Avnet (AVT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 sales reached $5.7B, down 8.7%–9% year-over-year, with Asia growth offset by declines in EMEA and Americas; adjusted EPS was $0.87, both above guidance midpoint but below prior year.

• Operating income margin was 2.7% (adjusted 2.8%), down from prior year; net income for Q2 was $87.3M.

• Cash flow from operations exceeded $300M in Q2, with $1.2B generated over the past four quarters, driven by inventory optimization and cost management.

• Book-to-bill ratio remained below parity, indicating ongoing demand softness and prolonged market correction.

• Leadership remains optimistic for recovery in late Q4 or summer despite current headwinds.

Financial highlights

• Q2 sales of $5.7B, up 1% sequentially, down 8.7%–9% year-over-year; Americas down 13.8%–14%, EMEA down 25%–25.1%, Asia up 8%–8.4%.

• Gross margin at 10.5%, down 86 bps YoY, mainly due to sales mix shift to Asia.

• Adjusted operating income of $159M–$159.5M (2.8% margin), down 34% YoY.

• Adjusted diluted EPS of $0.87, down 37.9%–38% YoY.

• SG&A expenses: $437M, down 6% YoY; interest expense $62M, down $12M YoY.

Outlook and guidance

• Q3 FY25 sales guidance: $5.05B–$5.35B (midpoint $5.20B), implying a sequential decline of 6%–11%.

• Q3 adjusted diluted EPS guidance: $0.65–$0.75 (midpoint $0.70); GAAP EPS: $0.56–$0.71.

• Guidance reflects expected seasonal decline in Asia due to Lunar New Year and modest declines in Western regions.

• Effective tax rate expected between 22%–26%; 88M diluted shares.