[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Full-Year 2024 Financial Results](index=1&type=section&id=Full-Year%202024%20Financial%20Results) Motorola Solutions reported record full-year 2024, with sales increasing 8% to $10.8 billion, GAAP operating earnings growing 17% to $2.7 billion, Non-GAAP EPS rising 16% to $13.84, and record operating cash flow of $2.4 billion - The company achieved record full-year sales, operating earnings, and cash flow in **2024**[1](index=1&type=chunk)[2](index=2&type=chunk) Full-Year 2024 vs. 2023 Performance | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $10,817M | $9,978M | 8% | | GAAP Operating Earnings | $2,688M | $2,294M | 17% | | GAAP EPS | $9.23 | $9.93 | (7)% | | Non-GAAP Operating Earnings | $3,142M | $2,784M | 13% | | Non-GAAP EPS | $13.84 | $11.95 | 16% | | Operating Cash Flow | $2,400M | $2,044M | 17% | - Full-year sales growth was driven by North America, partially offset by lower revenue from the U.K. Home Office; excluding the U.K. Home Office, Software and Services grew **13%**[7](index=7&type=chunk) [Fourth Quarter 2024 Financial Results](index=1&type=section&id=Fourth%20Quarter%202024%20Financial%20Results) In Q4 2024, Motorola Solutions saw sales grow 6% year-over-year to $3.0 billion, with GAAP EPS increasing 3% to $3.56 and Non-GAAP EPS growing 4% to $4.04 Q4 2024 vs. Q4 2023 Performance | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Sales | $3,010M | $2,848M | 6% | | GAAP Operating Earnings | $814M | $738M | 10% | | GAAP EPS | $3.56 | $3.47 | 3% | | Non-GAAP Operating Earnings | $916M | $870M | 5% | | Non-GAAP EPS | $4.04 | $3.90 | 4% | - Q4 sales growth was primarily driven by performance in North America, with revenue from acquisitions contributing **$37 million**[7](index=7&type=chunk) - GAAP operating margin increased to **27.0%** from **25.9%** in the prior year, mainly due to a recovery related to the Hytera litigation[7](index=7&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) For full year 2024, Products and Systems Integration sales grew 10% and Software and Services sales increased 5%, with Software and Services leading Q4 growth at 11% [Products and Systems Integration](index=1&type=section&id=Products%20and%20Systems%20Integration) The Products and Systems Integration segment reported a 10% sales increase for the full year to $6.9 billion, driven by LMR and Video Security, with Q4 sales growing 3% to $1.9 billion Products and Systems Integration Performance | Period | Sales | % Change (YoY) | Non-GAAP Operating Margin | | :--- | :--- | :--- | :--- | | Full Year 2024 | $6,883M | 10% | 28.1% | | Q4 2024 | $1,949M | 3% | 30.5% | - Growth in this segment was driven by Land Mobile Radio (LMR) and Video Security and Access Control (Video)[7](index=7&type=chunk) [Software and Services](index=1&type=section&id=Software%20and%20Services) The Software and Services segment saw full-year sales grow 5% to $3.9 billion, or 13% excluding the U.K. Home Office impact, with Q4 sales increasing 11% to $1.1 billion Software and Services Performance | Period | Sales | % Change (YoY) | Non-GAAP Operating Margin | | :--- | :--- | :--- | :--- | | Full Year 2024 | $3,934M | 5% | 30.8% | | Q4 2024 | $1,061M | 11% | 30.3% | - Full-year growth was partially offset by revenue reduction from the U.K. Home Office; excluding this impact, the segment grew **13%**[7](index=7&type=chunk) [Backlog and Cash Flow](index=1&type=section&id=Backlog%20and%20Cash%20Flow) The company ended 2024 with a record backlog of $14.7 billion, up 3%, including a 14% increase in Software and Services backlog, and generated record operating cash flow of $2.4 billion - Ending backlog reached a record **$14.7 billion**, up **3%** year-over-year[4](index=4&type=chunk) - Software and Services backlog grew **14%** (**$1.3 billion**), while Products and Systems Integration backlog decreased **17%** due to strong LMR shipments[8](index=8&type=chunk) Full-Year 2024 Cash Flow (in millions) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Operating Cash Flow | $2,391 | $2,044 | 17% | | Free Cash Flow | $2,134 | $1,791 | 19% | [Capital Allocation](index=2&type=section&id=Capital%20Allocation) In 2024, Motorola Solutions allocated capital to shareholder returns, strategic growth, and debt management, including $654 million in dividends, $244 million in stock repurchases, and $282 million for acquisitions - In 2024, the company paid **$654 million** in dividends and repurchased **$244 million** of its common stock[7](index=7&type=chunk) - Completed four acquisitions for **$282 million**, net of cash acquired[7](index=7&type=chunk) - Settled the Silver Lake convertible debt for **$1.59 billion** in cash and issued **$1.3 billion** in new long-term debt; the company also received credit rating upgrades to BBB from S&P and Fitch[7](index=7&type=chunk)[8](index=8&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) [First Quarter 2025 Outlook](index=3&type=section&id=First%20Quarter%202025%20Outlook) For Q1 2025, Motorola Solutions anticipates revenue growth between 5.0% and 5.5% and Non-GAAP EPS in the range of $2.98 to $3.03 per share Q1 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenue Growth | 5.0% to 5.5% | | Non-GAAP EPS | $2.98 to $3.03 | - The Q1 outlook assumes approximately **$25 million** in foreign exchange headwinds and a non-GAAP effective tax rate of about **21.0%**[12](index=12&type=chunk) [Full-Year 2025 Outlook](index=3&type=section&id=Full-Year%202025%20Outlook) For full year 2025, the company projects revenue growth of approximately 5.5% and expects Non-GAAP EPS to be between $14.64 and $14.74 per share Full-Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenue Growth | Approx. 5.5% | | Non-GAAP EPS | $14.64 to $14.74 | - The full-year outlook assumes approximately **$120 million** in foreign exchange headwinds and a non-GAAP effective tax rate of about **23.0%**[12](index=12&type=chunk) [Business and Operational Highlights](index=1&type=section&id=Business%20and%20Operational%20Highlights) [Notable Wins & Achievements in Q4 2024](index=3&type=section&id=Notable%20Wins%20%26%20Achievements%20in%20Q4%202024) During Q4, Motorola Solutions secured significant contracts across both segments, including a $329 million LMR services renewal in Melbourne and multiple large P25 system and device orders - **Software and Services Wins:** - **$329 million** ten-year LMR services renewal for Melbourne, Australia[12](index=12&type=chunk) - **$160 million** five-year LMR services renewal for Norway's nationwide public safety network[12](index=12&type=chunk) - **$40 million** Command Center order from the Scottish Fire Service[12](index=12&type=chunk) - **Products and Systems Integration Wins:** - **$53 million** P25 device order for a U.S. state and local customer[12](index=12&type=chunk) - **$52 million** P25 system and device order for a Canadian customer[12](index=12&type=chunk) - **$36 million** P25 device order for Broward Sheriff's Office, FL[12](index=12&type=chunk) [Strategic Acquisitions](index=1&type=section&id=Strategic%20Acquisitions) The company continued its strategy of targeted acquisitions, agreeing to acquire Theatro post-quarter end and acquiring 3tc Software for $22 million during Q4 to enhance its portfolio - Subsequent to quarter end, the company entered into a definitive agreement to acquire Theatro, a maker of AI and voice-powered communication software[4](index=4&type=chunk) - During Q4, the company acquired 3tc Software, an international provider of Command Center software solutions, for **$22 million**[7](index=7&type=chunk) [Legal and Regulatory Matters](index=3&type=section&id=Legal%20and%20Regulatory%20Matters) [U.K. Home Office Update](index=3&type=section&id=U.K.%20Home%20Office%20Update) The legal dispute regarding the Airwave network contract continues, with the U.K. Court of Appeal denying an appeal, the contract extended to December 2029, and the company challenging the extension decision - On January 30, 2025, the U.K. Court of Appeal denied the company's application for permission to appeal the judgment related to the Airwave Charge Control imposed by the Competition Markets Authority (CMA)[14](index=14&type=chunk) - The U.K. Home Office extended the Airwave service contract from December 2026 to December 2029, leading the company to record an additional **$748 million** in backlog[15](index=15&type=chunk) - The company has filed proceedings in the U.K. High Court challenging the contract extension, with a hearing set to commence on April 22, 2025[15](index=15&type=chunk) [Hytera Litigation Update](index=6&type=section&id=Hytera%20Litigation%20Update) Significant developments occurred in the Hytera litigation, with the U.S. Court of Appeals affirming damages, the company receiving $61 million from escrow, and Hytera pleading guilty to trade secret theft - On November 26, 2024, approximately **$61 million** in royalty payments held in escrow was released to the company and recorded as a gain[25](index=25&type=chunk)[30](index=30&type=chunk) - The U.S. Court of Appeals affirmed **$407.4 million** in damages under the Defend Trade Secrets Act, while remanding other parts of the judgment to the District Court for recalculation and reconsideration[26](index=26&type=chunk) - On January 13, 2025, Hytera pleaded guilty to one federal felony count of conspiracy to steal the company's trade secrets in a criminal case brought by the U.S. Department of Justice; sentencing is scheduled for November 6, 2025, and may include restitution paid to Motorola Solutions[29](index=29&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show an 8% increase in full-year net sales to $10.8 billion, with gross margin improving to 51.0%, but net earnings decreased to $1.58 billion due to debt extinguishment loss Full-Year Income Statement Highlights (in millions) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $10,817 | $9,978 | | Gross Margin | $5,512 | $4,970 | | Operating Earnings | $2,688 | $2,294 | | Net Earnings Attributable to MSI | $1,577 | $1,709 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of December 31, 2024, reflects total assets of $14.6 billion, an increase from $13.3 billion, with cash and equivalents rising to $2.1 billion and long-term debt increasing to $5.7 billion Balance Sheet Highlights (in millions) | Line Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $14,595 | $13,336 | | Cash and cash equivalents | $2,102 | $1,705 | | Goodwill | $3,526 | $3,401 | | Long-term debt | $5,675 | $4,705 | | Total stockholders' equity | $1,703 | $724 | [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For full year 2024, net cash from operating activities increased 17% to $2.4 billion, while investing activities used $507 million and financing activities used $1.4 billion for debt repayments and shareholder returns Full-Year Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $2,391 | $2,044 | | Net cash used for investing activities | ($507) | ($414) | | Net cash used for financing activities | ($1,448) | ($1,295) | | Net increase in cash | $397 | $380 | [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Motorola Solutions uses non-GAAP financial measures like non-GAAP operating earnings and free cash flow to help investors understand core operating performance by excluding items such as share-based compensation and legal expenses - The company provides non-GAAP measurements to help investors better understand core operating performance and enhance period-to-period comparisons[18](index=18&type=chunk) - Key exclusions from non-GAAP results include share-based compensation expense, intangible assets amortization expense, and highlighted items like acquisition fees and Hytera-related legal expenses[23](index=23&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Key Reconciliations](index=17&type=section&id=Key%20Reconciliations) The report provides detailed reconciliations of GAAP to non-GAAP figures, showing full-year 2024 GAAP EPS of $9.23 adjusted to Non-GAAP EPS of $13.84, and GAAP operating earnings of $2.7 billion reconciled to $3.1 billion Full-Year 2024 GAAP to Non-GAAP EPS Reconciliation | Description | Amount (per share) | | :--- | :--- | | **GAAP EPS** | **$9.23** | | Loss from extinguishment of debt | $3.42 | | Share-based compensation | $1.42 | | Intangible assets amortization | $0.89 | | Other adjustments (net) | $0.88 | | **Total Non-GAAP adjustments** | **$4.61** | | **Non-GAAP EPS** | **$13.84** | - Full-year 2024 GAAP operating earnings of **$2,688 million** were adjusted by **$454 million** for items like share-based compensation (**$243 million**) and intangible amortization (**$152 million**) to arrive at non-GAAP operating earnings of **$3,142 million**[69](index=69&type=chunk)

Motorola Solutions, Inc. (MSI) is scheduled to report fourth-quarter 2024 results on Feb. 13, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.65%. It reported a trailing four-quarter earnings surprise of 9.31%, on average.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Chicago-based company is expected to have higher revenues year over year on the back of growth in both segments, Products and Systems Integration and Services a ...

Motorola Solutions, Inc. (MSI) recently announced that it has successfully deployed a new digital radio communications system, dubbed DIMETRA X Core Deployable, aboard the German Navy’s F124 Sachsen frigate to enhance the latter’s command-and-control operations. This deployment makes the F124 Sachsen the first vessel to receive the advanced solution under Motorola’s contract with the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support — the German government agency for equi ...

POLAND - 2024/11/26: In this photo illustration, the Motorola Solutions company logo is seen ... [+] displayed on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesMotorola Solutions Inc. (NYSE: MSI) - one of the largest suppliers of land-mobile-radio solutions - stock is up almost 50% since the beginning of 2024 (Jan. 10), compared to a 22% return of the S&P 500 over the same period. MSI’s peer Juniper Networks stock is u ...

Motorola Solutions, Inc. (MSI) recently announced that it has signed an agreement to acquire Theatro Labs, Inc. for an undisclosed amount. Theatro offers leading-edge mobile communication platform, powered by generative AI for frontline workers. The company has a strong presence in the U.S. retail sector. This transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.MSI Set to Gain From Theatro’s Robust PortfolioFrontline workers encounter ...

Motorola Solutions, Inc. (MSI) recently announced an expansion of its security offerings by introducing the V200 body camera, a solution engineered to support frontline workers in various hostile situations. It is the latest addition to MSI’s comprehensive enterprise security technologies, which includes a wide range of access control, communication and video security solutions.Frontline workers often face unpredictable situations during working hours. This exposes them to various risks including physical h ...

Nødnett and Motorola Partnership - Nødnett is Norway's extensive communication network, covering 100% of the population and supporting 60,000 first responders daily, even in challenging terrains [1] - Motorola Solutions (MSI) has been a key partner of Nødnett since 2012, providing reliable digital radio communication services [1] - The Norwegian Directorate for Civil Protection (DSB) extended its contract with Motorola to enhance Nødnett's network, focusing on operational management and technology upgrades [2] - The new contract is valued at 1.78 billion NOK (approximately $160 million) and will run from 2027 to 2031, with an option for a two-year extension [8] Motorola's TETRA Technology - Motorola's TETRA devices are deployed globally, with around 1,000 units supporting local and national networks [3] - The TETRA radio solution is a comprehensive and advanced mission-critical communication system, widely used in industries such as railways, oil & gas, utilities, and public safety [9] - Motorola offers customizable portable mobile radios and accessories, along with support services to optimize network management and reduce training and maintenance time [9] Market Trends and Growth - The demand for digital radio network technology is expected to grow significantly due to its ease of use, consistency, and durability [3] - Countries like Austria, Denmark, and Portugal are investing steadily in advanced radio communications [3] - Motorola is well-positioned to benefit from this emerging market trend due to its comprehensive portfolio and solid track record [3] Financial Performance and Stock Movement - Motorola's stock has gained 11.7% in the past year, compared to the industry's growth of 74.7% [4] - The company delivered an earnings surprise of 5.10% in the last reported quarter [6] - Motorola currently holds a Zacks Rank 3 (Hold) [5] Industry Competitors - Keysight Technologies (KEYS) holds a Zacks Rank of 2 (Buy) and is expected to benefit from the growing adoption of electronic content in vehicles and driver-assistance systems [6][13] - InterDigital (IDCC) has a Zacks Rank 1 and delivered an earnings surprise of 114.47% in the last reported quarter [14] - Plexus Corp. (PLXS) also holds a Zacks Rank of 1 and delivered an earnings surprise of 20.92% in the last reported quarter [15]

I view Motorola Solutions (NYSE: MSI ) as a premium stock that is able to continue growing based on the increasing need for retail and government security systems. The future U.S. administration's stance on crime and immigration will lead toEquity research with an emphasis on intrinsic value. We prioritize undervalued and growing companies, preferably in the early stages of their development. We have an internal wishlist - message us a ticker or write it in comment sections.Analyst’s Disclosure: I/we have n ...

Motorola Solutions, Inc. (MSI) recently announced that it has joined forces with Nokia Corporation (NOK) to develop cutting-edge drone technology solutions. The effectiveness of drones for public safety applications is well established. In 2018, Motorola collaborated with the Chula Vista Police Department in California to develop the world's first drone for public safety under DFR (Drone as First Responder Program) and since then, the solution has been successfully used in more than 21,000 missions.Emergenc ...

Motorola Solutions, Inc. MSI reported better-than-expected third-quarter financial results and issued FY24 adjusted EPS guidance above estimates on Thursday.Motorola Solutions reported quarterly earnings of $3.74 per share which beat the analyst consensus estimate of $3.38 per share. The company reported quarterly sales of $2.79 billion which beat the analyst consensus estimate of $2.76 billion.“Our third-quarter results were exceptional, with record Q3 revenue, earnings and cash flow,” said Greg Brown, cha ...