Arrow Electronics Reports 10% Revenue Growth to $7.58 Billion in Q2 2025

Arrow Electronics, Inc. reported a significant increase in financial performance for the second quarter and first half of 2025, with consolidated sales reaching $7.58 billion, a 10% increase from $6.89 billion in the same period last year. The company's net income attributable to shareholders also rose sharply to $187.75 million, up 72.7% from $108.70 million in the prior year. Earnings per diluted share increased to $3.59, compared to $2.01 in the second quarter of 2024. The gross profit margin, however, decreased to 11.2% from 12.3% year-over-year, reflecting changes in product mix and pricing pressures.

In terms of operational metrics, Arrow's global components segment saw sales of $5.29 billion, a 5% increase, while the global ECS segment experienced a more substantial growth of 23.3%, reaching $2.30 billion. The company noted that the increase in ECS sales was driven by higher demand for cloud-based solutions and infrastructure software, particularly in the EMEA region. However, the global components segment faced challenges, particularly in the EMEA region, where demand for industrial and transportation verticals declined.

Arrow Electronics has been actively pursuing strategic initiatives to enhance operational efficiency, including the implementation of its Operating Expense Efficiency Plan, which aims to streamline operations and reduce costs. The company incurred restructuring charges of $21.9 million in the second quarter as part of this initiative. Additionally, Arrow reported a $99 million gain from the sale of an investment in equity securities, contributing positively to its financial results.

The company’s balance sheet reflects a strong liquidity position, with cash and cash equivalents totaling $222 million as of June 28, 2025, alongside $2.37 billion in long-term debt. Arrow's working capital increased to $6.81 billion, indicating a solid operational foundation. The company continues to evaluate potential acquisitions to expand its market reach and product offerings, while also navigating challenges posed by global trade policies and economic conditions.

Looking ahead, Arrow Electronics anticipates continued demand recovery in the global components segment, particularly in the Asia/Pacific region, while remaining cautious about the potential impacts of tariffs and macroeconomic factors on its operations. The company expects to maintain its focus on enhancing operational efficiencies and leveraging its extensive product portfolio to drive growth in the coming quarters.