- Arrow Electronics (ARW, Financial) surpassed the high end of its guidance in Q1 2025, posting EPS of $1.51 and non-GAAP EPS of $1.80.
- Consolidated sales reached $6.81 billion, despite a 2% year-over-year decline.
- Global ECS sales increased 18% year over year, driven by strong growth in the EMEA region.
Arrow Electronics, Inc. (ARW) reported its first-quarter 2025 financial results, showcasing a solid performance that exceeded the high end of its guidance in consolidated sales, segments, and earnings per share. The company achieved a GAAP earnings per share (EPS) of $1.51 and a non-GAAP EPS of $1.80. This was primarily attributed to the strong momentum in the Europe, Middle East, and Africa (EMEA) region and robust contributions from its value-added offerings and Enterprise Computing Solutions (ECS) business.
During the quarter, Arrow's consolidated sales were $6.81 billion, marking a 2% decrease year over year but remaining flat on a constant currency basis. The company noted that foreign currency fluctuations negatively impacted sales by approximately $84 million, reducing the diluted EPS by $0.08 compared to the previous year.
The Global Components segment saw sales of $4.78 billion, down 8% year over year. Despite the decline, all regions performed better than expected relative to seasonal trends, with improvements noted in industrial markets and consistent resilience in transportation.
Arrow's ECS segment stood out with a substantial 18% increase in sales to $2.04 billion. This growth was led by a remarkable 37% year-over-year increase in EMEA ECS sales, which surged 40% when adjusted for constant currency. The company's strategic focus on IT-as-a-Service significantly bolstered its market differentiation, reflected in the ECS billing growth of 5% year over year.
Looking ahead, Arrow Electronics projects Q2 2025 consolidated sales between $6.70 billion and $7.30 billion, with expected GAAP net income per diluted share ranging from $2.80 to $3.00. The company anticipates an increase in sales and EPS due to favorable changes in foreign currencies, partially offset by newly implemented tariffs.
Arrow Electronics demonstrated robust financial management, generating approximately $350 million in cash flow from operations during the first quarter and repurchasing $50 million of its shares. The company's focused efforts in optimizing working capital and reducing balance sheet debt by $280 million fortified its financial position for future growth.
