ARW ARROW ELECTRONICS, INC.

Overview and Growth

In fiscal 2025, ARROW ELECTRONICS, INC. recorded $30.85B of revenue, net income of $571.27M, and an operating cash inflow of $64.05M. At $30.85B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 10.5% from $27.92B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $10.93, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $7.29 in fiscal 2024, the current result was 49.9% higher. The revenue-to-assets relationship was 1.06x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $3.47B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 11.2% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $822.22M, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 2.7%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $571.27M for the fiscal year. Net margin was 1.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $717.93M of earnings, providing a bridge between the operating result and final net income. The pretax margin was 2.3%, relating income before taxes directly to revenue. The company recognized $148.23M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 20.6%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $29.08B of assets against $22.42B of liabilities and $6.66B of equity, revealing how the asset base was financed. The near-term balance sheet paired $25.66B of current assets with $18.85B of current liabilities at the reporting date. At 1.36x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $306.47M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 1.6%, excluding receivables and other current assets. Total debt was $3.09B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.46x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 10.6%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 77.1%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 1.1% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $21.76B in fiscal 2024, the current asset base moved 33.6% and finished higher.

Cash Flow and Earnings Quality

The company reported $64.05M of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 0.11x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $101.25M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 158.1% of operating cash flow, leaving the remainder available as free cash flow. Operating cash flow and capital spending combined to leave a $37.20M cash deficit after capital spending. The free-cash-flow deficit equaled 0.1% of revenue, showing the post-investment cash shortfall relative to sales. The free-cash-flow deficit equaled 0.1% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.