Zebra Technologies Corporation

Good day and welcome to the Zebra Second Quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one, on your telephone keypad. To withdraw your question, please press star, then two. 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 Second Quarter earnings conference call. This presentation is being simulcast on our website at .zebra.com and will be archived there for at least one 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, unless otherwise indicated, our references to sales performance are -on-year, on a constant currency basis, and exclude results from recently acquired businesses for 12 months. This presentation will include prepared remarks from Bill Burns, our Chief Executive Officer, and Nathan Winters, our Chief Financial Officer. Bill will begin with a discussion of our second quarter results. Nathan will then provide additional detail and discuss our revised outlook. Bill will continue with progress on advancing our strategic priorities, including the pending acquisition of ELO Touch Solutions we announced this morning. Following the prepared remarks, Bill and Nathan will take your questions. Now let's turn to slide four as I hand it over to Bill. Thank you, Mike.

Good morning and thank you for joining us. In addition to our second quarter highlights and financial results, we will discuss this morning's announcement of the exciting milestone in our journey to enhance the connected frontline experience through our acquisition of ELO. We will also review our increased full-year outlook. Before we get into the details of the quarter, let me spend a moment on the acquisition that drives profitable growth and elevates our market leadership. ELO's solutions engage consumers, enhance self-service, and deliver automation across the wide range of end markets. This combination strengthens EBRS portfolio of solutions and enables us to advance our strategic priorities. Now turning to our Q2 results. Our team executed well in the second quarter, delivering results exceeding our outlook with solid demand across the business and lower than expected U.S. import tariffs. For the quarter, we realized sales of $1.3 billion, a greater than 6% increase compared to the prior year, an adjusted EBITDA margin of 20.6%, a 10 basis point improvement, and a 10% gap diluted earnings per share of $3.61, which was 14% higher than the prior year. We realized strong growth in our North America, Latin America, and Asia Pacific regions and had relative outperformance in mobile computing, scanning, and RFID. Transportation logistics, along with retail and e-commerce, were our highest growth vertical and markets, with healthcare cycling a strong compare and manufacturing continuing to lack. As we enter the third quarter, demand has been resilient. However, we remain cautious as our customers navigate through uncertain trade policy. Additionally, we expect the recently passed tax legislation to be constructive for some of our U.S. customers, although it is too early to assess the impact on demand. I will now turn the call over to Nathan to review our Q2 financial results, tariff considerations, and outlook.