Pictured: various Ingram Micro personnel at NYSE 24 October 2024
- Net sales of $12.28B, up 8.3% YoY
- Gross profit of $828.8m
- Incremental $125m of term loan repaid during quarter
- Increases quarterly dividend by 2.7% to $0.076 per share
Ingram Micro Holding Corporation (Ingram Micro) reported fiscal first quarter results for the period ended 29 March 2025. The Company reported fiscal first quarter net sales of approximately $12.3 billion, an increase of 8.3% over prior year and above its projections.
“We were very pleased with our first quarter performance, in which net sales were up 11% year-over-year on a constant currency basis, with earnings per share at the high end of our guidance. Our proven execution during periods of market volatility gives us confidence in our long-term strategy, which is playing out in the traction on our Xvantage platform,” said Paul Bay, Ingram Micro’s Chief Executive Officer. Bay continued:
“We believe that our global reach and decades of experience enabling growth for our trusted partners – together with our targeted investments in automation and our platform – position us to continue delivering strong returns to our shareholders.”
“Our sustained investments in innovation are driving efficiencies and operating leverage, as reflected in our first quarter results, allowing us to be even more nimble and resilient going forward,” said Mike Zilis, Ingram Micro’s Chief Financial Officer. Zilis continued:
“Looking to the second quarter, we expect to drive solid growth in our top line but even faster growth in non-GAAP EPS as we help our vendors and customers navigate current markets. Aided by real-time analytics and frictionless quoting through our AI-powered Xvantage platform, we currently see healthy ordering activity, and we are enabling our partners to react quickly to changes in demand and pricing environments.”
Solid Results in a Turbulent Market
Ingram Micro’s First Quarter 2025 results reflect a robust performance, showcasing both strategic progress and financial resilience in a competitive technology distribution landscape.
Gross margin was 6.75%, compared to 7.37% in the prior fiscal first quarter. The year-over-year decrease in gross margin was driven by a shift in sales mix towards lower-margin client and endpoint solutions offerings, a shift in customer mix more towards large enterprise customers which typically yield lower gross margins, and a shift in geographic mix towards lower-margin, lower cost-to-serve Asia-Pacific region.
EMEA Fiscal First Quarter 2025 Financial Highlights
Net sales were $3.4 billion, an increase of 0.6% compared to the prior fiscal first quarter. The year-over-year increase in EMEA net sales was primarily a result of growth in PCs, components and storage, as well as strong growth in cloud, partially offset by declines in peripherals and networking. The translation impact of foreign currencies relative to the U.S. dollar had an approximate 2% negative impact on the year-over-year net sales comparison.
Income from operations was $57.3 million, compared to $49.0 million in the prior fiscal first quarter. Income from operations margin was 1.67%, compared to 1.44% in the prior fiscal first quarter. The year-over-year increase in income from operations margin was primarily due to a reduction in restructuring costs and improved operating leverage, which was partially offset by a mix shift towards lower-margin client and endpoint solutions.
Execution will be critical to maintain momentum
Ingram Micro’s Q1 2025 results are impressive, particularly the strong revenue growth and outperformance against expectations, underpinned by the Xvantage platform’s traction. The gross margin decline warrants some scrutiny, but in a volatile and turbulent market, where many tech companies are reporting bigger swings, it is to be somewhat expected, however a careful eye should be cast on gross margin ongoing. The company’s focus on debt reduction and innovation positions it well for sustained growth, but execution will be critical to maintain momentum while addressing margin pressures. For now, worth a mini-celebration.
Opinions expressed in this article do not reflect, and should not be taken as, advice. Numerical facts and Ingram Micro leadership statements have been checked for accuracy. For the full press release, and details on Ingram Micro performance in Noth America, Asia-Pacific and Latin America, please click here
