CommScope Reports First Quarter 2025 Results
#InvestorRelations--CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, today reported results for the quarter ended March 31, 2025. Summary of Consol...
First Quarter Highlights
- Net sales of $1.11 billion
- GAAP income from continuing operations of $289.7 million
- Core non-GAAP adjusted EBITDA of $245.2 million* (1)
- Non-GAAP adjusted EBITDA of $240.3 million (1)
- Cash flow used in operations of $(186.9) million and free cash flow of $(202.4) million (1) (2)
* Core financial measures reflect the results of the Connectivity and Cable Solutions (CCS), Networking, Intelligent Cellular and Security Solutions (NICS), and Access Network Solutions (ANS) segments, in the aggregate, and exclude general corporate costs that were previously allocated to the Outdoor Wireless Networks (OWN) segment, Distributed Antenna Systems (DAS) business unit and Home Networks (Home) segment, since these costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2024, these costs related to our Home segment have been reallocated to our remaining segments and partially offset by income from the Vantiva TSA. Beginning in the first quarter of 2025, these costs related to our OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA. See the segment comparison tables below showing the aggregation of the Core financial measures.
(1) See “Non-GAAP Financial Measures” and “Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures” below.
(2) The cash flows related to discontinued operations have not been segregated. Accordingly, this cash flow information includes the results of continuing and discontinued operations.
CLAREMONT, N.C.: #InvestorRelations--CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in network connectivity solutions, today reported results for the quarter ended March 31, 2025.
Summary of Consolidated Results |
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| Q1 |
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| Q1 |
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| % Change |
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| 2025 |
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| 2024 |
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| YOY |
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| (in millions, except per share amounts) |
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Net sales |
| $ | 1,112.2 |
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| $ | 900.9 |
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| 23.5 | % |
GAAP income (loss) from continuing operations |
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| 289.7 |
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| (242.9 | ) |
| NM |
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GAAP income (loss) from continuing operations per share |
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| 1.06 |
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| (1.22 | ) |
| NM |
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Non-GAAP adjusted EBITDA (1) |
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| 240.3 |
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| 84.1 |
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| 185.7 |
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Core non-GAAP adjusted EBITDA (1) (2) |
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| 245.2 |
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| 94.6 |
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| 159.2 |
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Non-GAAP adjusted net income (loss) per diluted share (1) |
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| 0.14 |
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| (0.24 | ) |
| NM |
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NM – Not meaningful |
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(1) See “Non-GAAP Financial Measures” below. |
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(2) Core financial measures reflect the results of the CCS, NICS and ANS segments, in the aggregate, and exclude general corporate costs that were previously allocated to our OWN segment, DAS business unit and Home segment, since these costs were not directly attributable to these discontinued operations. Beginning in the first quarter of 2024, these costs related to our Home segment have been reallocated to our remaining segments and partially offset by income from the Vantiva TSA. Beginning in the first quarter of 2025, these costs related to our OWN segment and DAS business unit have been reallocated to our remaining segments and partially offset by income from the Amphenol TSA. |
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“We are off to an encouraging start in 2025 resulting in strong year-over-year growth in revenue and adjusted EBITDA. For the first quarter of 2025, CommScope reported net sales of $1.11 billion, an increase of 23.5% from the prior year and delivered Core non-GAAP adjusted EBITDA of $245 million, a strong improvement of 159.2% year-over-year and fourth consecutive quarter of improvement. First quarter Core adjusted EBITDA as a percentage of revenues was 22.0%, compared to 10.5% in the prior year, a year-over-year improvement of 1,150 basis points. Our CCS segment led the way with a particularly strong performance in data center where we grew year-over-year revenue by 88%. As we continue to navigate the fluid tariff environment, we stay committed to our strategy of focusing on what we can control to drive company performance and profitability. We will use our global manufacturing footprint, broad supplier base and pricing to manage the current tariff environment. We feel we are well positioned for growth throughout the rest of 2025 and are confirming our 2025 Core adjusted EBITDA guideposts of $1.00 to $1.05 billion,” said Chuck Treadway, President and Chief Executive Officer.
“As previously reported, on January 31, 2025 CommScope completed the sale of the OWN segment and DAS business unit of the NICS segment to Amphenol Corporation. As a result of the sale, net proceeds were used to repay all outstanding amounts under the Company’s asset-based revolving credit facility, repay in part the Company’s 4.750% Senior Secured Notes due 2029, repay in full the Company’s 6.000% Senior Secured Notes due 2026 and pay fees and expenses associated with the transaction. Therefore, our next credit maturity is not due until 2027. We ended the quarter with significant liquidity in cash and availability under our ABL credit facility of approximately $856 million,” said Kyle Lorentzen, Chief Financial Officer.
As a result of the completion of the previously announced sale of the OWN segment and the DAS business unit of the NICS segment, unless otherwise noted, these financial results relate to CommScope’s continuing operations based on the following remaining three operating segments: CCS, NICS (excluding DAS) and ANS. For all periods presented, amounts have been recast to reflect these changes.
First Quarter Results and Comparisons
Net sales in the first quarter of 2025 increased 23.5% year-over-year to $1.11 billion due to higher net sales in all segments. Net sales increased across all regions, except the Caribbean and Latin America region, in the first quarter of 2025.
Income from continuing operations of $289.7 million, or $1.06 per share, in the first quarter of 2025, increased compared to the prior year period's loss from continuing operations of $(242.9) million, or $(1.22) per share. Non-GAAP adjusted net income (loss) for the first quarter of 2025 was $38.6 million, or $0.14 per share, versus $(50.8) million, or $(0.24) per share, in the first quarter of 2024.
Core non-GAAP adjusted EBITDA increased 159.2% to $245.2 million in the first quarter of 2025 compared to the same prior year period. Core non-GAAP adjusted EBITDA as a percentage of net sales increased to 22.0% in the first quarter 2025 compared to 10.5% in the same prior year period. Non-GAAP adjusted EBITDA increased 185.7% to $240.3 million in the first quarter of 2025 compared to the same period last year. Non-GAAP adjusted EBITDA as a percentage of net sales increased to 21.6% in the first quarter of 2025 compared to 9.3% in the same prior year period. Reconciliations of the reported GAAP results to non-GAAP adjusted results are included below.
First Quarter Comparisons
Sales by Region
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| % Change | ||||||||
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| Q1 2025 |
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| Q1 2024 |
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| YOY | |||||
United States |
| $ | 767.6 |
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| $ | 589.8 |
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| 30.1 |
| % |
Europe, Middle East and Africa |
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| 146.2 |
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| 134.6 |
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| 8.6 |
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Asia Pacific |
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| 113.2 |
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| 110.1 |
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| 2.8 |
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Caribbean and Latin America |
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| 43.7 |
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| 44.2 |
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| (1.1 | ) |
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Canada |
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| 41.5 |
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| 22.2 |
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| 86.9 |
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Total net sales |
| $ | 1,112.2 |
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| $ | 900.9 |
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| 23.5 |
| % |
Segment Net Sales
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| % Change | |||||
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| Q1 2025 |
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| Q1 2024 |
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| YOY | |||||
CCS |
| $ | 724.1 |
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| $ | 604.7 |
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| 19.7 |
| % |
NICS |
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| 163.1 |
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| 108.2 |
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| 50.7 |
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ANS |
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| 225.0 |
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| 188.0 |
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| 19.7 |
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Total net sales |
| $ | 1,112.2 |
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| $ | 900.9 |
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| 23.5 |
| % |
Segment Operating Income (Loss)
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| % Change | |||||
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| Q1 2025 |
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| Q1 2024 |
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| YOY | |||||
CCS |
| $ | 134.8 |
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| $ | 60.5 |
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| 122.8 |
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NICS |
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| 7.0 |
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| (35.9 | ) |
| NM |
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ANS |
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| (1.8 | ) |
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| (66.7 | ) |
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| (97.3 | ) |
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Core operating income (loss) (1) |
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| 140.0 |
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| (42.1 | ) |
| NM |
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Corporate and other (2) |
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| (6.0 | ) |
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| (12.6 | ) |
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| (52.4 | ) |
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Total operating income (loss) |
| $ | 134.0 |
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| $ | (54.7 | ) |
| NM |
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Segment Adjusted EBITDA (See “Non-GAAP Financial Measures,” below)
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| % Change | |||||
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| Q1 2025 |
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| Q1 2024 |
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| YOY | |||||
CCS |
| $ | 182.1 |
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| $ | 97.4 |
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| 87.0 |
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NICS |
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| 24.9 |
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| (16.6 | ) |
| NM |
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ANS |
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| 38.2 |
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| 13.8 |
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| 176.8 |
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Core adjusted EBITDA (1) |
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| 245.2 |
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| 94.6 |
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| 159.2 |
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Corporate and other (2) |
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