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IBM RELEASES FOURTH-QUARTER RESULTS

Published

1 year ago

on

Double-digit Software revenue growth; Free cash flow well-exceeds full-year expectation

ARMONK, N.Y., Jan. 29, 2025 /PRNewswire/ — IBM (NYSE: IBM) today announced fourth-quarter 2024 earnings results.

“We closed the year with double-digit revenue growth in Software for the quarter, led by further acceleration in Red Hat. Clients globally continue to turn to IBM to transform with AI. Our generative AI book of business now stands at more than $5 billion inception-to-date, up nearly $2 billion quarter over quarter,” said Arvind Krishna, IBM chairman, president and chief executive officer. “Three years ago, we laid out a vision for a faster-growing, more-profitable IBM. I’m proud of the work the IBM team has done to meet or exceed our commitments. With our focused strategy, enhanced portfolio, and culture of innovation, we’re well-positioned for 2025 and beyond and expect revenue growth of at least five percent and free cash flow of about $13.5 billion this year.” 

Fourth-Quarter Highlights

Revenue
– Revenue of $17.6 billion, up 1 percent, up 2 percent at constant currency
– Software revenue up 10 percent, up 11 percent at constant currency
– Consulting revenue down 2 percent, down 1 percent at constant currency
– Infrastructure revenue down 8 percent, down 6 percent at constant currency
Profit
– Gross Profit Margin: GAAP: 59.5 percent, up 40 basis points; Operating (Non-GAAP): 60.6 percent, up 50 basis points

Full-Year Highlights

Revenue
– Revenue of $62.8 billion, up 1 percent, up 3 percent at constant currency
– Software revenue up 8 percent, up 9 percent at constant currency
– Consulting revenue down 1 percent, up 1 percent at constant currency
– Infrastructure revenue down 4 percent, down 3 percent at constant currency
Profit
– Gross Profit Margin: GAAP: 56.7 percent, up 120 basis points; Operating (Non-GAAP): 57.8 percent, up 130 basis points
Cash Flow
– Net cash from operating activities of $13.4 billion; free cash flow of $12.7 billion

FOURTH-QUARTER 2024 INCOME STATEMENT SUMMARY

 

GAAP results include impact of one-time, non-cash pension settlement charge (1)

 
 

Revenue

 

Gross

Profit

 
 

Gross
Profit
Margin

 
 

Pre-tax

Income (1)

 

Pre-tax

Income

Margin (1)

 

Net

Income (1)

 

Diluted

Earnings

Per Share (1)

GAAP from
Continuing
Operations

$   17.6 B

 
 

$ 10.4 B

 
 

59.5

%

 

$    3.3 B

 
 

18.8

%

 

$     2.9 B

 
 

$     3.11

 

Year/Year

1

%(2)

 

2

%

 

0.4

Pts

 

(12)

%

 

-2.8

Pts

 

(11)

%

 

(12)

%

Operating

(Non-GAAP)

 
 
 

$ 10.6 B

 
 

60.6

%

 

$    4.3 B

 
 

24.3

%

 

$     3.7 B

 
 

$     3.92

 

Year/Year

 
 
 

2

%

 

0.5

Pts

 

2

%

 

0.4

Pts

 

3

%

 

1

%

(1)  2024 GAAP results include the impact of a one-time, non-cash pension settlement charge of $0.4 billion related to the transfer of a
       portion of the company’s Non-U.S. defined benefit pension obligations and related plan assets to third-party insurers in October 2024.

(2)  2% at constant currency.

“With strong performance across our Software portfolio, we continue to drive solid fundamentals within our business,” said James Kavanaugh, IBM senior vice president and chief financial officer. “As a result, we generated $12.7 billion in free cash flow, far-outpacing our expectation for the year. Continued strength in operating profitability and free cash flow fuels our ability to invest for the future while returning value to shareholders through dividends.”

Segment Results for Fourth Quarter

Software — revenues of $7.9 billion, up 10.4 percent, up 11.5 percent at constant currency:
– Hybrid Platform & Solutions up 11 percent, up 12 percent at constant currency
      — Red Hat up 16 percent, up 17 percent at constant currency
      — Automation up 15 percent, up 16 percent at constant currency
      — Data & AI up 4 percent, up 5 percent at constant currency
      — Security up 4 percent, up 5 percent at constant currency
– Transaction Processing up 10 percent, up 11 percent at constant currency

Consulting — revenues of $5.2 billion, down 2.0 percent, down 1.1 percent at constant currency:
– Business Transformation up 1 percent, up 2 percent at constant currency
– Technology Consulting down 7 percent, down 6 percent at constant currency
– Application Operations down 4 percent, down 3 percent at constant currency

Infrastructure — revenues of $4.3 billion, down 7.6 percent, down 6.0 percent at constant currency:
– Hybrid Infrastructure down 10 percent, down 8 percent at constant currency
      — IBM Z down 21 percent, down 20 percent at constant currency
      — Distributed Infrastructure flat, up 2 percent at constant currency
– Infrastructure Support down 2 percent, flat at constant currency

Financing — revenues of $0.2 billion, down 2.5 percent, down 0.5 percent at constant currency

Cash Flow and Balance Sheet

In the fourth quarter, the company generated net cash from operating activities of $4.3 billion, down $0.1 billion year to year. IBM’s free cash flow was $6.2 billion, up $0.1 billion year to year. The company returned $1.5 billion to shareholders in dividends in the fourth quarter.

For the year, the company generated net cash from operating activities of $13.4 billion, down $0.5 billion year to year. Net cash from operating activities excluding IBM financing receivables was $13.9 billion, up $1.2 billion. IBM’s free cash flow was $12.7 billion, up $1.5 billion year to year.

IBM ended the fourth quarter with $14.8 billion of cash, restricted cash and marketable securities, up $1.3 billion from year-end 2023. Debt, including IBM Financing debt of $12.1 billion, totaled $55.0 billion, down $1.6 billion since year-end 2023.

Full-Year 2024 Results

FULL-YEAR 2024 INCOME STATEMENT SUMMARY

 

GAAP results include impacts of one-time, non-cash pension settlement charges (1)

 
 

Revenue

 

Gross

Profit

 
 

Gross
Profit
Margin

 
 

Pre-tax

Income (1)

 

Pre-tax

Income

Margin (1)

 

Net

Income (1)

 

Diluted

Earnings

Per Share (1)

GAAP from
Continuing
Operations

$   62.8 B

 
 

$ 35.6 B

 
 

56.7

%

 

$    5.8 B

 
 

9.2

%

 

$     6.0 B

 
 

$     6.42

 

Year/Year

1

%(2)

 

4

%

 

1.2

Pts

 

(33)

%

 

-4.8

Pts

 

(20)

%

 

(21)

%

Operating

(Non-GAAP)

 
 
 

$ 36.3 B

 
 

57.8

%

 

$ 11.2 B

 
 

17.9

%

 

$     9.7 B

 
 

$   10.33

 

Year/Year

 
 
 

4

%

 

1.3

Pts

 

9

%

 

1.2

Pts

 

9

%

 

7

%

(1)  2024 GAAP results include the impacts of one-time, non-cash, U.S. and non-U.S. pension settlement charges of $3.1 billion ($2.4 billion
       net of tax).

(2)   3% at constant currency

Full-Year 2025 Expectations

Revenue: The company expects full-year constant currency revenue growth of at least 5 percent. At current foreign exchange rates, currency is expected to be about a two-point headwind to growth for the year.
Free cash flow: The company expects about $13.5 billion in free cash flow for the full year.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company’s failure to meet growth and productivity objectives; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; reliance on third-party distribution channels and ecosystems; cybersecurity and data privacy considerations; adverse effects related to climate change and environmental matters; tax matters; legal proceedings and investigatory risks; the company’s pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Statements in this communication regarding the strategic acquisition that are forward-looking may include projections as to closing date for the transaction, the extent of, and the time necessary to obtain, the regulatory approvals required for the transaction, the anticipated benefits of the transaction, the impact of the transaction on IBM’s business, the synergies from the transaction, and the combined company’s future operating results.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release

For generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings. The generative AI book of business is further defined within Exhibit 99.2 in the Form 8-K that includes this press release.

In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

IBM results —

adjusting for currency (i.e., at constant currency);
presenting operating (non-GAAP) earnings per share amounts and related income statement items;
free cash flow;
net cash from operating activities excluding IBM Financing receivables;
adjusted EBITDA.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

Conference Call and Webcast

IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-4q24. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:        IBM
                      Sarah Meron, 347-891-1770
                      sarah.meron@ibm.com

                      Tim Davidson, 914-844-7847
                      tfdavids@us.ibm.com

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended
December 31,

 
 

Year Ended
December 31,

 
 

2024

 
 

2023 (1)

 
 

2024

 
 

2023 (1)

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$                   7,924

 
 

$                   7,179

 
 

$                27,085

 
 

$                25,011

 

Consulting

5,175

 
 

5,283

 
 

20,692

 
 

20,884

 

Infrastructure

4,256

 
 

4,604

 
 

14,020

 
 

14,593

 

Financing

170

 
 

175

 
 

713

 
 

741

 

Other

29

 
 

141

 
 

243

 
 

632

 

TOTAL REVENUE

17,553

 
 

17,381

 
 

62,753

 
 

61,860

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT

10,439

 
 

10,267

 
 

35,551

 
 

34,300

 
 
 
 
 
 
 
 
 
 
 
 
 

GROSS PROFIT MARGIN

 
 
 
 
 
 
 
 
 
 
 

Software

85.0

%

 

84.1

%

 

83.7

%

 

82.9

%

Consulting

28.0

%

 

28.1

%

 

27.0

%

 

26.8

%

Infrastructure

56.9

%

 

60.8

%

 

55.8

%

 

56.1

%

Financing

46.9

%

 

50.2

%

 

47.9

%

 

48.1

%

 
 
 
 
 
 
 
 
 
 
 
 

TOTAL GROSS PROFIT MARGIN

59.5

%

 

59.1

%

 

56.7

%

 

55.4

%

 
 
 
 
 
 
 
 
 
 
 
 

EXPENSE AND OTHER INCOME

 
 
 
 
 
 
 
 
 
 
 

S,G&A

4,866

 
 

4,791

 
 

19,688

 
 

19,003

 

R,D&E

1,967

 
 

1,748

 
 

7,479

 
 

6,775

 

Intellectual property and custom development income

(301)

 
 

(242)

 
 

(996)

 
 

(860)

 

Other (income) and expense (2)

177

 
 

(193)

 
 

1,871

 
 

(914)

 

Interest expense

424

 
 

405

 
 

1,712

 
 

1,607

 

TOTAL EXPENSE AND OTHER INCOME

7,133

 
 

6,509

 
 

29,754

 
 

25,610

 
 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

3,306

 
 

3,759

 
 

5,797

 
 

8,690

 

Pre-tax margin

18.8

%

 

21.6

%

 

9.2

%

 

14.0

%

Provision for/(Benefit from) income taxes (2)

379

 
 

474

 
 

(218)

 
 

1,176

 

Effective tax rate

11.5

%

 

12.6

%

 

(3.8)

%

 

13.5

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$                   2,927

 
 

$                   3,285

 
 

$                   6,015

 
 

$                   7,514

 
 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income/ (loss) from discontinued operations, net of
taxes

(12)

 
 

3

 
 

8

 
 

(12)

 
 
 
 
 
 
 
 
 
 
 
 
 

NET INCOME (2)

$                   2,915

 
 

$                   3,288

 
 

$                   6,023

 
 

$                   7,502

 
 
 
 
 
 
 
 
 
 
 
 
 

EARNINGS PER SHARE OF COMMON STOCK (2)

 
 
 
 
 
 
 
 
 
 
 

Assuming Dilution

 
 
 
 
 
 
 
 
 
 
 

Continuing Operations

$                      3.11

 
 

$                      3.54

 
 

$                      6.42

 
 

$                      8.15

 

Discontinued Operations

$                     (0.01)

 
 

$                      0.00

 
 

$                      0.01

 
 

$                     (0.01)

 

TOTAL

$                      3.09

 
 

$                      3.55

 
 

$                      6.43

 
 

$                      8.14

 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
 
 
 
 
 
 
 
 
 

Continuing Operations

$                      3.16

 
 

$                      3.59

 
 

$                      6.53

 
 

$                      8.25

 

Discontinued Operations

$                     (0.01)

 
 

$                      0.00

 
 

$                      0.01

 
 

$                     (0.01)

 

TOTAL

$                      3.15

 
 

$                      3.59

 
 

$                      6.53

 
 

$                      8.23

 
 
 
 
 
 
 
 
 
 
 
 
 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING (M’s)

 
 
 
 
 
 
 
 
 
 
 

Assuming Dilution

942.4

 
 

927.3

 
 

937.2

 
 

922.1

 

Basic

926.0

 
 

914.7

 
 

921.8

 
 

911.2

 

____________________

(1)    Recast to reflect January 2024 segment changes.

(2)    2024 results include the impacts of one-time, non-cash pension settlement charges in the third quarter of $2.7 billion ($2.0 billion net of tax) in the U.S. and

        fourth quarter of $0.4 billion in the non-U.S.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

(Dollars in Millions)

 

At

December 31,
2024

 

At

December 31,
2023

ASSETS:

 
 
 
 

Current Assets:

 
 
 
 

Cash and cash equivalents

 

$                    13,947

 

$                    13,068

Restricted cash

 

214

 

21

Marketable securities

 

644

 

373

Notes and accounts receivable – trade, net

 

6,804

 

7,214

Short-term financing receivables, net

 

7,159

 

6,793

Other accounts receivable, net

 

947

 

640

Inventories

 

1,289

 

1,161

Deferred costs

 

959

 

998

Prepaid expenses and other current assets

 

2,520

 

2,639

Total Current Assets

 

34,482

 

32,908

 
 
 
 
 

Property, plant and equipment, net

 

5,731

 

5,501

Operating right-of-use assets, net

 

3,197

 

3,220

Long-term financing receivables, net

 

5,353

 

5,766

Prepaid pension assets

 

7,492

 

7,506

Deferred costs

 

788

 

842

Deferred taxes

 

6,978

 

6,656

Goodwill

 

60,706

 

60,178

Intangibles, net

 

10,660

 

11,036

Investments and sundry assets

 

1,787

 

1,626

Total Assets

 

$                  137,175

 

$                  135,241

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 

$                      2,033

 

$                      2,270

Short-term debt

 

5,089

 

6,426

Accounts payable

 

4,032

 

4,132

Deferred income

 

13,907

 

13,451

Operating lease liabilities

 

768

 

820

Other liabilities

 

7,313

 

7,022

Total Current Liabilities

 

33,142

 

34,122

 
 
 
 
 

Long-term debt

 

49,884

 

50,121

Retirement-related obligations

 

9,432

 

10,808

Deferred income

 

3,622

 

3,533

Operating lease liabilities

 

2,655

 

2,568

Other liabilities

 

11,048

 

11,475

Total Liabilities

 

109,783

 

112,628

 
 
 
 
 

EQUITY:

 
 
 
 

IBM Stockholders’ Equity:

 
 
 
 

Common stock

 

61,380

 

59,643

Retained earnings

 

151,163

 

151,276

Treasury stock – at cost

 

(169,968)

 

(169,624)

Accumulated other comprehensive income/(loss)

 

(15,269)

 

(18,761)

Total IBM Stockholders’ Equity

 

27,307

 

22,533

 
 
 
 
 

Noncontrolling interests

 

86

 

80

Total Equity

 

27,393

 

22,613

 
 
 
 
 

Total Liabilities and Equity

 

$                  137,175

 

$                  135,241

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 
 
 

Three Months Ended
December 31,

 

Year Ended
December 31,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

Net Income from Operations

 

$                     2,915

 

$                     3,288

 

$                     6,023

 

$                     7,502

Pension Settlement Charges

 

388

 

–

 

3,113

 

–

Depreciation/Amortization of Intangibles (1)

 

1,112

 

1,152

 

4,667

 

4,395

Stock-based Compensation

 

345

 

291

 

1,311

 

1,133

Operating assets and liabilities/Other, net (2)

 

1,824

 

1,619

 

(1,238)

 

(332)

IBM Financing A/R

 

(2,255)

 

(1,887)

 

(431)

 

1,233

Net Cash Provided by Operating Activities

 

$                     4,330

 

$                     4,463

 

$                  13,445

 

$                  13,931

 
 
 
 
 
 
 
 
 

Capital Expenditures, net of payments & proceeds (3)

 

(422)

 

(263)

 

(1,127)

 

(1,488)

Divestitures, net of cash transferred

 

(7)

 

–

 

698

 

(4)

Acquisitions, net of cash acquired

 

(541)

 

(137)

 

(3,289)

 

(5,082)

Marketable Securities / Other Investments, net

 

(409)

 

3,236

 

(1,218)

 

(496)

Net Cash Provided by/(Used in) Investing Activities

 

$                  (1,379)

 

$                     2,837

 

$                  (4,937)

 

$                  (7,070)

 
 
 
 
 
 
 
 
 

Debt, net of payments & proceeds

 

(103)

 

(122)

 

(880)

 

4,497

Dividends

 

(1,546)

 

(1,518)

 

(6,147)

 

(6,040)

Financing – Other

 

(26)

 

26

 

(52)

 

(226)

Net Cash Provided by/(Used in) Financing Activities

 

$                  (1,675)

 

$                   (1,615)

 

$                  (7,079)

 

$                  (1,769)

 
 
 
 
 
 
 
 
 

Effect of Exchange Rate changes on Cash

 

(330)

 

128

 

(359)

 

9

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$                      946

 

$                    5,814

 

$                   1,071

 

$                   5,101

____________________

(1)  Includes operating lease right-of-use assets amortization.

(2)  The year ended December 31, 2024 includes a $0.7 billion tax effect associated with a one-time, non-cash, U.S. pension settlement

       charge in the third-quarter 2024.

(3)  The year ended December 31, 2024 includes proceeds of $0.4 billion from the sale of certain QRadar SaaS assets in third-quarter 2024.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

(Dollars in Billions)

 

2024

 

2023

 

Yr/Yr

 

2024

 

2023

 

Yr/Yr

Net Income as reported (GAAP) (1)

 

$           2.9

 

$           3.3

 

$         (0.4)

 

$           6.0

 

$           7.5

 

$         (1.5)

Less: Income/(loss) from discontinued operations, net of tax

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Income from continuing operations

 

2.9

 

3.3

 

(0.4)

 

6.0

 

7.5

 

(1.5)

Provision for/(Benefit from) income taxes from continuing ops.

 

0.4

 

0.5

 

(0.1)

 

(0.2)

 

1.2

 

(1.4)

Pre-tax income from continuing operations (GAAP)

 

3.3

 

3.8

 

(0.5)

 

5.8

 

8.7

 

(2.9)

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 
 
 
 
 

Acquisition-related charges (2)

 

0.5

 

0.4

 

0.1

 

2.0

 

1.7

 

0.3

Non-operating retirement-related costs/(income) (1)

 

0.5

 

0.0

 

0.5

 

3.5

 

0.0

 

3.5

 
 
 
 
 
 
 
 
 
 
 
 
 

Operating (non-GAAP) pre-tax income from continuing ops.

 

4.3

 

4.2

 

0.1

 

11.2

 

10.3

 

0.9

 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest expense

 

0.3

 

0.3

 

0.0

 

1.0

 

0.9

 

0.0

Depreciation/Amortization of non-acquired intangible assets

 

0.7

 

0.7

 

0.0

 

2.8

 

2.8

 

0.1

Stock-based compensation

 

0.3

 

0.3

 

0.1

 

1.3

 

1.1

 

0.2

Workforce rebalancing charges

 

0.0

 

0.0

 

0.0

 

0.7

 

0.4

 

0.3

Corporate (gains) and charges (3)

 

0.0

 

0.0

 

0.0

 

(0.6)

 

(0.1)

 

(0.6)

 
 
 
 
 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$           5.6

 

$           5.5

 

$           0.1

 

$        16.4

 

$        15.5

 

$           0.9

____________________

(1)    2024 results include the impacts of one-time, non-cash pension settlement charges in the third quarter of $2.7 billion ($2.0 billion net of tax) in the U.S. and fourth

         quarter of $0.4 billion in the non-U.S.

(2)    Primarily consists of amortization of acquired intangible assets.

(3)    Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures and asset sales (e.g., certain QRadar SaaS assets).

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
 
 

Three Months Ended December 31, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       7,924

 
 

$                        5,175

 
 

$                       4,256

 
 

$                            170

 

Segment Profit

 

$                       3,102

 
 

$                           606

 
 

$                       1,063

 
 

$                              94

 

Segment Profit Margin

 

39.2

%

 

11.7

%

 

25.0

%

 

55.0

%

Change YTY Revenue

 

10.4

%

 

(2.0)

%

 

(7.6)

%

 

(2.5)

%

Change YTY Revenue – Constant Currency

 

11.5

%

 

(1.1)

%

 

(6.0)

%

 

(0.5)

%

 
 
 

Three Months Ended December 31, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       7,179

 
 

$                        5,283

 
 

$                       4,604

 
 

$                           175

 

Segment Profit

 

$                       2,649

 
 

$                           654

 
 

$                       1,299

 
 

$                           117

 

Segment Profit Margin

 

36.9

%

 

12.4

%

 

28.2

%

 

67.0

%

____________________

(1)    Recast to reflect January 2024 segment changes.

 
 
 

Year Ended December 31, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     27,085

 
 

$                     20,692

 
 

$                     14,020

 
 

$                           713

 

Segment Profit

 

$                       8,684

 
 

$                       2,054

 
 

$                       2,450

 
 

$                           348

 

Segment Profit Margin

 

32.1

%

 

9.9

%

 

17.5

%

 

48.8

%

Change YTY Revenue

 

8.3

%

 

(0.9)

%

 

(3.9)

%

 

(3.7)

%

Change YTY Revenue – Constant Currency

 

9.0

%

 

0.6

%

 

(2.7)

%

 

(2.5)

%

 
 
 

Year Ended December 31, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     25,011

 
 

$                     20,884

 
 

$                     14,593

 
 

$                           741

 

Segment Profit

 

$                       7,499

 
 

$                       2,130

 
 

$                       2,828

 
 

$                           373

 

Segment Profit Margin

 

30.0

%

 

10.2

%

 

19.4

%

 

50.3

%

____________________

(1)    Recast to reflect January 2024 segment changes.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended December 31, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$       10,439

 
 

$                              191

 
 

$                                  —

 
 

$                       —

 
 

$           10,630

 

Gross Profit Margin

59.5

%

 

1.1

pts

 

—

pts

 

—

pts

 

60.6

%

S,G&A

$         4,866

 
 

$                            (305)

 
 

$                                  —

 
 

$                       —

 
 

$             4,561

 

Other (Income) & Expense

177

 
 

(2)

 
 

(467)

 
 

—

 
 

(291)

 

Total Expense & Other (Income)

7,133

 
 

(307)

 
 

(467)

 
 

—

 
 

6,359

 

Pre-tax Income from Continuing Operations

3,306

 
 

498

 
 

467

 
 

—

 
 

4,271

 

Pre-tax Income Margin from Continuing

Operations

18.8

%

 

2.8

pts

 

2.7

pts

 

—

pts

 

24.3

%

Provision for/(Benefit from) Income Taxes (3)

$            379

 
 

$                              123

 
 

$                                  58

 
 

$                      21

 
 

$                581

 

Effective Tax Rate

11.5

%

 

1.5

pts

 

0.1

pts

 

0.5

pts

 

13.6

%

Income from Continuing Operations

$         2,927

 
 

$                              375

 
 

$                                408

 
 

$                    (21)

 
 

$             3,690

 

Income Margin from Continuing Operations

16.7

%

 

2.1

pts

 

2.3

pts

 

(0.1)

pts

 

21.0

%

Diluted Earnings Per Share: Continuing

Operations

$           3.11

 
 

$                             0.40

 
 

$                               0.43

 
 

$                 (0.02)

 
 

$               3.92

 
 
 

Three Months Ended December 31, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$      10,267

 
 

$                             172

 
 

$                                 —

 
 

$                     —

 
 

$          10,439

 

Gross Profit Margin

59.1

%

 

1.0

pts

 

—

pts

 

—

pts

 

60.1

%

S,G&A

$        4,791

 
 

$                           (271)

 
 

$                                 —

 
 

$                     —

 
 

$            4,520

 

Other (Income) & Expense

(193)

 
 

12

 
 

22

 
 

—

 
 

(159)

 

Total Expense & Other (Income)

6,509

 
 

(259)

 
 

22

 
 

—

 
 

6,272

 

Pre-tax Income from Continuing Operations

3,759

 
 

431

 
 

(22)

 
 

—

 
 

4,167

 

Pre-tax Income Margin from Continuing

Operations

21.6

%

 

2.5

pts

 

(0.1)

pts

 

—

pts

 

24.0

%

Provision for/(Benefit from) Income Taxes (3)

$          474

 
 

$                              91

 
 

$                                19

 
 

$                     (4)

 
 

$              580

 

Effective Tax Rate

12.6

%

 

0.9

pts

 

0.5

pts

 

(0.1)

pts

 

13.9

%

Income from Continuing Operations

$       3,285

 
 

$                            339

 
 

$                              (41)

 
 

$                      4

 
 

$           3,587

 

Income Margin from Continuing Operations

18.9

%

 

2.0

pts

 

(0.2)

pts

 

—

pts

 

20.6

%

Diluted Earnings Per Share: Continuing

Operations

$         3.54

 
 

$                           0.37

 
 

$                           (0.04)

 
 

$                    —

 
 

$             3.87

 

____________________

(1)    Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing

         charges, such as financing costs. 2023 also includes a $12 million gain recognized on foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets

         and webMethods from Software AG.

(2)    Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency

         costs and other costs. 2024 also includes the impact of a one-time, non-cash, non-U.S. pension settlement charge of $0.4 billion.

(3)    Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Year Ended December 31, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts (3)

 
 

Operating

(Non-GAAP)

 

Gross Profit

$     35,551

 
 

$                          724

 
 

$                                  —

 
 

$                   —

 
 

$        36,275

 

Gross Profit Margin

56.7

%

 

1.2

pts

 

—

pts

 

—

pts

 

57.8

%

S,G&A

$     19,688

 
 

$                     (1,159)

 
 

$                                  —

 
 

$                   —

 
 

$        18,529

 

Other (Income) & Expense

1,871

 
 

(70)

 
 

(3,457)

 
 

—

 
 

(1,656)

 

Total Expense & Other (Income)

29,754

 
 

(1,229)

 
 

(3,457)

 
 

—

 
 

25,068

 

Pre-tax Income from Continuing Operations

5,797

 
 

1,953

 
 

3,457

 
 

—

 
 

11,207

 

Pre-tax Income Margin from Continuing

Operations

9.2

%

 

3.1

pts

 

5.5

pts

 

—

pts

 

17.9

%

Provision for/(Benefit from) Income Taxes (4)

$        (218)

 
 

$                         497

 
 

$                               790

 
 

$                455

 
 

$         1,523

 

Effective Tax Rate

(3.8)

%

 

5.1

pts

 

8.2

pts

 

4.1

pts

 

13.6

%

Income from Continuing Operations

$      6,015

 
 

$                      1,456

 
 

$                            2,668

 
 

$              (455)

 
 

$         9,684

 

Income Margin from Continuing Operations

9.6

%

 

2.3

pts

 

4.3

pts

 

(0.7)

pts

 

15.4

%

Diluted Earnings Per Share: Continuing

Operations

$        6.42

 
 

$                        1.55

 
 

$                              2.85

 
 

$             (0.49)

 
 

$         10.33

 
 
 

Year Ended December 31, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$    34,300

 
 

$                         631

 
 

$                                 —

 
 

$                   —

 
 

$       34,931

 

Gross Profit Margin

55.4

%

 

1.0

pts

 

—

pts

 

—

pts

 

56.5

%

S,G&A

$    19,003

 
 

$                    (1,039)

 
 

$                                 —

 
 

$                   —

 
 

$       17,964

 

Other (Income) & Expense

(914)

 
 

10

 
 

39

 
 

—

 
 

(866)

 

Total Expense & Other (Income)

25,610

 
 

(1,029)

 
 

39

 
 

—

 
 

24,620

 

Pre-tax Income from Continuing Operations

8,690

 
 

1,660

 
 

(39)

 
 

—

 
 

10,311

 

Pre-tax Income Margin from Continuing

Operations

14.0

%

 

2.7

pts

 

(0.1)

pts

 

—

pts

 

16.7

%

Provision for/(Benefit from) Income Taxes (4)

$      1,176

 
 

$                         368

 
 

$                                 (8)

 
 

$                 (95)

 
 

$         1,441

 

Effective Tax Rate

13.5

%

 

1.4

pts

 

—

pts

 

(0.9)

pts

 

14.0

%

Income from Continuing Operations

$      7,514

 
 

$                      1,292

 
 

$                               (30)

 
 

$                  95

 
 

$         8,870

 

Income Margin from Continuing Operations

12.1

%

 

2.1

pts

 

0.0

pts

 

0.2

pts

 

14.3

%

Diluted Earnings Per Share: Continuing

Operations

$        8.15

 
 

$                        1.40

 
 

$                            (0.03)

 
 

$               0.10

 
 

$           9.62

 

____________________

(1)    Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax charges related to acquisition integration and pre-closing

         charges, such as financing costs. 2024 and 2023 also include a $68 million loss and a $12 million gain, respectively, recognized on foreign exchange derivative contracts entered into by the company

         prior to the acquisition of StreamSets and webMethods from Software AG.

(2)    Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan curtailments/settlements and pension insolvency

         costs and other costs. 2024 also includes the impacts of one-time, non-cash, U.S. and non-U.S. pension settlement charges of $3.1 billion ($2.4 billion net of tax).

(3)    2024 includes a net benefit from income taxes due to the resolution of certain tax audit matters.

(4)    Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the As Reported pre-tax income under ASC 740.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO FREE CASH FLOW RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
December 31,

 

Year Ended
December 31,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

Net Cash from Operations per GAAP

 

$            4,330

 

$            4,463

 

$         13,445

 

$         13,931

 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 

(2,255)

 

(1,887)

 

(431)

 

1,233

 
 
 
 
 
 
 
 
 

Net cash from operating activities excl. IBM Financing receivables

 

6,584

 

6,350

 

13,876

 

12,699

 
 
 
 
 
 
 
 
 

Capital Expenditures, net

 

(422)

 

(263)

 

(1,127)

 

(1,488)

 
 
 
 
 
 
 
 
 

Free Cash Flow

 

6,163

 

6,087

 

12,749

 

11,210

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended
December 31,

 

Year Ended
December 31,

(Dollars in Billions)

 

2024

 

2023

 

2024

 

2023

Net Cash Provided by Operating Activities

 

$           4.3

 

$             4.5

 

$        13.4

 

$        13.9

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 

0.3

 

0.3

 

1.0

 

0.9

Provision for/(Benefit from) income taxes from continuing operations

 

0.4

 

0.5

 

(0.2)

 

1.2

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 

(2.3)

 

(1.9)

 

(0.4)

 

1.2

Other assets and liabilities/other, net (1)

 

1.7

 

1.6

 

(1.8)

 

(0.7)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$           5.6

 

$             5.5

 

$        16.4

 

$        15.5

____________________

(1)    Other assets and liabilities/other, net mainly consists of operating assets and liabilities/Other, net in the Cash Flow chart,

         workforce rebalancing charges, non-operating impacts and corporate (gains) and charges.

 

 

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SOURCE IBM

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Technology

Mouser Electronics Explores How Artificial Intelligence Shapes Everyday Technologies and Experiences

Published

22 minutes ago

on

April 20, 2026

By

SHANGHAI, April 20, 2026 /PRNewswire/ — Mouser Electronics, Inc., the authorized global distributor with the newest electronic components and industrial automation products, today announced the first 2026 installment of its Empowering Innovation Together (EIT) technology series, Engineering AI for Daily Life. This installment explores how artificial intelligence is increasingly embedded in everyday products and services, from assisted search and messaging tools to healthcare wearables that monitor personal well-being. As AI capabilities expand across consumer and connected devices, engineers continue to design systems that make these technologies more useful, intuitive, and trustworthy in real-world applications.

“AI is quickly moving from experimental technology into products people rely on every day, and engineers play a major role in shaping how it’s applied,” said Jeff Newell, President of Mouser Electronics. “As AI becomes embedded across consumer devices and connected systems, it’s important that these technologies are designed to support human expertise while remaining reliable and trustworthy. This EIT segment helps engineers explore the tools and insights they need to build the next generation of AI-enabled solutions.”

As AI agents and intelligent tools become integrated into homes, connected devices, and digital services, engineers are developing systems that enhance user judgment and keep users in control while maintaining transparency and privacy. New AI-powered platforms already demonstrate this potential – turning simple conversations into complete travel itineraries or providing deeper health insights through connected devices.

On The Tech Between Us podcast, Raymond Yin, Director of Technical Content at Mouser Electronics, and Dr. Marisa Tschopp, Senior Researcher at scip AG in Zurich, examine the new role of AI in human interaction and day-to-day experiences. They explore how AI advancements shape technology-enabled collaboration, including the long-term impact of daily integration and applications for mental health.

“AI is moving beyond experimental settings into the products people rely on every day,” said Yin. “Our first EIT navigates the next era in AI innovation, looking at how to use the technology to enhance people’s abilities and rethink how we can live for the better.”

In addition to the podcast, the EIT series includes an in-depth video, technical articles, a topic-related infographic, as well as subscriber-exclusive content, diving into everyday AI. By examining the range of cases where AI can level up technical expertise, engineers can build a class of tools to help reshape how people think, decide, and create while protecting privacy and control.

Established in 2015, Mouser’s Empowering Innovation Together program is one of the electronic component industry’s most recognized educational programs. To learn more, visit https://www.mouser.com/empowering-innovation/engineering-ai-daily/ and follow Mouser on Facebook, LinkedIn, X, and YouTube.

For more Mouser news and our latest new product introductions, visit https://www.mouser.com/newsroom/.

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SOURCE Mouser Electronics

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The Global Economy Could Split in Very Different Directions by 2050

Published

22 minutes ago

on

April 20, 2026

By

Research from the BCG Henderson Institute Details Four Plausible Scenarios for the World over the Next 25 Years, Based on Analysis of More Than 100 Megatrends and a Century of Historical Data

BOSTON, April 20, 2026 /PRNewswire/ — The global economy could follow markedly different paths over the next 25 years. For business leaders, the challenge is how to make decisions today while preparing for a wide range of possible futures.

New Scenarios 2050 research from the BCG Henderson Institute (BHI), Boston Consulting Group’s think tank, anticipates four distinct futures that push boundaries but remain plausible. The report explores what each scenario could mean for businesses and how early signals may indicate which direction the world is heading.

Among the findings:

Global GDP growth could slow to about 1.8% or rise to 5.0% annually, with the economy reaching anywhere from 1.6 to 3.4 times today’s size.Global trade could fall to about 35% of GDP—roughly Cold War–era levels—or remain near current levels of about 60%.Defense spending could climb to as much as 7% of global GDP.Low-carbon electricity could account for 55% to 90% of power generation.

The report, Beyond Tomorrow: Four Scenarios for the World of 2050, is based on a century of historical data and analysis of more than 100 megatrends across technology, geopolitics, climate, society, and economics.

“The decisions made in the next 5 years will shape the next 25,” said Nikolaus Lang, global leader of the BCG Henderson Institute and a coauthor of the report. “Too often, the future is framed in extremes—either collapse or abundance. In reality, leaders need to be ready for a range of outcomes and make decisions that hold up across very different conditions.”

Four Plausible Futures Leaders Should Plan For

Each scenario presents a different operating environment for businesses, reflecting the range of conditions leaders may face.

Scenario 1: AI Abundance. Global cooperation on AI standards leads to faster productivity growth, wider access to technology, and abundant low-carbon energy:

Global GDP more than triples, growing by about 5% annually from 2025 to 2050—the highest level across BHI’s four plausible scenarios.Average working hours fall by about 25%, with four- or even three-day workweeks becoming common in some regions.AI-supported advances in new materials and carbon removal put the world on a delayed but credible path to net zero emissions.

Scenario 2: Battling Blocs. Geopolitical tensions divide the world into competing blocs, reducing cooperation and reshaping global trade:

Global trade falls to about 35% of global GDP, down from 57% in 2024—reversing decades of globalization.Defense spending rises to about 7% of global GDP, the highest across BHI’s four scenarios, as countries prioritize security and self-sufficiency.Global GDP growth slows to about 1.8% annually, the lowest across the four scenarios, underpinned by government spending on national security, pensions, and climate mitigation.

Scenario 3: Climate Coalition. A series of extreme weather events in the late 2020s push governments, industries, and consumers to prioritize climate resilience, accelerating the shift to low-carbon energy and infrastructure:

Global warming stabilizes at about 1.8°C.Carbon markets expand globally, with most major economies participating by 2040.The share of fossil fuels in the energy mix falls from 81% today to 35% in 2050, while electricity is generated almost entirely from low-carbon sources.Global GDP growth averages about 2.5% annually, reflecting a focus on the climate transition, slower population growth, and aging societies.

Scenario 4: Digital Darwinism. Rapid technological progress continues under limited regulation, driving strong growth while concentrating wealth and power among leading companies and tech-rich nations:

Global GDP grows at 4% per year, resulting in a near tripling of GDP.The richest 1% holds nearly half of global wealth, while the middle class continues to shrink.Gig-style and short-term contract work expands as AI and automation displace routine knowledge work.Defense spending rises to about 4% of GDP, up from 2.4% in 2024, as the global order becomes more fragmented. At the same time, global trade and supply chains remain open, driven by commercial interests.

What Leaders Can Do Now

 Across all four scenarios, the report highlights “low regret” moves that make sense for business leaders today, including:

Enhance structural resilience. Rebalance toward resilience over efficiency to maintain operations in a more volatile environment.Reimagine talent for aging populations and AI. Build strategies for intergenerational work, more flexible roles, and talent mobility—and recruit more widely, especially from emerging labor markets.Build digital flexibility and trust. Take a modular approach to tech and data stacks that accounts for rapidly changing technologies.Sharpen sensing and influencing capabilities. Develop sensing capacities along dimensions like regulation, geopolitics, resources, and technology. Build the capability to act on them quickly.Embrace a broader societal role. Prepare to shoulder more responsibility for workers’ well-being, local resilience, crisis management, and community needs.

“No one can predict exactly what 2050 will look like, but the forces shaping it are already visible,” said Alan Iny, a partner and director at BCG, a BCG Henderson Institute Fellow, and a coauthor of the report. “Planning for a single future is a gamble. The advantage will go to leaders who prepare for multiple futures and act to shape them before the direction of the world is clear.”

Download the publication here: https://www.bcg.com/publications/2026/beyond-tomorrow-four-scenarios-for-the-world-of-2050

Media Contact:                            
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com

About the BCG Henderson Institute
The BCG Henderson Institute is Boston Consulting Group’s strategy think tank, dedicated to exploring and developing valuable new insights from business, technology, and science by embracing the powerful technology of ideas. The Institute engages leaders in provocative discussion and experimentation to expand the boundaries of business theory and practice and to translate innovative ideas from within and beyond business. For more ideas and inspiration from the Institute, please visit our website and follow us on LinkedIn and X (formerly Twitter).

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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SOURCE Boston Consulting Group (BCG)

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DEKRA Korea to Acquire Global Product Service, Strengthening Consumer Electronics Testing and Certification Capabilities in Korea

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April 20, 2026

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GIMHAE-SI, South Korea, April 20, 2026 /PRNewswire/ — DEKRA, a leading global provider of testing, inspection, and certification services, today announced it has signed a definitive agreement to acquire Global Product Service Co., Ltd (GPS), a prominent South Korean company renowned for its expertise in consumer electronics product testing and certification.

This strategic acquisition will significantly enhance DEKRA Korea’s capabilities within the rapidly growing consumer electronics sector, bringing together DEKRA’s global network and comprehensive service portfolio with GPS’s deep-rooted local knowledge and decades of experience serving South Korea’s leading manufacturers.

GPS has established a strong reputation for its in-depth technical expertise and unwavering commitment to quality, particularly within the consumer electronics market. For many years, GPS has been a trusted partner to major South Korean electronics companies, providing testing and certification services that ensure product safety, performance, and compliance with international standards.

The successful acquisition is a result of the strong collaboration and commitment from both DEKRA and GPS. Key representatives who participated in the signing, embodying this collaboration, were Dr. Kilian Aviles, Executive Vice President of DEKRA Group and Head of Asia Pacific Region; Ming Sheng, Vice President of Automotive Testing, DEKRA China; Young Seok Lee, CEO of Global Product Service Co., Ltd; and Seong Su Kim, Director of Global Product Service Co., Ltd.

“We are thrilled to welcome Global Product Service Co., Ltd to the DEKRA family,” said Dr. Kilian Aviles, Executive Vice President of DEKRA Group and Head of Asia Pacific Region. “This acquisition represents a significant milestone in our growth strategy in South Korea. GPS’s deep understanding of the local market, combined with their specialized expertise in consumer electronics, perfectly complements DEKRA’s global strengths. Together, we will offer unparalleled testing and certification solutions to our clients, empowering them to bring innovative and reliable products to market with greater speed and confidence.”

The integration of GPS into DEKRA Korea will leverage synergies in technology, talent, and market reach. This will enable DEKRA to further support South Korean manufacturers as they navigate complex global regulatory landscapes and strive for excellence in product development and quality assurance. Clients can expect a seamless transition and continued access to the high-quality services they have come to rely on from both organizations.

Young Seok Lee, CEO of Global Product Service Co., Ltd commented, “Joining forces with DEKRA is an exciting opportunity for GPS. DEKRA’s global reach and extensive resources will allow us to expand our service offerings and better serve our existing and future clients. We are confident that this partnership will create significant value for the South Korean consumer electronics industry, providing enhanced support and innovation.”

About DEKRA

For more than 100 years, DEKRA has been a trusted name in safety. Founded in 1925 with the original goal of improving road safety through vehicle inspections, DEKRA has grown to become the world’s largest independent, non-listed expert organization in the field of testing, inspection, and certification. Today, as a global partner, the company supports its customers with comprehensive services and solutions to drive safety and sustainability forward—fully aligned with DEKRA’s anniversary motto, “Securing the Future.” In 2024, DEKRA generated revenue of 4.3 billion euros. Around 48,000 employees are providing qualified and independent expert services in approximately 60 countries across five continents. DEKRA holds a Platinum rating from EcoVadis, placing it among the top 1% of the world’s most sustainable companies.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/dekra-korea-to-acquire-global-product-service-strengthening-consumer-electronics-testing-and-certification-capabilities-in-korea-302746801.html

SOURCE DEKRA Asia Pacific

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