ePlus (PLUS) investor relations material

Executive summary

• Q2 FY27 net sales rose 9.7% to $667.9M; gross profit increased 11.2%, operating income 15.8%, and Adjusted EBITDA 14.3%, with record gross billings of $1.07B.

• FY27 guidance was raised to upper-single-digit growth in net sales and gross profit, and low-double-digit growth in Adjusted EBITDA.

Financial highlights

• Q2 continuing-operations net earnings were $40.4M vs. $38.2M; diluted EPS was $1.56 vs. $1.45, and non-GAAP diluted EPS was $1.82.

• H1 net sales rose 5.2% to $1,317.0M; continuing-operations net earnings were $70.7M, and Adjusted EBITDA increased 3.2% to $114.9M.

• H1 diluted EPS was $2.72 GAAP and $3.11 non-GAAP; gross billings increased 2.5% to $2,023.9M.

• Q2 Adjusted EBITDA was $67.1M vs. $58.7M; H1 operating income was $95.4M vs. $91.8M.

Outlook and guidance

• FY27 growth guidance raised to upper-single digits for net sales and gross profit, and low-double digits for Adjusted EBITDA.

• Management expects H2 growth and operating leverage; some Q2-ending inventory is expected to ship in H2, while some open orders will carry into FY28.

• Extended product lead times and IT price increases may persist for the next few quarters, increasing inventory and working-capital needs; cash, operating cash flow, and available credit are expected to cover needs for at least a year.