Ingram Micro Reports Q3 2025 Financial Results with Net Sales Up 7.2%, Delivering Fourth Consecutive Quarter of Net Sales Growth
-
Net sales of
$12,604 million 7.2% over prior year -
Gross profit of
$869.6 million -
Net income of
$99.5 million $168.7 million -
Diluted earnings per share (“EPS”) of
$0.42 $0.72 -
Quarterly dividend increased by
2.6% to$0.08
“Ingram Micro had a strong third quarter and we enter the fourth quarter with confidence. We grew across our geographies and are encouraged by the momentum of our Xvantage digital experience platform,” said Paul Bay, Ingram Micro’s Chief Executive Officer. “In the third quarter, the opportunity around AI accelerated. As we have done in past technology transformations, we are empowering customers to capitalize on this massive opportunity by offering a unified platform to buy integrated hardware, software, cloud, and services. We are uniquely positioned to empower our customers in the AI era through our proprietary Xvantage platform and customer-facing AI Enable program.”
“Third quarter performance was strong across all key metrics through solid execution and disciplined expense management,” said Mike Zilis, Ingram Micro’s Chief Financial Officer. “Our ability to navigate an evolving macro environment and cyclical changes in product mix, while continuing to invest in our Xvantage platform and key areas of strategic growth, demonstrates the strength and agility of our operating model. As we look to Q4, we expect to continue our trend of year-over-year net sales growth, as we remain focused on capturing additional market opportunities.”
Consolidated Fiscal Third Quarter 2025 Results(1)
|
Thirteen Weeks Ended
|
|
Thirteen Weeks Ended
|
|
2025 vs. 2024 |
|||||||||
($ in thousands, except per share data) |
Amount |
|
% of Net
|
|
Amount |
|
% of Net
|
|
||||||
Net sales |
$ |
12,603,755 |
|
|
|
$ |
11,762,628 |
|
|
|
$ |
841,127 |
||
Gross profit |
|
869,647 |
|
6.90 |
% |
|
|
845,492 |
|
7.19 |
% |
|
|
24,155 |
Income from operations |
|
223,513 |
|
1.77 |
% |
|
|
218,174 |
|
1.85 |
% |
|
|
5,339 |
Net income |
|
99,457 |
|
0.79 |
% |
|
|
76,969 |
|
0.65 |
% |
|
|
22,488 |
Adjusted Income from Operations |
|
257,864 |
|
2.05 |
% |
|
|
253,949 |
|
2.16 |
% |
|
|
3,915 |
Adjusted EBITDA |
|
342,218 |
|
2.72 |
% |
|
|
331,574 |
|
2.82 |
% |
|
|
10,644 |
Non-GAAP Net Income |
|
168,749 |
|
1.34 |
% |
|
|
159,162 |
|
1.35 |
% |
|
|
9,587 |
EPS: |
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.42 |
|
|
|
$ |
0.35 |
|
|
|
|
|||
Diluted |
$ |
0.42 |
|
|
|
$ |
0.35 |
|
|
|
|
|||
Non-GAAP EPS: |
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.72 |
|
|
|
$ |
0.72 |
|
|
|
|
|||
Diluted |
$ |
0.72 |
|
|
|
$ |
0.72 |
|
|
|
|
|||
Consolidated Fiscal Third Quarter 2025 Financial Highlights
-
Net sales totaled
$12.6 billion $11.8 billion 7.2% . The growth was driven by year-over-year increases in net sales across each of our geographic segments. The translation impact of foreign currencies relative to theU.S. dollar had a1% positive impact on the year-over-year net sales comparison. -
Gross profit grew to
$869.6 million $845.5 million 7.2% . -
Gross margin was
6.90% , compared to7.19% in the prior fiscal third quarter. The year-over-year decrease in gross margin was driven by a shift in sales mix toward lower-margin but generally lower-cost-to-serve business, including (1) client and endpoint solutions, (2) within our advanced solutions product categories toward server, storage, and other AI-enablement product sets, (3) large enterprise customers, and (4) ourAsia-Pacific region . -
Income from operations was
$223.5 million $218.2 million $257.9 million $253.9 million $3.5 million $5.5 million North America region completed during the third quarter of 2025. -
Income from operations margin was
1.77% , compared to1.85% in the prior fiscal third quarter. Adjusted income from operations margin was2.05% compared to2.16% in the prior fiscal third quarter. The year-over-year comparisons are reflective of a lower gross margin profile largely offset by improved operating expense leverage. -
Adjusted EBITDA was
$342.2 million $331.6 million -
Diluted EPS was
$0.42 $0.35 $0.72 -
Cash flow metrics were stronger than typical Q3 seasonal norms, with cash used in operations at
$146.0 million $277.0 million $(109.9) million $(254.6) million
Regional Fiscal Third Quarter 2025 Financial Highlights
Net sales were
Income from operations was
Income from operations margin was
EMEA
Net sales were
Income from operations was
Income from operations margin was
Net sales were
Income from operations was
Income from operations margin was
Net sales were
Income from operations was
Income from operations margin was
Fiscal Fourth Quarter 2025 Outlook
The following outlook is forward-looking, based on the Company’s current expectations for the fiscal fourth quarter 2025, and actual results may differ materially from what is indicated. We provide EPS guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control.(1)
|
Thirteen Weeks Ended December 27, 2025 |
||||
($ in millions, except per share data) |
Low |
|
High |
||
Net sales |
$ |
14,000 |
|
$ |
14,350 |
Gross profit |
$ |
935 |
|
$ |
990 |
Non-GAAP Diluted EPS |
$ |
0.85 |
|
$ |
0.95 |
Our fiscal fourth quarter 2025 guidance assumes an effective tax rate of approximately
Dividend Increase and Payment
The Company’s board of directors has declared a cash dividend of
Fiscal Third Quarter 2025 Earnings Call Details:
Ingram Micro’s management will host a call to discuss its results on Thursday, October 30, 2025 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time).
A live webcast of the conference call will be accessible from the Ingram Micro investor relations website at https://ir.ingrammicro.com. The call can also be accessed at 877-407-9781 or 201-689-8796.
A telephonic replay will be available through December 31, 2025, at 877-660-6853 or 201-612-7415. A replay of the webcast will also be available at https://ir.ingrammicro.com.
About Ingram Micro
Ingram Micro (NYSE: INGM) is a leading technology company for the global information technology ecosystem. With the ability to reach nearly
(1) Use of Non-GAAP Financial Measures
In addition to presenting financial results that have been prepared in accordance with accounting principles generally accepted in
Safe Harbor Statement
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements are included throughout this release and relate to matters such as our industry, growth strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Certain important factors that involve risks and uncertainties and that could cause actual results to differ, possibly materially, from our expectations, beliefs, and projections reflected in such forward-looking statements can be found in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” sections included in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
There are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this release. Such risks, uncertainties, and other important factors include, among others, the risks, uncertainties, and factors included within the filings we make with the SEC from time to time and the following: general economic conditions; our estimates of the size of the markets for our products and services; our ability to identify and integrate acquisitions and technologies into our platform; our plans to continue to expand; our ability to continue to successfully develop and deploy Ingram Micro Xvantage™; our ability to retain and recruit key personnel; the competition our products and services face and our ability to adapt to industry changes and market conditions, including inflation, market volatility, and supply constraints for many categories of technology; current and potential litigation involving us; the global nature of our business, including the various laws and regulations applicable to us now or in the future; the effect of various political, geopolitical, and macroeconomic issues and developments, including changes in tariffs or global trade policies and the related uncertainties associated with such developments, import/export and licensing restrictions, and our ability to comply with laws and regulations we are subject to, both in
Ingram Micro, Xvantage, and associated logos are trademarks of Ingram Micro Inc. (an indirect subsidiary of Ingram Micro Holding Corporation) or its licensors.
Results of Operations
INGRAM MICRO HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value and share data)
(Unaudited)
|
September 27,
|
|
December 28,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
802,630 |
|
|
$ |
918,401 |
|
Trade accounts receivable (less allowances of |
|
9,194,911 |
|
|
|
9,448,354 |
|
Inventory |
|
5,366,309 |
|
|
|
4,699,483 |
|
Other current assets |
|
856,533 |
|
|
|
734,939 |
|
Total current assets |
|
16,220,383 |
|
|
|
15,801,177 |
|
Property and equipment, net |
|
524,464 |
|
|
|
482,503 |
|
Operating lease right-of-use assets |
|
412,682 |
|
|
|
412,662 |
|
Goodwill |
|
852,312 |
|
|
|
833,662 |
|
Intangible assets, net |
|
729,292 |
|
|
|
772,571 |
|
Other assets |
|
484,780 |
|
|
|
477,115 |
|
Total assets |
$ |
19,223,913 |
|
|
$ |
18,779,690 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
9,611,319 |
|
|
$ |
10,005,824 |
|
Accrued expenses and other |
|
1,033,845 |
|
|
|
1,021,958 |
|
Short-term debt and current maturities of long-term debt |
|
735,725 |
|
|
|
184,860 |
|
Short-term operating lease liabilities |
|
96,427 |
|
|
|
93,889 |
|
Total current liabilities |
|
11,477,316 |
|
|
|
11,306,531 |
|
Long-term debt, less current maturities |
|
3,059,612 |
|
|
|
3,168,280 |
|
Long-term operating lease liabilities, net of current portion |
|
380,147 |
|
|
|
369,493 |
|
Other liabilities |
|
204,463 |
|
|
|
201,511 |
|
Total liabilities |
|
15,121,538 |
|
|
|
15,045,815 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common Stock, par value |
|
2,348 |
|
|
|
2,348 |
|
Additional paid-in capital |
|
2,918,949 |
|
|
|
2,903,842 |
|
Retained earnings |
|
1,484,725 |
|
|
|
1,337,399 |
|
Accumulated other comprehensive loss |
|
(303,647 |
) |
|
|
(509,714 |
) |
Total stockholders’ equity |
|
4,102,375 |
|
|
|
3,733,875 |
|
Total liabilities and stockholders’ equity |
$ |
19,223,913 |
|
|
$ |
18,779,690 |
|
INGRAM MICRO HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
September
|
|
September
|
|
September
|
|
September
|
||||||||
Net sales |
$ |
12,603,755 |
|
|
$ |
11,762,628 |
|
|
$ |
37,678,554 |
|
|
$ |
34,639,001 |
|
Cost of sales |
|
11,734,108 |
|
|
|
10,917,136 |
|
|
|
35,140,986 |
|
|
|
32,130,141 |
|
Gross profit |
|
869,647 |
|
|
|
845,492 |
|
|
|
2,537,568 |
|
|
|
2,508,860 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
642,595 |
|
|
|
627,825 |
|
|
|
1,964,882 |
|
|
|
1,917,419 |
|
Restructuring costs |
|
3,539 |
|
|
|
(507 |
) |
|
|
5,493 |
|
|
|
22,018 |
|
Total operating expenses |
|
646,134 |
|
|
|
627,318 |
|
|
|
1,970,375 |
|
|
|
1,939,437 |
|
Income from operations |
|
223,513 |
|
|
|
218,174 |
|
|
|
567,193 |
|
|
|
569,423 |
|
Other (income) expense: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
(12,910 |
) |
|
|
(11,791 |
) |
|
|
(36,793 |
) |
|
|
(32,156 |
) |
Interest expense |
|
81,720 |
|
|
|
86,254 |
|
|
|
229,493 |
|
|
|
257,790 |
|
Net foreign currency exchange (gain) loss |
|
(10,207 |
) |
|
|
10,675 |
|
|
|
34,121 |
|
|
|
29,938 |
|
Other |
|
14,381 |
|
|
|
13,813 |
|
|
|
29,555 |
|
|
|
34,784 |
|
Total other (income) expense |
|
72,984 |
|
|
|
98,951 |
|
|
|
256,376 |
|
|
|
290,356 |
|
Income before income taxes |
|
150,529 |
|
|
|
119,223 |
|
|
|
310,817 |
|
|
|
279,067 |
|
Provision for income taxes |
|
51,072 |
|
|
|
42,254 |
|
|
|
104,345 |
|
|
|
97,961 |
|
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Basic earnings per share |
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.81 |
|
Diluted earnings per share |
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.81 |
|
INGRAM MICRO HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
|
Thirteen Weeks Ended |
|
Thirty-Nine Weeks Ended |
||||||||||||
|
September
|
|
September
|
|
September
|
|
September
|
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Adjustments to reconcile net income to cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
48,032 |
|
|
|
48,441 |
|
|
|
146,013 |
|
|
|
140,902 |
|
Stock-based compensation |
|
6,018 |
|
|
|
— |
|
|
|
15,107 |
|
|
|
— |
|
Noncash charges for interest and bond discount amortization |
|
4,738 |
|
|
|
6,529 |
|
|
|
14,090 |
|
|
|
21,607 |
|
Amortization of lease right-of-use asset |
|
30,466 |
|
|
|
32,213 |
|
|
|
92,531 |
|
|
|
96,780 |
|
Deferred income taxes |
|
8,872 |
|
|
|
(16,000 |
) |
|
|
(17,982 |
) |
|
|
(36,493 |
) |
(Gain) loss on foreign exchange |
|
(4,730 |
) |
|
|
(13,269 |
) |
|
|
40,763 |
|
|
|
(5,106 |
) |
Loss on sale of subsidiaries |
|
5,491 |
|
|
|
— |
|
|
|
38,248 |
|
|
|
— |
|
Other |
|
(6,770 |
) |
|
|
(3,721 |
) |
|
|
(11,666 |
) |
|
|
(10,524 |
) |
Changes in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
|
||||||||
Trade accounts receivable |
|
(175,338 |
) |
|
|
(709,810 |
) |
|
|
287,900 |
|
|
|
(109,758 |
) |
Inventory |
|
110,566 |
|
|
|
(123,280 |
) |
|
|
(513,322 |
) |
|
|
(286,770 |
) |
Other assets |
|
57,193 |
|
|
|
(20,409 |
) |
|
|
(130,194 |
) |
|
|
(85,682 |
) |
Accounts payable |
|
(387,209 |
) |
|
|
502,338 |
|
|
|
(519,813 |
) |
|
|
245,182 |
|
Change in book overdrafts |
|
11,507 |
|
|
|
(55,083 |
) |
|
|
(172,553 |
) |
|
|
37,110 |
|
Operating lease liabilities |
|
14,063 |
|
|
|
(32,035 |
) |
|
|
(73,576 |
) |
|
|
(94,555 |
) |
Accrued expenses and other |
|
31,606 |
|
|
|
30,077 |
|
|
|
(46,446 |
) |
|
|
(69,921 |
) |
Cash (used in) provided by operating activities |
|
(146,038 |
) |
|
|
(277,040 |
) |
|
|
(644,428 |
) |
|
|
23,878 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(28,968 |
) |
|
|
(37,955 |
) |
|
|
(93,929 |
) |
|
|
(106,643 |
) |
Proceeds from deferred purchase price of factored receivables |
|
65,062 |
|
|
|
60,362 |
|
|
|
206,507 |
|
|
|
188,877 |
|
Issuance of notes receivable |
|
— |
|
|
|
(5,318 |
) |
|
|
(12,501 |
) |
|
|
(48,692 |
) |
Proceeds from notes receivable |
|
10,662 |
|
|
|
7,868 |
|
|
|
31,172 |
|
|
|
29,465 |
|
Proceeds from the sale of subsidiaries |
|
17,500 |
|
|
|
— |
|
|
|
17,500 |
|
|
|
— |
|
Proceeds from sale of equity investments |
|
— |
|
|
|
4,342 |
|
|
|
20,805 |
|
|
|
12,012 |
|
Other |
|
1,883 |
|
|
|
642 |
|
|
|
13,303 |
|
|
|
1,989 |
|
Cash provided by investing activities |
|
66,139 |
|
|
|
29,941 |
|
|
|
182,857 |
|
|
|
77,008 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Dividends paid to stockholders |
|
(18,318 |
) |
|
|
— |
|
|
|
(59,146 |
) |
|
|
(6,174 |
) |
Change in unremitted cash collections from servicing factored receivables |
|
1,118 |
|
|
|
(6,982 |
) |
|
|
(2,469 |
) |
|
|
(15,612 |
) |
Repayment of Term Loans |
|
— |
|
|
|
(100,000 |
) |
|
|
(125,000 |
) |
|
|
(250,000 |
) |
Gross proceeds from other debt |
|
36,896 |
|
|
|
47,306 |
|
|
|
66,716 |
|
|
|
89,132 |
|
Gross repayments of other debt |
|
(47,123 |
) |
|
|
(55,169 |
) |
|
|
(79,697 |
) |
|
|
(105,002 |
) |
Net proceeds from revolving and other credit facilities |
|
76,336 |
|
|
|
299,535 |
|
|
|
528,497 |
|
|
|
162,617 |
|
Purchase of Colsof shares |
|
— |
|
|
|
(21,846 |
) |
|
|
— |
|
|
|
(21,846 |
) |
Other |
|
(6,250 |
) |
|
|
(10,605 |
) |
|
|
(13,269 |
) |
|
|
(11,539 |
) |
Cash provided by (used in) financing activities |
|
42,659 |
|
|
|
152,239 |
|
|
|
315,632 |
|
|
|
(158,424 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(16,798 |
) |
|
|
15,570 |
|
|
|
30,168 |
|
|
|
(41,480 |
) |
Decrease in cash and cash equivalents |
|
(54,038 |
) |
|
|
(79,290 |
) |
|
|
(115,771 |
) |
|
|
(99,018 |
) |
Cash and cash equivalents at beginning of period |
|
856,668 |
|
|
|
928,762 |
|
|
|
918,401 |
|
|
|
948,490 |
|
Cash and cash equivalents at end of period |
$ |
802,630 |
|
|
$ |
849,472 |
|
|
$ |
802,630 |
|
|
$ |
849,472 |
|
Supplemental disclosure of non-cash investing information: |
|
|
|
|
|
|
|
||||||||
Amounts obtained as a beneficial interest in exchange for transferring trade receivables in factoring arrangements |
$ |
70,682 |
|
|
$ |
60,879 |
|
|
$ |
199,643 |
|
|
$ |
185,688 |
|
Supplemental Information
SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
In addition to its reported results calculated in accordance with
- Adjusted Income from Operations means income from operations plus (i) amortization of intangibles, (ii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iii) integration and transition costs, and (iv) the advisory fees paid to Platinum Equity Advisors, LLC (“Platinum Advisors”), an entity affiliated with Platinum, under a corporate advisory services agreement (which has been terminated as a result of our initial public offering (“IPO”)) (such terminated agreement, the “CASA”).
- We define adjusted EBITDA as EBITDA (calculated as net income before net interest expense, income taxes, depreciation and amortization expenses) adjusted to give effect to (i) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (ii) net realized and unrealized foreign currency exchange gains and losses including net gains and losses on derivative instruments not receiving hedge accounting treatment, (iii) costs of integration, transition, and operational improvement initiatives, as well as consulting, retention and transition costs associated with our organizational effectiveness programs charged to selling, general and administrative expenses, (iv) the advisory fees paid to Platinum Advisors under the CASA, (v) cash-based compensation expense associated with our cash-based long-term incentive program for certain employees in lieu of equity-based compensation prior to the IPO, (vi) stock-based compensation expense for restricted stock units issued in connection with our IPO, and (vii) certain other items as defined in our credit agreements.
- ROIC is defined as net income divided by the invested capital for the period. Invested capital is equal to stockholders’ equity plus long-term debt plus short-term debt and the current maturities of long-term debt less cash and cash equivalents at the end of each period.
- Adjusted ROIC is defined as adjusted net income divided by the invested capital for the period. Adjusted net income for a particular period is defined as net income plus (i) other income/expense, (ii) amortization of intangibles, (iii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iv) integration and transition costs, (v) the advisory fees paid to Platinum Advisors under the CASA, plus (vi) the GAAP tax provisions for and/or valuation allowances on items (i), (ii), (iii), (iv) and (v), plus (vii) the GAAP tax provisions for and/or valuation allowances on large non-recurring or discrete items.
- We define non-GAAP net income as net income adjusted to give effect to (i) amortization of intangibles, (ii) restructuring costs incurred primarily related to employee termination benefits in connection with actions to align our cost structure in certain markets, (iii) net realized and unrealized foreign currency exchange gains and losses including net gains and losses on derivative instruments not receiving hedge accounting treatment, (iv) costs of integration, transition, and operational improvement initiatives, as well as consulting, retention and transition costs associated with our organizational effectiveness programs charged to selling, general and administrative expenses, (v) the advisory fees paid to Platinum Advisors under the CASA, (vi) cash-based compensation expense associated with our cash-based long-term incentive program for certain employees in lieu of equity-based compensation prior to our IPO, (vii) stock-based compensation expense for restricted stock units issued in connection with our IPO, (viii) certain other items as defined in our credit agreements, (ix) the GAAP tax provisions for and/or valuation allowances on items (i), (ii), (iii), (iv), (v), (vi), (vii), and (viii), and (x) the GAAP tax provisions for and/or valuation allowances on large non-recurring or discrete items. This metric differs from adjusted net income, which is a component of adjusted ROIC as described above.
- We define adjusted free cash flow as net income adjusted to give effect to (i) depreciation and amortization, (ii) other non-cash items and changes to non-working capital assets/liabilities, (iii) changes in working capital, (iv) proceeds from the deferred purchase price of factored receivables, and (v) capital expenditures.
- We define non-GAAP basic EPS as non-GAAP net income divided by the weighted-average shares outstanding during the period presented. Non-GAAP diluted EPS is calculated by dividing non-GAAP net income by the weighted-average shares outstanding during the period presented, inclusive of the dilutive effect of participating securities.
The following is a reconciliation of income from operations to adjusted income from operations:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
|||||
Income from operations |
$ |
223,513 |
|
$ |
218,174 |
|
|
$ |
567,193 |
|
$ |
569,423 |
Amortization of intangibles |
|
19,734 |
|
|
21,771 |
|
|
|
63,031 |
|
|
65,265 |
Restructuring costs |
|
3,539 |
|
|
(507 |
) |
|
|
5,493 |
|
|
22,018 |
Integration and transition costs |
|
11,078 |
|
|
8,261 |
|
|
|
52,257 |
|
|
18,968 |
Advisory fee |
|
— |
|
|
6,250 |
|
|
|
— |
|
|
18,750 |
Adjusted Income from Operations |
$ |
257,864 |
|
$ |
253,949 |
|
|
$ |
687,974 |
|
$ |
694,424 |
The following is a reconciliation of net income to adjusted EBITDA:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
||||||||
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Interest income |
|
(12,910 |
) |
|
|
(11,791 |
) |
|
|
(36,793 |
) |
|
|
(32,156 |
) |
Interest expense |
|
81,720 |
|
|
|
86,254 |
|
|
|
229,493 |
|
|
|
257,790 |
|
Provision for income taxes |
|
51,072 |
|
|
|
42,254 |
|
|
|
104,345 |
|
|
|
97,961 |
|
Depreciation and amortization |
|
48,032 |
|
|
|
48,441 |
|
|
|
146,013 |
|
|
|
140,902 |
|
EBITDA |
$ |
267,371 |
|
|
$ |
242,127 |
|
|
$ |
649,530 |
|
|
$ |
645,603 |
|
Restructuring costs |
|
3,539 |
|
|
|
(507 |
) |
|
|
5,493 |
|
|
|
22,018 |
|
Net foreign currency exchange (gain) loss |
|
(10,207 |
) |
|
|
10,675 |
|
|
|
34,121 |
|
|
|
29,938 |
|
Integration, transition and operational improvement costs |
|
51,458 |
|
|
|
45,951 |
|
|
|
168,340 |
|
|
|
111,474 |
|
Advisory fee |
|
— |
|
|
|
6,250 |
|
|
|
— |
|
|
|
18,750 |
|
Cash-based compensation expense |
|
3,925 |
|
|
|
6,087 |
|
|
|
13,893 |
|
|
|
18,332 |
|
Stock-based compensation expense |
|
6,018 |
|
|
|
— |
|
|
|
15,107 |
|
|
|
— |
|
Other |
|
20,114 |
|
|
|
20,991 |
|
|
|
40,474 |
|
|
|
54,458 |
|
Adjusted EBITDA |
$ |
342,218 |
|
|
$ |
331,574 |
|
|
$ |
926,958 |
|
|
$ |
900,573 |
|
The following is a reconciliation of net income to ROIC:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
||||||||
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
|
|
|
|
|
|
|
|
||||||||
Stockholders' equity |
|
4,102,375 |
|
|
|
3,613,905 |
|
|
|
4,102,375 |
|
|
|
3,613,905 |
|
Long-term debt |
|
3,059,612 |
|
|
|
3,344,033 |
|
|
|
3,059,612 |
|
|
|
3,344,033 |
|
Short-term debt and current maturities of long-term debt |
|
735,725 |
|
|
|
494,418 |
|
|
|
735,725 |
|
|
|
494,418 |
|
Cash and cash equivalents |
|
(802,630 |
) |
|
|
(849,472 |
) |
|
|
(802,630 |
) |
|
|
(849,472 |
) |
Invested capital |
$ |
7,095,082 |
|
|
$ |
6,602,884 |
|
|
$ |
7,095,082 |
|
|
$ |
6,602,884 |
|
|
|
|
|
|
|
|
|
||||||||
Return on Invested Capital |
|
5.6 |
% |
|
|
4.7 |
% |
|
|
3.9 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Period in weeks for non-52 week periods |
|
13 |
|
|
|
13 |
|
|
|
39 |
|
|
|
39 |
|
Number of weeks |
|
52 |
|
|
|
52 |
|
|
|
52 |
|
|
|
52 |
|
The following is a reconciliation of net income to adjusted ROIC:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
||||||||
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
|
||||||||
Other (income) expense |
|
72,984 |
|
|
|
98,951 |
|
|
|
256,376 |
|
|
|
290,356 |
|
Amortization of intangibles |
|
19,734 |
|
|
|
21,771 |
|
|
|
63,031 |
|
|
|
65,265 |
|
Restructuring costs |
|
3,539 |
|
|
|
(507 |
) |
|
|
5,493 |
|
|
|
22,018 |
|
Integration and transition costs |
|
11,078 |
|
|
|
8,261 |
|
|
|
52,257 |
|
|
|
18,968 |
|
Advisory fee |
|
— |
|
|
|
6,250 |
|
|
|
— |
|
|
|
18,750 |
|
Tax adjustments: |
|
|
|
|
|
|
|
||||||||
Tax impact of pre-tax adjustments (a) |
|
(27,078 |
) |
|
|
(27,182 |
) |
|
|
(94,139 |
) |
|
|
(89,238 |
) |
Other discrete items (b) |
|
(932 |
) |
|
|
870 |
|
|
|
(1,029 |
) |
|
|
(296 |
) |
Adjusted net income |
$ |
178,782 |
|
|
$ |
185,383 |
|
|
$ |
488,461 |
|
|
$ |
506,929 |
|
|
|
|
|
|
|
|
|
||||||||
Stockholders' equity |
|
4,102,375 |
|
|
|
3,613,905 |
|
|
|
4,102,375 |
|
|
|
3,613,905 |
|
Long-term debt |
|
3,059,612 |
|
|
|
3,344,033 |
|
|
|
3,059,612 |
|
|
|
3,344,033 |
|
Short-term debt and current maturities of long-term debt |
|
735,725 |
|
|
|
494,418 |
|
|
|
735,725 |
|
|
|
494,418 |
|
Cash and cash equivalents |
|
(802,630 |
) |
|
|
(849,472 |
) |
|
|
(802,630 |
) |
|
|
(849,472 |
) |
Invested Capital |
$ |
7,095,082 |
|
|
$ |
6,602,884 |
|
|
$ |
7,095,082 |
|
|
$ |
6,602,884 |
|
|
|
|
|
|
|
|
|
||||||||
Number of Days |
|
91 |
|
|
|
91 |
|
|
|
273 |
|
|
|
273 |
|
Adjusted Return on Invested Capital |
|
10.1 |
% |
|
|
11.2 |
% |
|
|
9.2 |
% |
|
|
10.2 |
% |
(a) |
Tax impact of pre-tax adjustments reflects the current and deferred income taxes associated with the above pre-tax adjustments in arriving at adjusted net income. |
(b) |
Other discrete items represent non-recurring adjustments of uncertain tax liabilities of ( |
The following is a reconciliation of net income to non-GAAP net income:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
||||||||
Net income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Pre-tax adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
19,734 |
|
|
|
21,771 |
|
|
|
63,031 |
|
|
|
65,265 |
|
Restructuring costs |
|
3,539 |
|
|
|
(507 |
) |
|
|
5,493 |
|
|
|
22,018 |
|
Net foreign currency exchange (gain) loss |
|
(10,207 |
) |
|
|
10,675 |
|
|
|
34,121 |
|
|
|
29,938 |
|
Integration, transition and operational improvement costs |
|
51,458 |
|
|
|
45,951 |
|
|
|
168,340 |
|
|
|
111,474 |
|
Advisory fee |
|
— |
|
|
|
6,250 |
|
|
|
— |
|
|
|
18,750 |
|
Cash-based compensation expense |
|
3,925 |
|
|
|
6,087 |
|
|
|
13,893 |
|
|
|
18,332 |
|
Stock-based compensation expense |
|
6,018 |
|
|
|
— |
|
|
|
15,107 |
|
|
|
— |
|
Other items |
|
17,997 |
|
|
|
18,657 |
|
|
|
34,540 |
|
|
|
46,487 |
|
Tax Adjustments: |
|
|
|
|
|
|
|
||||||||
Tax impact of pre-tax adjustments (a) |
|
(22,240 |
) |
|
|
(27,561 |
) |
|
|
(84,709 |
) |
|
|
(78,285 |
) |
Other miscellaneous tax adjustments (b) |
|
(932 |
) |
|
|
870 |
|
|
|
(1,029 |
) |
|
|
(296 |
) |
Non-GAAP Net Income |
$ |
168,749 |
|
|
$ |
159,162 |
|
|
$ |
455,259 |
|
|
$ |
414,789 |
|
(a) |
Tax impact of pre-tax adjustments reflects the current and deferred income taxes associated with the above pre-tax adjustments in arriving at non-GAAP net income. |
(b) |
Other miscellaneous tax adjustments represent non-recurring adjustments of uncertain tax liabilities of ( |
The following is a reconciliation of net income to adjusted free cash flow:
($ in thousands) |
Thirteen Weeks
|
|
Thirteen Weeks
|
|
Thirty-Nine Weeks
|
|
Thirty-Nine Weeks
|
||||||||
Net Income |
$ |
99,457 |
|
|
$ |
76,969 |
|
|
$ |
206,472 |
|
|
$ |
181,106 |
|
Depreciation and amortization |
|
48,032 |
|
|
|
48,441 |
|
|
|
146,013 |
|
|
|
140,902 |
|
Other non-cash items and changes to non-working capital assets/liabilities |
|
146,947 |
|
|
|
(16,615 |
) |
|
|
(79,125 |
) |
|
|
(183,894 |
) |
Changes in working capital |
|
(440,474 |
) |
|
|
(385,835 |
) |
|
|
(917,788 |
) |
|
|
(114,236 |
) |
Cash (used in) provided by operating activities |
$ |
(146,038 |
) |
|
$ |
(277,040 |
) |
|
$ |
(644,428 |
) |
|
$ |
23,878 |
|
Capital expenditures |
|
(28,968 |
) |
|
|
(37,955 |
) |
|
|
(93,929 |
) |
|
|
(106,643 |
) |
Proceeds from deferred purchase price of factored receivables |
|
65,062 |
|
|
|
60,362 |
|
|
|
206,507 |
|
|
|
188,877 |
|
Adjusted free cash flow |
$ |
(109,944 |
) |
|
$ |
(254,633 |
) |
|
$ |
(531,850 |
) |
|
$ |
106,112 |
|
The following is a reconciliation of basic and diluted GAAP EPS to basic and diluted non-GAAP EPS:
|
Thirteen
|
|
Thirteen
|
|
Thirty-Nine
|
|
Thirty-Nine
|
||||||||
Basic and Diluted EPS - GAAP (a) |
$ |
0.42 |
|
|
$ |
0.35 |
|
|
$ |
0.88 |
|
|
$ |
0.81 |
|
Amortization of intangibles |
|
0.08 |
|
|
|
0.10 |
|
|
|
0.27 |
|
|
|
0.29 |
|
Restructuring costs |
|
0.02 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.10 |
|
Net foreign currency exchange loss |
|
(0.04 |
) |
|
|
0.05 |
|
|
|
0.15 |
|
|
|
0.13 |
|
Integration, transition and operational improvement costs |
|
0.22 |
|
|
|
0.21 |
|
|
|
0.72 |
|
|
|
0.51 |
|
Advisory fee |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.08 |
|
Cash-based compensation expense |
|
0.02 |
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.08 |
|
Stock-based compensation expense |
|
0.03 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
Other items |
|
0.07 |
|
|
|
0.08 |
|
|
|
0.15 |
|
|
|
0.21 |
|
Tax Adjustments: |
|
|
|
|
|
|
|
||||||||
Tax impact of pre-tax adjustments |
|
(0.10 |
) |
|
|
(0.13 |
) |
|
|
(0.37 |
) |
|
|
(0.34 |
) |
Other miscellaneous tax adjustments |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Non-GAAP Basic and Diluted EPS (a) |
$ |
0.72 |
|
|
$ |
0.72 |
|
|
$ |
1.94 |
|
|
$ |
1.87 |
|
(a) |
GAAP and non-GAAP diluted EPS for the Thirteen and Thirty-Nine Weeks Ended September 27, 2025 includes 737,062 and 314,173, respectively, of outstanding restricted stock units that are dilutive. |
Our release contains forward-looking estimates of non-GAAP diluted EPS for the fiscal fourth quarter 2025. We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide it to investors on a historical basis. We are unable to provide a reconciliation of our forward-looking estimate of fiscal fourth quarter 2025 GAAP diluted EPS to a forward-looking estimate of fiscal fourth quarter 2025 non-GAAP diluted EPS because certain information needed to make a reasonable forward-looking estimate of GAAP diluted EPS for fiscal fourth quarter 2025 is unreasonably difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control, such as unanticipated non-recurring items not reflective of ongoing operations. In addition, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on our future financial results. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251029172321/en/
Investor Relations:
Willa McManmon
ir@ingrammicro.com
Media:
Lisa Zwick
lisa.zwick@ingrammicro.com
Source: Ingram Micro Holding Corporation
