Electronic components distributor Avnet reported its 2025 first quarter financial results on Oct. 30, showing that annual sales declined, while the company’s Asia region saw a return to growth.

Avnet posted total 1Q sales of $5.6 billion, down 11.6% year-over-year, and down 0.7% from 4Q. Americas sales of $1.3 billion fell 15.5% year-over-year; EMEA sales of $1.6 billion fell 27.7% year-over-year; and Asia sales of $2.6 billion increased 6.2%. By business unit in 1Q, Electronic Components sales of $5.2 billion fell 11.1% year-over-year and Farnell sales of $347.1 million were down 17.6%.

Avnet’s 4Q gross margin of 10.8% fell 97 basis points year-over-year. Operating profit of $142.2 million fell 44% year-over-year, while operating margin of 2.5% trailed the 3.0% of 4Q and the 4.0% of the year prior.

The company’s 1Q net profit of $607.3 million trailed 1Q24’s profit of $748.1 million but was up from 4Q’s $82.7 million.

Looking forward, Avnet expects 2Q25 sales between $5.4 billion to $5.7 billion.

“In the first quarter, our sales and earnings exceeded the upper end of our guidance range led by a return to growth in our Asia region,” Avnet CEO Phil Gallagher said in the company’s 1Q report. “We continue to focus on improving the performance of our Farnell business and remain committed to improving its operating model and profitability. Despite uneven market conditions, our team continues to operate effectively, and I want to thank them for their execution and for maintaining collaborative relationships with our customers and suppliers.”

In its fiscal 2024 that ended June 29, Avnet posted full year sales of $23.8 billion — which trailed 2023’s $26.5 billion — and net profit of $499 million, which decreased by 35.3% year-over-year.

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