Avnet Stock Earnings Reports

Avnet reported third-quarter FY2025 results ahead of expectations with sales of $5.3 billion (down ~6% YoY and sequentially) and adjusted EPS of $0.84 (above guidance). The company generated $141 million of operating cash flow in the quarter and $859 million over the last four quarters. Regional performance was mixed: Asia grew 13% YoY and was the strongest region, while EMEA declined ~24% YoY and the Americas declined ~9% YoY. Electronic Components sales were down, Farnell showed sequential improvement (sales +6% QoQ) and operating margin for Farnell improved to ~3%. Gross margin was 11.1% (down YoY, up sequentially). Inventory decreased by $57 million on a constant-currency basis (reported inventories rose slightly due to FX), and management continues to prioritize optimizing inventory composition and reducing elevated levels. Book-to-bill is improving globally, with Asia at parity. Management reiterated their mitigation actions for recently enacted tariffs and estimated that 7%–10% of annual Americas sales are products originating from China; they are leveraging global logistics, alternate country-of-origin sourcing and supplier collaboration to reduce tariff impact. Capital allocation highlights: $101 million of share repurchases in the quarter (YTD $251M), quarterly dividend of $0.33 paid, gross leverage ~3.2x and ~$1.2 billion available committed borrowing capacity. Guidance for Q4 FY2025: sales $5.15B–$5.45B and diluted EPS $0.65–$0.75 (midpoint roughly flat vs. Q3, with FX tailwinds assumed). Management emphasized focus on cash generation, working-capital optimization and using Avnet’s global footprint to help customers navigate complexity.