ARROW ELECTRONICS (ARW) Company Report

Interim CEO Bill Austen highlighted Arrow Electronics' strategic focus on higher-margin value-added services, which are projected to contribute approximately 30% of total company operating income in 2025, up from less than 20% historically.
The company operates in a distribution total addressable market exceeding $250 billion, with its core distribution business growing 6-10% annually, and is diversified across Global Components (70% of revenue) and Enterprise Computing Solutions (30% of revenue).
For fiscal year 2025, Arrow expects nearly $21 billion in Global Component sales and over $9 billion in ECS revenue with approximately $20 billion in billings.
Arrow maintains a focused capital allocation strategy, having returned approximately $3.5 billion to shareholders through share repurchases since 2020 and generated about $3.1 billion in free cash flow over the last five years.

3 days ago

Transcript

Arrow Electronics Highlights Strategic Shift and Growth Drivers at UBS Conference

ARW

New Projects/Investments

Revenue Acceleration/Inflection

Share Buyback

Arrow Electronics is executing a strategic shift towards higher-margin value-added services, which are projected to contribute 30% of total operating income in 2025, an increase from less than 20% historically.
The company's business model is diversified across Global Components (approximately 70% of total revenue) and Enterprise Component Solutions (ECS) (approximately 30% of total revenue), with ECS expected to deliver over $9 billion in revenue and approximately $20 billion in billings for full year 2025.
Arrow's capital allocation strategy prioritizes reinvesting in organic growth, pursuing disciplined M&A, and returning excess capital to shareholders, having repurchased approximately $3.5 billion in shares since 2020.
The company is benefiting from secular growth trends in cloud and AI, particularly in AI infrastructure build-out, and is observing early signs of gradual recovery in its Global Components business, including book-to-bill ratios above parity.

3 days ago

Transcript

Arrow Electronics Outlines Investment Thesis and Growth Strategy

ARW

New Projects/Investments

Share Buyback

Revenue Acceleration/Inflection

Interim President and CEO Bill Austen presented Arrow's investment thesis, highlighting its leading position in large markets, differentiated capabilities, diversified business model, and focused capital allocation strategy.
The company is experiencing a gradual cyclical recovery in its Global Components business, with improving book-to-bill ratios, and is benefiting from secular growth trends in cloud and AI across both its components and Enterprise IT Solutions (ECS) segments.
Arrow is strategically shifting towards higher-margin value-added services, which are projected to contribute approximately 30% of total operating income in 2025, an increase from less than 20% historically.
For fiscal year 2025, the Global Components business is expected to achieve nearly $21 billion in sales, and the ECS business anticipates over $9 billion in revenue and approximately $20 billion in billings. The company has also returned approximately $3.5 billion to shareholders through share repurchases since 2020.

3 days ago

Transcript

Arrow Electronics Interim CEO Discusses Strategic Direction and Market Recovery

ARW

CEO Change

New Projects/Investments

M&A

Bill Alston, President and interim CEO of Arrow Electronics, is leading the company while a search for a permanent CEO with operational expertise is underway. The company's strategy is focused on margining up the business by driving profitable growth, shifting from a sole focus on cost reduction.
Arrow is expanding into higher-margin service offerings, including Arrow Intelligence Solutions (high mix, low volume appliances) and Supply Chain Services (fee-based model for managing customer supply chains), both of which yield margins in excess of 2X the semiconductor business. These services are integrated into Global Components and contribute to the profit line.
The global components business is experiencing a gradual recovery, with book-to-bill above parity in all regions. Asia-Pacific volumes are strong, EMEA shows green shoots in industrials, and North America's industrial markets are gradually recovering.
The ECS (Enterprise Computing Solutions) business is a key differentiator, with its market anticipated to grow 10-15% over the next five years. Arrow is implementing a "beyond distribution" fee-based model in ECS to upsize margins.
Arrow's capital allocation priorities remain organic growth, M&A, and returning capital to shareholders through share buybacks. The M&A strategy focuses on strategic, margin-accretive acquisitions (e.g., in the IP&E space) rather than just adding bulk.

Nov 19, 2025, 8:45 PM

Transcript

Arrow Electronics Details Strategic Shift, Market Recovery, and CEO Search

ARW

CEO Change

Revenue Acceleration/Inflection

M&A

Interim CEO Bill Alston is leading the search for a permanent CEO, with a focus on candidates possessing operational expertise.
Arrow Electronics is strategically shifting its focus from cost-cutting to driving higher-margin growth through expanded services, including Arrow Intelligence Solutions, engineering services, and supply chain services, which offer margins 2X that of the semiconductor business. The company is also pushing its ECS "beyond distribution" software selling model to upsize margins.
The company reports a gradual recovery in global components, with book-to-bill ratios above parity across all regions. While Asia-Pacific volumes are strong, EMEA is seeing "green shoots" in industrials, and North America's mass markets are returning.
Management aims to restore pre-pandemic margin levels and maintains capital allocation priorities of organic growth, accretive M&A (particularly in IP&E), and share buybacks.

Nov 19, 2025, 8:45 PM

Transcript

Arrow Electronics Interim CEO Discusses Strategic Shift, Market Recovery, and CEO Search

ARW

CEO Change

New Projects/Investments

M&A

Bill Alston is currently serving as President and interim CEO of Arrow Electronics, a role he has held for approximately seven weeks. The board has initiated a search for a permanent CEO, seeking candidates with operational expertise and a deep understanding of the company's legacy and industry dynamics.
Arrow is strategically shifting its focus from cost reduction to driving growth with higher margins. This involves expanding services such as Aero Intelligence Solutions, engineering services, and supply chain services, which offer margins in excess of 2X compared to the semiconductor business. The ECS business is also a key focus, with its market anticipated to grow 10%-15% over the next five years.
The company is observing a gradual recovery in its global components business, with book-to-bill above parity in all regions for the first time in a while. Arrow aims to return to pre-pandemic margin levels by focusing on operational rigor and higher-margin sales and services.
Capital allocation priorities include organic growth, M&A, and returning capital to shareholders through share buybacks. M&A will target strategic, margin-accretive acquisitions, particularly in the IP&E space, rather than consolidation for bulk. Share buybacks were paused in Q3 to maintain the company's investment-grade rating.

Nov 19, 2025, 8:45 PM

Transcript

Arrow Electronics Reports Q3 2025 Results and Provides Q4 2025 Guidance

ARW

Earnings

CEO Change

Guidance Update

Arrow Electronics reported Q3 2025 revenue of $7.7 billion, an increase of 13% year-over-year, and non-GAAP diluted EPS of $2.41, with both metrics exceeding the company's guidance. For Q4 2025, the company expects sales to be between $7.8 billion and $8.4 billion and non-GAAP diluted EPS between $3.44 and $3.64.
Bill Austen has been appointed Interim President and CEO and confirmed he is not a candidate for the permanent CEO role, with a search for a successor underway.
The company is focused on driving profitable growth by shifting towards an increased mix of higher-margin value-added offerings, including supply chain, engineering, and integration services. A $21 million charge was taken in the ECS business during Q3 2025 due to lower profit expectations on underperforming multi-year contracts.
Management believes the Global Components business is in the early stages of a gradual cyclical upturn, with leading indicators remaining robust, but anticipates a measured pace of recovery into 2026.

Oct 30, 2025, 8:30 PM

Transcript

Arrow Electronics Reports Strong Q3 2025 Results, Provides Q4 Guidance, and Addresses Interim CEO Appointment

ARW

Earnings

Guidance Update

CEO Change

Arrow Electronics reported Q3 2025 revenue of $7.7 billion, an increase of 13% year-over-year, and non-GAAP diluted EPS of $2.41, both exceeding guidance.
The company provided Q4 2025 sales guidance between $7.8 billion and $8.4 billion and non-GAAP diluted EPS between $3.44 and $3.64.
Bill Austen was appointed Interim President and CEO and confirmed he is not a candidate for the permanent role. The company also resolved an issue with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) regarding three Chinese subsidiaries, which are intended to be removed from the entity list.
Arrow is focusing on a shift towards higher-margin value-added offerings and strategic outsourcing in its ECS business, despite taking a $21 million charge in Q3 related to underperforming multi-year contracts in ECS.
Management noted that the market is in the early stages of a gradual recovery, with leading indicators like book-to-bill ratios and backlog showing improvement, but the pace of recovery is expected to be measured into 2026.

Oct 30, 2025, 8:30 PM

Transcript

Arrow Electronics Announces Q3 2025 Results and Q4 2025 Guidance

ARW

Earnings

Guidance Update

Revenue Acceleration/Inflection

Arrow Electronics reported consolidated sales of $7.7 billion and diluted earnings per share of $2.41 for Q3 2025.
The company provided Q4 2025 guidance, anticipating consolidated sales between $7.80 billion and $8.40 billion and non-GAAP diluted earnings per share from $3.44 to $3.64.
The Global Components segment is experiencing early stages of a modest cyclical upturn, with book-to-bill remaining above parity in all regions and backlog growing for three consecutive quarters.
Enterprise Computing Solutions (ECS) sales are driven by secular trends in AI, hybrid cloud, and cybersecurity, with backlog remaining 70%+ higher year over year from recurring, multi-year revenue.

Oct 30, 2025, 8:30 PM

Presentation

Arrow Electronics Reports Q3 2025 Results, Appoints Interim CEO, and Provides Q4 Guidance

ARW

Earnings

CEO Change

Guidance Update

Arrow Electronics reported Q3 2025 revenue of $7.7 billion, an increase of 13% year-over-year, and non-GAAP diluted EPS of $2.41, both exceeding guidance. For Q4 2025, the company expects sales to be between $7.8 billion and $8.4 billion and non-GAAP diluted EPS between $3.44 and $3.64.
The Global Enterprise Computing Solutions (ECS) segment incurred a $21 million charge in Q3 2025, primarily due to lower profit expectations on underperforming multi-year strategic outsourcing contracts. This charge reduced consolidated non-GAAP gross margin by 30 basis points and non-GAAP diluted EPS by $0.31.
Bill Austin has been appointed as the Interim President and CEO of Arrow Electronics, effective Q3 2025. He stated he is not a candidate for the permanent CEO role, and a search firm has been selected to find a successor.
The company observes a gradual recovery in the market, with leading indicators in Global Components remaining robust, and anticipates this measured pace to continue into 2026.

Oct 30, 2025, 8:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for ARROW ELECTRONICS.

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