Cognex(CGNX) - 2025 Q1 - Quarterly Results

Revenue and Income - Revenue for Q1 2025 was $216 million, a 2% increase year-on-year, and a 5% increase on a constant-currency basis[6] - Operating income rose to $26 million, an 84% increase from $14 million in Q1 2024, resulting in an operating margin of 12.1%[6] - Revenue for the three months ended March 30, 2025, was $216,036,000, an increase from $210,797,000 for the same period in 2024, representing a growth of 2.9%[18] - Net income for the three months was $23,603,000, translating to a net income margin of 10.9%, up from 5.7% year-over-year[18] - Adjusted net income rose to $27,047,000, with adjusted earnings per share (diluted) increasing to $0.16 from $0.11 in the previous year[23] Cash Flow and Shareholder Returns - Free Cash Flow (FCF) for the trailing twelve-month period was $162 million, representing 120% of adjusted net income, with Q1 2025 FCF at $38 million, a 297% increase year-on-year[12] - Cognex returned $116 million to shareholders in Q1 2025, the highest amount since Q1 2022, including $102 million in stock repurchases[5] - Free cash flow for the period was $38,001,000, a significant increase from $9,582,000 in the same quarter of 2024[23] - Cognex declared a quarterly cash dividend of $0.08 per share, payable on May 29, 2025[8] Margins and Expenses - Adjusted EBITDA margin for Q1 2025 was 16.8%, up 490 basis points from 11.9% in Q1 2024[6] - Cognex's gross margin for Q1 2025 was 66.8%, slightly down from 67.3% in Q1 2024, primarily due to unfavorable mix and foreign exchange impacts[6] - Gross profit for the same period was $144,323,000, with a gross margin of 66.8%, slightly down from 67.3% in the previous year[18] - Research, development, and engineering expenses were $34,727,000, accounting for 16.1% of revenue, down from 17.6% in the previous year[18] - Selling, general, and administrative expenses were $83,504,000, representing 38.7% of revenue, a decrease from 43.0% in the prior year[18] - The company incurred acquisition and integration costs of $242,000 during the quarter, down from $1,568,000 in the same period last year[23] Future Outlook - The company expects Q2 2025 revenue guidance of $235 - $255 million, reflecting a year-on-year increase of approximately 2.5%[10] - An Investor Day is scheduled for June 10, 2025, to discuss strategic objectives and technology leadership[11] Market Performance - The Automotive market continues to experience a downturn, while Logistics and Semiconductor businesses showed strength[4]