Joseph Lehman's questions to Arrow Electronics Inc (ARW) leadership • Q1 2025
Question
Joseph Lehman, on behalf of Ruplu Bhattacharya, asked if Arrow was observing any demand pull-forward during the quarter and followed up by asking if visibility was improving for the second half of 2025.
Answer
President and CEO Sean Kerins responded that the company saw no material order pull-forward in Q1 and does not expect a significant impact in the Q2 outlook. He noted that the U.S. backlog is building further out into Q3 and Q4, suggesting it's not driven by short-term tariff avoidance. Kerins confirmed that visibility is improving, citing positive trends in book-to-bill ratios, backlog growth, declining industry-wide inventory, and improving supplier guidance as key indicators of a cyclical turning point.