Zebra Technologies Corporation

Good day and welcome to the fourth quarter and full year 2025 Zebra Technologies Earning 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. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Mike Steele, Vice President of Investor Relations.

Please go ahead. Good morning and welcome to Zebra's fourth quarter earnings conference call. This presentation is being simulcast on our website at investors.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. with reconciliation shown at the end of this slide presentation and in our earnings press release. Throughout this presentation, unless otherwise indicated, our references to sales performance are year-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 fourth quarter and full year results. Nathan will then provide additional detail and discuss our outlook. Bill will conclude with progress on advancing our strategic priorities. 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. We delivered fourth quarter results above our outlook, driven by our team's strong execution and positive demand trend. Before discussing the quarter, I'd like to briefly reflect on the progress we have made over the past year on our vision to advance intelligent operation. In 2025, we expanded our connected frontline portfolio and customer base through the Elo Touch acquisition and expanded our 3D machine vision capabilities with the PhotoNeo acquisition. We advanced our market leadership with the introduction of our AI solutions for the frontline sharpened our focus on automation by exiting our robotics business to prioritize areas where we see better growth opportunities, including RFID, machine vision, and AI-powered solutions. Operationally, we delivered solid growth, generating strong free cash flow, and deepened customer and partner relationships. For the fourth quarter, we realized sales of nearly $1.5 billion, a 10.6% increase, or 2.5% on an organic basis, from the prior year and adjusted even a margin of 22.1% and non-GAAP diluted earnings per share of $4.33, which was 8% higher than the prior year. We drove strong results in our Asia-Pac and Latin America regions with EMEA returning to grow. Our healthcare, manufacturing, and retail and e-commerce end markets grew while transportation logistics cycled strong compares in North America. ELO performed well in the quarter and we are pleased with the early progress on driving synergies. We realized solid earnings growth by fully mitigating existing tariffs and driving operating expense leverage through productivity initiatives while continue to invest in our market leading solutions portfolio. For the full year, we achieved greater than 6% sales growth in line with our long-term expectations and 17% non-GAAP diluted earnings per share growth. We also generated more than $800 million a free cash flow, and closed on accretive acquisitions. Overall, our team executed well while navigating in a certain environment. Our strong financial position enabled us to return significant value to shareholders with more than $300 million of repurchases in Q4 and nearly $600 million for the full year. Given our progress, our board of directors has expanded our authorization by $1 billion. We will continue to execute on our disciplined and balanced capital allocation strategy, prioritizing investments in our business that elevate our portfolio of solutions while consistently returning capital to our shareholders. We are well positioned as we enter 2026 and excited about the opportunities ahead. I will now turn the call over to Nathan to review our Q4 financial results and 2026 outcome.