Avnet Inc. has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations. The company operates through two segments, Electronic Components and Farnell, catering to various markets such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. Avnet Inc. distributes electronic component technology, including semiconductors, interconnect, passive, and electromechanical components, and other integrated components from electronic component manufacturers. The Farnell segment distributes kits, tools, electronic and industrial automation components, and test and measurement products to engineers and entrepreneurs.
In fiscal year 2025, Avnet Inc. reported sales of $22.20 billion, a decrease of 6.6% from fiscal 2024. The Electronic Components segment's sales declined by 6.3%, while the Farnell segment experienced a 9.5% decrease in sales. The company's gross profit for fiscal 2025 was $2.38 billion, reflecting a decrease of 13.8% from the previous fiscal year. The gross profit margin decreased to 10.7% in fiscal 2025, primarily due to a shift in geographic sales mix to Asia and lower sales volumes.
Selling, general and administrative expenses (SG&A expenses) for fiscal 2025 were $1.76 billion, a decrease of 5.7% from fiscal 2024. The decrease in SG&A expenses was primarily due to lower sales volumes, restructuring actions, and the impact of changes in foreign currency translation rates. The company incurred $56.1 million for restructuring expenses in fiscal 2025, primarily related to severance, facility exit costs, and integration expenses.
Operating income for fiscal 2025 was $514.3 million, a decrease of 39.1% from fiscal 2024. The company's adjusted operating income for fiscal 2025 was $624.0 million, reflecting a decrease of 30.7% from the previous fiscal year. The decrease in operating income and adjusted operating income was primarily due to lower sales, lower gross profit margin, and the impact of foreign currency exchange rates.
Interest and other financing expenses for fiscal 2025 were $246.4 million, a decrease of 12.9% compared with the previous fiscal year. The company reported other expenses of $17.3 million, primarily due to foreign currency translation losses. Additionally, Avnet Inc. recorded a gain on legal settlements and other of $86.5 million in fiscal 2024, which did not recur in fiscal 2025.
Income tax expenses were $10.4 million in fiscal 2025, reflecting an effective tax rate of 4.1%, compared to income tax expenses of $133.6 million in fiscal 2024, reflecting an effective tax rate of 21.1%.
Following these announcements, the company's shares moved -1.19%, and are now trading at a price of $54.11. For the full picture, make sure to review AVNET INC's 10-K report.
