Zebra Technologies Corporation has reported its financial results for the fourth quarter and full year 2024, revealing impressive growth and performance. In the fourth quarter of 2024, the company achieved net sales of $1,334 million, marking a substantial 32.2% increase from the same period in the previous year when net sales were $1,009 million. This significant growth was also reflected in the company's segments, with the enterprise visibility & mobility ("EVM") segment reporting net sales of $886 million in the fourth quarter of 2024, compared to $663 million in the prior year. Similarly, the asset intelligence & tracking ("AIT") segment saw net sales of $448 million in the fourth quarter of 2024, up from $346 million in the prior year.
Gross profit for the fourth quarter of 2024 also exhibited notable growth, reaching $648 million compared to $448 million in the prior year. Gross margin increased to 48.6% from 44.4% in the prior year, primarily due to volume leverage. Adjusted gross margin for the same period was 48.7%, up from 44.6% in the prior year.
The company's net income for the fourth quarter of 2024 experienced a substantial surge, reaching $163 million, or $3.14 per diluted share, in contrast to the net income of $17 million, or $0.31 per diluted share, in the prior year. Non-GAAP net income for the same period also saw a significant increase, rising to $208 million, or $4.00 per diluted share, compared to $89 million, or $1.71 per diluted share, in the prior year. Additionally, adjusted EBITDA for the fourth quarter of 2024 increased to $295 million, or 22.1% of adjusted net sales, from $155 million, or 15.4% of adjusted net sales, in the prior year, driven by higher gross profit and lower operating expenses as a percentage of adjusted net sales.
Looking ahead, Zebra Technologies Corporation has provided an outlook for the first quarter and full year 2025. For the first quarter, the company anticipates net sales growth between 8% and 11% compared to the first quarter of 2024, with adjusted EBITDA margin expected to be approximately 21%. The full year 2025 outlook includes an expected net sales growth of 3% to 7% compared to 2024, with adjusted EBITDA margin anticipated to be between 21% and 22%.
The company's strong performance and optimistic outlook underscore its position for continued growth and success in the coming year. The market has reacted to these announcements by moving the company's shares -7.5% to a price of $326.39. If you want to know more, read the company's complete 8-K report here.
