Financial Data and Key Metrics Changes - Revenue for Q2 increased by 5%, exceeding guidance, with a notable 15% growth in software and services [7][9] - GAAP operating earnings reached $692 million, representing 25% of sales, up from 24.5% in the previous year [9] - Non-GAAP EPS was $3.57, a 10% increase from $3.24 last year, driven by higher sales and improved operating margins [9][10] - Operating cash flow for Q2 was $272 million, up $92 million year-over-year, with free cash flow at $224 million, an increase of $112 million [10] Business Line Data and Key Metrics Changes - Products and Systems Integration (PSI) segment sales were flat at $1.7 billion, with operating earnings of $442 million, or 26.7% of sales [11] - Software and Services (SNS) revenue grew by 15%, with operating earnings at $376 million, or 33.8% of sales, up from 32.3% last year [12] - Notable orders in PSI included an $82 million system upgrade for Tri County systems and a $30 million device order for Miami [11][12] Market Data and Key Metrics Changes - North America Q2 revenue was $2 billion, up 6%, while international revenue was $738 million, a 4% increase [13] - Ending backlog for Q2 was $14.1 billion, up $150 million year-over-year, driven by strong demand and record Q2 orders [13][14] Company Strategy and Development Direction - The company is raising its full-year guidance for sales, EPS, and operating cash flow based on strong Q2 results [8][15] - The acquisition of Silvis is expected to enhance the company's position in unmanned systems and mission-critical networks, with anticipated revenue contribution of $185 million for the stub period [15][17] - The company is focusing on expanding its LMR technology category to include Silvis under the new name of mission-critical networks (MCN) [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for public safety and security investments, with record Q2 orders up 27% year-over-year [8][18] - The company expects Q3 sales growth of approximately 7% and non-GAAP EPS between $3.82 and $3.87 per share [14][15] - Management highlighted the importance of AI in driving growth, particularly in video software, which grew 25% in Q2 [22] Other Important Information - The company closed the Silvis acquisition for $4.4 billion, funded through a combination of long-term notes and cash [11] - Capital allocation for Q2 included $218 million in share repurchases and $182 million in cash dividends [10] Q&A Session Summary Question: Growth in product orders across the portfolio - Management expressed confidence in achieving the mid $3 billion product backlog target, driven by strong Q2 orders and LMR device refreshes [26][29] Question: Opportunities from the recent funding bill - Management highlighted strong budget conditions and expected funding to kick in early Q4, benefiting both defense and enterprise customers [33][39] Question: Rationale behind the Silvis acquisition - Management sees Silvis as a market leader that complements existing LMR and video businesses, providing opportunities in unmanned systems [44][46] Question: Operating margins and tariff impacts - Operating margins improved due to higher SNS sales, with estimated tariff impacts reduced to $80 million for the year [81][83] Question: Positioning in the unmanned systems market - The total addressable market (TAM) for unmanned systems is estimated at $3 billion, with expectations for significant growth [86][88]

Financial Performance - Sales reached $2.8 billion, a 5% year-over-year increase[4] - Non-GAAP Earnings Per Share (EPS) increased by 10% year-over-year to $3.57[5] - Non-GAAP operating margin increased by 80 basis points year-over-year to 29.6%[5] - Operating cash flow increased by $92 million year-over-year to $272 million[5] Business Segment Performance - Software and Services revenue increased by 15%[5] - Land Mobile Radio (LMR) Communications grew by 3%[5] - Video Security and Access Control increased by 10%[5] - Command Center solutions grew by 12%[5] Strategic Investments - The company acquired Silvus Technologies for $4.4 billion in upfront consideration[5] - The acquisition of Silvus is expected to contribute approximately $185 million in revenue in 2025[21] Regional Performance - North America revenue increased by 6%[12] - International revenue increased by 4%[12] Backlog - Ending backlog reached $14.1 billion, up $150 million year-over-year[5]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Motorola%20Solutions%20Reports%20Second-Quarter%202025%20Financial%20Results) Motorola Solutions achieved record Q2 2025 financial results, driven by strong segment performance and increased full-year guidance [Q2 2025 Performance Highlights](index=1&type=section&id=KEY%20FINANCIAL%20RESULTS) Motorola Solutions achieved record Q2 revenue and earnings, with total sales growing 5% to **$2.8 billion** and non-GAAP EPS rising 10% to **$3.57** Q2 2025 Key Financial Results (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Sales** | $2,765 | $2,628 | 5% | | **GAAP Operating Earnings** | $692 | $644 | 7% | | **GAAP EPS** | $3.04 | $2.60 | 17% | | **Non-GAAP Operating Earnings** | $818 | $758 | 8% | | **Non-GAAP EPS** | $3.57 | $3.24 | 10% | - The Software and Services segment was the primary growth driver, with sales up **15%**, while the Products and Systems Integration segment sales remained flat[2](index=2&type=chunk)[3](index=3&type=chunk) - Operating cash flow increased by **$92 million** year-over-year to **$272 million**[3](index=3&type=chunk) - Ending backlog grew by **$150 million** to **$14.1 billion**, driven by record Q2 orders[3](index=3&type=chunk)[5](index=5&type=chunk) - Subsequent to the quarter, the company acquired Silvus Technologies for **$4.4 billion** in upfront consideration[3](index=3&type=chunk)[5](index=5&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=OTHER%20SELECTED%20FINANCIAL%20RESULTS) The company's backlog reached **$14.1 billion**, driven by Software and Services, while operating margins expanded and capital was returned through buybacks and dividends Backlog by Segment (vs. Year-Ago) | Segment | Change (Amount, in billions/millions) | Change (%) | Driver | | :--- | :--- | :--- | :--- | | **Software and Services** | +$1.0 billion | +11% | Strong demand across all technologies | | **Products and Systems Integration** | -$902 million | -21% | Strong LMR shipments | - The acquisition of Silvus for **$4.4 billion** was primarily funded through **$2 billion** of new long-term senior notes and **$1.5 billion** of new term loans[5](index=5&type=chunk) - Capital allocation in Q2 included **$218 million** in share repurchases and **$182 million** in dividend payments[6](index=6&type=chunk) Q2 2025 Operating Margin Performance | Margin Type | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Operating Margin** | 25.0% | 24.5% | +50 bps | | **Non-GAAP Operating Margin** | 29.6% | 28.8% | +80 bps | [Business Outlook and Achievements](index=3&type=section&id=BUSINESS%20OUTLOOK) Motorola Solutions secured key contracts and raised its full-year 2025 financial guidance following strong Q2 performance [Notable Wins and Achievements](index=3&type=section&id=NOTABLE%20WINS%20AND%20ACHIEVEMENTS) The company secured significant Q2 contracts in both Software and Services and Products and Systems Integration segments, demonstrating strong demand - **Software and Services:** Secured significant orders including a **$44 million** Command Center deal for a U.S. state/local customer and a **$29 million** P25 system upgrade for the City of Chicago[10](index=10&type=chunk) - **Products and Systems Integration:** Won major contracts such as an **$82 million** P25 system upgrade for a tri-county system in the St. Louis region and a **$30 million** P25 device order for the City of Miami[10](index=10&type=chunk) [Updated Business Outlook](index=3&type=section&id=BUSINESS%20OUTLOOK) Motorola Solutions raised its full-year 2025 guidance for revenue, earnings, and operating cash flow, incorporating the Silvus acquisition Q3 2025 Guidance | Metric | Guidance | | :--- | :--- | | **Revenue Growth** | Approx. 7% YoY | | **Non-GAAP EPS** | $3.82 to $3.87 | Full-Year 2025 Updated Guidance | Metric | New Guidance | Prior Guidance | | :--- | :--- | :--- | | **Revenue** | ~$11.65 billion (7.7% growth) | ~$11.4 billion (5.5% growth) | | **Non-GAAP EPS** | $14.88 to $14.98 | $14.64 to $14.74 | | **Operating Cash Flow** | $2.75 billion | Not specified (increased) | - The full-year outlook includes an expected **$185 million** of revenue from the Silvus acquisition[8](index=8&type=chunk) [Other Disclosures](index=4&type=section&id=Other%20Disclosures) The company addresses macroeconomic challenges, clarifies non-GAAP financial reporting, and outlines forward-looking statement disclaimers [Macroeconomic Environment](index=4&type=section&id=MACROECONOMIC%20ENVIRONMENT%20UPDATE) The company navigates a complex global tariff environment, expecting to mitigate anticipated increases in material and component costs in 2025 - The company is observing elevated volatility and uncertainty around the global supply chain due to the current global tariff environment[11](index=11&type=chunk) - Motorola Solutions is working with its global supply base to mitigate exposure to tariff risks and expects to substantially mitigate anticipated increases in material and component costs in 2025[12](index=12&type=chunk) [Use of Non-GAAP Financial Information](index=4&type=section&id=USE%20OF%20NON-GAAP%20FINANCIAL%20INFORMATION) Motorola Solutions utilizes non-GAAP financial measures to provide clearer insights into core operating performance by excluding specific non-recurring or non-cash items [Highlighted Items and Exclusions](index=5&type=section&id=Highlighted%20items) The company excludes specific items like share-based compensation and intangible asset amortization from non-GAAP results for a clearer view of core business performance - **Share-based compensation** is excluded because it is a significant non-cash expense, although it is a key incentive for employees[26](index=26&type=chunk) - **Intangible assets amortization** is excluded as it is a non-cash expense significantly affected by the timing and size of acquisitions[27](index=27&type=chunk) [Hytera-Related Legal Expenses](index=5&type=section&id=Hytera-Related%20Legal%20Expenses) The company provides an update on Hytera litigation, excluding related legal expenses and gains from non-GAAP results since 2020 - In November 2024, approximately **$61 million** held in escrow from Hytera royalty payments was released to the company and recorded as a gain[20](index=20&type=chunk) - Hytera made additional partial judgment payments totaling approximately **$20 million** in March and April 2025, which were also recorded as gains[23](index=23&type=chunk) - As of 2020, the company excludes Hytera-related legal expenses and any associated gains from its non-GAAP operating income to better align with how management evaluates ongoing business performance[25](index=25&type=chunk) [Forward-Looking Statements](index=6&type=section&id=FORWARD%20LOOKING%20STATEMENTS) The earnings release contains forward-looking statements, including financial outlooks, subject to various risks and uncertainties that could impact actual results - Forward-looking statements include the financial outlook for Q3 and the full-year 2025, and the expected impact of global tariffs and supply chain volatility[29](index=29&type=chunk) - The company cautions that it cannot guarantee future results and that statements are subject to numerous risks, including global economic conditions, competition, supply chain disruptions, and cybersecurity threats[29](index=29&type=chunk) [Financial Statements and Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents the company's consolidated financial statements and detailed reconciliations of GAAP to non-GAAP measures [Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements detail the company's revenues, costs, and expenses, showing Q2 2025 net income of **$513 million**, up from **$443 million** in Q2 2024 Q2 Statement of Operations Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net sales** | $2,765 | $2,628 | | **Gross margin** | $1,413 | $1,339 | | **Operating earnings** | $692 | $644 | | **Net earnings attributable to MSI** | $513 | $443 | [Consolidated Balance Sheets](index=13&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 28, 2025, shows total assets increased to **$16.4 billion**, with long-term debt rising to **$7.7 billion** Balance Sheet Highlights (in millions) | Line Item | June 28, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $3,206 | $2,102 | | **Total assets** | $16,412 | $14,595 | | **Long-term debt** | $7,661 | $5,675 | | **Total stockholders' equity** | $1,968 | $1,703 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for Q2 2025 significantly increased to **$272 million** from **$180 million** in the prior year Q2 Cash Flow Highlights (in millions) | Activity | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $272 | $180 | | **Net cash used for investing activities** | ($60) | ($71) | | **Net cash from (used for) financing activities** | $1,376 | ($231) | [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations from GAAP to non-GAAP financial measures, including free cash flow, net earnings, EPS, operating earnings, and organic revenue - Free cash flow for Q2 2025 was **$224 million**, double the **$112 million** from Q2 2024[47](index=47&type=chunk) - The reconciliation from GAAP EPS (**$3.04**) to Non-GAAP EPS (**$3.57**) for Q2 2025 involved a net positive adjustment of **$0.53** per share, primarily related to share-based compensation and intangible asset amortization[52](index=52&type=chunk) - Organic revenue, which excludes sales from recent acquisitions, grew **4%** in Q2 2025[61](index=61&type=chunk)

Core Insights - Motorola (MSI) is expected to report quarterly earnings of $3.36 per share, reflecting a 3.7% increase year over year, with revenues forecasted at $2.74 billion, a 4.2% increase compared to the previous year [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] - Analysts have collectively revised their consensus EPS estimate upward by 0.2% over the past 30 days, indicating a reassessment of initial projections [1] Key Metrics Forecast - The consensus estimate for 'Net Sales- Products and Systems Integration' is $1.69 billion, indicating a 2% year-over-year change [4] - 'Net Sales- Software and Services' is expected to reach $1.05 billion, reflecting an 8% increase from the prior-year quarter [4] - 'Net sales from products' are projected at $1.61 billion, showing a 3.1% increase from the year-ago quarter [4] - 'Net sales from services' are anticipated to be $1.12 billion, indicating a 5.4% increase from the previous year [5] Operating Earnings Estimates - 'Non-GAAP Operating Earnings- Software and Services' is expected to be $255.67 million, down from $313.00 million reported in the same quarter last year [5] - 'Non-GAAP Operating Earnings- Products and Systems Integration' is forecasted at $530.80 million, compared to $445.00 million in the previous year [6] Stock Performance - Motorola shares have increased by 2.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.6% increase [6]

Key Takeaways Motorola Solutions, Inc. (MSI) is scheduled to report second-quarter 2025 results on Aug. 7, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.6%. It pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The Chicago, IL-based company is expected to have recorded year-over-year higher revenues on the back of growth in both segments — Products and Systems Integration and Services and Software. It benefits from the increasing ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Motorola, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Motorola is expected to report quarterly earnings of $3.36 per share, reflecting a +3.7% change year-over-year [3] - Revenue is projected to be $2.74 billion, which is a 4.2% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.19% higher in the last 30 days, indicating a positive reassessment by analysts [4] - A positive Earnings ESP of +0.55% suggests analysts are bullish on Motorola's earnings prospects [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Motorola currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Motorola exceeded expectations by delivering earnings of $3.18 per share against an expected $3.01, resulting in a +5.65% surprise [13] - The company has beaten consensus EPS estimates in all of the last four quarters [14] Conclusion - While an earnings beat is anticipated, other factors may also influence stock movement, making it essential to consider the broader context [15][17]

Core Insights - Motorola (MSI) is positioned to potentially continue its earnings-beat streak in the upcoming report, having a history of beating earnings estimates, particularly in the last two quarters with an average surprise of 5.16% [1][2] Earnings Performance - For the last reported quarter, Motorola achieved earnings of $3.18 per share, exceeding the Zacks Consensus Estimate of $3.01 per share, resulting in a surprise of 5.65% [2] - In the previous quarter, Motorola was expected to report earnings of $3.86 per share but delivered $4.04 per share, leading to a surprise of 4.66% [2] Earnings Estimates and Predictions - Recent estimates for Motorola have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat, especially when combined with its Zacks Rank [4][7] - The Zacks Earnings ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that analysts revising their estimates close to the earnings release may have more accurate information [6] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a high probability of beating consensus estimates [5] - Currently, Motorola has an Earnings ESP of +0.55%, reflecting a bullish sentiment among analysts regarding its near-term earnings potential [7]

机构：2025年Q2全球智能手机出货量同比增长2% 《科创板日报》17日讯，根据Counterpoint Research市场监测服务的初步数据估算，2025年第二季度全 球智能手机出货量同比小幅增长2%。这一增长是连续第二个季度实现增长，主要得益于北美、日本和 欧洲市场的贡献。三星保住了全球第一的位置，并在前五大厂商中增长最快。苹果在2025年第二季度延 续了增长势头，在北美、印度和日本的强劲表现的推动下，同比增长4%。摩托罗拉在2025年第二季度 同比增长16%。 ...

Core Viewpoint - The global smartphone shipment is projected to see a slight year-on-year growth of 2% in Q2 2025, marking the second consecutive quarter of growth, primarily driven by contributions from North America, Japan, and Europe [2][3]. Market Dynamics - The first quarter's shipment disruptions due to tariff concerns have started to ease in the second quarter, although markets like China and North America still face some impacts, leading to inventory build-up in North America [2]. - There is a rising interest in entry-level and budget 5G devices in emerging markets, while high-end demand remains stable in mature markets [2]. Brand Performance - Samsung retained its position as the global leader in smartphone shipments, achieving an 8% year-on-year growth, supported by resilient performance across regional markets and strategic product launches, particularly in the mid-range A series [3]. - Apple continued its growth trajectory with a 4% year-on-year increase in shipments, driven by strong performances in North America, India, and Japan, alongside stable demand for the iPhone 16 and iPhone 15 series [3]. - Motorola experienced a significant year-on-year growth of 16%, primarily fueled by strong demand in the Indian market and the North American prepaid market [4]. Competitive Landscape - Xiaomi's performance in Q2 2025 remained flat year-on-year, ranking third, with strong demand in Central Europe and Latin America, and stable momentum in China [4]. - Vivo and OPPO ranked fourth and fifth, respectively, showing stable performance in the mid-range market and signs of recovery in overseas markets like Latin America and the Middle East and Africa [4]. - OPPO solidified its position in the entry-level market with strong performance from the A5 Pro, while Vivo benefited from promotional activities during China's "618" shopping festival [4].

Core Insights - The Latin American smartphone market experienced a year-on-year decline of 4% in Q1 2025, ending six consecutive quarters of growth, with total shipments reaching 33.7 million units [1] Company Performance - Samsung maintained its leading position with a shipment of 11.9 million units, reflecting a year-on-year growth of 7% [1] - Xiaomi ranked second with shipments of 5.9 million units, achieving a year-on-year increase of 10% for the second consecutive quarter [1] - Motorola fell to third place with a shipment of 5.2 million units, experiencing a year-on-year decline of 13% [1] - Honor saw a year-on-year growth of 2%, with shipments reaching 2.6 million units, moving up to fourth place [1] - Transsion ranked fifth with shipments of 2.1 million units, marking a significant year-on-year decline of 38%, representing its first drop in this region [1]