CDW (CDW) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached $5.2 billion, up 3.3%–5% year-over-year, while full-year net sales declined 1.8% to $21.0 billion.

• Q4 gross profit was $1.16 billion (flat to up 0.1%); full-year gross profit declined 1.1% to $4.60 billion.

• Q4 non-GAAP net income per share was $2.48 (down 3.7%); full-year non-GAAP EPS was $9.52 (down 3.6%).

• Adjusted free cash flow for 2024 was $1.1 billion, with $832 million returned to shareholders via dividends and share repurchases.

• Board approved a $750 million increase to share repurchase authorization and a 1% dividend increase to $2.50 annually.

Financial highlights

• Q4 gross margin was 22.3% (down from 23.0% prior year); full-year gross margin was 21.9% (up from 21.8%).

• Q4 operating income was $409 million (down 6.1%); non-GAAP operating income was $499 million (down 3.8%).

• Q4 non-GAAP SG&A was $656 million, up 3.3% year-over-year, with an efficiency ratio of 56.8%.

• Year-end net debt was $5.13 billion, up from 2023, mainly due to acquisitions.

• Free cash flow for 2024 was $1.15 billion; capital expenditures totaled $123 million.

Outlook and guidance

• 2025 IT market expected to grow low single digits; company targets outperformance by 200–300 bps.

• Full-year 2025 guidance: low single-digit growth in gross profit and non-GAAP EPS, with stable gross margins.

• Annual non-GAAP effective tax rate expected at 25.5%–26.5%; capital expenditures projected at $120–$130 million.

• Currency expected to be a slight headwind in 2025.

• Annual adjusted free cash flow expected at 80%–90% of non-GAAP net income.