Arrow Electronics Reports $6.81 Billion Revenue in Q1 2025, 1.6% Decrease Year-Over-Year

Arrow Electronics, Inc. reported a consolidated revenue of $6.81 billion for the first quarter of 2025, reflecting a 1.6% decrease from $6.92 billion in the same period last year. The company's gross profit also declined, totaling $774 million, down from $858 million, resulting in a gross profit margin of 11.4%, compared to 12.4% in the prior year. Operating income fell by 14.7% to $159 million, while net income attributable to shareholders decreased by 4.6% to $80 million, translating to diluted earnings per share of $1.51, down from $1.53.

The decline in revenue was primarily driven by a significant drop in the global components segment, which saw sales decrease by 8% to $4.78 billion, attributed to reduced demand in the aerospace and defense sectors, as well as in industrial and transportation verticals across various regions. Conversely, the global ECS segment experienced a 17.5% increase in sales to $2.04 billion, bolstered by heightened demand for infrastructure software and cloud-related solutions, particularly in the EMEA region.

Operationally, Arrow Electronics has been implementing a multi-year Operating Expense Efficiency Plan aimed at optimizing costs and improving operational efficiency. This initiative is expected to incur pre-tax restructuring charges of up to $185 million, with anticipated annual savings of $90 million to $100 million by the end of fiscal year 2026. The company reported restructuring, integration, and other charges of $17.3 million for the quarter, a decrease from $46.9 million in the previous year.

As of March 29, 2025, Arrow Electronics had total assets of $21.4 billion, down from $21.8 billion at the end of 2024. The company’s cash and cash equivalents increased to $231.9 million, while total debt decreased to $2.31 billion. The company continues to maintain a strong liquidity position, with over $3.1 billion in committed and undrawn liquidity available. Looking ahead, Arrow Electronics anticipates a gradual recovery in demand, particularly in the Asia/Pacific region, as customer inventory levels normalize and macroeconomic conditions stabilize.