541 — — — — 1,974 Net income attributable to shareholders $ 392,074 $ 21,640 $ 107,779 $ 41,434 $ — $ 4,930 $ 567,857 Net income per diluted share (4) $ 7.29 $ 0.40 $ 2.00 $ 0.77 $ — $ 0.09 $ 10.56 Effective tax rate (5) 19.6 % 21.8 % Year ended December 31, 2023 Impact Reported Intangible Restructuring of Non GAAP amortization & Integration Wind recurring Non-GAAP measure expense charges Down(1) tax items Other(2) measure Operating income $ 1,471,164 $ 31,242 $ 83,916 $ — $ — $ — $ 1,586,322 Income before income taxes 1,164,354 31,242 83,916 — — (19,284) 1,260,228 Provision for income taxes 254,991 7,824 19,969 — (942) (4,614) 277,228 Consolidated net income 909,363 23,418 63,947 — 942 (14,670) 983,000 Noncontrolling interests 5,858 539 — — — — 6,397 Net income attributable to shareholders $ 903,505 $ 22,879 $ 63,947 $ — $ 942 $ (14,670) $ 976,603 Net income per diluted share (4) $ 15.84 $ 0.40 $ 1.12 $ — $ 0.02 $ (0.26) $ 17.12 Effective tax rate (5) 21.9 % 22.0 % ___________________ (1) Includes write down of inventory related to the wind down of businesses. (2) Other includes loss (gain) on investments, net. (3) Other includes loss (gain) on investments, net and loss on extinguishment of debt. (4) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding. (5) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure. ARROW ELECTRONICS, INC. SEGMENT INFORMATION (In thousands) (Unaudited) Quarter Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Sales: Global components $ 4,813,760 $ 5,636,032 $ 19,983,267 $ 25,419,899 Global ECS 2,469,117 2,213,125 7,940,057 7,687,221 Consolidated $ 7,282,877 $ 7,849,157 $ 27,923,324 $ 33,107,120 Operating income (loss): Global components (a) $ 116,910 $ 281,260 $ 741,273 $ 1,459,166 Global ECS (b) 160,421 145,053 410,075 367,004 Corporate (c) (82,228 ) (109,634 ) (382,791 ) (355,006 ) Consolidated $ 195,103 $ 316,679 $ 768,557 $ 1,471,164 (a) Global components operating income includes charges of $50.3 million and $60.6 million in inventory write downs related to the wind down of businesses for the fourth quarter and twelve months of 2024, respectively. Global components operating income includes $62.2 million in settlement benefits recorded as a reduction to operating expense for the twelve months of 2023. (b) In 2023, global ECS operating income includes charges of $25.4 million to increase the allowance for credit losses related to one customer. During 2024, global ECS operating income includes a reversal of charges of $20.0 million for aged receivables that were collected, related to the same customer. (c) Corporate operating loss includes restructuring, integration, and other charges of $21.0 million and $142.9 million for the fourth quarter and twelve months of 2024, respectively, and $39.6 million and $83.9 million for the fourth quarter and twelve months of 2023, respectively. ARROW ELECTRONICS, INC. NON-GAAP SEGMENT RECONCILIATIONS (In thousands) (Unaudited) Quarter Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Global components gross profit, as reported $ 497,324 $ 702,412 $ 2,332,358 $ 3,199,120 Impact of wind down to inventory 50,344 — 60,573 — Global components non-GAAP gross profit $ 547,668 $ 702,412 $ 2,392,931 $ 3,199,120 Global components gross profit as a percentage of sales, as reported 10.3 % 12.5 % 11.7 % 12.6 % Global components non-GAAP gross profit as a percentage of sales 11.4 % 12.5 % 12.0 % 12.6 % Global ECS gross profit, as reported $ 305,986 $ 287,138 $ 960,050 $ 949,898 Global ECS gross profit as a percentage of sales, as reported 12.4 % 13.0 % 12.1 % 12.4 % Quarter Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Global components operating income, as reported $ 116,910 $ 281,260 $ 741,273 $ 1,459,166 Intangible assets amortization expense 6,162 6,436 25,296 26,500 Impact of wind down to inventory 50,344 — 60,573 — Global components non-GAAP operating income $ 173,416 $ 287,696 $ 827,142 $ 1,485,666 Global components operating income as a percentage of sales, as reported 2.4 % 5.0 % 3.7 % 5.7 % Global components non-GAAP operating income as a percentage of sales 3.6 % 5.1 % 4.1 % 5.8 % Global ECS operating income, as reported $ 160,421 $ 145,053 $ 410,075 $ 367,004 Intangible assets amortization expense 1,057 1,055 4,233 4,742 Global ECS non-GAAP operating income $ 161,478 $ 146,108 $ 414,308 $ 371,746 Global ECS operating income as a percentage of sales, as reported 6.5 % 6.6 % 5.2 % 4.8 % Global ECS non-GAAP operating income as a percentage of sales 6.5 % 6.6 % 5.2 % 4.8 %

Arrow Electronics Reports Fourth-Quarter and Full-Year 2024 Results

FAQ

Why Bearish?

How important is it?

Why Short Term?

Related Companies

Related News