Arrow Electronics sustained its Q1 momentum into Q2, reporting year on year revenues up 10% to $7.58 billion. First half revenues of $14.4 billion rose 4% against H1 24.
“In our global components business, while momentum in Asia was especially strong, we enjoyed sequential growth in all three operating regions,” said Sean Kerins (pictured), Arrow’s President and CEO. “In addition, our leading indicators continue to suggest that a modest cyclical recovery is in flight.”
In the second quarter of 2025, global components sales exceeded the high end of Arrow’s guidance range, increased 5% year over year, and increased 3% year over year on a constant currency basis.
Americas components second-quarter sales increased 9% year over year to £1.7 billion. EMEA components second-quarter sales slipped 1% year over year to $1.42 billion. Asia-Pacific components second-quarter sales advanced 6% year over year to $2.15 billion.
“In our global ECS business, we delivered year-over-year growth in billings and gross profit. Additionally we saw robust growth in our IT as-a-service backlog, alongside continued adoption of our digital platform, Arrowsphere. Our strategy to concentrate on the higher growth demand trends throughout enterprise IT is gaining momentum,” said Kerins.
In the second quarter of 2025, global ECS sales exceeded the high end of guidance range and increased 23% year over year, and increased 20% year over year on a constant currency basis.
Arrow’s Q3 outlook is for consolidated sales of $7.30 billion to $7.90 billion, with global components sales of $5.30 billion to $5.70 billion, and global enterprise computing solutions sales of $2.00 billion to $2.20 billion.
Said Kerins: “Taking a closer look at our global components business the prolonged cyclical correction is yielding to early signs of a market recovery. All three of our operating regions again delivered sales in excess of typical seasonality.”
“Demand trends were highlighted by broad strength in Asia, improving activity levels in our industrial and transportation markets on a global basis and healthy aerospace and defence patterns in Western markets,” added Kerins. “Additionally, our sales for IP&E components once again grew sequentially and but now also year-over-year, underscoring our continued commitment to specialisation in this accretive and resilient market segment. Lastly, our value-added offerings, namely supply chain management, engineering and design and integration services contributed nicely to our operating margin stability.”
Taking a broader look at the market Kerins continued: “Our book-to-bill ratios are above parity in all three regions. While lead times still approximate pre-pandemic norms, our backlog further improved, growing for a second consecutive quarter. Throughout our large OEM customer base, inventory levels are normalising, illustrated through more sustainable order patterns, providing us with visibility into their real demand. We also believe our mass market customers are still in the later stages of destocking, suggesting there’s still runway for a broader market recovery, particularly in the West.”
