Ingram Micro Holding Corp Q1 FY2025 earnings call

Management Statement and Operational Highlights

• First Quarter Performance: Net revenue of $12.3 billion was up 11% year over year on an FX neutral basis, 4% above Q4 guidance. Gross profit of $829 million was more than 2% above midpoint of guidance, and non-GAAP EPS of $0.61 was at high end of guidance.
• xVantage Platform: Over $600 million invested in cloud, implemented in 20 of 57 countries. AI capabilities like AIDA drove proactive customer engagements, and Xvantage Integration Hub (Xi) simplified software integrations.
• Awards: Ingram Micro won 3 IF design awards in 2025 for xVantage solutions, recognizing user experience innovation.

Segment Performance

• North America: Net sales were $4.43 billion, up 10.4% year over year on an FX neutral basis.
• EMEA: Net sales were $3.42 billion, up 0.6% year over year in U.S. dollars and 3% on an FX neutral basis.
• Asia Pacific: Had the strongest growth in Q1 with net sales of $3.62 billion, up 20.1% year over year in U.S. dollars and 23.2% on an FX neutral basis.
• Latin America: Net sales were $808.3 million, down 8.5% in U.S. dollars but only 0.3% in constant currency.
• Product Segments: Client and endpoint solutions grew nearly 15% on an FX neutral basis, driving top line growth. Advanced Solutions and Cloud categories also saw growth, with cloud contributing nearly 15% of total gross profit though only 1% of net sales.

Guidance

• Q2 net sales guidance: $11.77 billion to $12.17 billion (4% year over year growth midpoint).
• Q2 gross profit guidance: $800 million to $850 million (~7% margin).
• Non-GAAP diluted EPS guidance: $0.53 to $0.63 per share, considering macro, tariff, and inventory investment impacts.

Risks

• Macro and trade environment volatility affecting forecast accuracy.
• Tariff uncertainties impacting demand and pricing dynamics.
• SMB market mutedness affecting margin mix due to midterm macro uncertainty.

Question and Answer

• Q: Samik Chatterjee asks about SMB vs large enterprise growth.

A: Paul and Mike discuss SMB green shoots and large enterprise demand strength, noting large enterprise pipeline remains strong.

• Q: Eric Woodring asks about Q1 pull forward and Q2 guide.

A: Paul and Mike discuss PC refresh pull forward and Q2 guide factors, noting minimal pull forward and Q2 guide considering macro and inventory impacts.

• Q: Anand Paruwa asks about xVantage progress and cloud opportunity.

A: Paul and Mike discuss xVantage metrics (user engagement, reactivating dormant customers) and cloud growth potential, with cloud contributing 15% of gross profit despite low net sales contribution.

• Q: Ruplu Bhattacharya asks about gross margin and working capital.

A: Mike discusses margin mix factors (advanced solutions growth, regional mix) and working capital pre-buys for potential tariff impacts.

• Q: Matt Niknam asks about client endpoint strength and India competition.

A: Paul and Mike discuss PC refresh driving client endpoint strength and India competitive dynamics, noting mid single digit growth in India on FX neutral basis.

• Q: Maggie Nolan asks about OpEx and tariff impact.

A: Michael Zilis discusses OpEx leverage post-cost actions and tariff uncertainty impact on buyer behavior, noting tempered approach based on current environment