Arrow Electronics Due Diligence

Run due diligence on Arrow Electronics: check compliance and get alerts when suppliers change.

United States · www.arrow.com · 21 vendors

Arrow Electronics, Inc. is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company guides innovation for leading technology manufacturers and service providers, helping them design, distribute, and deploy forward-thinking products.

Resilience scores

Technology vendors

Services catalogue

1 service in catalogue across 1 category; runs on 21 sub-vendors.

Insights

Last updated 2026-09-13 · revision 1

21 direct vendors, 203 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

4 in-scope frameworks identified; showing 3.

SOC 2 (source) — No public evidence

Evidence: https://www.arrow.com/globalecs/, https://www.arrow.com/ais/, https://www.arrow.com/company/expertise/cloud

ISO 27001 (source) — No public evidence

Evidence: https://www.arrow.com/company/expertise/security, https://www.arrow.com/company/privacy-center/privacy-policy

NIS2 (source) — No public evidence

Evidence: https://www.arrow.com/company/expertise/supply-chain, https://www.arrow.com/company/overview/facilities/office-locations

Financials

Three-year financials

Financial Resilience Score: 6/10

Arrow Electronics is one of the world's largest electronic components and enterprise computing solutions distributors, with revenues consistently in the high-$20B to low-$30B range. The company demonstrated strong cyclical upside during the 2021-2022 semiconductor supercycle, posting record revenues of $33.6B in 2022, but has since experienced meaningful revenue and earnings compression as the components market normalized and inventory digestion weighed on demand through 2023 and into 2024. This cyclicality is a structural feature of the distribution business and represents a key resilience consideration. Arrow maintains a diversified business across two primary segments—Global Components and Global Enterprise Computing Solutions (ECS)—which provides some buffer against single-segment downturns. The company has a long track record of navigating industry cycles, having operated for over 70 years. Its balance sheet carries moderate leverage, with long-term debt typically in the $3B–$4B range, and the company actively manages capital through share buybacks. Interest coverage, while healthy at peak earnings, tightens during downturns, warranting attention. Geographic diversification across the Americas, EMEA, and Asia-Pacific reduces concentration risk, though exposure to global trade dynamics, tariffs, and semiconductor supply chain disruptions introduces macro sensitivity. The company's asset-light distribution model limits capital expenditure requirements but also constrains gross margins, which typically run in the 12–14% range, leaving limited buffer if revenues decline sharply. Key risks include customer and supplier concentration (dependence on major semiconductor manufacturers), working capital intensity (large receivables and inventory balances), and the inherently cyclical nature of the electronics distribution industry. The company's ability to generate free cash flow during downturns—partly through inventory liquidation—provides a meaningful offset to earnings volatility.

Key strengths: Scale as one of the world's two largest electronic components distributors, Diversified two-segment model: Global Components and Global ECS, Geographic diversification across Americas, EMEA, and Asia-Pacific, Long operating history (70+ years) with demonstrated cycle navigation, Active capital return program including share repurchases, Asset-light distribution model with manageable capex requirements, Strong supplier relationships with leading semiconductor manufacturers

Risk factors: High cyclicality tied to semiconductor and electronics demand cycles, Thin gross margins (~12–14%) limiting earnings buffer during downturns, Moderate financial leverage with $3B–$4B in long-term debt, Working capital intensity with large inventory and receivables balances, Supplier and customer concentration risk, Exposure to global trade policy, tariffs, and supply chain disruptions, Revenue declined ~14% in 2023 reflecting post-supercycle normalization, Competitive pressure from direct manufacturer sales and other distributors

Revenue by geography

Revenue by product/service

Workforce by country

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