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Here are two brief analogies for Avnet:

• Grainger for electronic components.
• Amazon Business for electronic parts.

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• Electronic Components Distribution: Sourcing and distribution of semiconductors, interconnect, passive, and electromechanical components to various industries.
• Embedded Solutions: Providing integrated hardware, software, and services for embedded systems, including design, prototyping, and manufacturing support.
• Supply Chain Services: Comprehensive logistics, inventory management, warehousing, and kitting services to optimize customers' component supply chains.
• Design and Technical Services: Offering engineering support, design assistance, and technical expertise to help customers develop and bring new electronic products to market.

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Avnet (AVT) Major Customers

Avnet (symbol: AVT) primarily sells to other companies (Business-to-Business, or B2B) rather than individuals.

Due to the nature of its business as a global electronics distributor, Avnet serves a highly diversified customer base that spans numerous industries and geographies. Avnet's financial disclosures indicate that no single customer accounted for 10% or more of its consolidated sales in recent fiscal years. Therefore, Avnet does not publicly disclose specific individual "major customers" by name.

Instead, Avnet's customer base is comprised of a vast array of companies that design, manufacture, and integrate electronic products. These customers generally fall into the following categories:

• Original Equipment Manufacturers (OEMs): These are companies that design and manufacture their own end-products. Avnet supplies them with the electronic components, embedded solutions, and supply chain services needed for products ranging from industrial control systems and medical devices to automotive electronics and consumer gadgets.
• Electronic Manufacturing Service (EMS) Providers: Companies that provide manufacturing, assembly, and testing services for OEMs. EMS providers rely on Avnet for the timely supply of components and logistical support to build products for their clients.
• Original Design Manufacturers (ODMs): These companies design and manufacture products that are then rebranded and sold by other companies. Avnet supports ODMs with component supply and design chain services.

These customers operate across various end markets, including but not limited to:

• Industrial (e.g., automation, robotics)
• Communications (e.g., networking, telecom infrastructure)
• Aerospace and Defense
• Automotive (e.g., in-car electronics, EV components)
• Medical (e.g., diagnostic equipment, wearables)
• Consumer electronics

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• Texas Instruments (Symbol: TXN)
• Infineon Technologies (Symbol: IFX)
• NXP Semiconductors (Symbol: NXPI)
• Analog Devices (Symbol: ADI)
• Microchip Technology (Symbol: MCHP)
• STMicroelectronics (Symbol: STM)
• ON Semiconductor (Symbol: ON)
• Vishay Intertechnology (Symbol: VSH)

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Phil Gallagher, Chief Executive Officer

Phil Gallagher has over 40 years of experience with Avnet, having been named CEO in November 2020. He previously served as global president of Electronic Components, leading the company's broadline components distribution business worldwide. Gallagher began his career with Avnet in 1982 and has held key executive leadership positions in sales, marketing, and operations, including president of Avnet Electronic Marketing Americas from 2004 to 2009 and global president of Avnet Technology Solutions from 2009 to 2014. He is a past president of the National Electronics Distributors Association (NEDA), now known as the Electronics Components Industry Association (ECIA). He also serves on the Arizona Commerce Authority Board of Directors, the Greater Phoenix Leadership Board of Directors, and the Advisory Board of Women in Electronics. Gallagher holds a bachelor's degree from Drexel University.

Ken Jacobson, Chief Financial Officer

Ken Jacobson was appointed Chief Financial Officer of Avnet in September 2022. He joined Avnet in 2013 and served as interim CFO from 2017 to 2018. Prior to his appointment as CFO, Jacobson was the corporate controller, where he was responsible for the global accounting organization, finance organizations within Avnet's business units, and management oversight of global supply chain engagements. He brought 12 years of public accounting and industry experience to Avnet, working with various public, private, and international companies across sectors including technology, manufacturing, and distribution. Jacobson holds a bachelor's degree in accounting from the University of Washington and is an inactive CPA in Washington and Arizona. He has also served on the board of directors for a Phoenix-area based nonprofit for 10 years.

Ken Arnold, Chief People Officer

Ken Arnold is Avnet's Senior Vice President and Global Chief People Officer, reporting to CEO Phil Gallagher. In this role, he leads the company's HR strategy and global human resources team, focusing on attracting, developing, engaging, and rewarding employees. He also acts as Management's liaison to the Compensation and Leadership Development Committee of the Board of Directors for Avnet.

Max Chan, Chief Information Officer

Max Chan serves as Avnet's Chief Information Officer. He is responsible for leading the company's information technology strategy and operations on a global scale.

Michael McCoy, General Counsel and Chief Legal Officer

Michael McCoy is Avnet's General Counsel and Chief Legal Officer. He leads the global legal department and oversees all legal and compliance matters for the company.

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1. Cyclical Downturns and Market Volatility in the Electronic Components Industry: Avnet operates in the electronic components industry, which is highly susceptible to cyclical downturns and market volatility. These downturns can lead to decreased demand, reduced sales, and declining net income. For example, the electronic components industry entered a deep inventory correction in late 2023, causing Avnet's total sales for fiscal year 2025 to drop by 6.6% from the prior year. This external pressure significantly impacts the company's financial health and market position.
2. Margin Compression and Inventory Management Challenges: The company faces intense pressure on its profitability, characterized by "wafer-thin margins" and "margin compression." This is evidenced by a decline in the gross profit margin to 10.7% in fiscal year 2025 and an operating income margin of only 2.3% for the same year. Additionally, increased inventory levels relative to sales suggest potential inefficiencies in inventory management, which could lead to higher carrying costs and reduced liquidity.
3. Regional Demand Imbalances and Geopolitical Risks: Avnet experiences significant regional divergence in demand, with strong growth in Asia (contributing to approximately 50% of revenue in fiscal year 2025) juxtaposed with declines in Europe, the Middle East, and Africa (EMEA) and the Americas. This "regionally lopsided recovery" poses a risk. Furthermore, changes in global trade policies, including tariffs, and broader geopolitical events and military conflicts can significantly impact Avnet's operations and supply chain strategies.

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Avnet (AVT) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market trends:

1. Regional Market Recovery and Growth: Avnet anticipates sequential sales growth in the Asia Pacific region, which has historically led the company out of market cycles. The Americas region has also shown a return to year-over-year growth, and Europe is expected to stabilize with modest sequential improvement. This broad regional recovery, coupled with an anticipated industry-wide return to growth in 2025, is a significant driver for increased revenue.
2. Expansion in High-Growth Vertical Markets: The company is strategically focusing on and investing in specific vertical markets that are experiencing resilient demand. These include transportation, compute, communication, defense/aerospace, and medical sectors.
3. Growth in Avnet Embedded and IP&E (Interconnect, Passive, and Electromechanical) Businesses: Avnet Embedded, a business focused on designing, building, and manufacturing boards for various verticals, is expected to continue growing and generating higher margins. The company is also seeing positive movement in its IP&E business, which represents higher-margin growth opportunities.
4. Enhanced Engineering Capabilities and Digital Infrastructure for Demand Creation: Avnet is investing in its digital infrastructure to improve customer experience and data insights. As semiconductors become more pervasive, the company expects the value of its engineering capabilities to increase, leading to demand creation and strengthening its position in the technology supply chain.
5. Farnell Business Stabilization and Strategic Initiatives: The Farnell business segment is poised for steady growth, driven by stabilization, a rightsized cost structure, and synergies from "power of one" initiatives. Farnell has already shown sequential sales growth and improved margins.

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Share Repurchases

• Avnet repurchased 18,439,356 shares for $885.69 million under a buyback program initiated in June 2022, as of September 27, 2025.
• In fiscal year 2025, Avnet returned $301 million to shareholders through share repurchases, representing 6.7% of shares outstanding.
• Avnet has an expanded share buyback authorization of up to $600 million. The company expects annual share repurchases of $100 million in fiscal 2026 and $130 million-$160 million in fiscal 2027.

Share Issuance

• In September 2025, Avnet priced a private offering of $550.0 million aggregate principal amount of 1.75% Convertible Senior Notes due 2030, an increase from the previously announced $500.0 million.
• Net proceeds from the $650 million convertible notes offering (Q1 FY2026) were used to reduce debt and repurchase $100 million of stock.

Outbound Investments

• Avnet has made strategic investments and acquisitions to expand its technology customer base, design, and development footprint.
• The company expects to continue making strategic acquisitions or investments globally to further strategic objectives and support key business initiatives.

Capital Expenditures

• Capital expenditures were -$140.29 million in the last 12 months (as of early November 2025).
• Avnet's capital expenditures growth reached a 5-year low in July 2023, decreasing by 298.1%.
• Annual reported capital expenditures are projected to be $120 million-$130 million in fiscal years 2026 and 2027, primarily focused on distribution centers and information systems, including digital tools and capabilities.