CDW Corporation Reports 6.7% Net Sales Increase to $5.199 Billion in Q1 2025

CDW Corporation reported a net sales increase of 6.7% for the first quarter of 2025, reaching $5.199 billion compared to $4.873 billion in the same period of 2024. The company's gross profit also rose by 5.5% to $1.122 billion, although the gross profit margin slightly decreased to 21.6% from 21.8%. Operating income increased by 10.2% to $361.4 million, reflecting a positive trend in profitability despite rising costs in selling and administrative expenses, which grew by 3.5% to $760.9 million.

In terms of financial position, CDW's total assets increased to $15.019 billion as of March 31, 2025, up from $14.678 billion at the end of 2024. The company’s cash and cash equivalents decreased to $471.4 million from $503.5 million, while accounts receivable rose to $5.334 billion, indicating a growing customer base and demand for its products. The company reported a net income of $224.9 million, or $1.69 per diluted share, compared to $216.1 million, or $1.59 per diluted share, in the prior year.

Strategically, CDW completed the acquisition of Mission Cloud Services, Inc. for $330 million in November 2024, which is expected to enhance its cloud service offerings. The company continues to focus on expanding its product portfolio and improving customer engagement through various IT solutions, including hardware, software, and services. The first quarter saw strong demand for notebooks, desktops, and software, particularly in the education and healthcare sectors, contributing to the overall sales growth.

Operationally, CDW's customer engagement metrics showed a positive trend, with average daily sales increasing to $82.5 million from $76.1 million year-over-year. The company also reported a cash conversion cycle of 15 days, down from 16 days, indicating improved efficiency in managing working capital. However, the company experienced a decrease in net cash provided by operating activities, which fell to $287.2 million from $440 million, primarily due to changes in accounts receivable and inventory levels.

Looking ahead, CDW remains cautious about the economic environment, which may impact customer spending on IT solutions. The company anticipates that ongoing economic uncertainty could influence purchasing decisions, particularly among government and education customers. Despite these challenges, CDW is committed to leveraging its diverse product offerings and strategic acquisitions to drive growth and enhance its market position in the IT solutions sector.