Core Insights - Motorola Solutions Inc. (MSI) is positioned for growth through a focus on organic expansion and strategic acquisitions, supported by disciplined capital deployment [1] - The acquisition of Silvus Technologies enhances MSI's portfolio, allowing it to meet the rising demand for flexible and adaptive network systems for mission-critical communication [2][3] - Motorola aims to strengthen its presence in the public safety sector by forming strategic alliances within the ecosystem [4] Company Developments - The buyout of Silvus Technologies introduces advanced mobile ad-hoc network (MANET) technology, which supports secure data, video, and voice communications without fixed infrastructure [2] - Silvus' MANET technology enables secure control of drones and autonomous vehicles, enhancing tactical decision-making and operational efficiency [3] - Motorola anticipates strong demand in video security, land mobile radio products, and related software, which will drive additional device sales and infrastructure expansion [5] Industry Context - Other players in the advanced mobile technology space include InterDigital Inc., Ubiquiti Inc., and Viasat Inc., each contributing to the wireless communications landscape with innovative solutions [6][7][8]

Market Overview - Broader equity markets have reached record highs, driven by a favorable inflation report that increased the likelihood of an interest rate cut by the Federal Reserve as early as next month [1] - The July consumer price index (CPI) rose 2.7% year on year, slightly below the expected 2.8%, while the core CPI increased by 3.1%, exceeding the expected 3% [1] - The probability of a rate cut is now at 94%, supported by strong second-quarter earnings [1] Investment Opportunities - A 90-day extension on higher tariffs against China has led to a positive market sentiment, with investors adopting a wait-and-see approach [2] - Companies with high return on equity (ROE) are highlighted as potential investment opportunities, as high ROE indicates effective reinvestment of cash [2][3] - Notable companies with high ROE include Arista Networks Inc. (ANET), TE Connectivity plc (TEL), Motorola Solutions, Inc. (MSI), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), and AppLovin Corporation (APP) [2] Company Profiles - **Arista Networks Inc. (ANET)**: Engaged in cloud networking solutions, with a long-term earnings growth expectation of 16.6% and a trailing four-quarter earnings surprise of 12.8% [7][8][9] - **TE Connectivity plc (TEL)**: A global technology company focusing on connectivity and sensor solutions, with a long-term earnings growth expectation of 9.8% and a trailing four-quarter earnings surprise of 4.9% [10][11] - **Motorola Solutions, Inc. (MSI)**: A leading communications equipment manufacturer with a long-term earnings growth expectation of 9.1% and a trailing four-quarter earnings surprise of 6.8% [12][13] - **Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)**: Provides retail and wholesale banking services, with a long-term earnings growth expectation of 6.9% and a trailing four-quarter earnings surprise of 7.4% [13][14] - **AppLovin Corporation (APP)**: Offers a software platform for advertisers, with a long-term earnings growth expectation of 20% and a trailing four-quarter earnings surprise of 22.4% [14][15] Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion, ROE greater than the industry average, price/cash flow lower than the industry average, and return on assets (ROA) greater than the industry average [5][6] - Additional criteria include a 5-year EPS historical growth greater than the industry average and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [7]

Core Insights - The article discusses the challenges faced by companies attempting to manufacture smartphones in the U.S., highlighting the experience of Dennis Woodside, former CEO of Motorola and current CEO of Freshworks, who emphasizes the difficulties in finding and retaining skilled labor for such production [1][6][8]. Group 1: Manufacturing Challenges - Woodside notes that some customers express a preference for products made in the U.S., but efforts to manufacture domestically have often been short-lived, as seen with Motorola's closure of its Texas factory [1][5]. - The article points out that the primary reasons for the shift of smartphone production to Asia and South America include proximity to key suppliers and lower labor costs, but a significant challenge is the skills gap in the U.S. workforce [5][6]. - The U.S. manufacturing sector has faced job losses, with approximately 11,000 manufacturing jobs lost between June and July, indicating ongoing difficulties in filling factory positions [8]. Group 2: Market Dynamics - The Moto X, launched in August 2013, sold around 500,000 units in its first quarter, while Samsung's Galaxy S4 exceeded 10 million units in sales within a month, illustrating the competitive landscape [5]. - Woodside's experience reflects a broader issue in U.S. manufacturing, where many potential workers prefer jobs in retail or food service, complicating efforts to attract and retain employees for factory work [6][8]. - The article also mentions that the Trump administration has pressured companies like Apple and Samsung to produce devices in the U.S., but the feasibility of such production remains questionable due to the established supply chain in China [5][11].

Core Insights - Motorola Solutions, Inc. (MSI) reported record revenues and operating earnings for Q2 2025, driven by effective operational execution and strong order trends [1][2] Financial Performance - GAAP earnings were $513 million or $3.04 per share, up from $443 million or $2.60 per share year-over-year, primarily due to top-line growth [3] - Non-GAAP earnings were $602 million or $3.57 per share, compared to $552 million or $3.24 per share in the previous year, beating the Zacks Consensus Estimate by 21 cents [3] - Quarterly net sales reached a record high of $2.76 billion, a 5% increase year-over-year, surpassing the consensus estimate of $2.74 billion [4] Revenue Breakdown - North America revenues increased by 6% to $2.03 billion, driven by growth in LMR, command center software, and video security products [5] - International revenues rose by 4% to $738 million, supported by solid LMR sales [5] - Acquisitions contributed $39 million to revenues, while foreign exchange effects added $9 million [5] Segment Performance - Products and Systems Integration net sales remained flat at $1.65 billion, with lower LMR revenues offset by increased video security product sales [6] - Software and Services net sales increased by 15% to $1.11 billion, with a backlog growth of $1 billion to $10.7 billion due to strong demand [7] Operational Metrics - GAAP operating earnings rose to $692 million from $644 million year-over-year, while non-GAAP operating earnings increased to $818 million from $758 million [8] - The company ended the quarter with a backlog of $14.1 billion, up $150 million year-over-year [8] Cash Flow and Liquidity - Motorola generated $272 million in cash from operating activities in Q2, compared to $180 million a year ago, with free cash flow at $224 million [11] - The company repurchased $218 million worth of stock during the quarter and had $3.21 billion in cash and cash equivalents as of June 30, 2025 [11] Guidance - For Q3 2025, Motorola expects non-GAAP earnings between $3.82 and $3.87 per share, with revenue growth of approximately 7% [12] - The 2025 guidance was raised, with non-GAAP earnings now expected in the range of $14.88 to $14.98 per share, reflecting a revenue growth of 7.7% to $11.65 billion [12] Future Outlook - Motorola is positioned for growth due to disciplined capital deployment and a strong balance sheet, with expectations of strong demand across various product lines [13]

Core Viewpoint - Motorola Solutions has raised its annual revenue forecast, expecting a 7.7% growth in fiscal year 2025 to approximately $11.65 billion, surpassing the previous expectation of 5.5% growth [1] Group 1: Revenue and Financial Performance - The company reported second-quarter revenue of $2.77 billion, exceeding analyst expectations of $2.73 billion [1] - Adjusted quarterly profit was $3.75 per share, up from $3.24 per share in the same period last year [1] Group 2: Market Demand and Strategic Response - The company benefits from stable demand in resilient verticals such as healthcare, critical infrastructure, and education [1] - To address tariff impacts, the company is implementing cost controls, adjusting its supply chain, and increasing product pricing [1] Group 3: Product Portfolio - Motorola Solutions' product offerings include radio communication equipment, 911 emergency call handling software, and body-worn cameras used by law enforcement [1]

Core Insights - Motorola reported revenue of $2.77 billion for the quarter ended June 2025, reflecting a 5.2% increase year-over-year and a surprise of +1.03% over the Zacks Consensus Estimate of $2.74 billion [1] - The company's EPS for the quarter was $3.57, up from $3.24 in the same quarter last year, resulting in a surprise of +6.25% compared to the consensus estimate of $3.36 [1] Financial Performance Metrics - Net Sales from Software and Services reached $1.11 billion, exceeding the average estimate of $1.05 billion by four analysts, and showing a year-over-year increase of +14.6% [4] - Net Sales from Products and Systems Integration were $1.65 billion, slightly below the average estimate of $1.69 billion, with a year-over-year change of -0.3% [4] - Total Sales from LMR Communications amounted to $2.01 billion, surpassing the average estimate of $1.99 billion based on two analysts [4] - Non-GAAP Operating Earnings from Software and Services were reported at $376 million, exceeding the average estimate of $255.67 million by two analysts [4] Stock Performance - Motorola's shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Q2 revenue increased by 5%, exceeding guidance, with a notable 15% growth in software and services [9][12] - GAAP operating earnings reached $692 million, representing 25% of sales, up from 24.5% in the previous year [12] - Non-GAAP EPS was $3.57, a 10% increase from $3.24 last year, driven by higher sales and operating margins [12][19] - 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 [13] Business Line Data and Key Metrics Changes - Products and Systems Integration (SI) segment sales were flat at $1.7 billion, with operating earnings at 26.7% of sales [14] - Software and Services revenue grew by 15%, with operating earnings at 33.8% of sales, up from 32.3% last year [15] - Notable orders in the Products and SI segment included an $82 million system upgrade for Tri County systems and a $30 million device order for Miami [14][15] Market Data and Key Metrics Changes - North America Q2 revenue was $2 billion, up 6%, while international revenue was $738 million, up 4% [16] - Ending backlog for Q2 was $14.1 billion, an increase of $150 million year-over-year, driven by strong demand [16][18] Company Strategy and Development Direction - The company is focusing on investments in public safety and security, with record Q2 orders up 27% year-over-year [10] - The acquisition of Silvis is expected to enhance capabilities in unmanned systems and mobile ad hoc networks, with anticipated revenue contribution of $185 million for the stub period [20][28] - The company is expanding its LMR technology category to include Silvis under the new name of Mission Critical Networks (MCN) [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong Q2 results and raised full-year guidance for sales, EPS, and operating cash flow [10][19] - The company expects Q3 sales growth of approximately 7% and non-GAAP EPS between $3.82 and $3.87 per share [18][19] - Management highlighted the positive impact of the "one big beautiful bill" funding on future growth opportunities [40][42] Other Important Information - The company is committed to a disciplined approach in capital allocation, prioritizing long-term value creation for shareholders [28] - The introduction of the new D Series base stations is expected to drive multiyear growth and enhance service capabilities [58] 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 product refreshes [30][34] Question: Opportunities from the "one big beautiful bill" - Management noted that the funding will support technology refreshes and is expected to kick in early Q4 [42] Question: Syllvis acquisition rationale - Management sees Syllvis as a market leader that complements existing LMR and video capabilities, providing access to new markets [46][48] Question: Operating margins and tariff impacts - Operating margins improved due to higher sales in software and services, with tariff impacts estimated at $80 million for the year [86][88] Question: Unmanned systems market potential - The total addressable market (TAM) for unmanned systems is estimated at $3 billion, with expectations for significant growth [90] Question: Syllvis sales motion and integration - The sales strategy for Syllvis will involve local resources in allied countries and a focus on lobbying efforts [96][98] Question: Fiscal year 2026 budget visibility - Management indicated that state and local budgets look strong, supporting confidence in future growth [100][102]

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)