Arrow Electronics Reports Fourth-Quarter and Full-Year 2025 Results

CENTENNIAL, Colo.--( BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its fourth quarter and fiscal year ended Dec. 31, 2025.

“Arrow delivered a strong fourth quarter, reflecting disciplined execution across the business and continued progress against our strategic priorities,” said Bill Austen, Arrow’s interim president and chief executive officer. “We saw meaningful momentum across both Global Components and ECS, supported by improving leading indicators, strong performance in our value-added offerings, and continued momentum in cloud, AI, and datacenter activity.”

“We are pleased with how the organization performed as we closed the year, amid an environment that continues to recover gradually. We enter 2026 with positive momentum and remain cautiously optimistic as the business remains in the early stages of a modest cyclical upturn. Our focus remains on accelerating profitable growth, expanding our higher-margin, value-added capabilities, and maintaining financial discipline. With a diversified business model, improving profitability, and a talented global team, we believe Arrow is well positioned to execute through the recovery and create long-term value for our customers and shareholders.”

Arrow Consolidated

Quarter Ended

Year Ended

December 31,

(in millions except per share data)

2025

2024

Change

2025

2024

Change

Consolidated sales

8,746

7,283

30,853

27,923

Net income attributable to shareholders

195

571

392

Net income per diluted share

3.75

1.86

101

10.93

7.29

Non-GAAP net income attributable to shareholders (1)

228

158

576

568

Non-GAAP net income per diluted share

4.39

2.97

11.02

10.56

In the fourth quarter of 2025, sales increased 20 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $232 million on sales and $0.23 on earnings per share on a diluted basis compared to the fourth quarter of 2024.

Full-year 2025 sales increased 10 percent year over year. Changes in foreign currencies had a positive impact on growth of approximately $399 million on sales and $0.31 on earnings per share on a diluted basis compared to 2024.

Global Components

Quarter Ended

Year Ended

December 31,

(in millions)

2025

2024

Change

2025

2024

Change

Global components sales

5,882

4,814

21,501

19,983

Global components operating income, as reported

219

117

775

741

Global components non-GAAP operating income

219

173

781

827

In the fourth quarter of 2025, global component sales increased 22 percent year over year and increased 19 percent year over year on a constant currency basis. Americas components fourth-quarter sales increased 22 percent year over year. EMEA (2) components fourth-quarter sales increased 16 percent year over year and increased 7 percent year over year on a constant currency basis. Asia-Pacific components fourth-quarter sales increased 26 percent year over year.

Global Enterprise Computing Solutions

Quarter Ended

Year Ended

December 31,

(in millions)

2025

2024

Change

2025

2024

Change

Global ECS sales

2,864

2,469

9,352

7,940

Global ECS operating income, as reported

188

160

426

410

Global ECS non-GAAP operating income

189

161

430

414

In the fourth quarter of 2025, global enterprise computing solutions (“ECS”) sales increased 16 percent year over year and increased 11 percent year over year on a constant currency basis. Global ECS billings increased 16 percent year over year. EMEA ECS fourth-quarter sales increased 24 percent year over year and increased 13 percent year over year on a constant currency basis. Americas ECS fourth-quarter sales increased 7 percent year over year.

Other Financial Information

In the fourth quarter of 2025, Arrow generated $200 million of cash flow from operations and repurchased $50 million of shares.

A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.

Europe, the Middle East, and Africa.

First-Quarter 2026 Outlook

First-Quarter 2026 GAAP to non-GAAP Outlook Reconciliation

NON-GAAP SALES RECONCILIATION

Quarter Ended

April 4,

March 29,

April 4,

December 31,

(in billions)

2026

2025

% Change

2026

2025

% Change

Global components sales, GAAP

5.75 - 6.15

4.78

20% - 29%

5.75 - 6.15

5.88

(2)% - 5%

Impact of changes in foreign currencies

—

0.15

—

0.01

Global components sales, constant currency

5.75 - 6.15

4.93

17% - 25%

5.75 - 6.15

5.89

(2)% - 4%

Global ECS sales, GAAP

2.20 - 2.40

2.04

8% - 18%

2.20 - 2.40

2.86

(23)% - (16)%

Impact of changes in foreign currencies

—

0.12

—

0.01

Global ECS sales, constant currency

2.20 - 2.40

2.16

2% - 12%

2.20 - 2.40

2.87

(23)% - (16)%

NON-GAAP EARNINGS RECONCILIATION

Reported GAAP measure

Intangible amortization

expense

Restructuring &

integration charges

Non-GAAP measure

Net income per diluted share

$2.13 to $2.33

$0.07

$0.50

$2.70 to $2.90

Earnings Presentation

Please refer to the earnings presentation, that can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.

Webcast and Conference Call Information

Arrow Electronics will host a conference call to discuss fourth-quarter and full-year 2025 financial results on Feb. 5, 2026, at 4:30 PM ET.

A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/176417710. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.

About Arrow Electronics

Arrow Electronics sources and engineers technology solutions for thousands of leading technology manufacturers and service providers. With 2025 sales of $31 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.

Key Business Metrics

Management uses gross billings as an operational metric to monitor operating performance of its global ECS reportable segment, including sales performance by geographic region, as it provides meaningful supplemental information to the reader in evaluating the overall performance of the global ECS business. The company uses this key metric to develop financial forecasts, make strategic decisions, and prepare and approve annual budgets. Gross billings represent amounts invoiced to customers for goods and services during a period and do not include the impact of recording sales on a net basis or sales adjustments, such as trade discounts and other allowances. The use of gross billings has certain limitations as an analytical tool and should not be considered in isolation or as a substitute for revenue.

Information Relating to Forward-Looking Statements

This press release includes “forward-looking statements,” as the term is defined under the federal securities laws. Forward-looking statements are those statements which are not statements of historical or current fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “would,” “could,” “believes,” “seeks,” “projected,” “potential,” “estimates,” and similar expressions, and include, but are not limited to, statements regarding: Arrow’s future financial performance, including its outlook on financial results for the first quarter of fiscal 2026 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, the timing of the completion of the Operating Expense Efficiency Plan (the “Plan”) and Arrow’s estimated costs and expected operating expense reductions from the Plan, industry trends and expectations regarding market demand and conditions and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions or changes, including those that may occur in connection with recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; political instability and changes; impacts of military conflict and sanctions; trade protection measures, tariffs, increased trade tensions, trade agreements and policies, and other restrictions, duties, and value-added taxes, and the associated macroeconomic impacts; disruptions, shortages, or inefficiencies in the supply chain; non-compliance with certain laws, regulations, or executive orders, such as trade, export, antitrust, and anti-corruption laws, or regulatory restrictions relating to the company or its subsidiaries or the permissibility of third-parties to transact therewith; the inability to realize sufficient sales to cover non-cancellable purchase obligations under certain ECS distribution agreements; management transitions, including the company’s search for a permanent CEO; the incurrence of unanticipated charges or failure to realize contemplated cost savings in connection with the Operating Expense Efficiency Plan; changes in product supply, pricing, and customer demand; increased profit-margin pressure resulting from industry conditions, competition, or other factors; changes in relationships with key suppliers; other vagaries in the global components and the global ECS markets; changes to applicable laws, regulations, executive orders, or rules relating to government contractors and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, governance, cybersecurity, data privacy, and artificial intelligence issues; commercial disputes, patent infringement claims, product liability lawsuits, or other legal proceedings; foreign tax and other loss contingencies; failure, disruption, or compromise of the company’s information systems or those of a third-party service provider, including unauthorized use or disclosure of company, supplier, or customer information; outbreaks, epidemics, pandemics, or public health crises; the effects of natural or man-made catastrophic events; and the company’s ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent Quarterly Report on Form 10-Q and the company’s most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization; restructuring, integration, and other; net gains and losses on investments; inventory write downs related to the wind down of businesses within the global components reportable segment (“impact of wind down”); loss on extinguishment of debt; and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For further discussion of our non-GAAP measures and related adjustments, refer to the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K.

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

Quarter Ended

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(Unaudited)

Sales

8,746,430

7,282,877

30,852,935

27,923,324

Cost of sales

7,737,674

6,479,567

27,386,216

24,630,916

Gross profit

1,008,756

803,310

3,466,719

3,292,408

Operating expenses:

Selling, general, and administrative

639,455

547,511

2,390,627

2,217,940

Depreciation and amortization

33,985

39,638

137,750

162,994

Restructuring, integration, and other

41,239

21,058

116,119

142,917

714,679

608,207

2,644,496

2,523,851

Operating income

294,077

195,103

822,223

768,557

Equity in earnings (losses) of affiliated companies

2,074

(544

)

3,198

1,368

Gain (loss) on investments, net

913

(4,070

)

109,888

(4,830

)

Loss on extinguishment of debt

—

(1,657

)

Post-retirement expense, net

(327

)

(1,393

)

(2,277

)

(4,285

)

Interest and other financing expense, net

(43,764

)

(60,392

)

(215,104

)

(269,834

)

Income before income taxes

252,973

128,704

717,928

489,319

Provision for income taxes

59,427

28,816

148,234

95,812

Consolidated net income

193,546

99,888

569,694

393,507

Noncontrolling interests

(1,058

)

680

(1,572

)

1,433

Net income attributable to shareholders

194,604

99,208

571,266

392,074

Net income per share:

Basic

3.78

1.88

11.03

7.36

Diluted

3.75

1.86

10.93

7.29

Weighted-average shares outstanding:

Basic

51,434

52,723

51,804

53,282

Diluted

51,895

53,214

52,255

53,797

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

306,467

188,807

Accounts receivable, net

19,738,666

13,030,991

Inventories

5,081,863

4,709,706

Other current assets

533,035

471,909

Total current assets

25,660,031

18,401,413

Property, plant, and equipment, at cost:

Land

5,691

Buildings and improvements

199,433

194,061

Machinery and equipment

1,715,415

1,623,228

1,920,539

1,822,980

Less: Accumulated depreciation and amortization

(1,445,889

)

(1,353,720

)

Property, plant, and equipment, net

474,650

469,260

Investments in affiliated companies

59,315

57,299

Intangible assets, net

77,022

96,706

Goodwill

2,120,071

2,055,295

Other assets

687,049

677,734

Total assets

29,078,138

21,757,707

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

17,383,796

11,047,470

Accrued expenses

1,461,261

1,238,714

Short-term borrowings, including current portion of long-term debt

341

349,978

Total current liabilities

18,845,398

12,636,162

Long-term debt

3,084,715

2,773,783

Other liabilities

489,326

516,234

Equity:

Shareholders’ equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2025 and 2024

Issued - 55,838 and 55,592 shares in 2025 and 2024, respectively

55,838

55,592

Capital in excess of par value

586,993

562,080

Treasury stock (4,768 and 3,420 shares in 2025 and 2024, respectively), at cost

(483,571

)

(328,078

)

Retained earnings

6,552,092

5,980,826

Accumulated other comprehensive loss

(126,640

)

(509,269

)

Total shareholders’ equity

6,584,712

5,761,151

Noncontrolling interests

73,987

70,377

Total equity

6,658,699

5,831,528

Total liabilities and equity

29,078,138

21,757,707

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Quarter Ended

December 31, 2025

December 31, 2024

Cash flows from operating activities:

Consolidated net income

193,546

99,888

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization

33,985

39,638

Amortization of stock-based compensation

7,435

4,444

Equity in (earnings) losses of affiliated companies

(2,074

)

544

Deferred income taxes

(41,367

)

(79,579

)

(Gain) loss on investments, net

(834

)

4,183

Other

428

1,134

Change in assets and liabilities, net of effects of acquired businesses:

Accounts receivable, net

(4,049,915

)

(1,525,485

)

Inventories

(351,405

)

(241,622

)

Accounts payable

4,236,336

1,779,503

Accrued expenses

154,782

(330,408

)

Other assets and liabilities

19,033

574,224

Net cash provided by operating activities

199,950

326,464

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(27,381

)

(22,548

)

Cash consideration paid for acquired businesses, net of cash acquired

—

(18,909

)

Other

—

Net cash used for investing activities

(27,381

)

(41,416

)

Cash flows from financing activities:

Change in short-term and other borrowings

(10,444

)

(560,840

)

Proceeds from (repayments of) long-term bank borrowings, net

(35,403

)

410,189

Proceeds from exercise of stock options

—

Repurchases of common stock

(50,890

)

(50,790

)

Net cash used for financing activities

(96,712

)

(201,441

)

Effect of exchange rate changes on cash

16,998

(142,800

)

Net increase (decrease) in cash and cash equivalents

92,855

(59,193

)

Cash and cash equivalents at beginning of period

213,612

248,000

Cash and cash equivalents at end of period

306,467

188,807

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Year Ended

December 31, 2025

December 31, 2024

Cash flows from operating activities:

Consolidated net income

569,694

393,507

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization

137,750

162,994

Amortization of stock-based compensation

27,883

34,631

Equity in earnings of affiliated companies

(3,198

)

(1,368

)

Deferred income taxes

(36,182

)

(99,866

)

Loss on extinguishment of debt

—

1,657

(Gain) loss on investments, net

(110,269

)

5,068

Other

351

5,520

Change in assets and liabilities, net of effects of acquired businesses:

Accounts receivable, net

(6,342,006

)

(1,013,091

)

Inventories

(286,180

)

421,063

Accounts payable

6,107,791

1,092,488

Accrued expenses

60,415

(140,871

)

Other assets and liabilities

(62,000

)

268,681

Net cash provided by operating activities

64,049

1,130,413

Cash flows from investing activities:

Acquisition of property, plant, and equipment

(101,254

)

(92,703

)

Proceeds from sale of property, plant, and equipment

—

5,157

Cash consideration paid for acquired businesses, net of cash acquired

—

(34,834

)

Proceeds from settlement of net investment hedges

24,858

10,635

Proceeds from sale of investments in equity securities

100,000

—

Other

—

17,303

Net cash provided by (used for) investing activities

23,604

(94,442

)

Cash flows from financing activities:

Change in short-term and other borrowings

(592

)

(1,155,909

)

Proceeds from (repayments of) long-term bank borrowings, net

302,820

470,347

Redemption of notes

(350,000

)

(1,000,000

)

Net proceeds from note offering

—

989,564

Proceeds from exercise of stock options

3,452

5,354

Repurchases of common stock

(161,669

)

(265,142

)

Other

(148

)

(1,041

)

Net cash used for financing activities

(206,137

)

(956,827

)

Effect of exchange rate changes on cash

236,144

(108,390

)

Net increase (decrease) in cash and cash equivalents

117,660

(29,246

)

Cash and cash equivalents at beginning of year

188,807

218,053

Cash and cash equivalents at end of year

306,467

188,807

ARROW ELECTRONICS, INC.

ECS Gross Billings

(In thousands)

(Unaudited)

Global Enterprise Computing Solutions - Gross Billings (1)

Quarter Ended

Year Ended

December 31,

2025

2024

Change

2025

2024

Change

Gross billings:

Americas ECS

3,041,843

2,942,118

10,606,712

10,323,375

EMEA ECS

4,039,437

3,144,823

11,443,462

9,204,833

Global ECS

7,081,280

6,086,941

22,050,174

19,528,208

(1)

Refer to page 4 for discussion about key business metrics. Gross billings are not a substitute for revenue.

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

December 31, 2025

December 31, 2024

% Change

Consolidated sales, as reported

8,746,430

7,282,877

20.1

Impact of changes in foreign currencies

—

231,615

Consolidated sales, constant currency

8,746,430

7,514,492

16.4

Global components sales, as reported

5,882,277

4,813,760

22.2

Impact of changes in foreign currencies

—

108,900

Global components sales, constant currency

5,882,277

4,922,660

19.5

Americas components sales, as reported

1,959,548

1,603,710

22.2

Impact of changes in foreign currencies

—

808

Americas components sales, constant currency

1,959,548

1,604,518

22.1

EMEA components sales, as reported

1,460,298

1,262,320

15.7

Impact of changes in foreign currencies

—

105,656

EMEA components sales, constant currency

1,460,298

1,367,976

6.7

Asia components sales, as reported

2,462,431

1,947,730

26.4

Impact of changes in foreign currencies

—

2,436

Asia components sales, constant currency

2,462,431

1,950,166

26.3

Global ECS sales, as reported

2,864,153

2,469,117

16.0

Impact of changes in foreign currencies

—

122,715

Global ECS sales, constant currency

2,864,153

2,591,832

10.5

Americas ECS sales, as reported

1,246,108

1,162,227

7.2

Impact of changes in foreign currencies

—

825

Americas ECS sales, constant currency

1,246,108

1,163,052

7.1

EMEA ECS sales, as reported

1,618,045

1,306,890

23.8

Impact of changes in foreign currencies

—

121,890

EMEA ECS sales, constant currency

1,618,045

1,428,780

13.2

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Year Ended

December 31, 2025

December 31, 2024

% Change

Consolidated sales, as reported

30,852,935

27,923,324

10.5

Impact of changes in foreign currencies

—

398,799

Consolidated sales, constant currency

30,852,935

28,322,123

8.9

Global components sales, as reported

21,501,289

19,983,267

7.6

Impact of changes in foreign currencies

—

205,431

Global components sales, constant currency

21,501,289

20,188,698

6.5

Americas components sales, as reported

6,944,480

6,411,701

8.3

Impact of changes in foreign currencies

—

852

Americas components sales, constant currency

6,944,480

6,412,553

8.3

EMEA components sales, as reported

5,670,850

5,648,107

0.4

Impact of changes in foreign currencies

—

210,617

EMEA components sales, constant currency

5,670,850

5,858,724

(3.2

Asia components sales, as reported

8,885,959

7,923,459

12.1

Impact of changes in foreign currencies

—

(6,038

)

Asia components sales, constant currency

8,885,959

7,917,421

12.2

Global ECS sales, as reported

9,351,646

7,940,057

17.8

Impact of changes in foreign currencies

—

193,368

Global ECS sales, constant currency

9,351,646

8,133,425

15.0

Americas ECS sales, as reported

4,230,746

4,067,160

4.0

Impact of changes in foreign currencies

—

(8,112

)

Americas ECS sales, constant currency

4,230,746

4,059,048

4.2

EMEA ECS sales, as reported

5,120,900

3,872,897

32.2

Impact of changes in foreign currencies

—

201,480

EMEA ECS sales, constant currency

5,120,900

4,074,377

25.7

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Three months ended December 31, 2025

Reported

GAAP

measure

Intangible

amortization

expense

Restructuring

& Integration

charges

Impact

Wind

Down (1)

Non

recurring

tax items

Other (2)

Non-GAAP

measure

Operating income

294,077

4,764

41,239

(3,638

)

—

336,442

Income before income taxes

252,973

4,764

41,239

(3,638

)

—

(913

)

294,425

Provision for income taxes

59,427

1,163

8,523

(1,100

)

—

(219

)

67,794

Consolidated net income

193,546

3,601

32,716

(2,538

)

—

(694

)

226,631

Noncontrolling interests

(1,058

)

—

(1,058

)

Net income attributable to shareholders

194,604

3,601

32,716

(2,538

)

—

(694

)

227,689

Net income per diluted share (6)

3.75

0.07

0.63

(0.05

)

—

(0.01

)

4.39

Effective tax rate (7)

23.5

23.0

Three months ended December 31, 2024

Reported

GAAP

measure

Intangible

amortization

expense

Restructuring

& Integration

charges

Impact

Wind

Down (1)

Non

recurring

tax items

Other (2)

Non-GAAP

measure

Operating income

195,103

7,219

21,058

50,344

—

273,724

Income before income taxes

128,704

7,219

21,058

50,344

—

4,070

211,395

Provision for income taxes

28,816

1,786

4,318

16,692

—

977

52,589

Consolidated net income

99,888

5,433

16,740

33,652

—

3,093

158,806

Noncontrolling interests

680

135

—

815

Net income attributable to shareholders

99,208

5,298

16,740

33,652

—

3,093

157,991

Net income per diluted share (6)

1.86

0.10

0.31

0.63

—

0.06

2.97

Effective tax rate (7)

22.4

24.9

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Year ended December 31, 2025

Reported

GAAP

measure

Intangible

amortization

expense

Restructuring

& Integration

charges

Impact

Wind

Down (1)

Non

recurring

tax items (3)

Other (4)

Non-GAAP

measure

Operating income

822,223

19,760

116,119

(10,266

)

—

172

948,008

Income before income taxes

717,928

19,760

116,119

(10,266

)

—

(109,716

)

733,825

Provision for income taxes

148,234

4,849

27,923

(3,199

)

8,143

(26,321

)

159,629

Consolidated net income

569,694

14,911

88,196

(7,067

)

(8,143

)

(83,395

)

574,196

Noncontrolling interests

(1,572

)

156

—

(1,416

)

Net income attributable to shareholders

571,266

14,755

88,196

(7,067

)

(8,143

)

(83,395

)

575,612

Net income per diluted share (6)

10.93

0.28

1.69

(0.14

)

(0.16

)

(1.60

)

11.02

Effective tax rate (7)

20.6

21.8

Year ended December 31, 2024

Reported

GAAP

measure

Intangible

amortization

expense

Restructuring

& Integration

charges

Impact

Wind

Down (1)

Non

recurring

tax items

Other (5)

Non-GAAP

measure

Operating income

768,557

29,529

142,917

60,573

—

1,001,576

Income before income taxes

489,319

29,529

142,917

60,573

—

6,487

728,825

Provision for income taxes

95,812

7,348

35,138

19,139

—

1,557

158,994

Consolidated net income

393,507

22,181

107,779

41,434

—

4,930

569,831

Noncontrolling interests

1,433

541

—

1,974

Net income attributable to shareholders

392,074

21,640

107,779

41,434

—

4,930

567,857

Net income per diluted share (6)

7.29

0.40

2.00

0.77

—

0.09

10.56

Effective tax rate (7)

19.6

21.8

(1)

Includes write-downs (recoveries) of inventory related to the wind down of businesses.

(2)

Other includes gain (loss) on investments, net.

(3)

Includes impacts from tax settlements related to U.S. federal tax law changes enacted as part of the 2017 Tax Cuts and Jobs Act.

(4)

Other includes gain on investments, net, and employee severance and benefits costs not related to restructuring initiatives presented in cost of sales.

(5)

Other includes (gain) loss on investments, net and loss on extinguishment of debt.

(6)

The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

(7)

The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Quarter Ended

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Sales:

Global components

5,882,277

4,813,760

21,501,289

19,983,267

Global ECS

2,864,153

2,469,117

9,351,646

7,940,057

Consolidated

8,746,430

7,282,877

30,852,935

27,923,324

Operating income (loss):

Global components (a)

219,158

116,910

774,706

741,273

Global ECS (b)

187,884

160,421

425,911

410,075

Segment operating income (loss)

407,042

277,331

1,200,617

1,151,348

Corporate operating expenses (c)

(112,965

)

(82,228

)

(378,394

)

(382,791

)

Consolidated

294,077

195,103

822,223

768,557

(a)

Global components operating income includes (recoveries) charges of $(3.6) million and $(10.3) million in inventory write-downs related to the wind down of a business for the fourth quarter and twelve months of 2025, respectively. Global components operating income includes charges of $50.3 million and $60.6 million in inventory write-downs related to the wind-down of businesses for the fourth quarter and twelve months ended of 2024, respectively.

(b)

During 2025, global ECS operating income includes $18.3 million in net losses related to under performance of the non-cancellable multi-year purchase obligations. During 2024, global ECS operating income includes a reversal of $20.0 million for aged receivables that were collected, related to the same customer, which was taken during the second quarter of 2024.

(c)

Corporate unallocated operating losses include restructuring, integration, and other charges of $41.2 million, $116.1 million for the fourth quarter and 12 months of 2025, respectively, and $21.0 million and $142.9 million for the fourth quarter and twelve months of 2024, respectively.

ARROW ELECTRONICS, INC.

NON-GAAP SEGMENT RECONCILIATIONS

(In thousands)

(Unaudited)

Quarter Ended

Year Ended

December 31,

2025

2024

2025

2024

Global components gross profit, as reported

647,154

497,324

2,402,653

2,332,358

Impact of wind down to inventory

(3,638

)

50,344

(10,266

)

60,573

Other

—

172

—

Global components non-GAAP gross profit

643,516

547,668

2,392,559

2,392,931

Global components gross profit as a percentage of sales, as reported

11.0

10.3

11.2

11.7

Global components non-GAAP gross profit as a percentage of sales

10.9

11.4

11.1

12.0

Global ECS gross profit, as reported

361,602

305,986

1,064,066

960,050

Global ECS gross profit as a percentage of sales, as reported

12.6

12.4

11.4

12.1

Quarter Ended

Year Ended

December 31,

2025

2024

2025

2024

Global components operating income, as reported

219,158

116,910

774,706

741,273

Intangible assets amortization expense

3,837

6,162

16,058

25,296

Impact of wind down to inventory

(3,638

)

50,344

(10,266

)

60,573

Other

—

172

—

Global components non-GAAP operating income

219,357

173,416

780,670

827,142

Global components operating income as a percentage of sales, as reported

3.7

2.4

3.6

3.7

Global components non-GAAP operating income as a percentage of sales

3.7

3.6

4.1

Global ECS operating income, as reported

187,884

160,421

425,911

410,075

Intangible assets amortization expense

927

1,057

3,702

4,233

Global ECS non-GAAP operating income

188,811

161,478

429,613

414,308

Global ECS operating income as a percentage of sales, as reported

6.6

6.5

4.6

5.2

Global ECS non-GAAP operating income as a percentage of sales

6.6

6.5

4.6

5.2