ARW · CIK 7536
What Arrow Electronics, Inc. told the SEC could break it.
Arrow's results swing with the semiconductor cycle — chips and related services were about 50% of 2025 sales, and its other components business tracks the same cycle — so demand and profitability rise and fall with that one market. As a global distributor, it also sits squarely in U.S.-China trade crossfire: three of its China subsidiaries were added to the Commerce Department's BIS Entity List in October 2025, restricting their access to U.S. exports, and broader tariffs raise its costs and can dampen customer demand. Beneath those, it leans on a limited set of suppliers (one was about 8% of sales) under short-notice cancellable agreements, while roughly 66% of sales come from outside the U.S., making currency swings a material mover of reported results.
5 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- BIS Entity List — three China subsidiarieshigh
On October 8, 2025, three of Arrow's China subsidiaries were added to the U.S. Commerce/BIS Entity List, restricting their ability to receive exports of U.S. products — a direct hit to sales, customer relationships and reputation.
“For example, on October 8, 2025, three of the company's subsidiaries in China were added to the “Entity List” of the BIS, which restricted their ability to receive exports of U.S.”
SEC filing →As of 2026 - US-China tariffs / trade disputesmedium
Increased tariffs and trade disputes, particularly between the U.S. and China, raise operational costs and can reduce customer demand across Arrow's extensive international distribution business; tariff-drawback refunds depend on documentation Arrow may be unable to obtain from suppliers.
“Tariffs and other protectionist measures, and the additional operational costs incurred in minimizing the number of products subject to them, could adversely affect the operating profits for certain of the company's businesses and customer demand for certain products, which could have an adverse effect on the company's business and results of operations.”
SEC filing →As of 2026
Commodity & input dependence
- semiconductors (~50% of consolidated sales)medium
Semiconductor products and related services were ~50% of consolidated sales in 2025; the cyclical semiconductor market drives Arrow's revenue and profitability, especially in global components, and IP&E sales track the same cycle.
“Sales of semiconductor products and related services represented approximately 50%, 53%, and 60%, of the company's consolidated sales in 2025, 2024, and 2023, respectively. The sale of the company's IP&E products closely tracks the semiconductor market.”
Supplier concentration
- single supplier (~8% of consolidated sales)medium
Products from one supplier accounted for approximately 8% of consolidated sales in 2025; parts of the business (global ECS) rely on a limited number of suppliers under non-exclusive, short-notice cancellable distribution agreements.
“Some of the company's business offerings rely on a limited number of suppliers to provide a high percentage of revenues. For example, sales of products from one of the company's suppliers accounted for approximately 8% of the company's consolidated sales in 2025.”
SEC filing →As of 2026
Currency (FX)
- non-U.S. operations (~66% of sales)low
About 66% of 2025 sales came from operations outside the U.S., so currency translation materially swings results — a weaker dollar added $398.8M of sales and $21.6M of operating income in 2025, and a stronger dollar would reverse that.
“During 2025, the U.S dollar weakened against certain other currencies. This increased sales and operating income by $398.8 million and $21.6 million respectively, for 2025, compared with the year-earlier period, based on 2024 sales and operating income re-translated at average foreign currency exchange rates for 2025.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
“Our three largest Channel Partners, Arrow Enterprise Computing Solutions, Exclusive Networks, and Ingram Micro Inc., and their respective affiliates collectively generated approximately 68% and 73% of our revenue for fiscal 2026 and 2025, respectively.”
Cited →“Customer Arrow Electronics, Inc. 26% 19% 18% Pernas Electronics Co. Ltd. 25% 24% 20% Quantek Technology Corporation * 13% 13%”
Cited →“Sales to Arrow Electronics, Inc., which were included in the Electronics, Transportation, and Industrial segments, were 9.5 %, 9.4 %, and 11.2 % of consolidated net sales in 2025, 2024, and 2023 respectively.”
Cited →
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