-- Net sales of $12,604 million, up 7.2% over prior year
-- Gross profit of $869.6 million
-- Net income of $99.5 million and non-GAAP net income(1) of $168.7
million
-- Diluted earnings per share ("EPS") of $0.42 and non-GAAP diluted EPS(1)
of $0.72
-- Quarterly dividend increased by 2.6% to $0.08 per share
IRVINE, Calif.--(BUSINESS WIRE)--October 30, 2025--
Ingram Micro Holding Corporation (NYSE: INGM) ("Ingram Micro" or the "Company") today reported fiscal third quarter results for the period ended September 27, 2025. The Company reported fiscal third quarter net sales of $12.6 billion, net income on a GAAP basis of $99.5 million, or $0.42 per share, and non-GAAP net income of $168.7 million, or $0.72 per share.(1)
"Ingram Micro had a strong third quarter and we enter the fourth quarter with confidence. We grew across our geographies and are encouraged by the momentum of our Xvantage digital experience platform," said Paul Bay, Ingram Micro's Chief Executive Officer. "In the third quarter, the opportunity around AI accelerated. As we have done in past technology transformations, we are empowering customers to capitalize on this massive opportunity by offering a unified platform to buy integrated hardware, software, cloud, and services. We are uniquely positioned to empower our customers in the AI era through our proprietary Xvantage platform and customer-facing AI Enable program."
"Third quarter performance was strong across all key metrics through solid execution and disciplined expense management," said Mike Zilis, Ingram Micro's Chief Financial Officer. "Our ability to navigate an evolving macro environment and cyclical changes in product mix, while continuing to invest in our Xvantage platform and key areas of strategic growth, demonstrates the strength and agility of our operating model. As we look to Q4, we expect to continue our trend of year-over-year net sales growth, as we remain focused on capturing additional market opportunities."
Consolidated Fiscal Third Quarter 2025 Results(1)
Thirteen Weeks Ended Thirteen Weeks Ended
September 27, 2025 September 28, 2024
--------------------- ---------------------
($ in thousands,
except per share % of Net % of Net 2025 vs.
data) Amount Sales Amount Sales 2024
----------- -------- ----------- -------- --------
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, compared to $11.8 billion in the prior
fiscal third quarter, representing an increase of 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 the U.S. dollar had a 1% positive impact on the
year-over-year net sales comparison.
-- Gross profit grew to $869.6 million, from $845.5 million in the prior
fiscal third quarter, as a result of the strong net sales growth of
7.2%.
-- Gross margin was 6.90%, compared to 7.19% 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) our
Asia-Pacific region.
-- Income from operations was $223.5 million, compared to $218.2 million
in the prior fiscal third quarter. Adjusted income from operations was
$257.9 million, compared to $253.9 million in the prior fiscal third
quarter. The increase in income from operations is reflective of the
increase in our net sales noted above, coupled with improved operating
expense leverage following our optimization and automation efforts and a
higher mix of lower cost-to-serve business. Income from operations in the
third quarter of 2025 includes $3.5 million, or 3 basis points of net
sales, of restructuring costs, as well as the impact of $5.5 million, or
4 basis points of net sales, relating to the loss on sale of our
CloudBlue operations and another non-core business in our North America
region completed during the third quarter of 2025.
-- Income from operations margin was 1.77%, compared to 1.85% in the prior
fiscal third quarter. Adjusted income from operations margin was 2.05%
compared to 2.16% 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, compared to $331.6 million in the
prior fiscal third quarter.
-- Diluted EPS was $0.42, compared to $0.35 in the prior fiscal third
quarter. Non-GAAP diluted EPS was $0.72, flat with the prior fiscal third
quarter.
-- Cash flow metrics were stronger than typical Q3 seasonal norms, with
cash used in operations at $146.0 million, compared to $277.0 million
used in the prior fiscal third quarter, and adjusted free cash flow was
$(109.9) million, compared to $(254.6) million in the prior fiscal third
quarter.
Regional Fiscal Third Quarter 2025 Financial Highlights
North America
Net sales were $4.4 billion, compared to $4.3 billion in the prior fiscal third quarter. The 3.3% year-over-year increase in North American net sales was primarily driven by an increase in net sales of notebooks/desktops and servers, partially offset by declines in virtualization and certain specialty products such as UCC and digital signage.
Income from operations was $79.1 million, compared to $83.3 million in the prior fiscal third quarter. North American income from operations includes the impact of a loss of $5.5 million related to the sale of two non-core businesses noted above.
Income from operations margin was 1.79%, compared to 1.95% in the prior fiscal third quarter, which includes an impact of 12 basis points from the loss on sale of non-core businesses noted above. These results for the region are also reflective of lower gross margins on sales mix, mostly offset by a decline in compensation and headcount expenses, resulting from restructuring, automation, and optimization initiatives taken in the prior year.
EMEA
Net sales were $3.7 billion, an increase of 5.5% compared to the prior fiscal third quarter. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 5% on the year-over-year net sales comparison. The year-over-year U.S. dollar increase in EMEA net sales was primarily a result of growth in client and endpoint solutions, led by strength in notebooks/desktops, in addition to strong growth in Other services and cloud-based solutions. These factors were partially offset by a decline in advanced solutions.
Income from operations was $62.0 million, compared to $66.9 million in the prior fiscal third quarter.
Income from operations margin was 1.69%, compared to 1.93% in the prior fiscal third quarter. The year-over-year decrease in income from operations margin was primarily due to the shift in sales mix more towards lower margin, lower cost-to-serve product sets.
Asia-Pacific
Net sales were $3.5 billion, compared to $3.2 billion in the prior fiscal third quarter. The 12.5% increase in Asia-Pacific net sales was driven by growth in client and endpoint solutions, led by components, tablets, desktops, accessories, and smartphones. The region also saw growth in advanced solutions offerings, led by storage and networking, and Cloud-based solutions. These factors were partially offset by a decline in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a negative impact of 2% on the year-over-year net sales comparison.
Income from operations was $67.5 million, compared to $58.2 million in the prior fiscal third quarter.
Income from operations margin was 1.90%, compared to 1.84% in the prior fiscal third quarter. The year-over-year increase in income from operations margin was primarily the result of lower expenses as a percentage of net sales, partially offset by the impact on gross margin from sales mix factors described above.
Latin America
Net sales were $1.0 billion, compared to $0.9 billion in the prior fiscal third quarter. The 13.0% increase in Latin American net sales was primarily driven by growth in client and endpoint solutions, led by notebooks, smartphones, and tablets, along with healthy growth in Cloud-based solutions net sales. These results were partially offset by a decline in net sales of Other services. The translation impact of foreign currencies relative to the U.S. dollar had a positive impact of 1% on the year-over-year net sales comparison.
Income from operations was $31.0 million, compared to $27.7 million in the prior fiscal third quarter.
Income from operations margin was 3.21%, compared to 3.25% in the prior fiscal third quarter.
Fiscal Fourth Quarter 2025 Outlook
The following outlook is forward-looking, based on the Company's current expectations for the fiscal fourth quarter 2025, and actual results may differ materially from what is indicated. We provide EPS guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control.(1)
Thirteen Weeks Ended December 27, 2025
--------------------------------------------
($ 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 33% on a non-GAAP basis and 235.9 million diluted shares outstanding.
Dividend Increase and Payment
The Company's board of directors has declared a cash dividend of $0.08 per share of the Company's common stock, representing a 2.6% increase from the prior quarterly dividend of $0.078 per share. The dividend is payable on November 24, 2025, to stockholders of record as of November 10, 2025.
Fiscal Third Quarter 2025 Earnings Call Details:
Ingram Micro's management will host a call to discuss its results on Thursday, October 30, 2025 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time).
A live webcast of the conference call will be accessible from the Ingram Micro investor relations website at https://ir.ingrammicro.com. The call can also be accessed at 877-407-9781 or 201-689-8796.
A telephonic replay will be available through December 31, 2025, at 877-660-6853 or 201-612-7415. A replay of the webcast will also be available at https://ir.ingrammicro.com.
About Ingram Micro
Ingram Micro (NYSE: INGM) is a leading technology company for the global information technology ecosystem. With the ability to reach nearly 90% of the global population, we play a vital role in the worldwide IT sales channel, bringing products and services from technology manufacturers and cloud providers to a highly diversified base of business-to-business technology experts. Through Ingram Micro Xvantage$(TM)$, our AI-powered digital platform, we offer what we believe to be the industry's first comprehensive business-to-consumer-like experience, integrating hardware and cloud subscriptions, personalized recommendations, instant pricing, order tracking, and billing automation. We also provide a broad range of technology services, including financing, specialized marketing, and lifecycle management, as well as technical pre- and post-sales professional support. Learn more at www.ingrammicro.com.
(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 the United States ("GAAP"), we have included in this release some or all of the following non-GAAP financial measures--adjusted income from operations, EBITDA, adjusted EBITDA, return on invested capital ("ROIC"), adjusted ROIC, non-GAAP net income, adjusted free cash flow, and non-GAAP EPS--which are financial measures that are not required by, or presented in accordance with GAAP. We believe that these non-GAAP financial measures are useful in evaluating our business and the underlying trends that are affecting our performance. These non-GAAP measures are primary indicators that our management uses internally to conduct and measure its business and evaluate the performance of its consolidated operations, ongoing results, and trends. Our management believes these non-GAAP financial measures are useful as they provide meaningful comparisons to prior periods and an alternate view of the impact of acquired businesses. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business. A material limitation associated with these non-GAAP measures as compared to the GAAP measures is that they may not be comparable to other companies with similarly titled items that present related measures differently. The non-GAAP measures should be considered as a supplement to, and not as a substitute for or superior to, the corresponding measures calculated in accordance with GAAP. See "Schedule A: Reconciliation of Non-GAAP Financial Measures" in the "Supplemental Information" section further below for reconciliations of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP.
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(TM); 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 the United States and internationally; our financing efforts; our relationships with our customers, original equipment manufacturers, and suppliers; our ability to maintain and protect our intellectual property; the performance and security of our services, including information processing and cybersecurity provided by third parties; our ownership structure; our dependence upon Ingram Micro Inc. and its controlled subsidiaries for our results of operations, cash flows, and distributions; and our status as a "controlled company" and the extent to which the interests of Platinum Equity, LLC together with its affiliated investment vehicles ("Platinum") conflict with our interests or the interests of our stockholders.
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,
2025 2024
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 802,630 $ 918,401
Trade accounts receivable (less
allowances of $162,424 and
$146,999, respectively) 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 $0.01,
2,000,000,000 shares authorized
at September 27, 2025 and
December 28, 2024, and
234,843,994 and 234,825,581
shares issued and outstanding at
September 27, 2025 and December
28, 2024, respectively 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
27, 2025 28, 2024 27, 2025 28, 2024
------------ ------------ ------------ --------------
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
27, 2025 28, 2024 27, 2025 28, 2024
---------- ---------- ---------- ------------
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 U.S. GAAP, the Company has included in this release adjusted income from operations, adjusted EBITDA, return on invested capital ("ROIC"), adjusted ROIC, non-GAAP net income, adjusted free cash flow, and non-GAAP EPS, which are defined as follows:
-- 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:
Thirteen Thirteen
Weeks Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September September September September
($ in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
---------- --------- ------------ ------------
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:
Thirteen Thirteen
Weeks Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September September September 27, September 28,
($ in thousands) 27, 2025 28, 2024 2025 2024
--------- --------- ------------- ---------------
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:
Thirteen Weeks Thirteen Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September 27, September 28, September 27, September 28,
($ in thousands) 2025 2024 2025 2024
-------------- -------------- -------------- --------------
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 $6,602,884
Return on
Invested
Capital 5.6% 4.7% 3.9% 3.7%
========= ========= ========= =========
Period in weeks
for non-52 week
periods 13 13 39 39
Number of weeks 52 52 52 52
The following is a reconciliation of net income to adjusted ROIC:
Thirteen Weeks Thirteen Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September 27, September 28, September 27, September 28,
($ in thousands) 2025 2024 2025 2024
-------------- -------------- -------------- --------------
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 ($2,235) in the Thirty-Nine Weeks Ended September 28, 2024
and other minor non-recurring items.
The following is a reconciliation of net income to non-GAAP net income:
Thirteen Thirteen
Weeks Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September September September 27, September 28,
($ in thousands) 27, 2025 28, 2024 2025 2024
--------- --------- ------------- ---------------
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 ($2,235) in the Thirty-Nine Weeks Ended
September 28, 2024 and other minor non-recurring items.
The following is a reconciliation of net income to adjusted free cash flow:
Thirteen Thirteen
Weeks Weeks Thirty-Nine Thirty-Nine
Ended Ended Weeks Ended Weeks Ended
September September September 27, September 28,
($ in thousands) 27, 2025 28, 2024 2025 2024
---------- ---------- ------------- ---------------
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
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
September 27, September 28, September 27, September 28,
2025 2024 2025 2024
------------- ------------- --------------- ---------------
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/
CONTACT: Investor Relations:
Willa McManmon
ir@ingrammicro.com
Media:
Lisa Zwick
lisa.zwick@ingrammicro.com
(END) Dow Jones Newswires
October 30, 2025 16:05 ET (20:05 GMT)
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