CommScope(COMM) - 2025 Q2 - Earnings Call Presentation

Financial Performance - Net sales reached $1.388 billion, a 32% increase year-over-year and a 25% sequential increase[12, 14] - Adjusted EBITDA was $338 million, a 79% year-over-year increase and a 41% sequential increase[12, 14] - RemainCo (ANS and Ruckus) net sales were $513 million, a 58% increase year-over-year and a 32% sequential increase[12, 14] - RemainCo Adjusted EBITDA was $127 million, a 326% increase year-over-year and a 101% sequential increase[9, 12] - The company is revising its 2025 Adjusted EBITDA guideposts up to between $1.15 billion and $1.20 billion, with RemainCo expected to contribute between $325 million and $350 million[11] Strategic Initiatives - The company entered into a definitive agreement to sell its CCS business to Amphenol for $10.5 billion in cash, expected to close in the first half of 2026[9] - The company anticipates approximately $500 million in fees and taxes related to the CCS sale[9] - The company intends to use the proceeds from the CCS sale to pay off debt and preferred equity and distribute excess cash, with minimal leverage on RemainCo[9] Liquidity and Debt - The company ended the quarter with over $991 million in available liquidity, including $571 million in cash[26] - Net leverage as of June 30, 2025, was 6.6x based on pro forma Adjusted EBITDA from continuing operations of approximately $1.025 billion[24, 25] Segment Performance - Connectivity and Cable Solutions (CCS) net sales increased by 20% year-over-year, driven by Cloud and Hyperscale datacenter growth, with EBITDA margin remaining strong at 24.1%[16] - Access Network Solutions (ANS) net sales increased by 65% year-over-year, with Adjusted EBITDA increasing by 132% due to DOCSIS 4.0 product revenue and increased license sales[16] - Ruckus net sales increased by 47% year-over-year, driven by a return to stabilized buying patterns in the channel, with Adjusted EBITDA increasing by $51 million[16]