Zebra(US:ZBRA)2025-08-05 11:36Financial Performance - Net sales for Q2 2025 were $1,293 million, a year-over-year increase of 6.2% from $1,217 million in Q2 2024[3] - Gross profit for Q2 2025 was $616 million, compared to $589 million in the prior year, with a gross margin of 47.6%, down from 48.4%[5] - Net income for Q2 2025 was $112 million, or $2.19 per diluted share, compared to $113 million, or $2.17 per diluted share, in the prior year[7] - Non-GAAP net income increased to $186 million for Q2 2025, or $3.61 per diluted share, compared to $165 million, or $3.18 per diluted share, for the prior year[7] - Adjusted EBITDA for Q2 2025 was $267 million, representing an adjusted EBITDA margin of 20.6%, compared to $250 million and 20.5% in the prior year[8] - Operating income for the three months ended June 28, 2025, was $183 million, compared to $167 million for the same period in 2024, indicating a 9.6% year-over-year growth[29] - Net income for the six months ended June 28, 2025, was $248 million, an increase from $228 million in the same period of 2024, representing a 8.8% growth[31] - Basic GAAP earnings per share for the three months ended June 28, 2025, was $2.20, compared to $2.19 for the same period in 2024, a marginal increase of 0.5%[39] Sales Growth - The company expects Q3 2025 sales growth between 2% and 6%, including a favorable impact of approximately 30 basis points from the Photoneo acquisition[10] - Full year 2025 sales growth is now expected to be between 5% and 7%, including approximately 50 basis points of favorability from the Photoneo acquisition and foreign currency translation[12] - Total net sales for the three months ended June 28, 2025, reached $1,293 million, a 6.2% increase compared to $1,217 million for the same period in 2024[29] - Consolidated organic net sales growth for the six months ended June 28, 2025, was 9.0%, compared to 8.7% for the same period in 2024[33] - Reported net sales for the three months ended June 28, 2025, were $1,293 million, an increase from $1,217 million for the same period in 2024, representing a growth of 6.2%[36] Profitability Metrics - Adjusted EBITDA margin for the full year is expected to be between 21% and 22%, including an impact of approximately $30 million in U.S. import tariff expense[13] - Adjusted gross profit for the six months ended June 28, 2025, was $1,268 million, compared to $1,156 million for the same period in 2024, reflecting a year-over-year increase of 9.7%[36] - Adjusted EBITDA for the six months ended June 28, 2025, reached $559 million, compared to $484 million for the same period in 2024, marking a 15.5% increase[42] - Adjusted gross margin for the six months ended June 28, 2025, was 48.8%, compared to 48.3% in the same period last year, indicating a slight improvement[36] Cash Flow and Assets - Free cash flow for the full year 2025 is now expected to exceed $800 million[14] - Free cash flow for the six months ended June 28, 2025, was $288 million, down from $389 million in the same period last year, a decrease of 26%[44] - Cash and cash equivalents at the end of the period on June 28, 2025, were $872 million, a decrease from $901 million at the beginning of the period[31] - The company experienced a net cash provided by operating activities of $325 million for the six months ended June 28, 2025, down from $413 million in the same period last year[44] Liabilities and Acquisitions - Total liabilities as of June 28, 2025, were $4,321 million, a slight decrease from $4,382 million as of December 31, 2024[27] - The company announced an agreement to acquire Elo Touch Solutions, Inc. for $1.3 billion, expected to close in 2025[15] - The company incurred $62 million in acquisition costs during the six months ended June 28, 2025[31] - Total current assets as of June 28, 2025, were $2,334 million, down from $2,440 million as of December 31, 2024[27]