CommScope reports Q3 adjusted EPS 62c, consensus 37c

Reports Q3 revenue $1.63B, consensus $1.37B. “We are pleased with our outstanding results in Q3. CommScope (COMM) net sales of $1.63B increased 50.6% from the prior year. Non-GAAP adjusted EBITDA was $402M, a strong improvement of 97% year-over-year, marking the sixth consecutive quarter of adjusted EBITDA growth. Q3 adjusted EBITDA as a percentage of revenues was 24.7%, compared to 18.9% in the prior year, a year-over-year improvement of 580 basis points…We are well positioned as we move into the fourth quarter and are raising our 2025 consolidated adjusted EBITDA guideposts to $1.30B-$1.35B as well as raising our RemainCo adjusted EBITDA guidance to $350M-$375M,” said CEO Chuck Treadway. “We now expect our CCS deal to close in Q1 of 2026. When the deal closes, we plan to repay all existing debt, redeem our preferred equity and add modest new leverage to the remaining company. This will generate significant excess cash, and we expect to distribute a substantial portion of such excess cash to our common shareholders as a special dividend within 60 to 90 days following the closing of the transaction…During the quarter, we increased our cash balance by $134 million and ended the quarter with $705M of cash. As evidenced by Q3 results in ANS and RUCKUS, we are excited about the future of the remaining company. On a twelve-month trailing basis, ANS and RUCKUS Non-GAAP adjusted EBITDA was $344M, up 135% versus the previous twelve-month period,” said CFO Kyle Lorentzen.