Avnet Reports Decline in Sales and Profit for Third Quarter of Fiscal 2025

Avnet, Inc. reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, as detailed in its recent 10-Q filing. The company generated sales of $5.32 billion for the third quarter, a decrease of 6.0% from $5.65 billion in the same period last year. For the first nine months, sales totaled $16.58 billion, down 8.9% from $18.19 billion in the prior year. The decline in revenue was attributed to lower demand for electronic components, particularly in the Americas and EMEA regions, as well as an unfavorable product mix.

Gross profit for the third quarter was $587.9 million, reflecting a 12.2% decrease from $669.3 million in the prior year. The gross profit margin also fell to 11.1% from 11.8% year-over-year. Operating income for the quarter was $143.3 million, down 24.7% from $190.2 million, with an operating income margin of 2.7%, a decline of 66 basis points. The company’s net income for the third quarter was $87.9 million, or $1.01 per diluted share, compared to $88.8 million, or $0.97 per diluted share, in the same quarter last year.

In terms of operational developments, Avnet has been actively managing its workforce and restructuring its operations. The company recorded $9.1 million in restructuring expenses during the third quarter, primarily related to severance and other employee-related costs. Over 250 employees were affected as part of these restructuring efforts, particularly within the Farnell operating group. The company also repurchased $101.3 million of its common stock during the quarter, as part of a broader share repurchase program authorized for up to $600 million.

Geographically, sales in the Americas decreased by 9.2%, while EMEA saw a significant drop of 24.1%. In contrast, sales in Asia increased by 13.0%, indicating a divergence in regional performance. The company’s inventory levels have also been impacted by the downturn in the electronic components market, with inventory relative to sales higher than historical averages. As of March 29, 2025, Avnet held cash and cash equivalents of $188.9 million, a decrease from $310.9 million at the end of the previous fiscal year.

Looking ahead, Avnet anticipates that sales in the fourth quarter of fiscal 2025 will remain flat compared to the third quarter, as the company navigates a challenging market environment characterized by elevated customer inventory levels and lower demand. The company continues to monitor global trade conditions and their potential impact on operations, while also implementing measures to mitigate risks associated with tariffs and supply chain disruptions.