Electronic components distributor Avnet reported its 2025 second quarter financial results on Jan. 29, showing that annual sales declined further while its Asia segment continued to see sales growth.
Avnet posted total 2Q sales of $5.7 billion, down 8.7% year-over-year, but up 1.1% from 1Q. America sales totaled $1.34 billion, down 13.8% year-over-year and up 2.9% sequentially; EMEA sales of $1.5 billion fell 25.1% year-over-year and 5.1% sequentially; and Asia sales of $2.7 billion increased 8.4% year-over-year and 4.1% sequentially.
By business unit in 2Q, Electronic Components sales of $5.3 billion fell 8.5% year-over-year while Farnell sales of $345.6 million likewise declined by 12% year-over-year.
Avnet’s 2Q gross margin of 10.5% fell 50 basis points year-over-year. Operating profit of $155.3 million fell 34.3% year-over-year, while operating margin of 2.7% was slightly above the 2.5% of 1Q but declined by 107 bps year-over-year.
The company’s 2Q net profit of $596 million trailed 1Q’s $607.3 million and likewise declined from 2Q24’s $706.1 million.
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“In the second quarter, we delivered sales and earnings within expectations, while continuing to make good progress managing the factors within our control,” Avnet CEO Phil Gallagher said in the company’s financial release. “Our team’s focus on optimizing inventory and effective operations allowed us to deliver another strong quarter of operating cash flow. Although market conditions are challenging, the value we add at the center of the technology supply chain has never been more important. We remain focused on helping connect out suppliers’ technology solutions to the increasingly complex requirements of our customers.”
Avnet was No. 2 on MDM’s Top Distributor’s List for Electronics.
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