Earnings Presentation Q4 and Full-Year 2025 Results | February 11, 2026 Safe Harbor A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today ...

Core Viewpoint - Motorola Solutions projects annual sales and profit to exceed Wall Street expectations, driven by its public safety technology sector benefiting from ongoing government expenditure [1] Group 1: Financial Forecast - The company anticipates higher annual sales and profit figures compared to Wall Street estimates [1] Group 2: Business Segment Performance - The public safety technology business is expected to be a key driver of growth due to sustained government spending [1]

Financial Performance - Fourth-quarter sales reached $3.38 billion, an increase of 12% year-over-year; full-year sales were $11.68 billion, up 8% from the previous year[5] - GAAP operating earnings for Q4 were $944 million, a 16% increase from Q4 2024; full-year operating earnings were $2.99 billion, up 11%[5] - Non-GAAP Q4 EPS was $4.59, up 14%; full-year non-GAAP EPS was $15.38, an increase of 11%[5] - The company generated $1.3 billion in operating cash flow during Q4, with full-year operating cash flow totaling $2.8 billion, a 19% increase[5] - Net earnings attributable to Motorola Solutions, Inc. grew from $611 million in 2024 to $649 million in 2025, a rise of 6.2%[39] - Net earnings for the three months ended December 31, 2025, increased to $650 million, up from $612 million in the same period of 2024, representing a growth of 6.2%[43] - Total non-GAAP net earnings attributable to Motorola Solutions, Inc. for the year ended December 31, 2025, was $2,599 million, compared to $2,366 million in 2024, reflecting an increase of 9.8%[48] Sales and Revenue Growth - The Products and Systems Integration segment saw sales growth of 11% in Q4 and 5% for the full year, while the Software and Services segment grew 15% in Q4 and 13% for the full year[9] - Net sales increased from $3,010 million in Q4 2024 to $3,380 million in Q4 2025, representing a growth of 12.3%[37] - Organic revenue for Q4 2025 was $3.19 billion, marking a 6% increase from $3.01 billion in Q4 2024[61] - Net sales for the year ended December 31, 2025, totaled $11.68 billion, an 8% increase from $10.82 billion in 2024[61] Cash Flow and Investments - Free cash flow is defined as net cash provided by operating activities less capital expenditures, which the company believes is useful for investors to compare performance across the industry[20] - Net cash provided by operating activities for the year ended December 31, 2025, was $2,837 million, compared to $2,391 million in 2024, reflecting an increase of 18.6%[45] - Free cash flow for the three months ended December 31, 2025, was $1,142 million, up from $983 million in the same period of 2024, indicating a growth of 16.2%[47] - The company reported a net cash used for investing activities of $5,164 million for the year ended December 31, 2025, compared to $507 million in 2024, indicating a significant increase due to acquisitions and investments[45] Acquisitions and Stock Repurchase - The company closed four acquisitions in 2025 for a total of $4.9 billion and repurchased $1.2 billion of its common stock[10] - The company repurchased $490 million of common stock during the three months ended December 31, 2025, compared to $106 million in the same period of 2024[43] Tax and Legal Matters - The GAAP effective tax rate for 2025 was 23.2%, compared to 19.8% in the previous year, influenced by foreign tax credit carryovers[10] - In 2025, Hytera made payments of $157 million, of which the company received $141 million net of withholding taxes, related to court-ordered amounts for I-Series products[26] - The District Court ordered Hytera to pay approximately $70 million for unpaid royalties and interest due to continued misuse of the company's trade secrets in H-Series products[28] - The company has excluded Hytera-related legal expenses from its GAAP operating income since 2020, as these are not considered part of normal operating expenses[29] - The company continues to seek collection of the judgment against Hytera through ongoing legal processes, with additional hearings scheduled[26][28] Future Outlook - For Q1 2026, the company expects revenue growth between 6% and 7% compared to Q1 2025, with non-GAAP EPS projected between $3.20 and $3.25[13] - For full-year 2026, the company anticipates revenue of approximately $12.7 billion and non-GAAP EPS in the range of $16.70 to $16.85[13] - The company anticipates that the impact of changes in the global trade environment and geopolitical events may affect its financial outlook for 2026[32] Operational Metrics - Gross margin improved from 51.4% in Q4 2024 to 52.3% in Q4 2025, indicating enhanced profitability[37] - Operating earnings rose from $814 million in Q4 2024 to $944 million in Q4 2025, a growth of 15.9%[37] - Operating earnings for the year ended December 31, 2025, were $2.99 billion, up from $2.69 billion in 2024, indicating a growth of 11.2%[58] - The operating earnings as a percentage of net sales for 2025 was 25.6%, compared to 24.8% in 2024[58] - Non-GAAP operating earnings after adjustments for 2025 were $3.54 billion, compared to $3.14 billion in 2024[58] Research and Development - Research and development expenditures increased from $246 million in Q4 2024 to $270 million in Q4 2025, reflecting a focus on innovation[37] Shareholder Value - Earnings per share (diluted) increased from $9.23 in 2024 to $12.75 in 2025, reflecting improved shareholder value[39] - Earnings per share attributable to Motorola Solutions, Inc. (MSI) increased to $3.86 for Q4 2025, up from $3.56 in Q4 2024, representing an increase of 8.4%[52] - Non-GAAP earnings per share attributable to MSI rose to $4.59 in Q4 2025, compared to $4.04 in Q4 2024, reflecting a growth of 13.6%[52]

Earnings Report - Motorola Solutions is set to release its fourth-quarter earnings results on February 11, with expected earnings of $4.35 per share, an increase from $4.04 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $3.34 billion, compared to $3.01 billion a year earlier [1] Security Authorization - On February 10, Motorola Solutions received security authorization from the Federal Risk and Authorization Management Program (FedRAMP) for its SVX and CommandCentral DEMS [2] - Following this announcement, Motorola Solutions shares fell by 0.7%, closing at $419.69 on Tuesday [2] Analyst Ratings - Recent ratings from analysts indicate a focus on Motorola Solutions, with various metrics available for readers to assess the stock [3]

Core Insights - Motorola Solutions, Inc. (MSI) is set to report its fourth-quarter 2025 results on February 11, with a history of earnings surprises averaging 5.5% over the last four quarters [1][10] Revenue Expectations - The company is expected to report year-over-year revenue growth, driven by steady demand in core businesses, disciplined cost management, and effective operational execution [2] - The Zacks Consensus Estimate for total revenues in the December quarter is $3.34 billion, up from $3.01 billion in the previous year [9][11] - Revenue estimates for the Products and Systems Integration segment are projected at $2.13 billion, an increase from $1.95 billion year-over-year [8] - The Services and Software segment is expected to generate $1.21 billion, compared to $1.06 billion in the same quarter last year [8] Factors Influencing Performance - The launch of Silvus' StreamCaster NEXUS is anticipated to enhance Motorola's tactical networking portfolio, contributing to near-term revenue through customer adoption and defense orders [3] - Advancements in AI-assisted policing tools are likely to increase software subscriptions and upgrades from public safety agencies, boosting bookings and recurring software revenues [4] - The acquisition of Blue Eye adds AI-powered remote video monitoring services, which may drive immediate bookings and recurring service revenues [5] - Approval from the U.S. Department of Defense for the Silvus StreamCaster 4400 as a secure communication tool is expected to strengthen Motorola's defense portfolio and generate early orders from defense customers [6] - Ongoing investments in innovation and efficiency are projected to help maintain healthy margins, supported by a strong order pipeline and improving market conditions [7] Earnings Outlook - The consensus estimate for adjusted earnings per share is $4.36, an increase from $4.04, driven by top-line growth [9] - The Earnings ESP indicates no predicted earnings beat for Motorola for the fourth quarter, with both the Most Accurate Estimate and the Zacks Consensus Estimate at $4.36 per share [10][12]

Core Insights - Motorola Solutions will release its fourth-quarter and full-year 2025 earnings results on February 11, 2026, followed by a conference call with financial analysts [1][1][1] Group 1: Earnings Announcement - The earnings results will be issued after the market closes on February 11, 2026 [1] - A conference call is scheduled for 4 p.m. Central (5 p.m. Eastern) on the same day, which will be webcast live [1] Group 2: Company Overview - Motorola Solutions focuses on safety and security, providing technologies to protect people, property, and places [1] - The company emphasizes collaboration to create safer communities, schools, hospitals, businesses, and nations [1] Group 3: New Product Launches - Motorola Solutions announced the launch of Assist Suites, a portfolio of AI-driven public safety solutions that integrate various data sources to improve emergency response [1] - Silvus Technologies, a subsidiary of Motorola Solutions, introduced the StreamCaster® MINI 5200, a compact tactical radio designed for secure voice, video, and data sharing [1] - The RealReal has implemented Motorola Solutions' AI-enabled video security technology to enhance inventory intake processes, significantly reducing operational overhead [1]

Core Insights - Silvus Technologies, a subsidiary of Motorola Solutions, has launched the StreamCaster MINI 5200, aimed at enhancing communication for ground forces and public safety officials in challenging environments [1][8] - The new system features advanced audio circuitry for improved voice quality, a compact design, and power optimization, providing 100 Mbps throughput for maximum mobility [2][8] - The product supports various power options and ensures connectivity to multiple devices, leveraging Silvus' MN-MIMO technology to create adaptive mesh networks for real-time data transmission [3][8] Company Positioning - Motorola Solutions is positioned to capitalize on the growing defense tactical radio market, with a focus on strategic alliances to strengthen its presence in the public safety sector [4] - The company has experienced strong demand for video security products and services, indicating a robust revenue stream from its niche market [4] Industry Trends - The defense tactical radio market is expected to see substantial growth in the coming years, with Motorola's innovative product launches aligning with this emerging trend [3]

Company Overview - Khaveen Investments is a global investment advisory firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the Securities Exchange Commission (SEC) [1] - It offers comprehensive services including market and security research, business valuation, and wealth management [1] Investment Strategy - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative [1] Core Expertise - The company specializes in disruptive technologies that are reshaping modern industries [1] - Key focus areas include Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Core Insights - Motorola Solutions, Inc. is leveraging AI-driven innovations to transition critical enterprises and security providers from reactive incident detection to proactive safety and situational awareness [1][11] - The company is focusing on enhancing operational efficiency and safety in large-scale, mission-critical environments through advanced AI applications [1][7] AI Innovations - The Avigilon Visual Alerts system utilizes intuitive conversational interfaces to broaden the detection capabilities across extensive camera networks, allowing security teams to create customized alerts for specific site needs [2][11] - Motorola's generative AI capabilities are delivered on-premise, transforming traditional video security into a site-specific operational engine that identifies a variety of risks beyond conventional security threats [3][7] Industry Applications - The AI-powered solutions are particularly beneficial for critical sectors in the Middle East, such as oil and gas and healthcare, enhancing safety and compliance through real-time detections [4] - Use cases include alerting workers to potential hazards and monitoring restricted zones, as well as identifying patient falls in large hospital settings [4] Customer Feedback - Customers in Saudi Arabia have reported that the AI-driven Avigilon platform aids security teams in consolidating data and responding effectively during incidents [5] Product Offerings - Motorola showcased long-range cameras for accurate detection in extreme environments and operational resilience software to improve event response efficiency [6] - The company is also deploying VB400 body-worn cameras globally to enhance the security of police officers and safety officials, contributing to a steady revenue stream [9] Financial Outlook - For the fourth quarter of 2025, Motorola expects non-GAAP earnings per share to be in the range of $4.30 to $4.36, with revenue growth projected at approximately 11% [9][11] - The company is experiencing strong demand in the Products and Systems Integration segment, particularly for LMR and video security solutions [8]

Core Viewpoint - The investment philosophy is characterized as conservative yet opportunistic, focusing on financial data and business fundamentals to assess long-term prospects [1]. Group 1: Investment Philosophy - The approach involves quantitative analysis to evaluate a company's financial strength before applying qualitative judgment [1]. - Emphasis is placed on capital preservation, margin of safety, and avoiding permanent capital loss [1]. Group 2: Research and Publications - Investment research has been published on platforms like Seeking Alpha and FAST Graphs, with a focus on early-stage investment ideas and personal finance topics [1]. - The author has also written a book titled "An Average Joe's Millionaire Journey to Retire Early," which discusses wealth building and risk management [1]. Group 3: Engagement and Communication - The author values thoughtful debate and evidence-based discussion, encouraging engagement through comments or direct messages on Seeking Alpha and social media [1].