Ingram Micro Reports Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results

• Fourth quarter net sales of $13.3 billion, up 2.5% from the prior-year period in US Dollars, and up 3.3% from the prior-year period on an FX neutral basis
• Fourth quarter net income of $83.1 million and non-GAAP net income⁽¹⁾ of $213.1 million
• Fourth quarter diluted earnings per share (“EPS”) of $0.36 and non-GAAP diluted EPS⁽¹⁾ of $0.92
• Fourth quarter cash provided by operations of $310.0 million and adjusted free cash flow⁽¹⁾ of $337.2 million
• Full year cash provided by operations of $333.8 million and adjusted free cash flow⁽¹⁾ of $443.3 million
• $483.1 million dollars of debt repaid in 2024 and $1.56 billion of debt repaid since the beginning of 2022
• Declared a cash dividend of $0.074 per share of common stock, payable on March 25, 2025, to stockholders of record as of March 11, 2025
• Authorized share repurchase plan of up to $75 million in connection with any secondary public offerings prior to February 26, 2026

IRVINE, Calif.--(BUSINESS WIRE)--Ingram Micro Holding Corporation (NYSE: INGM) (“Ingram Micro” or the “Company”) today reported fiscal fourth quarter and fiscal year-end results for the period ended December 28, 2024. The Company reported fourth quarter net sales of $13.3 billion, net income on a GAAP basis of $83.1 million or $0.36 per share, and non-GAAP net income of $213.1 million or $0.92 per share.⁽¹⁾ Included in these results is the discrete impact of charges in India totaling $0.07 per share as further described below.

“We are pleased with our Q4 performance where we saw a return to year-over-year revenue growth, driven by strong performance in Cloud and in Client and Endpoint Solutions,” said Paul Bay, Ingram Micro’s Chief Executive Officer. “We are well positioned to continue this momentum into 2025. Entering 2025, our strategy of innovating and differentiating on the platform continues to gain momentum, as our core lines of business return to growth. The technology investments we have made position us well to help our customers and vendor partners gain operational efficiencies.”

“Our full year results highlight our focus on working capital management and profitable growth. We generated strong adjusted free cash flow of $443.3 million during the year and repaid $483 million of our term loan balance,” said Mike Zilis, Ingram Micro’s Chief Financial Officer. “We will be paying a quarterly dividend beginning in the first quarter of 2025. Our commitment to disciplined spend and quality of revenue will remain key to our strategy in 2025.”

Consolidated Fiscal Fourth Quarter 2024 Results⁽¹⁾

Consolidated Fiscal Fourth Quarter 2024 Financial Highlights

• Net sales totaled $13.3 billion, compared to $13.0 billion in the prior fiscal fourth quarter, representing an increase of 2.5%. The year-over-year increase was primarily a result of higher net sales in our North America, Asia-Pacific and Latin America regions, partially offset by a net sales decline in our EMEA region. The translation impact of foreign currencies relative to the US Dollar had an approximate 0.8% negative impact on the year-over-year net sales comparison.

• Gross profit was $936.1 million, compared to $978.7 million in the prior fiscal fourth quarter.

• Gross margin was 7.01%, compared to 7.52% in the prior fiscal fourth quarter. The year-over-year decrease in gross margin was driven by a shift in sales mix towards our lower-margin client and endpoint solutions net sales, as well as mix towards the lower-margin, lower cost-to-serve Asia-Pacific region and a higher mix of large enterprise project sales, which typically yield lower margins.

• Income from operations was $248.5 million, compared to $330.9 million in the prior fiscal fourth quarter. Adjusted income from operations was $305.2 million, compared to $372.8 million in the prior fiscal fourth quarter. Included in the results for the fiscal fourth quarter of 2024 is $34.1 million of selling, general and administrative (“SG&A”) expenses, or 26 basis points of net sales, representing the value of restricted stock units that immediately vested in connection with our initial public offering (“IPO”) in October 2024. Also included in these results are the impacts of discrete charges in India, which yielded inventory write-offs impacting gross profit by $9.1 million, or 7 basis points of net sales, and goods and services tax charges and higher professional services costs impacting operating expenses by $11.2 million, or 8 basis points of net sales in the 2024 quarter.

• Income from operations margin was 1.86%, compared to 2.54% in the prior fiscal fourth quarter. Adjusted income from operations margin was 2.29% compared to 2.86% in the prior fiscal fourth quarter. This year-over-year decrease was primarily due to the mix shift in net sales and resulting impact on gross margins, as well as the impact of restricted stock units vesting and the India charges noted above which negatively impacted the current year margin by 41 basis points.

• Adjusted EBITDA was $418.1 million, compared to $435.4 million in the prior fiscal fourth quarter.

• Diluted EPS was $0.36, compared to $0.61 in the prior fiscal fourth quarter. Non-GAAP diluted EPS was $0.92, compared to $0.99 in the prior fiscal fourth quarter. The EPS impact of the India items noted above was $0.07.

• Cash provided in operations was $310.0 million, compared to $0.9 million used in operations in the prior fiscal fourth quarter, and adjusted free cash flow was $337.2 million, compared to $13.4 million in the prior fiscal fourth quarter.

Regional Fiscal Fourth Quarter 2024 Financial Highlights

North America

Net sales were $4.7 billion, compared to $4.5 billion in the prior fiscal fourth quarter. The year-over-year increase in North American net sales was driven by strength across all lines of business, particularly PCs, server and storage. Net sales in the current year were particularly strong with our large enterprise customers.

Income from operations was $115.2 million, compared to $125.3 million in the prior fiscal fourth quarter. The year-over-year decrease was impacted by an increase of $8.6 million in restructuring charges taken in the current year fiscal fourth quarter.

Income from operations margin was 2.47%, compared to 2.76% in the prior fiscal fourth quarter, primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions and enterprise customers as well as restructuring costs impacting the current year fiscal fourth quarter by 17 basis points. These impacts were partially offset by continued optimization of our operating expenses, including restructuring actions taken in 2023 and early 2024.

EMEA

Net sales were $4.1 billion, a decrease of 1.5% compared to the prior fiscal fourth quarter. The year-over-year decrease in EMEA net sales was primarily a result of a decrease in advanced solutions, partially offset by modest growth in client and endpoint solutions.

Income from operations was $90.9 million, compared to $106.9 million in the prior fiscal fourth quarter. The year-over-year decrease was impacted by an increase of $4.3 million in restructuring charges taken in the current year fiscal fourth quarter.

Income from operations margin was 2.23%, compared to 2.59% in the prior fiscal fourth quarter. The year-over-year decrease in income from operations margin was primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions, as well as restructuring costs impacting the current year fiscal fourth quarter by 11 basis points.

Asia-Pacific

Net sales were $3.6 billion, compared to $3.3 billion in the prior fiscal fourth quarter. The increase in Asia-Pacific net sales was driven by net sales of client and endpoint solutions, led by growth in tablets and consumer electronics product sales, partially offset by softer advanced solutions.

Income from operations was $53.5 million, compared to $76.4 million in the prior fiscal fourth quarter.

Income from operations margin was 1.49%, compared to 2.29% in the prior fiscal fourth quarter. These regional results include a 56 basis point negative impact of the discrete charges in India noted previously. The remaining year-over-year decrease in income from operations margin was primarily the result of a greater mix of lower-margin client and endpoint solutions offset partially by improved operating expense leverage.

Latin America

Net sales were $1.0 billion in both the current and prior fiscal fourth quarter. The 0.9% decrease in Latin American net sales was primarily driven by currency translation rates, which had a negative impact of 8.4% on the year-over-year comparison of net sales. All lines of business grew year-over-year on an FX neutral basis.

Income from operations was $44.1 million, compared to $34.1 million in the prior fiscal fourth quarter.

Income from operations margin was 4.35%, compared to 3.34% in the prior fiscal fourth quarter. The year-over-year increase in income from operations margin was a result of strong sales growth in higher-margin advanced solutions and cloud offerings.

Consolidated Fiscal 2024 Results⁽¹⁾

Consolidated Fiscal 2024 Financial Highlights

• Net sales totaled $48.0 billion, representing a decrease of 0.1% from the prior fiscal year, although the translation impact of foreign currencies relative to the US Dollar had an approximate 0.4% negative impact on this year-over-year comparison. While net sales showed strong growth in the Asia-Pacific region through the year, this was offset by softer results in the other three regions.

• Gross profit was $3,444.9 million, compared to $3,547.1 million in the prior fiscal year.

• Gross margin was 7.18%, compared to 7.38% in the prior fiscal year. The year-over-year decrease in gross margin was driven by generally stronger volumes in our lower-margin client and endpoint solutions net sales as well as an overall mix shift towards our lower-margin, lower cost-to-serve Asia-Pacific region.

• Income from operations was $817.9 million, compared to $944.3 million in the prior fiscal year. Adjusted income from operations was $999.7 million, compared to $1,103.6 million in the prior fiscal year.

• Income from operations margin was 1.70%, compared to 1.97% in the prior fiscal year. Adjusted income from operations margin was 2.08%, compared to 2.30% in the prior fiscal year. This year-over-year decrease was primarily due to a mix shift towards our lower-margin client and endpoint solutions net sales, while cost controls and reduction actions taken in 2024 and earlier yielded positive operating expense leverage year-over-year. Included in the results for fiscal 2024 are discrete charges in India that impacted gross margin and income from operations as well as the stock-based compensation charge with our IPO. Combined these factors contributed to a 13 basis point negative impact on income from operations margin.

• Adjusted EBITDA was $1,318.6 million, compared to $1,353.1 million in the prior year.

• Diluted EPS was $1.18, compared to $1.59 in the prior fiscal year. Non-GAAP diluted EPS was $2.79, compared to $2.87 in the prior fiscal year.

• Cash provided by operations was $333.8 million, compared to $58.8 million in the prior fiscal year, and adjusted free cash flow was $443.3 million, compared to $19.9 million in the prior fiscal year. We continue to manage our balance sheet with a focus on return on investment, profitable growth, and quality of net sales over time.

Regional Fiscal 2024 Financial Highlights

North America

Net sales were $17.4 billion, compared to $18.2 billion in the prior fiscal year. The year-over-year decrease in North American net sales was driven by declines in advanced solutions and client and endpoint solutions, partially offset by strong growth in cloud and other.

Income from operations was $322.2 million, compared to $350.9 million in the prior fiscal year.

Income from operations margin was 1.85%, compared to 1.93% in the prior fiscal year. The year-over-year decrease in income from operations margin was primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions, partially offset by continued optimization of our operating expenses, including restructuring actions taken in 2023 and early 2024.

EMEA

Net sales were $14.3 billion, a decrease of 1.5% compared to the prior fiscal year. The year-over-year decrease in EMEA net sales was primarily a result of a decrease in advanced solutions, partially offset by solid growth in cloud and modest growth in client and endpoint solutions.

Income from operations was $259.4 million, compared to $317.2 million in the prior fiscal year. The year-over-year decrease was impacted by an increase of $13.9 million in restructuring charges taken in the current year.

Income from operations margin was 1.82%, compared to 2.19% in the prior fiscal year. The year-over-year decrease in income from operations margin was primarily due to a shift in sales mix towards our lower-margin client and endpoint solutions, including a challenging comparison to prior year where margins and vendor programs were stronger, particularly on certain supply-constrained products mainly in advanced solutions. The restructuring charges noted above, as well as an increase in SG&A expenses driven by inflationary and other factors, also impacted this year-over-year comparison.

Asia-Pacific

Net sales were $12.8 billion, compared to $11.6 billion in the prior fiscal year. The increase in Asia-Pacific net sales was driven by stronger net sales of client and endpoint solutions, led by growth in smartphones and consumer electronics. The translation impact of foreign currencies relative to the US Dollar had an approximate 1% negative impact on the year-over-year net sales comparison.

Income from operations was $223.4 million, compared to $247.1 million in the prior fiscal year. The year-over-year decrease was impacted by an increase of $5.7 million in restructuring charges taken in the current year.

Income from operations margin was 1.75% compared to 2.14% in the prior fiscal year. The year-over-year decrease in income from operations margin was primarily the result of a mix shift towards lower-margin client and endpoint solutions offset partially by improved operating expense leverage. The year-over-year comparison was also negatively impacted by 23 basis points from the discrete charges in India previously noted in the fiscal fourth quarter of 2024 as well as a 5 basis point increase in restructuring charges noted above.

Latin America

Net sales were $3.6 billion, compared to $3.8 billion in the prior fiscal year. The decrease in Latin American net sales was primarily driven by declines in net sales of advanced solutions and client and endpoint solutions, partially offset by robust growth in cloud. Furthermore, the translation impact of foreign currencies to the US Dollar had an approximate 3% negative impact on year-over-year net sales comparisons.

Income from operations was $119.6 million, compared to $93.5 million in the prior fiscal year.

Income from operations margin was 3.33% compared to 2.47% in the prior fiscal year. The year-over-year increase in income from operations margin was a result of stronger gross margins across most categories coupled with strong operating expense management throughout the year. Latin America’s operating margin also benefited by 47 basis points year-over-year related to an improvement in bad debt expenses due to a single project that generated reserves in 2023, but for which amounts were collected and reserves reversed in 2024.

Fiscal First Quarter 2025 Outlook

The following outlook is forward-looking, based on the Company’s current expectations for the fiscal first quarter of 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⁾

Our fiscal first quarter guidance is reflective of a continued strengthening market in the North America and Latin America regions, but with heavier concentration towards client and endpoint solutions, as well as large enterprise customers. A softer demand environment in western European markets and significant competitive pressures on pricing of large projects in India are also factors in our outlook on gross profit in the fiscal first quarter of 2025. Our guidance assumes an effective tax rate of approximately 30% on a non-GAAP basis, and 234.9 million diluted shares outstanding.

Dividend Payment

The Company’s board of directors has declared a cash dividend of $0.074 per share of the Company’s common stock. The dividend is payable on March 25, 2025, to stockholders of record as of March 11, 2025.

Share Repurchase Plan

The Company’s board of directors has also approved a share repurchase plan whereby, from time to time, the Company may repurchase up to $75 million of the Company’s common stock in connection with one or more secondary public offerings by Imola JV Holdings, L.P., our controlling stockholder, when an independent committee of the board of directors deems such repurchases are appropriate. Such repurchase authority expires on February 26, 2026.

Fiscal Fourth Quarter 2024 Earnings Call Details:

Ingram Micro’s management will host a call to discuss its results on Tuesday, March 4, 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 201-689-8796 and 877-407-9781.

A telephonic replay will be available through Tuesday, March 18, 2025, at 877-660-6853 or 201-612-7415, access code 13751726. 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 business-to-business technology experts. Through Ingram Micro Xvantage™, our AI-powered digital platform, we deliver a singular business-to-consumer-like experience. 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. For more information, please visit 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.

Investor Relations:
Willa McManmon
ir@ingrammicro.com