Avnet Reports Second Quarter 2025 Financial Results
Avnet (AVT) reported second quarter fiscal 2025 results with sales of $5.7 billion, down 8.7% from the prior year. The company posted diluted earnings per share of $0.99, compared to $1.28 in the prior year quarter, while adjusted EPS was $0.87 versus $1.40.
Operating income margin decreased to 2.7% from 3.8% year-over-year. The company generated over $300 million in cash flow from operations and reduced inventory by $362 million (6%) from the previous quarter. Avnet returned $80 million to shareholders through share repurchases ($51 million) and dividends ($29 million).
For Q3 fiscal 2025, Avnet expects sales between $5.05-5.35 billion and diluted EPS of $0.65-0.75, anticipating seasonal sales declines in Asia due to Lunar New Year and modest declines in western regions.
Avnet (AVT) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025 con vendite di 5.7 miliardi di dollari, in calo dell'8.7% rispetto all'anno precedente. L'azienda ha registrato utili per azione diluiti di 0.99 dollari, rispetto ai 1.28 dollari del trimestre dell'anno precedente, mentre l'EPS rettificato è stato di 0.87 dollari contro 1.40 dollari.
Il margine di reddito operativo è diminuito al 2.7% dal 3.8% rispetto all'anno precedente. L'azienda ha generato oltre 300 milioni di dollari di flusso di cassa dalle operazioni e ha ridotto l'inventario di 362 milioni di dollari (6%) rispetto al trimestre precedente. Avnet ha restituito 80 milioni di dollari agli azionisti attraverso riacquisti di azioni (51 milioni di dollari) e dividendi (29 milioni di dollari).
Per il terzo trimestre dell'anno fiscale 2025, Avnet prevede vendite comprese tra 5.05-5.35 miliardi di dollari e un EPS diluito di 0.65-0.75 dollari, prevedendo un calo delle vendite stagionali in Asia a causa del Capodanno lunare e modesti cali nelle regioni occidentali.
Avnet (AVT) reportó los resultados del segundo trimestre del año fiscal 2025 con ventas de 5.7 mil millones de dólares, una caída del 8.7% en comparación con el año anterior. La compañía reportó ganancias por acción diluidas de 0.99 dólares, comparado con 1.28 dólares en el trimestre del año anterior, mientras que el EPS ajustado fue de 0.87 dólares frente a 1.40 dólares.
El margen de ingresos operativos disminuyó al 2.7% desde el 3.8% interanual. La empresa generó más de 300 millones de dólares en flujo de caja de las operaciones y redujo el inventario en 362 millones de dólares (6%) en comparación con el trimestre anterior. Avnet devolvió 80 millones de dólares a los accionistas a través de recompra de acciones (51 millones de dólares) y dividendos (29 millones de dólares).
Para el tercer trimestre del año fiscal 2025, Avnet espera ventas entre 5.05-5.35 mil millones de dólares y un EPS diluido de 0.65-0.75 dólares, anticipando caídas estacionales en las ventas en Asia debido al Año Nuevo Lunar y caídas moderadas en las regiones occidentales.
Avnet (AVT)는 2025 회계 연도 2분기 실적을 발표했으며, 매출은 57억 달러로 전년 대비 8.7% 감소했습니다. 회사의 희석 주당순이익은 0.99 달러로, 전년 같은 분기의 1.28 달러와 비교되었습니다. 조정 주당순이익은 0.87 달러로 1.40 달러에서 하락했습니다.
영업 이익률은 전년 대비 3.8%에서 2.7%로 감소했습니다. 회사는 운영으로부터 3억 달러 이상의 현금 흐름을 생성하였고, 이전 분기 대비 재고를 3억 6200만 달러 (6%) 줄였습니다. Avnet은 주식 매입(5,100만 달러)과 배당금(2,900만 달러)을 통해 주주에게 8,000만 달러를 환원했습니다.
2025 회계 연도 3분기 동안 Avnet은 매출이 50억 5천만~53억 5천만 달러 사이가 될 것으로 예상하고 있으며, 희석 주당순이익은 0.65~0.75 달러로 기대하고 있습니다. 이는 설날로 인한 아시아의 계절 매출 감소와 서부 지역의 미미한 감소를 예상하는 것입니다.
Avnet (AVT) a annoncé les résultats du deuxième trimestre de l'exercice fiscal 2025, avec des ventes de 5,7 milliards de dollars, soit une baisse de 8,7 % par rapport à l'année précédente. L'entreprise a affiché un bénéfice par action dilué de 0,99 dollar, contre 1,28 dollar au trimestre de l'année précédente, tandis que le BPA ajusté était de 0,87 dollar contre 1,40 dollar.
La marge d'exploitation a diminué à 2,7 % contre 3,8 % d'une année sur l'autre. L'entreprise a généré plus de 300 millions de dollars de flux de trésorerie provenant des opérations et a réduit ses stocks de 362 millions de dollars (6 %) par rapport au trimestre précédent. Avnet a restitué 80 millions de dollars aux actionnaires par le biais de rachats d'actions (51 millions de dollars) et de dividendes (29 millions de dollars).
Pour le troisième trimestre de l'exercice fiscal 2025, Avnet s'attend à des ventes comprises entre 5,05-5,35 milliards de dollars et un BPA dilué de 0,65-0,75 dollar, anticipant des baisses saisonnières des ventes en Asie en raison du Nouvel An lunaire et des baisses modestes dans les régions occidentales.
Avnet (AVT) hat die Ergebnisse des zweiten Quartals des Haushaltsjahres 2025 veröffentlicht, mit einem Umsatz von 5,7 Milliarden Dollar, was einen Rückgang von 8,7 % im Vergleich zum Vorjahr darstellt. Das Unternehmen meldete einen verwässerten Gewinn pro Aktie von 0,99 Dollar, verglichen mit 1,28 Dollar im Vorjahresquartal, während das bereinigte EPS bei 0,87 Dollar gegenüber 1,40 Dollar lag.
Die operative Ertragsmarge sank im Jahresvergleich von 3,8% auf 2,7%. Das Unternehmen erwirtschaftete mehr als 300 Millionen Dollar an Cashflow aus dem operativen Geschäft und reduzierte den Lagerbestand um 362 Millionen Dollar (6%) im Vergleich zum vorherigen Quartal. Avnet gab 80 Millionen Dollar an die Aktionäre in Form von Aktienrückkäufen (51 Millionen Dollar) und Dividenden (29 Millionen Dollar) zurück.
Für das dritte Quartal des Haushaltsjahres 2025 erwartet Avnet Verkäufe zwischen 5,05-5,35 Milliarden Dollar und einen verwässerten EPS von 0,65-0,75 Dollar, wobei saisonale Verkaufsrückgänge in Asien aufgrund des Lunar New Year und bescheidenen Rückgängen in westlichen Regionen erwartet werden.
- Generated $300+ million in operating cash flow
- Reduced inventory by $362 million (6%) quarter-over-quarter
- Returned $80 million to shareholders via buybacks and dividends
- Second consecutive quarter of year-over-year sales growth in Asia (+8.4%)
- Sales declined 8.7% year-over-year to $5.7 billion
- Adjusted EPS decreased 37.9% to $0.87 from $1.40 year-over-year
- Operating income margin dropped to 2.7% from 3.8% year-over-year
- Farnell segment operating margin declined to 1.0% from 4.0% year-over-year
- Guidance indicates expected sales decline of 6-11% for next quarter
Insights
The Q2 FY2025 results reveal Avnet's resilience amid challenging market conditions, though with notable pressure points. The Electronic Components segment, contributing
The company's aggressive working capital optimization deserves attention, with inventory reduction of
Geographically, Asia's continued growth (
The margin compression across both segments, coupled with cautious guidance, indicates ongoing challenges in pricing power and market conditions. However, the company's strong cash generation and proactive inventory management provide important financial flexibility as it navigates these headwinds.
Second quarter sales of
Adjusted diluted EPS of
Cash flow from operations of
“In the second quarter, we delivered sales and earnings within expectations, while continuing to make good progress managing the factors within our control,” said Avnet Chief Executive Officer Phil Gallagher. “Our team’s focus on optimizing inventory and effective operations allowed us to deliver another strong quarter of operating cash flow. Although market conditions are challenging, the value we add at the center of the technology supply chain has never been more important. We remain focused on helping connect our suppliers’ technology solutions to the increasingly complex requirements of our customers.”
Fiscal Second Quarter Key Financial Highlights:
-
Sales of
$5.7 billion $6.2 billion -
Second consecutive quarter of year over year sales growth in
Asia .
-
Second consecutive quarter of year over year sales growth in
-
Diluted earnings per share of
$0.99 $1.28 -
Adjusted diluted earnings per share of
$0.87 $1.40
-
Adjusted diluted earnings per share of
-
Operating income margin of
2.7% , compared with3.8% in the prior year quarter.-
Adjusted operating income margin of
2.8% , compared with3.9% in the prior year quarter.
-
Adjusted operating income margin of
-
Generated over
$300 million -
Inventory down
$362 million 6% from the prior quarter.
-
Inventory down
-
Returned
$51 million 1.1% of shares outstanding. -
Returned
$29 million
Key Financial Metrics |
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($ in millions, except per share data) |
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Second Quarter Results (GAAP) |
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Dec – 24 |
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Dec – 23 |
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Change Y/Y |
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Sep – 24 |
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Change Q/Q |
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Sales |
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$ |
5,663.4 |
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$ |
6,204.9 |
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(8.7 |
)% |
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$ |
5,604.2 |
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1.1 |
% |
Operating Income |
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$ |
155.3 |
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$ |
236.3 |
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(34.3 |
)% |
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$ |
142.2 |
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9.2 |
% |
Operating Income Margin |
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2.7 |
% |
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3.8 |
% |
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(107 |
)bps |
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2.5 |
% |
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20 |
bps |
Diluted Earnings Per Share (EPS) |
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$ |
0.99 |
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$ |
1.28 |
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(22.7 |
)% |
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$ |
0.66 |
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50.0 |
% |
Second Quarter Results (Non-GAAP)(1) |
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Dec – 24 |
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Dec – 23 |
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Change Y/Y |
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Sep – 24 |
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Change Q/Q |
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Adjusted Operating Income |
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$ |
159.5 |
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$ |
242.2 |
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(34.2 |
)% |
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$ |
168.9 |
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(5.6 |
)% |
Adjusted Operating Income Margin |
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2.8 |
% |
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3.9 |
% |
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(108 |
)bps |
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3.0 |
% |
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(19 |
)bps |
Adjusted Diluted Earnings Per Share (EPS) |
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$ |
0.87 |
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$ |
1.40 |
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(37.9 |
)% |
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$ |
0.92 |
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(5.4 |
)% |
Segment and Geographical Mix |
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Dec – 24 |
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Dec – 23 |
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Change Y/Y |
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Sep – 24 |
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Change Q/Q |
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Electronic Components (EC) Sales |
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$ |
5,317.8 |
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$ |
5,812.1 |
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(8.5 |
)% |
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$ |
5,257.1 |
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1.2 |
% |
EC Operating Income Margin |
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3.4 |
% |
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4.3 |
% |
|
(85 |
)bps |
|
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3.8 |
% |
|
(33 |
)bps |
Farnell Sales |
|
$ |
345.6 |
|
|
$ |
392.8 |
|
|
(12.0 |
)% |
|
$ |
347.1 |
|
|
(0.4 |
)% |
Farnell Operating Income Margin |
|
|
1.0 |
% |
|
|
4.0 |
% |
|
(299 |
)bps |
|
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0.5 |
% |
|
47 |
bps |
Americas Sales |
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$ |
1,368.8 |
|
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$ |
1,588.5 |
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(13.8 |
)% |
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$ |
1,329.9 |
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2.9 |
% |
EMEA Sales |
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$ |
1,582.8 |
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$ |
2,113.6 |
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(25.1 |
)% |
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$ |
1,668.2 |
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(5.1 |
)% |
Asia Sales |
|
$ |
2,711.8 |
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|
$ |
2,502.8 |
|
|
8.4 |
% |
|
$ |
2,606.1 |
|
|
4.1 |
% |
____________________________ |
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(1) |
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release. |
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Outlook for the Third Quarter of Fiscal 2025 Ending on March 29, 2025 |
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Guidance Range |
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Midpoint |
Sales |
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Diluted EPS (1) |
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(1) |
|
A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release. |
The above guidance implies a sequential sales change of down
The above guidance also excludes restructuring, integration and other expenses, foreign currency gains and losses, and certain income tax adjustments. The above guidance assumes similar interest expense to the second quarter of fiscal 2025 and an adjusted effective tax rate of between
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Q3 Fiscal |
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2025 |
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Q2 Fiscal |
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Q3 Fiscal |
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Guidance |
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2025 |
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2024 |
Euro to |
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GBP to |
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Today’s Conference Call and Webcast Details
Avnet will host a conference call and webcast today at 8:00 a.m. PT / 11:00 a.m. ET to discuss its financial results, provide a business update and answer questions.
- Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international)
- Live webcast along with slides can be accessed via Avnet’s Investor Relations website at https://ir.avnet.com
- An audio replay of the webcast will be available after the completion of the call and archived on the website for one year
Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations, and business of the Company. You can find many of these statements by looking for words like “believes,” “projected,” “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates,” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to repatriating cash, foreign currency fluctuations, inflation, duties and taxes, sanctions and trade restrictions, and compliance with international and
Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.
About Avnet
As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for more than a century. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)
AVNET, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(UNAUDITED) |
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Second Quarters Ended |
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Six Months Ended |
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December 28, |
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December 30, |
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December 28, |
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December 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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(Thousands, except per share data) |
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Sales |
|
$ |
5,663,384 |
|
|
$ |
6,204,914 |
|
|
$ |
11,267,536 |
|
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$ |
12,540,562 |
|
Cost of sales |
|
|
5,067,332 |
|
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|
5,498,730 |
|
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|
10,064,118 |
|
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|
11,086,273 |
|
Gross profit |
|
|
596,052 |
|
|
|
706,184 |
|
|
|
1,203,418 |
|
|
|
1,454,289 |
|
Selling, general and administrative expenses |
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|
436,931 |
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|
464,692 |
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|
|
875,722 |
|
|
|
951,977 |
|
Restructuring, integration, and other expenses |
|
|
3,794 |
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|
|
5,235 |
|
|
|
30,145 |
|
|
|
12,286 |
|
Operating income |
|
|
155,327 |
|
|
|
236,257 |
|
|
|
297,551 |
|
|
|
490,026 |
|
Other expense, net |
|
|
(2,645 |
) |
|
|
(8,397 |
) |
|
|
(5,687 |
) |
|
|
(2,437 |
) |
Interest and other financing expenses, net |
|
|
(62,399 |
) |
|
|
(74,302 |
) |
|
|
(126,843 |
) |
|
|
(145,098 |
) |
Gain on legal settlements and other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
86,499 |
|
Income before taxes |
|
|
90,283 |
|
|
|
153,558 |
|
|
|
165,021 |
|
|
|
428,990 |
|
Income tax expense |
|
|
3,030 |
|
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|
35,627 |
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|
18,812 |
|
|
|
101,791 |
|
Net income |
|
$ |
87,253 |
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$ |
117,931 |
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$ |
146,209 |
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$ |
327,199 |
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Earnings per share: |
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Basic |
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$ |
1.00 |
|
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$ |
1.31 |
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$ |
1.67 |
|
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$ |
3.60 |
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Diluted |
|
$ |
0.99 |
|
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$ |
1.28 |
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$ |
1.65 |
|
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$ |
3.54 |
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Shares used to compute earnings per share: |
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Basic |
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|
86,846 |
|
|
|
90,253 |
|
|
|
87,469 |
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|
90,874 |
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Diluted |
|
|
88,327 |
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|
|
91,792 |
|
|
|
88,859 |
|
|
|
92,485 |
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Cash dividends paid per common share |
|
$ |
0.33 |
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$ |
0.31 |
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$ |
0.66 |
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$ |
0.62 |
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AVNET, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(UNAUDITED) |
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December 28, |
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June 29, |
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2024 |
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2024 |
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(Thousands) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
172,136 |
|
$ |
310,941 |
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Receivables |
|
|
4,421,428 |
|
|
|
4,391,187 |
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Inventories |
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|
5,252,466 |
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|
5,468,730 |
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Prepaid and other current assets |
|
|
226,326 |
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|
|
199,694 |
|
Total current assets |
|
|
10,072,356 |
|
|
|
10,370,552 |
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Property, plant and equipment, net |
|
|
564,348 |
|
|
|
568,169 |
|
Goodwill |
|
|
773,656 |
|
|
|
780,984 |
|
Operating lease assets |
|
|
202,617 |
|
|
|
208,971 |
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Other assets |
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|
329,954 |
|
|
|
280,471 |
|
Total assets |
|
$ |
11,942,931 |
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|
$ |
12,209,147 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Short-term debt |
|
$ |
2,604 |
|
|
$ |
492,711 |
|
Accounts payable |
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|
3,626,333 |
|
|
|
3,345,510 |
|
Accrued expenses and other |
|
|
523,628 |
|
|
|
573,055 |
|
Short-term operating lease liabilities |
|
|
53,495 |
|
|
|
53,993 |
|
Total current liabilities |
|
|
4,206,060 |
|
|
|
4,465,269 |
|
Long-term debt |
|
|
2,567,379 |
|
|
|
2,406,629 |
|
Long-term operating lease liabilities |
|
|
165,813 |
|
|
|
173,886 |
|
Other liabilities |
|
|
159,776 |
|
|
|
237,859 |
|
Total liabilities |
|
|
7,099,028 |
|
|
|
7,283,643 |
|
Shareholders’ equity |
|
|
4,843,903 |
|
|
|
4,925,504 |
|
Total liabilities and shareholders’ equity |
|
$ |
11,942,931 |
|
|
$ |
12,209,147 |
|
AVNET, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(UNAUDITED) |
||||||||
|
|
|
|
|
||||
|
|
Six Months Ended |
||||||
|
|
December 28, |
|
December 30, |
||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Thousands) |
||||||
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
146,209 |
|
|
$ |
327,199 |
|
|
|
|
|
|
||||
Non-cash and other reconciling items: |
|
|
|
|
||||
Depreciation and amortization |
|
|
36,912 |
|
|
|
42,727 |
|
Amortization of operating lease assets |
|
|
27,345 |
|
|
|
26,205 |
|
Deferred income taxes |
|
|
(40,713 |
) |
|
|
12,599 |
|
Stock-based compensation |
|
|
20,986 |
|
|
|
19,951 |
|
Other, net |
|
|
20,958 |
|
|
|
27,181 |
|
Changes in (net of effects from businesses acquired and divested): |
|
|
|
|
||||
Receivables |
|
|
(59,604 |
) |
|
|
287,320 |
|
Inventories |
|
|
162,328 |
|
|
|
(610,008 |
) |
Accounts payable |
|
|
312,861 |
|
|
|
(78,082 |
) |
Accrued expenses and other, net |
|
|
(183,130 |
) |
|
|
(138,667 |
) |
Net cash flows provided by (used for) operating activities |
|
|
444,152 |
|
|
|
(83,575 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings under accounts receivable securitization, net |
|
|
84,900 |
|
|
|
58,600 |
|
(Repayments) borrowings under senior unsecured credit facility, net |
|
|
(321,769 |
) |
|
|
272,747 |
|
(Repayments) borrowings under bank credit facilities and other debt, net |
|
|
(70,793 |
) |
|
|
30,752 |
|
Repurchases of common stock |
|
|
(152,199 |
) |
|
|
(86,027 |
) |
Dividends paid on common stock |
|
|
(57,420 |
) |
|
|
(56,138 |
) |
Other, net |
|
|
4,534 |
|
|
|
2,665 |
|
Net cash flows (used for) provided by financing activities |
|
|
(512,747 |
) |
|
|
222,599 |
|
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property, plant and equipment |
|
|
(61,135 |
) |
|
|
(158,088 |
) |
Other, net |
|
|
347 |
|
|
|
373 |
|
Net cash flows used for investing activities |
|
|
(60,788 |
) |
|
|
(157,715 |
) |
|
|
|
|
|
||||
Effect of currency exchange rate changes on cash and cash equivalents |
|
|
(9,422 |
) |
|
|
3,311 |
|
Cash and cash equivalents: |
|
|
|
|
||||
— decrease |
|
|
(138,805 |
) |
|
|
(15,380 |
) |
— at beginning of period |
|
|
310,941 |
|
|
|
288,230 |
|
— at end of period |
|
$ |
172,136 |
|
|
$ |
272,850 |
|
Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in
There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the
Management believes that operating income adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, is a useful measure to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, and amortization of acquired intangible assets and other.
Management also believes income tax expense (benefit), net income and diluted earnings per share adjusted for the impact of the items described above, gain on legal settlements and other, foreign currency gains and losses and certain items impacting income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the effective tax rate based upon the expected long-term adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted earnings per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.
Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income divided by sales and the adjusted effective income tax rate, which is defined as adjusted income tax expense divided by adjusted income before income taxes.
Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.
|
|
|
|
|
|
||||||
|
Fiscal |
|
Quarters Ended |
||||||||
|
Year to Date |
|
December 28, |
|
September 28, |
||||||
|
2025* |
|
|
2024 |
|
|
|
2024 |
|
||
|
($ in thousands, except per share amounts) |
||||||||||
GAAP operating income |
$ |
297,551 |
|
|
$ |
155,327 |
|
|
$ |
142,225 |
|
Restructuring, integration, and other expenses |
|
30,145 |
|
|
|
3,794 |
|
|
|
26,351 |
|
Amortization of intangible assets |
|
734 |
|
|
|
366 |
|
|
|
368 |
|
Adjusted operating income |
|
328,430 |
|
|
|
159,487 |
|
|
|
168,944 |
|
|
|
|
|
|
|
||||||
GAAP other expense, net |
$ |
(5,687 |
) |
|
$ |
(2,645 |
) |
|
$ |
(3,043 |
) |
Foreign currency loss |
|
9,887 |
|
|
|
5,104 |
|
|
|
4,783 |
|
Adjusted other income, net |
|
4,200 |
|
|
|
2,459 |
|
|
|
1,740 |
|
|
|
|
|
|
|
||||||
GAAP income before income taxes |
$ |
165,021 |
|
|
$ |
90,283 |
|
|
$ |
74,738 |
|
Restructuring, integration, and other expenses |
|
30,145 |
|
|
|
3,794 |
|
|
|
26,351 |
|
Amortization of intangible assets |
|
734 |
|
|
|
366 |
|
|
|
368 |
|
Foreign currency loss |
|
9,887 |
|
|
|
5,104 |
|
|
|
4,783 |
|
Adjusted income before income taxes |
|
205,787 |
|
|
|
99,547 |
|
|
|
106,240 |
|
|
|
|
|
|
|
||||||
GAAP income tax expense |
$ |
18,812 |
|
|
$ |
3,030 |
|
|
$ |
15,782 |
|
Restructuring, integration, and other expenses |
|
7,799 |
|
|
|
1,142 |
|
|
|
6,657 |
|
Amortization of intangible assets |
|
173 |
|
|
|
86 |
|
|
|
87 |
|
Foreign currency loss |
|
3,242 |
|
|
|
1,630 |
|
|
|
1,612 |
|
Income tax expense items, net |
|
17,305 |
|
|
|
17,007 |
|
|
|
298 |
|
Adjusted income tax expense |
|
47,331 |
|
|
|
22,895 |
|
|
|
24,436 |
|
|
|
|
|
|
|
||||||
GAAP net income |
$ |
146,209 |
|
|
$ |
87,253 |
|
|
$ |
58,956 |
|
Restructuring, integration, and other expenses (net of tax) |
|
22,346 |
|
|
|
2,652 |
|
|
|
19,694 |
|
Amortization of intangible assets (net of tax) |
|
561 |
|
|
|
280 |
|
|
|
281 |
|
Foreign currency loss (net of tax) |
|
6,645 |
|
|
|
3,474 |
|
|
|
3,171 |
|
Income tax expense items, net |
|
(17,305 |
) |
|
|
(17,007 |
) |
|
|
(298 |
) |
Adjusted net income |
|
158,456 |
|
|
|
76,652 |
|
|
|
81,804 |
|
|
|
|
|
|
|
||||||
GAAP diluted earnings per share |
$ |
1.65 |
|
|
$ |
0.99 |
|
|
$ |
0.66 |
|
Restructuring, integration, and other expenses (net of tax) |
|
0.25 |
|
|
|
0.03 |
|
|
|
0.22 |
|
Amortization of intangible assets (net of tax) |
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Foreign currency loss (net of tax) |
|
0.07 |
|
|
|
0.04 |
|
|
|
0.04 |
|
Income tax expense items, net |
|
(0.20 |
) |
|
|
(0.19 |
) |
|
|
(0.00 |
) |
Adjusted diluted EPS |
|
1.78 |
|
|
|
0.87 |
|
|
|
0.92 |
|
____________________________ |
* May not foot/cross foot due to rounding. |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Quarters Ended |
||||||||||||||||
|
Fiscal Year |
|
June 29, |
|
March 30, |
|
December 30, |
|
September 30, |
||||||||||
|
2024* |
|
2024* |
|
2024* |
|
|
2023 |
|
|
|
2023 |
|
||||||
|
($ in thousands, except per share amounts) |
||||||||||||||||||
GAAP operating income |
$ |
844,367 |
|
|
$ |
164,189 |
|
|
$ |
190,151 |
|
|
$ |
236,257 |
|
|
$ |
253,769 |
|
Restructuring, integration, and other expenses |
|
52,550 |
|
|
|
28,417 |
|
|
|
11,847 |
|
|
|
5,235 |
|
|
|
7,051 |
|
Amortization of intangible assets |
|
3,130 |
|
|
|
828 |
|
|
|
712 |
|
|
|
712 |
|
|
|
878 |
|
Adjusted operating income |
|
900,047 |
|
|
|
193,434 |
|
|
|
202,710 |
|
|
|
242,204 |
|
|
|
261,698 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP other (expense) income, net |
$ |
(15,736 |
) |
|
$ |
1,409 |
|
|
$ |
(14,707 |
) |
|
$ |
(8,397 |
) |
|
$ |
5,960 |
|
Foreign currency loss (gain) and other, net |
|
27,730 |
|
|
|
680 |
|
|
|
17,850 |
|
|
|
9,200 |
|
|
|
— |
|
Adjusted other (expense) income, net |
|
11,994 |
|
|
|
2,089 |
|
|
|
3,143 |
|
|
|
803 |
|
|
|
5,960 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP income before income taxes |
$ |
632,263 |
|
|
$ |
101,324 |
|
|
$ |
101,948 |
|
|
$ |
153,558 |
|
|
$ |
275,432 |
|
Restructuring, integration, and other expenses |
|
52,550 |
|
|
|
28,417 |
|
|
|
11,847 |
|
|
|
5,235 |
|
|
|
7,051 |
|
Amortization of intangible assets |
|
3,130 |
|
|
|
828 |
|
|
|
712 |
|
|
|
712 |
|
|
|
878 |
|
Foreign currency loss (gain) and other, net |
|
27,730 |
|
|
|
680 |
|
|
|
17,850 |
|
|
|
9,200 |
|
|
|
— |
|
Gain on legal settlements and other |
|
(86,499 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(86,499 |
) |
Adjusted income before income taxes |
|
629,174 |
|
|
|
131,249 |
|
|
|
132,357 |
|
|
|
168,705 |
|
|
|
196,862 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP income tax expense |
$ |
133,564 |
|
|
$ |
18,659 |
|
|
$ |
13,114 |
|
|
$ |
35,627 |
|
|
$ |
66,164 |
|
Restructuring, integration, and other expenses |
|
13,000 |
|
|
|
7,251 |
|
|
|
2,772 |
|
|
|
1,274 |
|
|
|
1,703 |
|
Amortization of intangible assets |
|
700 |
|
|
|
185 |
|
|
|
156 |
|
|
|
156 |
|
|
|
203 |
|
Foreign currency loss (gain) and other, net |
|
7,373 |
|
|
|
88 |
|
|
|
5,251 |
|
|
|
2,034 |
|
|
|
— |
|
Gain on legal settlements and other |
|
(20,434 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,434 |
) |
Income tax expense items, net |
|
4,992 |
|
|
|
(6,489 |
) |
|
|
10,472 |
|
|
|
1,399 |
|
|
|
(390 |
) |
Adjusted income tax expense |
|
139,195 |
|
|
|
19,694 |
|
|
|
31,765 |
|
|
|
40,490 |
|
|
|
47,246 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income |
$ |
498,699 |
|
|
$ |
82,665 |
|
|
$ |
88,834 |
|
|
$ |
117,931 |
|
|
$ |
209,268 |
|
Restructuring, integration, and other expenses (net of tax) |
|
39,550 |
|
|
|
21,166 |
|
|
|
9,075 |
|
|
|
3,961 |
|
|
|
5,348 |
|
Amortization of intangible assets (net of tax) |
|
2,430 |
|
|
|
643 |
|
|
|
556 |
|
|
|
556 |
|
|
|
675 |
|
Foreign currency loss (gain) and other, net (net of tax) |
|
20,357 |
|
|
|
592 |
|
|
|
12,599 |
|
|
|
7,166 |
|
|
|
— |
|
Gain on legal settlements and other (net of tax) |
|
(66,065 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(66,065 |
) |
Income tax expense items, net |
|
(4,992 |
) |
|
|
6,489 |
|
|
|
(10,472 |
) |
|
|
(1,399 |
) |
|
|
390 |
|
Adjusted net income |
|
489,979 |
|
|
|
111,555 |
|
|
|
100,592 |
|
|
|
128,215 |
|
|
|
149,616 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted earnings per share |
$ |
5.43 |
|
|
$ |
0.91 |
|
|
$ |
0.97 |
|
|
$ |
1.28 |
|
|
$ |
2.25 |
|
Restructuring, integration, and other expenses (net of tax) |
|
0.43 |
|
|
|
0.23 |
|
|
|
0.10 |
|
|
|
0.04 |
|
|
|
0.06 |
|
Amortization of intangible assets (net of tax) |
|
0.03 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Foreign currency loss (gain) and other, net (net of tax) |
|
0.22 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.08 |
|
|
|
— |
|
Gain on legal settlements and other (net of tax) |
|
(0.72 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.71 |
) |
Income tax expense items, net |
|
(0.05 |
) |
|
|
0.07 |
|
|
|
(0.11 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
Adjusted diluted EPS |
|
5.34 |
|
|
|
1.22 |
|
|
|
1.10 |
|
|
|
1.40 |
|
|
|
1.61 |
|
____________________________ |
* May not foot/cross foot due to rounding. |
Sales in Constant Currency
The following table presents the percentage change in sales and the percentage change in sales in constant currency for the second quarter and first six months of fiscal 2025 compared to the second quarter and first six months of fiscal 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
Six Months Ended |
||||||||||||||
|
|
December 28, 2024 |
|
December 28, 2024 |
||||||||||||||
|
|
|
|
Sales |
|
|
|
Sales |
|
|
|
Sales |
||||||
|
|
|
|
Year-Year % |
|
|
|
Sequential % |
|
|
|
Year-Year % |
||||||
|
|
Sales |
|
Change in |
|
Sales |
|
Change in |
|
Sales |
|
Change in |
||||||
|
|
Year-Year |
|
Constant |
|
Sequential |
|
Constant |
|
Year-Year |
|
Constant |
||||||
|
|
% Change |
|
Currency |
|
% Change |
|
Currency |
|
% Change |
|
Currency |
||||||
Avnet |
|
(8.7 |
)% |
|
(8.6 |
)% |
|
1.1 |
% |
|
1.8 |
% |
|
(10.2 |
)% |
|
(10.1 |
)% |
Avnet by region |
|
|
|
|
|
|
|
|
||||||||||
|
|
(13.8 |
)% |
|
(13.8 |
)% |
|
2.9 |
% |
|
2.9 |
% |
|
(14.7 |
)% |
|
(14.7 |
)% |
EMEA |
|
(25.1 |
) |
|
(25.0 |
) |
|
(5.1 |
) |
|
(3.0 |
) |
|
(26.5 |
) |
|
(26.8 |
) |
|
|
8.4 |
|
|
8.6 |
|
|
4.1 |
|
|
4.2 |
|
|
7.3 |
|
|
7.5 |
|
Avnet by segment |
|
|
|
|
|
|
|
|
||||||||||
EC |
|
(8.5 |
)% |
|
(8.3 |
)% |
|
1.2 |
% |
|
1.9 |
% |
|
(9.8 |
)% |
|
(9.8 |
)% |
Farnell |
|
(12.0 |
) |
|
(12.5 |
) |
|
(0.4 |
) |
|
0.6 |
|
|
(14.9 |
) |
|
(15.4 |
) |
Historical Segment Financial Information
|
|
|
|
|
|
|
||||||
|
|
|
|
Quarters Ended |
||||||||
|
|
Fiscal |
|
Second Quarter |
|
First Quarter |
||||||
|
|
Year to Date |
|
December 28, |
|
September 28, |
||||||
|
|
2025* |
|
|
2024 |
|
|
|
2024 |
|
||
|
|
($ in millions) |
||||||||||
Sales: |
|
|
|
|
|
|
||||||
Electronic Components |
|
$ |
10,574.9 |
|
|
$ |
5,317.8 |
|
|
$ |
5,257.1 |
|
Farnell |
|
|
692.6 |
|
|
|
345.6 |
|
|
|
347.1 |
|
Avnet sales |
|
$ |
11,267.5 |
|
|
$ |
5,663.4 |
|
|
$ |
5,604.2 |
|
|
|
|
|
|
|
|
||||||
Operating income: |
|
|
|
|
|
|
||||||
Electronic Components |
|
$ |
379.0 |
|
|
$ |
181.6 |
|
|
$ |
197.4 |
|
Farnell |
|
|
5.3 |
|
|
|
3.5 |
|
|
|
1.9 |
|
|
|
|
384.3 |
|
|
|
185.1 |
|
|
|
199.3 |
|
Corporate expenses |
|
|
(55.9 |
) |
|
|
(25.6 |
) |
|
|
(30.3 |
) |
Restructuring, integration, and other expenses |
|
|
(30.1 |
) |
|
|
(3.8 |
) |
|
|
(26.4 |
) |
Amortization of acquired intangible assets |
|
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
Avnet operating income |
|
$ |
297.6 |
|
|
$ |
155.3 |
|
|
$ |
142.2 |
|
|
|
|
|
|
|
|
||||||
Sales by geographic area: |
|
|
|
|
|
|
||||||
|
|
$ |
2,698.7 |
|
|
$ |
1,368.8 |
|
|
$ |
1,329.9 |
|
EMEA |
|
|
3,251.0 |
|
|
|
1,582.8 |
|
|
|
1,668.2 |
|
|
|
|
5,317.8 |
|
|
|
2,711.8 |
|
|
|
2,606.1 |
|
Avnet sales |
|
$ |
11,267.5 |
|
|
$ |
5,663.4 |
|
|
$ |
5,604.2 |
|
____________________________ |
* May not foot/cross foot due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Quarters Ended |
||||||||||||||||
|
|
Fiscal |
|
Fourth Quarter |
|
Third Quarter |
|
Second Quarter |
|
First Quarter |
||||||||||
|
|
Year |
|
December 28, |
|
September 28, |
|
December 30, |
|
September 30, |
||||||||||
|
|
2024* |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
||
|
|
($ in millions) |
||||||||||||||||||
Sales: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Electronic Components |
|
$ |
22,160.0 |
|
|
$ |
5,187.8 |
|
|
$ |
5,245.8 |
|
|
$ |
5,812.1 |
|
|
$ |
5,914.4 |
|
Farnell |
|
|
1,597.1 |
|
|
|
375.2 |
|
|
|
407.8 |
|
|
|
392.8 |
|
|
|
421.2 |
|
Avnet sales |
|
$ |
23,757.1 |
|
|
$ |
5,563.0 |
|
|
$ |
5,653.6 |
|
|
$ |
6,204.9 |
|
|
$ |
6,335.6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Electronic Components |
|
$ |
947.6 |
|
|
$ |
210.1 |
|
|
$ |
216.9 |
|
|
$ |
247.9 |
|
|
$ |
272.8 |
|
Farnell |
|
|
64.8 |
|
|
|
15.1 |
|
|
|
16.3 |
|
|
|
15.7 |
|
|
|
17.7 |
|
|
|
|
1,012.4 |
|
|
|
225.2 |
|
|
|
233.2 |
|
|
|
263.6 |
|
|
|
290.5 |
|
Corporate expenses |
|
|
(112.3 |
) |
|
|
(31.8 |
) |
|
|
(30.5 |
) |
|
|
(21.4 |
) |
|
|
(28.7 |
) |
Restructuring, integration, and other expenses |
|
|
(52.6 |
) |
|
|
(28.4 |
) |
|
|
(11.8 |
) |
|
|
(5.2 |
) |
|
|
(7.1 |
) |
Amortization of acquired intangible assets |
|
|
(3.1 |
) |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
(0.9 |
) |
Avnet operating income |
|
$ |
844.4 |
|
|
$ |
164.2 |
|
|
$ |
190.2 |
|
|
$ |
236.3 |
|
|
$ |
253.8 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales by geographic area: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
$ |
5,919.2 |
|
|
$ |
1,353.8 |
|
|
$ |
1,403.4 |
|
|
$ |
1,588.5 |
|
|
$ |
1,573.5 |
|
EMEA |
|
|
8,395.0 |
|
|
|
1,920.3 |
|
|
|
2,053.1 |
|
|
|
2,113.6 |
|
|
|
2,308.0 |
|
|
|
|
9,442.9 |
|
|
|
2,288.9 |
|
|
|
2,197.1 |
|
|
|
2,502.8 |
|
|
|
2,454.1 |
|
Avnet sales |
|
$ |
23,757.1 |
|
|
$ |
5,563.0 |
|
|
$ |
5,653.6 |
|
|
$ |
6,204.9 |
|
|
$ |
6,335.6 |
|
____________________________ |
* May not foot/cross foot due to rounding. |
Guidance Reconciliation
The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the third quarter of fiscal 2025.
|
|
|
|
|
|
|
|
|
Low End of |
|
High End of |
||
|
|
Guidance Range |
|
Guidance Range |
||
|
|
|
|
|
|
|
Adjusted diluted earnings per share guidance |
|
$ |
0.65 |
|
$ |
0.75 |
Restructuring, integration, and other expenses (net of tax) |
|
|
(0.09) |
|
|
(0.04) |
GAAP diluted earnings per share guidance |
|
$ |
0.56 |
|
$ |
0.71 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250129107768/en/
Investor Relations Contact
InvestorRelations@Avnet.com
Media Relations Contact
Jeanne Forbis, 480-643-7499
Jeanne.Forbis@Avnet.com
Source: Avnet
FAQ
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