On this page of StockholderLetter.com we present the latest annual shareholder letter from CommScope Holding Company, Inc. — ticker symbol COMM. Reading current and past COMM letters to shareholders can bring important insights into the investment thesis.

 •  3/24/2025 Letter Continued (Full PDF)
 •  3/27/2023 COMM Stockholder Letter
 •  3/25/2024 COMM Stockholder Letter
 •  More "Manufacturing" Category Stockholder Letters
 •  COMM Benford's Law Stock Score = 88

COMM Shareholder/Stockholder Letter Transcript:

2024 Annual Report

Three-year selected financial data
(Unaudited       in millions, except per share amounts)
Year ended December 31
2022
2023
2024
$5,788.8
1,985.6
41.8
1,119.6
(935.3)
(586.1)
(1,430.1)
(59.0)
(1,345.9)
$4,565.2
1,664.2
25.1
571.4
(399.6)
(664.7)
(1,095.8)
(61.8)
(1,568.6)
$4,205.8
1,576.9
36.7
256.5
(676.0)
(461.0)
(65.2)
(380.7)
207.4
207.4
210.9
210.9
214.4
214.4
Loss from continuing operations per share:
Basic
Diluted
$(7.18)
$(7.18)
$(5.49)
$(5.49)
$(2.46)
$(2.46)
Loss per share:
Basic
Diluted
$(6.49)
$(6.49)
$(7.44)
$(7.44)
$(1.78)
$(1.78)
941.6
821.0
$0.47
756.4
664.3
$(0.37)
756.4
700.2
$(0.03)
$190.0
696.1
101.3
88.7
197.5
$297.3
561.2
60.7
236.6
382.3
$273.1
370.5
25.3
247.8
358.3
Result of operations
Net sales
Gross profit
Restructuring costs, net
Asset impairments
Operating income (loss)
Net interest expense
Loss from continuing operations
Series A convertible preferred stock dividends
Net loss attributable to common stockholders
Loss per share information:
Weighted average number of shares outstanding:
Basic
Diluted
Non-GAAP adjusted results:
Core non-GAAP adjusted EBITDA(2)(3)
Non-GAAP adjusted EBITDA(3)
Non-GAAP adjusted earnings per share(3)
Other information(4):
Net cash generated by operating activities
Depreciation and amortization
Additions to property, plant and equipment
Free cash flow
Non-GAAP adjusted free cash flow (3)
Balance sheet data
Cash and cash equivalents
Goodwill and other intangible assets, net
Property, plant, and equipment, net
Total assets
Working capital
Long-term debt, including current maturities
Series A convertible preferred stock
Stockholders    deficit
(1) Amounts have been recast to reflect the discontinued OWN segment, DAS business unit and
Home business, and reflect only our continuing operations, unless otherwise noted.
(2) Core non-GAAP adjusted EBITDA reflects the results of our CCS, NICS and ANS segments, in
the aggregate, and excludes general corporate costs that were previously allocated to the OWN
segment, DAS business unit and Home segment, since these costs were not directly attributable
to the discontinued operations.
2
(1)
2024 Annual Report
As of December 31
$373.0
5,839.2
1,226.7
11,685.4
1,004.9
9,469.6
1,100.3
(1,546.0)
$500.3
4,357.2
433.3
9,332.5
724.1
9,246.6
1,162.1
(3,024.7)
$564.9
4,083.5
342.2
8,747.5
577.7
9,238.4
1,227.3
(3,456.1)
(3) See reconciliation of GAAP measures to Non-GAAP measures (page 8).
(4) Cash flows related to the discontinued operations have not been
segregated; accordingly, this other information includes the results of
continuing and discontinued operations.

To our Shareholders
Taking the
NEXT Step
Forward
Chuck Treadway
President and Chief Executive Officer
2024 marked a period of transition for CommScope.
As we head into 2025, we are well positioned to capitalize
We strengthened all areas of our business, ending
on our customers' upgrade cycles, which should drive
the year in a much better position than we started.
improved market conditions. Throughout 2024, we saw
As we enter 2025, I am very optimistic about the
continued improvement, reflected in sequential quarterly
future of all our business segments.
growth from the first quarter to the fourth quarter. We
expect 2025 will be a year of significant growth, as all
Over the past four years, we have faced significant
our markets seem to begin their anticipated turnaround
market volatility across all segments. We dealt
and are poised for a multi-year growth cycle. This market
with post-COVID inventory surpluses and strained
growth, coupled with our leading suite of products
supply chains, which led to customer overbuying
and solutions, positions us for strong EBITDA and
followed by inventory destocking. This supply chain
deleveraging over the next two years.
instability, combined with delayed upgrade cycles,
caused revenue highs in 2021 and 2022, followed
I am pleased to say that our hard work and dedication
by lows in 2023 and 2024.
have enabled CommScope to weather the harshest of the
global economic downturn. Thanks to a transformative
In response to the market variability, we have
year in 2024, we are now poised to take the lead as the
focused on what we can control through our
markets rebound to pre-pandemic levels. CommScope
CommScope NEXT initiatives, such as new product
continues to be a formidable force in the industry, and
introductions, customer-focused product solutions,
our innovative solutions will be at the heart of the next
and improved efficiency. I am incredibly proud of
generation of networks   in neighborhoods, enterprises,
our unwavering commitment to technology. Despite
data centers or any place where people connect.
the financial challenges of the past two years,
we continued to heavily invest in new products
Following our CommScope NEXT initiatives, we were able
through our R&D efforts. As technology leaders, we
to manage and reduce operating costs, improve our debt
differentiate ourselves through innovative products
position, leverage our unique R&D advantages, gain a
and solutions. Over the past two years, we have
strategic advantage in supporting emerging technologies
introduced significant new products in all segments,
like GenAI and focus our energies on those businesses
including FDX amplifiers from ANS, Wi-Fi 7 and
that will continue to boost profitability into 2025 and
RUCKUS One   solutions from NICS, and Prodigy  
beyond. We built a solid foundation in 2024; now is the
hardened FTTH connectivity from CCS.
time to take the NEXT big step forward.

3

There were two big developments over the course of the year
that helped put CommScope into such a strong position.
- In July, we announced the sale of our OWN and DAS
businesses to Amphenol in a transaction which closed
on February 3, 2025. The proceeds from this sale   $2.1
billion   provide a significant runway for CommScope
to improve our debt position and to push out maturities
to 2029 and 2031, bringing greater stability to our dayto-day operations and customers    confidence. Building
on the above actions coupled with improving business
performance, we are currently charting a path to
reduce our leverage to 6X by 2026.
- The second development was the outstanding performance of our Connectivity and Cable Solutions
(CCS) business, particularly on the Enterprise side. The explosive growth in investment in hyperscale
GenAI data centers has driven significant revenue growth. Our timely investment in increased
production capacity in 2024 positioned us perfectly as the trusted solutions partner for the fiber
solutions that drive cloud and hyperscale data centers housing AI clusters. On the Broadband
side of the CCS business, we see growth related to inventory normalization and our customers   
continued investment in FTTx (node, curb, building and home). Additionally, we see continued
federal initiatives spend, along with US BEAD funding starting to ramp significantly in 2026.
4
2024 Annual Report

2024 financial and operational performance
Throughout 2024, CommScope saw a steady recovery in market conditions as customer inventory destocking
and demand for data center solutions led the way to a much stronger second half of the year than the first.
Staying focused on what we can control, we have strengthened our position by adjusting our cost structure
and making investments in capacity. We remain bullish on achieving greater profitability as the market
recovers and customers resume normal order levels.
These are the topline company-wide results for 2024:
- CommScope (including OWN and DAS)
net sales of $5.47 billion decreased 5%
YoY, primarily driven by the decrease in
revenue for ANS and partially offset by
better results in CCS and OWN.
- CommScope (excluding
OWN and DAS) adjusted
earnings per share was
$(0.03), an increase of
92% YoY.
- Core CommScope(1) delivered
net sales of $4.2 billion,
declining by 8% YoY.
- CommScope (including
OWN and DAS) delivered
$273 million of cash flow
from operations, free
cash flow of $248 million
and adjusted free cash
flow* of $358 million   
all significantly higher
than expected from the
beginning of the year and
despite increased use of
cash for working capital.
- CommScope (including OWN and DAS)
adjusted EBITDA was $1.095 billion,
an increase of 10% YoY.
Core CommScope(1) adjusted
EBITDA of $756 million, flat YoY.
Core CommScope(1) adjusted
EBITDA as a percent of sales
finished the year at 18% vs. 16.6%
the previous year, demonstrating
our focus on profitability.
$1,223
$997
2022
2023
$1,095
2024
CommScope (incl. OWN and DAS)
FY Adjusted EBITDA ($ in millions)
16.2%
16.6%
2022
2023
- CommScope (including OWN
and DAS) ended the year with net
leverage at 7.8X. This decreased
from the prior year. The Company   s
projected business performance is
expected to drive the Company   s
total debt to adjusted EBITDA ratio
below 6X by the end of 2026.
- Announced that we have entered
into an agreement with Amphenol
to sell the OWN and DAS business
for $2.1 billion and expected to use
proceeds to pay down debt.
- In December of 2024 we closed
on our strategic debt refinancing
program, pushing out the majority
of our maturities to 2029 and 2031.
18%
8.0X
7.8X
2023
2024
6.9X
2024
Core CommScope(1) FY Adjusted
EBITDA as a Percentage of Sales (%)
2022
CommScope (incl. OWN and DAS)
FY Net Leverage
(1)
Core CommScope reflects the results of the CCS, NICS and ANS segments, in the aggregate, and excludes general corporate costs that were previously
allocated to the OWN segment, DAS business unit and Home segment, since these costs were not directly attributable to the discontinued operations.
5



 3/24/2025 Letter Continued (Full PDF)