AVNET INC
For the period ended Sep 27, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2025 · Filed Oct 31, 2025
AVT$79.28+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-02.
0000008858-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-27; filed 2025-10-31.
0000008858-25-000066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 68 current paragraphs.
34 unchanged; 28 reworded; 6 added; 12 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Sales of $5.90 billion for the first quarter of fiscal 2026 increased $294.4 million, or 5.3%, as compared to $5.60 billion for the same quarter last year reflecting year-over-year sales growth in both the EC and Farnell operating groups.
Current report
EC sales of $5.50 billion in the first quarter of fiscal 2026 increased $242.6 million, or 4.6%, from the prior year first quarter sales of $5.26 billion, with the Americas and Asia regions contributing to the increase offset by sales declines in the EMEA region. The increase in sales is primarily due to increased demand in the Asia region, most notably in the transportation, compute and communication sectors.
Current report
Comparatively, the Company recorded restructuring, integration, and other expenses of $26.4 million during the first quarter of fiscal 2025 consisting of severance costs of $3.4 million, facility exits costs of $5.2 million, asset impairments of $14.9 million, and integration and other costs of $2.9 million.
Current report
Income tax expense for the first quarter of fiscal 2026 was $25.1 million reflecting an effective tax rate of 32.6% compared to $15.8 million, reflecting an effective tax rate of 21.1% in the first quarter of fiscal 2025. The increase in the effective tax rate for the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025 was primarily due the effect of changes in tax rates enacted in foreign jurisdictions and increases to unrecognized tax benefit reserves net of settlements.
Current report
Net cash used in investing activities decreased during the first quarter of fiscal 2026 by $6.9 million, when compared to the same period in fiscal 2025, primarily due to a decrease in capital expenditures.
Current report
In September 2025, the Company issued $650 million aggregate principal amount of convertible senior notes due 2030 (see Note 4). The Company used the net proceeds to (i) reduce the Credit Facility by $533.8 million and (ii) repurchase $100 million of the Company’s common stock in privately negotiated transactions entered into in connection with the convertible debt offering.
Removed paragraphs (12)
Previous report
Recent developments
Previous report
During the third quarter and first nine months of fiscal 2025, both operating groups continued to experience lower demand for electronic components. Sales of $5.32 billion for the third quarter of fiscal 2025 decreased $338.2 million, or 6.0%, as compared to $5.65 billion for the same quarter last year. Sales for the first nine months of fiscal 2025 were $16.58 billion, a decrease of $1.61 billion as compared to sales of $18.19 billion for the first nine months of fiscal 2024.
Previous report
EC sales of $4.95 billion in the third quarter of fiscal 2025 decreased $297.0 million, or 5.7%, from the prior year third quarter sales of $5.25 billion, with the Americas and EMEA regions contributing to the decrease offset by sales growth in the Asia region. The decrease in sales is primarily due to sales volume decreases due to the market downturn in the electronic components industry and, to a lesser extent, an unfavorable product mix of lower priced electronic components. In the Americas, the Company did not see any meaningful increase in shipments in advance of anticipated tariff increases.
Previous report
In fiscal 2024, the Company initiated a restructuring plan to improve operating income by reducing SG&A expenses including within the Farnell operating group. In the third quarter of fiscal 2025, these efforts continued, leading to $9.1 million in restructuring, integration, and other expenses.
Previous report
During the first nine months of fiscal 2025, the Company incurred restructuring, integration, and other expense costs of $39.3 million. Restructuring expenses consisted of severance and other employee-related expenses of $11.7 million for reduction of over 250 employees across the Company, $5.3 million of facility exit costs primarily related to an office closure in the Americas, $14.9 million of asset impairments, $3.1 million of other restructuring costs primarily related to software licenses not in use, $7.1 million of integration and other costs, and a benefit of $2.8 million for changes in estimates for costs associated with prior year restructuring actions. The after-tax impact of restructuring, integration, and other expenses were $29.0 million and $0.33 per share on a diluted basis.
Previous report
Comparatively, the Company recorded restructuring, integration, and other expenses of $11.8 million and $24.1 million during the third quarter and first nine months of fiscal 2024, respectively.
Previous report
Operating income for the first nine months of fiscal 2025 was $440.8 million, a decrease of $239.4 million, from the first nine months of fiscal 2024 operating income of $680.2 million. The year-over-year decrease in operating income was primarily due to the decrease in sales, lower gross profit margin, and impact from foreign currency exchange rates. Adjusted operating income for the first nine months of fiscal 2025 was $481.2 million, a decrease of $225.5 million or 31.9% from the first nine months of fiscal 2024. Operating income margin was 2.7% in the first nine months of fiscal 2025, a decrease of 108 basis points compared to 3.7% in the prior year first nine months.
Previous report
Gain on Legal Settlements and other
Previous report
During the first nine months of fiscal 2024, the Company recorded a gain on legal settlements and other of $86.5 million in connection with the settlements of claims filed against certain manufacturers of capacitors.
Previous report
Income tax expense for the third quarter and first nine months of fiscal 2025 were $ (9.8) million and $9.0 million, respectively, reflecting an effective tax rate of (12.5)% and 3.7%, respectively. In comparison, for the third quarter and first nine months of fiscal 2024, income tax expense were $13.1 million and $114.9 million, respectively, reflecting an effective tax rate of 12.9% and 21.6%, respectively. The decrease in the effective tax rate for the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024 was primarily due to the increases in tax attribute carryforwards. The decrease in the effective tax rate for the first nine months of fiscal 2025 as compared to the first nine months of fiscal 2024 was primarily due to the increases in tax attribute carryforwards. See Note 7 “Income taxes” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous report
As a result of the factors described above, the Company’s net income for the first nine months of fiscal 2025 was $234.1 million, or $2.65 per share on a diluted basis, as compared with $416.0 million, or $4.52 per share on a diluted basis, in the first nine months of fiscal 2024.
Previous report
The Company’s purchases of property, plant and equipment decreased during the first nine months of fiscal 2025 by $112.3 million, when compared to the same period in fiscal 2024, primarily due to new distribution center investments in EMEA in the first nine months of fiscal 2024. Included in other, net were net proceeds of $9.2 million on the sale of a building received during the first nine months of fiscal 2025.
Reworded paragraphs (28)
Previous wording
Avnet has two primary operating groups — Electronic Components (“EC”) and Farnell. Both operating groups have operations in each of the three major economic regions of the world: (i) the Americas, (ii) EMEA, and (iii) Asia. EC markets, sells, and distributes (i) semiconductors, (ii) interconnect, passive and electromechanical components, and (iii) other integrated and embedded components, to a diverse customer base serving many end-markets. Farnell distributes electronic components and industrial products to a diverse customer base utilizing multi-channel sales and marketing resources.
Current wording
Avnet has two primary operating groups — Electronic Components (“EC”) and Farnell, which are discussed further in Note 12 “Segment information” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous wording
The impact of these changes in trade policies will depend on various factors, including (i) when trade measures are implemented, (ii) the ultimate amount, scope, nature, and duration of tariffs and other trade measures, and (iii) the extent to which the Company can mitigate impacts and pass on any increased costs associated with these changes. In addition, the impact of trade disruptions on general economic conditions and demand for electronic components is difficult to predict. Although the Company cannot fully assess the potential impact to its business at this time, approximately 7% to 10% of the Company’s annual sales in the Americas originates from China.
Current wording
The impact of these changes in trade policies will depend on various factors, including (i) when trade measures are implemented, (ii) the ultimate amount, scope, nature, and duration of tariffs and other trade measures, and (iii) the extent to which the Company can mitigate impacts and pass on any increased costs associated with these changes. In addition, the impact of trade disruptions on general economic conditions and demand for electronic components is difficult to predict.
Previous wording
The global electronic components market has a history of cyclical downturns followed by periods of increased demand. Beginning in the second half of calendar year 2023, the industry began to experience a downturn marked by a decrease in sales due to a combination of elevated customer inventory levels and lower underlying demand for electronic components. As a result, the Company has seen decreased sales, resulting in lower operating income. The duration of the current downturn is uncertain. The Company expects sales in the fourth quarter of fiscal 2025 to be essentially flat compared to the third quarter of fiscal 2025.
Current wording
The global electronic components market has a history of cyclical downturns followed by periods of increased demand. Beginning in the second half of calendar year 2023, the industry began to experience a downturn marked by a decrease in sales due to a combination of elevated customer inventory levels and lower underlying demand for electronic components. As a result, the Company has seen decreased sales, resulting in lower operating income. The duration of the current downturn remains uncertain, however, in the first quarter of fiscal 2026, the Company saw year over year and quarter over quarter sales improvements in the Americas and Asia regions of EC as well as in its Farnell operating group. The Company’s EMEA region of EC continues to have year-over-year sales declines. The Company expects sales in the second quarter of fiscal 2026 to increase approximately 2% compared to first quarter sales of fiscal 2026.
Previous wording
Additionally, the Company’s inventories relative to its sales are higher than they have historically been as a result of this industry downturn. The Company has and may in the future purchase additional inventories from electronic component suppliers, even in an industry downturn, if the Company believes the purchase will benefit the Company’s financial or strategic business objectives.
Current wording
Additionally, the Company’s total inventories relative to its sales continue to be higher than they have historically been as a result of this industry downturn. The Company has and may in the future purchase additional inventories in certain components even in an industry downturn, if the Company believes the purchase will benefit the Company’s financial or strategic business objectives.
Previous wording
The following table presents the percentage change in sales for the third quarter and first nine months of fiscal 2025 as compared to the third quarter and first nine months fiscal 2024, by geographic region and operating group.
Current wording
The following table presents the percentage change in sales for the first quarter of fiscal 2026 as compared to the first quarter of fiscal 2025, by geographic region and operating group.
Previous wording
Farnell sales for the third quarter of fiscal 2025 were $366.7 million, reflecting a decrease of $41.2 million, or 10.1%, compared to the same period in the prior year. The decrease in sales in the third quarter of fiscal 2025 is primarily due to lower demand for on-the-board electronic components.
Current wording
Farnell sales for the first quarter of fiscal 2026 were $398.9 million, reflecting an increase of $51.8 million, or 14.9%, compared to the same period in the prior year. The increase in sales in the first quarter of fiscal 2026 is primarily due to improvement in demand for single board computers globally and for on-the-board electronic components in the Asia and Americas regions.
Previous wording
The Company’s gross profit and gross profit margin are primarily affected by sales volume, product mix, and geographic sales mix. Gross profit for the third quarter of fiscal 2025 decreased $81.4 million, or 12.2% from the third quarter of fiscal 2024. Gross profit for the first nine months of fiscal 2025 decreased $332.3 million, or 15.7% from the first nine months of fiscal 2024.This decrease is primarily due to sales volume decreases in both operating groups and to a lesser extent from the decline in gross profit margin in each operating group.
Current wording
The Company’s gross profit and gross profit margin are primarily affected by sales volume, product mix, and geographic sales mix. Gross profit for the first quarter of fiscal 2026 increased $7.4 million, or 1.2% from the first quarter of fiscal 2025. This increase is primarily due to sales volume increases in both operating groups partially offset by the decline in gross profit margin in the EC operating group including the impact from geographical sales mix.
Previous wording
Gross profit margin decreased by 78 basis points to 11.1% for the third quarter of fiscal 2025 when compared to the third quarter of fiscal 2024 and decreased by 87 basis points to 10.8% for the first nine months of fiscal 2025 when compared to the first nine months of fiscal 2024. The decrease in gross profit margin is primarily due to geographic sales mix, partially offset by increases in gross margin from certain supplier engagements. Sales in the higher gross profit margin western regions represented approximately 53% of sales in the third quarter of fiscal 2025, versus 61% of sales during the third quarter of fiscal 2024.
Current wording
Gross profit margin decreased by 42 basis points to 10.4% for the first quarter of fiscal 2026 when compared to the first quarter of fiscal 2025. The decrease in gross profit margin was partially due to a geographic sales mix to Asia. Sales in the higher gross profit margin western regions represented approximately 51% of sales in the first quarter of fiscal 2026, versus 53% of sales during the first quarter of fiscal 2025. The remaining reduction in gross profit margin was due to declines in gross margin in the EC Americas and EMEA regions primarily due to changes in customer and product mix.
Previous wording
EC gross profit margin decreased year over year largely due to the change in geographic mix. Farnell gross profit margin decreased year over year, primarily due to lower sales of higher margin on-the-board electronic components.
Current wording
EC gross profit margin decreased year over year largely due to the factors discussed above. Farnell gross profit margin increased year over year, primarily due to an increase in product mix of on-the-board components.
Previous wording
Selling, general, and administrative expenses (“SG&A expenses”) decreased $31.8 million or 6.8% from the third quarter of fiscal 2024, and decreased $108.0 million, or 7.6% from the first nine months of fiscal 2024. The decrease in SG&A expenses is primarily due to decreases in variable operating expenses associated with the decrease in sales volumes discussed above, from restructuring actions taken by the Company, from the gain on the sale of a building and by the impact of changes in foreign currency translation rates.
Current wording
Selling, general, and administrative expenses (“SG&A expenses”) increased $25.7 million or 5.9% from the first quarter of fiscal 2025. The increase in SG&A expenses is primarily due to increases in variable operating expenses associated with the increase in sales volumes discussed above and the impact of changes in foreign currency translation rates.
Previous wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the third quarter of fiscal 2025, SG&A expenses were 8.2% of sales and 74.1% of gross profit, as compared with 8.3% and 69.8%, respectively, in the third quarter of fiscal 2024. SG&A expenses were 7.9% as a percentage of sales and 73.2% as a percentage of gross profit for the first nine months of fiscal 2025, as compared with 7.8% and 66.8%, respectively, in the first nine months of fiscal 2024. The year-over-year increases in SG&A expenses as a percentage of both sales and gross profit during the first nine months of fiscal 2025 are primarily due to the decrease in sales and gross profit without a proportional reduction in SG&A expenses, resulting in lower operating leverage.
Current wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the first quarter of fiscal 2026, SG&A expenses were 7.9% of sales and 75.5% of gross profit, as compared with 7.8% and 72.2%, respectively, in the first quarter of fiscal 2025. The year-over-year increase in SG&A expenses as a percentage of gross profit is primarily due to the decline in gross profit margin in EC discussed further above.
Previous wording
As a result of these initiatives, the Company recorded total restructuring, integration, and other expense in the third quarter of fiscal 2025 of $9.1 million comprised of severance and other employee-related expenses of $7.1 million, $2.4 million of integration and other costs, and a benefit of $0.4 million for changes in estimates for costs associated with prior year restructuring actions. The after-tax impact of restructuring, integration, and other expenses were $6.6 million and $0.08 per share on a diluted basis.
Current wording
The Company recorded total restructuring, integration, and other expense in the first quarter of fiscal 2026 of $8.3 million, consisting of $1.6 million of severance and other employee-related expenses, and $6.7 million of integration and other costs. The after-tax impact of restructuring, integration, and other expenses were $5.8 million and $0.07 per share on a diluted basis.
Previous wording
Operating income for the third quarter of fiscal 2025 was $143.3 million, a decrease of $46.9 million or 24.7%, year over year. Operating income margin for the third quarter of fiscal 2025 was 2.7%, a decrease of 66 basis points compared to 3.4% in the third quarter of fiscal 2024. The decreases in operating income and operating income margin are primarily due to the decrease in gross profit primarily from lower sales and from a lower gross profit margin without a proportionate decrease in SG&A expenses, as discussed above. Adjusted operating income for the third quarter of fiscal 2025 was $152.7 million, a decrease of $50.0 million, or 24.7%. Adjusted operating income margin for the third quarter of fiscal 2025 was 2.9% compared to 3.6% in the third quarter of fiscal 2024.
Current wording
Operating income for the first quarter of fiscal 2026 was $142.0 million, a decrease of $0.2 million or 0.1%, year over year. Operating income margin for the first quarter of fiscal 2026 was 2.4%, a decrease of 13 basis points compared to 2.5% in the first quarter of fiscal 2025. Adjusted operating income for the first quarter of fiscal 2026 was $150.7 million, a decrease of $18.3 million, or 10.8%. Adjusted operating income margin for the first quarter of fiscal 2026 was 2.6% compared to 3.0% in the first quarter of fiscal 2025. The decreases in adjusted operating income and adjusted operating income margin are primarily due to the decreases in gross profit margin and the increase in SG&A expenses as discussed further above.
Previous wording
Comparing the third quarter of fiscal 2025 to the third quarter of fiscal 2024, EC operating income decreased 20.6% to $172.2 million, and EC operating income margin decreased 65 basis points to 3.5%, with a decrease in the EMEA region offset by improvements in the Americas and Asia regions. Farnell operating income decreased 32.8% to $11.0 million in the third quarter of fiscal 2025. Farnell operating income margin decreased 101 basis points year over year to 3.0%. The decreases in operating income and operating income margin in both operating groups are due to the decrease in gross profit primarily from lower sales and from a lower gross profit margin without a proportionate decrease in SG&A expenses.
Current wording
Comparing the first quarter of fiscal 2026 to the first quarter of fiscal 2025, EC operating income decreased 19.4% to $159.0 million, and EC operating income margin decreased 86 basis points to 2.9%, with decreases in the EMEA and Americas regions partially offset by an improvement in the Asia region. Farnell operating income increased 819.7% to $17.1 million in the first quarter of fiscal 2026. Farnell operating income margin increased 375 basis points year over year to 4.3%. The increases in operating income and operating income margin in Farnell are due to the higher sales and higher gross profit margin with only a slight increase in SG&A expenses.
Previous wording
Interest and other financing expenses in the third quarter of fiscal 2025 were $61.1 million, a decrease of $12.4 million as compared to $73.5 million in the third quarter of fiscal 2024. Interest and other financing expenses in the first nine months of fiscal 2025 were $188.0 million, a decrease of $30.6 million, as compared with interest and other financing expenses of $218.6 million in the first nine months of fiscal 2024. The decrease in interest and other financing expenses in the third quarter and first nine months of fiscal 2025 compared to fiscal 2024 is primarily a result of lower outstanding borrowings and average borrowing rates.
Current wording
Interest and other financing expenses in the first quarter of fiscal 2026 were $59.8 million, a decrease of $4.7 million as compared to $64.4 million in the first quarter of fiscal 2025. The decrease in interest and other financing expenses in the first quarter of fiscal 2026 compared to fiscal 2025 is primarily a result oflower average borrowing rates.
Previous wording
The Company had other expenses of $4.0 million in the third quarter of fiscal 2025 compared to other expenses of $14.7 million in the third quarter of fiscal 2024. The Company had other expenses of $9.7 million in the first nine months of fiscal 2025, compared to other expenses of $17.1 million in the first nine months of fiscal 2024. The decrease in other expenses in the third quarter and first nine months of fiscal 2025 is primarily due to differences in foreign currency translation losses.
Current wording
The Company had other expenses of $5.5 million in the first quarter of fiscal 2026 compared to other expenses of $3.0 million in the first quarter of fiscal 2025. The increase in other expenses in the first quarter of fiscal 2026 is primarily due to increases in foreign currency translation losses.
Previous wording
As a result of the factors described above, the Company’s net income for the third quarter of fiscal 2025 was $87.9 million, or $1.01 per share on a diluted basis, as compared with $88.8 million, or $0.97 per share on a diluted basis, in the third quarter of fiscal 2024.
Current wording
As a result of the factors described above, the Company’s net income for the first quarter of fiscal 2026 was $51.7 million, or $0.61 per share on a diluted basis, as compared with $59.0 million, or $0.66 per share on a diluted basis, in the first quarter of fiscal 2025. Diluted earnings per share in the first quarter of fiscal 2026 benefited from a 5.5% reduction in diluted shares outstanding compared to the first quarter of fiscal 2025, primarily due to share repurchases over the past year.
Previous wording
Net cash provided by operating activities was $585.0 million for the first nine months of fiscal 2025, compared to net cash provided by operating activities of $415.7 million for the first nine months of fiscal 2024. The $169.3 million increase in net cash provided by operating activities year over year is primarily due to improvements in cash used for working capital and other as working capital levels have begun to be more in line with sales, offset by lower cash provided by net income. Cash generated from working capital and other was $282.4 million during the first nine months of fiscal 2025, compared to cash used of $152.6 million during the first nine months of fiscal 2024, with the difference attributable primarily to reductions in inventory and the timing of payments for inventory purchases. The Company also had decreases in accounts receivable due to timing of sales and collections when compared to the prior fiscal year. Included in other, net was a gain on the sale of a building of $9.2 million recognized during the first nine months of fiscal 2025. The Company received $90.7 million of cash from legal settlements during the first nine months of fiscal 2024.
Current wording
Net cash used for operating activities was $144.6 million for the first quarter of fiscal 2026, compared to net cash provided by operating activities of $106.3 million for the first quarter of fiscal 2025. The $250.9 million increase in net cash used for operating activities year over year is primarily due to cash used for working capital and other. Cash used for working capital and other was $217.5 million during the first quarter of fiscal 2026, compared to $0.8 million of cash generated during the first quarter of fiscal 2025, with the difference attributable primarily to an increase in accounts receivable primarily to support the growth in Asia sales.
Previous wording
Net repayments of debt totaled $270.3 million during the first nine months of fiscal 2025, including net repayments of $418.6 million under the Credit Facility, offset by net proceeds of $84.9 million under the Securitization Program, and $63.4 million for other debt. This compares to $106.3 million of net repayments during the first nine months of the prior fiscal year. The Company has repurchased $253.5 million of common stock under the share repurchase plan during the first nine months of fiscal 2025 compared to $86.0 million in the same period of the prior fiscal year. The Company paid cash dividends to shareholders of $0.99 per share, or $85.6 million, during the first nine months of fiscal 2025 as compared to $0.93 per share, or $84.2 million, during the first nine months of fiscal 2024.
Current wording
Net proceeds of debt totaled $320.8 million during the first quarter of fiscal 2026, including net proceeds of $633.8 million from the issuance of Convertible Notes, and $277.3 million for term loans and other debt, partially offset by net repayments of $290.9 million under the Credit Facility, and $299.4 million under the Securitization Program. This compares to $15.7 million of net proceeds during the first quarter of the prior fiscal year. The Company has repurchased $138.3 million of common stock under its share repurchase plan during the first quarter of fiscal 2026 compared to $100.0 million in the same period of the prior fiscal year. The Company paid cash dividends to shareholders of $0.35 per share, or $28.5 million, during the first quarter of fiscal 2026 as compared to $0.33 per share, or $28.9 million, during the first quarter of fiscal 2025.
Previous wording
For a detailed description of the Company’s long-term debt and lease commitments for the next five years and thereafter, seeLong-Term Contractual Obligations appearing in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2024. There are no material changes to this information outside of normal borrowings and repayments of long-term debt and operating lease payments. The Company does not currently have any material non-cancellable commitments for capital expenditures or inventory purchases outside of the normal course of business.
Current wording
For a detailed description of the Company’s long-term debt and lease commitments for the next five years and thereafter, seeLong-Term Contractual Obligations appearing in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2025 and Note 4 “Debt” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q. There are no material changes to this information outside of the issuance of Convertible Notes, entering into a term loan and other normal borrowings and repayments of long-term debt and operating lease payments. The Company does not currently have any material non-cancellable commitments for capital expenditures or inventory purchases outside of the normal course of business.
Previous wording
See Note 4, “Debt” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information on financing transactions, including the Credit Facility, the Securitization Program, and other outstanding debt as of March 29, 2025. The Company was in compliance with all covenants under the Credit Facility and the Securitization Program as of March 29, 2025, and June 29, 2024.
Current wording
See Note 4, “Debt” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information on financing transactions, including the Credit Facility, the Securitization Program, and other outstanding notes and debt as of September 27, 2025. The Company was in compliance with all covenants under the Credit Facility and the Securitization Program as of September 27, 2025, and June 28, 2025.
Previous wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the short-term working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of third quarter of fiscal 2025 was $99.1 million.
Current wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of first quarter of fiscal 2026 was $119.6 million.
Previous wording
The Company held cash and cash equivalents of $188.9 million as of March 29, 2025, of which $177.2 million was held outside the United States. As of June 29, 2024, the Company held cash and cash equivalents of $310.9 million, of which $179.6 million was held outside of the United States.
Current wording
The Company held cash and cash equivalents of $175.5 million as of September 27, 2025, of which $146.0 million was held outside the United States. As of June 28, 2025, the Company held cash and cash equivalents of $192.4 million, of which $181.8 million was held outside of the United States.
Previous wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company generated $859.3 million in cash flows from operating activities over the trailing four fiscal quarters ended March 29, 2025.
Current wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company generated $473.6 million in cash flows from operating activities over the trailing four fiscal quarters ended September 27, 2025.
Previous wording
As of the end of the third quarter of fiscal 2025, the Company had a combined total borrowing capacity of $2.00 billion under the Credit Facility and the Securitization Program. There were $333.0 million of borrowings outstanding and $0.9 million in letters of credit issued under the Credit Facility, and $500.0 million outstanding under the Securitization Program, resulting in approximately $1.17 billion of total committed availability as of March 29, 2025. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings.
Current wording
As of the end of the first quarter of fiscal 2026, the Company had a combined total borrowing capacity of $2.0 billion under the Credit Facility and the Securitization Program. There were $122.7 million of borrowings outstanding and $0.8 million in letters of credit issued under the Credit Facility, and $200.6 million outstanding under the Securitization Program, resulting in approximately $1.68 billion of total committed availability as of September 27, 2025. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings. The Company expects to repay the $550 million Notes due April 2026 using cash on hand and availability under the Credit Facility.
Previous wording
During the third quarter and first nine months of fiscal 2025, the Company had an average daily balance outstanding of approximately $1.11 billion and $1.08 billion, respectively, under the Credit Facility, and approximately $494.7 million and $487.3 million, respectively, under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Current wording
During the first quarter of fiscal 2026, the Company had an average daily balance outstanding of approximately $774.9 million under the Credit Facility, and approximately $484.7 million under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Previous wording
As of March 29, 2025, the Company may repurchase up to an aggregate of $414.1 million of shares of the Company’s common stock through the share repurchase program approved by the Board of Directors. The Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. During the third quarter of fiscal 2025, the Company repurchased $101.3 million of common stock.
Current wording
As of September 27, 2025, the Company does not expect to repurchase additional shares until its’ consolidated leverage ratio returns to historical levels. When share repurchases resume, the Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. The Company has $225.8 million of shares of capacity remaining on the share repurchase program approved by the Board of Directors.
Previous wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the third quarter of fiscal 2025, the Board of Directors approved a dividend of $0.33 per share, which resulted in $28.2 million of dividend payments during the quarter.
Current wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the first quarter of fiscal 2026, the Board of Directors approved a dividend of $0.35 per share, which resulted in $28.5 million of dividend payments during the quarter.