CDW Holding (BXE) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 1.8% to US$87.4m; net loss narrowed to US$2.9m from US$5.0m, but results remained loss-making for a third consecutive year.

• OEM and Accessories became the largest revenue segment, offsetting weaker LCD Backlight Units and Office Automation sales; diversification and overseas production remain strategic priorities.

Financial highlights

• Revenue increased to US$87.366m from US$85.795m; gross profit declined 2.7% to US$13.189m from US$13.551m.

• Administrative expenses fell to US$13.851m from US$16.487m, while distribution costs were stable at US$1.967m; finance costs rose to US$0.342m from US$0.327m.

• Loss before tax was US$2.508m and loss after tax US$2.859m, versus US$4.770m and US$4.959m in FY2024; basic and diluted loss per share improved to 1.17 US cents from 1.96 cents.

• Income tax expense increased to US$0.351m from US$0.189m; tax credits at loss-making subsidiaries did not fully offset taxes payable at profitable subsidiaries.

Outlook and guidance

• FY2026 operating conditions are expected to remain challenging amid trade-policy changes, tariffs, geopolitical tensions, supply-chain reconfiguration and rising oil and gas prices.

• A new backlight product is under discussion with potential customers; newly secured products are expected to enter mass production progressively from 2027, subject to qualification timelines.

• Thailand production capacity is being expanded for OEM and backlight orders; the Philippines facility is scaling more slowly than planned as efficiency, costs and customer qualification cycles are assessed.

• OA turnover is expected to decline following withdrawal from key-customer contracts from mid-2025; idle capacity is being redirected toward new products and inter-segment production services.