Segment information

6 Months Ended

Dec. 27, 2025

Segment information

Segment information

12. Segment information

Avnet has two primary operating groups — Electronic Components (“EC”) and Farnell (“Farnell”). Both operating groups have operations in each of the three major economic regions of the world: (i) the Americas, (ii) EMEA, and (iii) Asia. Each operating group has its own management team, who manage various functions within each operating group. Each operating group also has distinct financial reporting to the executive level, which informs operating decisions, strategic planning, and resource allocation for the Company as a whole.

Avnet’s EC operating group primarily supports high and medium-volume customers. It markets, sells, and distributes electronic components from many of the world’s leading electronic component manufacturers, including semiconductors, IP&E components (interconnect, passive and electromechanical components), and other integrated and embedded components. EC serves a variety of markets ranging from industrial to automotive to defense and aerospace. It offers an array of customer support options throughout the entire product lifecycle, including both turnkey and customized design, supply chain, programming, and logistics services.

Avnet’s Farnell operating group primarily supports lower-volume customers that need electronic components quickly to develop, prototype, and test their products. It distributes a comprehensive portfolio of kits, tools, electronic components, industrial automation components, and test and measurement products to both engineers and entrepreneurs, primarily through an e-commerce channel. Farnell also distributes new product introductions for its suppliers across their various product categories.

The Company has identified its Chief Executive Officer (“CEO”) as the chief operating decision maker (“CODM”). The CODM evaluates the performance of both reportable segments based on operating income. Sales, cost of goods sold, and operating expenses are also monitored closely. This information is used to monitor operating margins, measure segment profitability, allocate resources, and make budgeting and forecasting decisions about the reportable segments. The CODM also uses these measures to monitor trends in year over year performance comparisons, sequential quarter performance comparisons, and to compare actual results to forecasts.

	Second Quarters Ended				Six Months Ended
	December 27,		December 28,		December 27,		December 28,
	2025		2024		2025		2024
	(Thousands)
Sales
Electronic Components	$	5,891,835	$	5,317,815	$	11,391,524	$	10,574,874
Farnell		427,120		345,569		826,003		692,662
Avnet Sales	$	6,318,955	$	5,663,384	$	12,217,527	$	11,267,536
Significant Segment Expenses and Operating Income:
Electronic Components
Cost of goods sold	$	5,343,060	$	4,810,011	$	10,335,697	$	9,550,041
Selling, general and administrative expenses		361,713		326,182		709,751		645,843
Operating income	$	187,062	$	181,622	$	346,076	$	378,990
Farnell
Cost of goods sold	$	312,857	$	257,321	$	604,027	$	514,077
Selling, general and administrative expenses		94,263		84,771		184,879		173,249
Operating income	$	20,000	$	3,477	$	37,097	$	5,336
Total reportable segment operating income	$	207,062	$	185,099	$	383,173	$	384,326
Corporate
Corporate selling, general and administrative expenses	$	(35,331)	$	(25,612)	$	(60,755)	$	(55,896)
Restructuring, integration, and other expenses		(25,171)		(3,794)		(33,462)		(30,145)
Amortization of acquired intangible assets		(364)		(366)		(728)		(734)
Avnet operating income	$	146,196	$	155,327	$	288,228	$	297,551
Capital expenditures:
Electronic Components	$	10,094	$	20,218	$	30,824	$	50,859
Farnell		5,247		9,133		9,104		10,266
Corporate		11		8		13		10
	$	15,352	$	29,359	$	39,941	$	61,135
Depreciation & amortization expense:
Electronic Components	$	13,757	$	13,007	$	25,630	$	26,849
Farnell		4,867		4,012		9,820		10,043
Corporate		13		10		25		20
	$	18,637	$	17,029	$	35,475	$	36,912
Sales, by geographic area:
Americas	$	1,435,271	$	1,368,798	$	2,805,191	$	2,698,682
EMEA		1,713,963		1,582,805		3,379,842		3,250,975
Asia		3,169,721		2,711,781		6,032,494		5,317,879
Avnet Sales	$	6,318,955	$	5,663,384	$	12,217,527	$	11,267,536

Assets by segment as follows:

	December 27,		June 28,
	2025		2025
	(Thousands)
Assets:
Electronic Components	$	11,040,680	$	9,984,932
Farnell		1,734,415		1,742,437
Corporate		378,080		391,184
	$	13,153,175	$	12,118,553