Zebra Technologies Announces 2Q 2021 Results

Zebra Technologies announced results for the second quarter ended July 3, 2021.

Net sales were $1,377 million in the second quarter of 2021 compared to $956 million in the second quarter of 2020. Net sales in the Enterprise Visibility & Mobility (EVM) segment were $959 million in the second quarter of 2021 compared with $683 million in the second quarter of 2020.

Asset Intelligence & Tracking (AIT) segment net sales were $421 million in the second quarter of 2021 compared to $273 million in the prior year period. Consolidated organic net sales for the second quarter increased 39.8%. Second-quarter year-over-year organic net sales increased by 35.1% in the EVM segment and increased by 51.2% in the AIT segment.

Second quarter 2021 gross profit was $658 million compared to $419 million in the prior year period. Gross margin increased to 47.8% for the second quarter of 2021 compared to 43.8% in the prior year period.

Net income for the second quarter of 2021 was $219 million, or $4.07 per diluted share, compared to net income of $100 million, or $1.85 per diluted share, for the second quarter of 2020. Adjusted EBITDA for the second quarter of 2021 increased to $325 million, or 23.6% of adjusted net sales, compared to $175 million, or 18.3% of adjusted net sales, for the second quarter of 2020 due to higher gross profits and lower operating expenses as a percentage of sales.

“Our exceptional second quarter performance was driven by continued broad-based demand for our solutions and excellent operational execution,” said Anders Gustafsson, CEO of Zebra Technologies. “While we continue to see extended lead times for certain product components and escalating global shipping costs, we enter the second half of the year with a strong order backlog and a robust pipeline of business which supports the significant increase to our full-year sales outlook. Additionally, we are excited about our entry into vibrant markets that advance our Enterprise Asset Intelligence vision, including our recent launch of fixed industrial scanning & machine vision solutions, as well as our pending acquisition of Fetch Robotics.”

For the first six months of 2021, the company generated $539 million of operating cash flow and incurred capital expenditures of $25 million, resulting in free cash flow of $514 million. The company also acquired Adaptive Vision for $18 million and made $17 million in venture investments. For the first six months of 2021, the company made net debt repayments of $256 million.

The company expects third quarter 2021 adjusted net sales to increase 21% to 25% from the third quarter of 2020 as it continues to experience strong broad-based demand for our solutions as the global economy continues to recover from the pandemic.

The company now expects adjusted net sales to increase 23% to 25% from 2020, which includes an approximately 3 percentage point additive impact from business acquisitions and foreign currency translation and reflects industry-wide supply chain challenges. Free cash flow is now expected to be at least $900 million.

The outlook amounts provided above do not include any projected results from the acquisition of Fetch Robotics, which is expected to close in the third quarter of 2021.