Zebra Technologies Announces First-Quarter 2025 Results

Zebra Technologies Corporation, a global leader in digitizing and automating frontline workflows, has released its financial results for the first quarter of 2025. The company reported strong performance metrics, reflecting robust demand and effective execution by its team.

Financial Highlights

For the first quarter ended March 29, 2025, Zebra Technologies reported:

• Net sales of $1,308 million, marking an 11.3% year-over-year increase.
• Net income of $136 million, with net income per diluted share at $2.62.
• Non-GAAP diluted EPS increased to $4.02, up from $2.84 in the prior year.
• Adjusted EBITDA rose to $292 million, a 24.8% increase year-over-year.
• Share repurchases totaling $125 million.

Business and Operational Highlights

Net sales in the Enterprise Visibility & Mobility (EVM) segment were $846 million, up from $783 million in the prior year. The Asset Intelligence & Tracking (AIT) segment saw net sales of $462 million, compared to $392 million in the previous year. Consolidated organic net sales for the first quarter increased by 11.9% year-over-year, with the EVM segment growing by 8.6% and the AIT segment by 18.4%.

Strategic Initiatives and Corporate Developments

During the first quarter, Zebra Technologies made significant strides in its strategic initiatives, including:

• Investing $20 million in capital expenditures.
• Acquiring Photoneo for $62 million.
• Maintaining a strong balance sheet with cash and cash equivalents of $879 million and total debt of $2,183 million.

Management's Perspective

Bill Burns, Chief Executive Officer of Zebra Technologies, commented, "We delivered first quarter sales and earnings results above the high end of our outlook, reflecting strong demand, supported by our team's excellent execution. Demand trends have continued to be positive into the second quarter, and we are leaving our full-year outlook unchanged, with the exception of the direct cost of tariffs."

Future Outlook

For the second quarter of 2025, Zebra Technologies expects sales growth between 4% and 7% compared to the prior year. Adjusted EBITDA margin is anticipated to be approximately 19%, factoring in a $25 to $30 million U.S. import tariff expense. Non-GAAP diluted earnings per share are projected to be in the range of $3.00 to $3.50.

For the full year 2025, the company maintains its sales growth forecast between 3% and 7%. Adjusted EBITDA margin is expected to be between 20% and 21%, with non-GAAP diluted earnings per share ranging from $13.75 to $14.75. Free cash flow for the full year is projected to exceed $700 million.

SEC Filing: ZEBRA TECHNOLOGIES CORP [ ZBRA ] - 8-K - Apr. 29, 2025