Zebra Technologies Reports 8.7% Revenue Growth to $4.981 Billion for Fiscal Year 2024

Zebra Technologies Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net sales reaching $4.981 billion, an 8.7% increase from $4.584 billion in 2023. The company also saw a substantial rise in operating income, which rose to $742 million from $481 million in the previous year. Net income surged by 78.4% to $528 million, translating to diluted earnings per share of $10.18, compared to $5.72 in 2023. This growth was attributed to a recovery in demand trends, particularly in the Enterprise Visibility & Mobility (EVM) segment, which experienced a 13.7% increase in net sales.

In comparison to the previous fiscal period, Zebra's performance showed marked improvement, particularly in gross profit, which increased to $2.413 billion, up from $2.123 billion in 2023. The gross margin also improved to 48.4%, reflecting better operational efficiency and cost management. The company completed its 2022 Productivity Plan, which resulted in approximately $120 million in annualized net cost savings, impacting over 9% of its global workforce. Additionally, Zebra's cash flow from operating activities turned positive, generating $1.013 billion compared to a slight cash outflow in the prior year.

Strategically, Zebra Technologies has been active in expanding its capabilities through acquisitions. The company completed the acquisition of Matrox Electronic Systems Ltd. in June 2022 for $881 million, enhancing its machine vision product offerings. Furthermore, Zebra announced a definitive agreement to acquire Photoneo, a developer of 3D machine vision solutions, for approximately €60 million, expected to close in the first quarter of 2025. These acquisitions are part of Zebra's strategy to enhance its Enterprise Asset Intelligence vision and expand its product portfolio.

Operationally, Zebra reported a global workforce of approximately 9,900 employees, with a significant presence in North America and Europe. The company operates in 114 facilities across 176 countries, leveraging a direct sales force and a network of over 10,000 channel partners. The EVM segment, which includes mobile computing and data capture solutions, saw a notable increase in product adoption, contributing to the overall revenue growth. The company also reported a 14.4% increase in net sales from the EMEA region, indicating successful geographic expansion.

Looking ahead, Zebra Technologies anticipates increased uncertainty and volatility in global trade policies and foreign currency exchange rates, which may impact future performance. The company plans to continue leveraging its market leadership and innovation to drive growth in its core business segments while focusing on adjacent market opportunities. The management remains committed to enhancing financial strength and flexibility, aiming for sustained profitability and cash flow generation in the coming years.