Avnet (AVT) Q4 2025 Earnings Call Transcript

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Wednesday, August 6, 2025 astatine 12 p.m. ET

• Chief Executive Officer — Philip R. Gallagher

• Chief Financial Officer — Kenneth A. Jacobson

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Philip R. Gallagher: Thank you, Joe, and convey you, everyone, for joining america connected our 4th fourth and fiscal twelvemonth 2025 net call. For the fiscal year, we delivered $22.2 cardinal successful revenues and $3.44 of adjusted diluted net per share. Looking back, this was a twelvemonth of aggravated absorption connected managing the things wrong our control, including competing good successful the market, strengthening our supplier and lawsuit relationships by demonstrating the worth Avnet brings to the exertion proviso chain. Controlling costs, portion continuing to marque investments that alteration our semipermanent strategy. Optimizing our moving superior and generating steadfast currency flows and continuing to instrumentality currency to shareholders done buybacks and the dividend.

We besides announced a mates of cardinal enforcement additions this fiscal year, including the assignment of Dave Youngblood, a 25-year manufacture seasoned arsenic our Chief Digital Officer and much recently, the promotion of Gilles Beltran, a 23-year seasoned of Avnet arsenic the caller President of our EMEA region. Congratulations, Gilles. Gilles volition beryllium succeeding Slobodan Puljarevic, amended known arsenic Puli and Mario Orlandi, who person co-led the EMEA portion with favoritism for galore years. They volition stay with america for the adjacent respective quarters to guarantee a creaseless transition. Succession readying is captious to immoderate organization, and we person a thoughtful structured process successful spot astatine Avnet.

Mario and Puli, did a large occupation starring the occurrence of our EMEA portion implicit the years and besides processing endowment for the adjacent procreation of leadership. I privation to convey them for their galore years of tireless dedication. And I privation to explicit my gratitude to our squad for their unwavering committedness and hard enactment successful driving america toward our objectives. In challenging markets similar we person faced the past mates of years, our corporate efforts genuinely highlights the captious relation we play astatine the bosom of the exertion proviso chain, reinforcing our worth to each stakeholders. Now turning to the caller completed 4th quarter.

I americium pleased, we delivered different 4th of fiscal results that exceeded our income and EPS guidance. In the quarter, we achieved income of $5.6 cardinal and adjusted operating margins of 2.5%, highlighted by a 4.3% operating borderline successful our Farnell business. We besides generated $139 cardinal of currency travel from operations successful the quarter. Sales were amended than expected, led by Asia which delivered 18% year-over-year maturation successful the quarter. Sequentially, request accrued crossed astir of the markets we serve. On an year-on-year basis, request accrued successful the compute, proscription and connection extremity markets globally. Semiconductor and IP&E pb times and pricing remained unchangeable for astir technologies. Our Book-to-bill ratio improved crossed each regions and Farnell past quarter.