Q2 2025 Zebra Technologies Corp Earnings Call Transcript
Key Points
- Zebra Technologies Corp (ZBRA) reported a 6% year-over-year increase in sales, reaching $1.3 billion for the second quarter.
- The company achieved an adjusted EBITDA margin of 20.6%, a 10 basis point improvement from the previous year.
- Strong sales growth was observed in North America, Latin America, and Asia Pacific, with notable performance in mobile computing and transportation logistics.
- The acquisition of Elo Touch Solutions is expected to expand Zebra's market reach and is anticipated to be immediately accretive to earnings.
- Zebra Technologies Corp (ZBRA) raised its full-year sales growth guidance to between 5% and 7%, reflecting confidence in continued demand and strategic acquisitions.
- Adjusted gross margin declined by 70 basis points to 47.9%, primarily due to higher US import tariffs.
- The EMEA region experienced a 1% sales decline, attributed to strong prior year comparisons and mixed performance across the region.
- Manufacturing continues to lag behind other verticals, showing slower growth compared to transportation logistics and retail.
- The company remains cautious about the impact of uncertain trade policies and geopolitical factors on customer spending.
- Zebra Technologies Corp (ZBRA) faces ongoing challenges in mitigating the impact of US import tariffs, with a projected $30 million gross profit impact for the full year.
Good day, and welcome to the Zebra Second Quarter 2025 earnings conference call. (Operator Instructions). Please note this event is being recorded. I would now like to turn the conference over to Mike Steele, Vice President, Investor Relations. Please go ahead.
Good morning, and welcome to Zebra's Second Quarter Earnings Conference Call. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least 1 year. Our forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially, and we refer you to the factors discussed in our SEC filings. During this call, we will reference non-GAAP financial measures as we describe our business performance. You can find reconciliations at the end of this slide presentation and in today's earnings press release.
Throughout this presentation, as otherwise indicated, our references to sales
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