Zebra Technologies Announces 3Q 2024 Results

Zebra Technologies Corporation announced results for the third quarter ended Sept. 28, 2024.

Net sales were $1,255 million in the third quarter of 2024 compared to $956 million in the prior year. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $845 million in the third quarter of 2024 compared to $632 million in the prior year.

Asset Intelligence & Tracking (AIT) segment net sales were $410 million in the third quarter of 2024 compared to $324 million in the prior year. Consolidated organic net sales for the third quarter of 2024 increased 30.6% year-over-year, with a 33.0% increase in the EVM segment and a 25.8% increase in the AIT segment.

“Our third quarter performance reflects excellent execution by our teams supported by continuing recovery in demand, strong gross margin, and the completion of our restructuring actions, enabling us to deliver sales and earnings results above the high end of our outlook, said Bill Burns, CEO of Zebra Technologies. “Our relentless focus on innovation continues to drive our competitive differentiation and secure wins.

“We have increased our full year outlook for profitable growth to reflect our recent performance and continued momentum in demand,” added Burns. “We continue to be well positioned to advance our industry leadership with our innovative solutions that digitize and automate our customers’ workflows across the supply chain.”

Third quarter 2024 gross profit was $613 million compared to $427 million in the prior year. Gross margin increased to 48.8% for the third quarter of 2024 compared to 44.7% in the prior year due to volume leverage and business mix. Adjusted gross margin was 49.1% in the third quarter of 2024 compared to 44.8% in the prior year.

In the third quarter, the company completed the actions under its previously announced Exit and Restructuring Plans generating approximately $120 million of net annualized cost savings primarily within Operating expenses.

Net income for the third quarter of 2024 was $137 million, or $2.64 per diluted share, compared to net loss of $15 million, or $0.28 loss per diluted share, in the prior year.

Adjusted EBITDA for the third quarter of 2024 was $268 million, or 21.4% of adjusted net sales, compared to $111 million, or 11.6% of adjusted net sales in the prior year primarily due to higher gross margins and lower operating expense as a percentage of revenue.

As of Sept. 28, 2024, the Company had cash and cash equivalents of $676 million and total debt of $2,183 million. For the first nine months of 2024, net cash provided by operating activities was $707.

The company expects fourth quarter sales growth between 28% and 31% compared to the prior year. Fourth quarter adjusted EBITDA margin is expected to be approximately 22%. Free cash flow for the full year is expected to be at least $850 million.