Summary of Motorola Solutions FY Conference Call Company Overview - **Company**: Motorola Solutions (NYSE: MSI) - **Date of Conference**: December 11, 2025 Key Points Industry and Business Segments - **LMR (Land Mobile Radio) Business**: - The LMR business is expected to grow at a mid-single-digit rate overall, with a strong transition towards a services-attached software model [16][18][20] - The addition of Silvus has improved the growth profile of the LMR business [19] - Infrastructure segment is valued at less than $2 billion, with significant opportunities for upgrades from customers [20] - Devices segment is approximately $2.5 billion, with a focus on the APX NEXT radio, which has seen strong adoption [21] Financial Performance and Growth - **Funding Environment**: - The state and local business is approximately $5 billion, with a diverse customer base making around 20,000 purchase orders annually [34][35] - Expected double-digit growth in both products and services for Q4 [36] - Federal business accounts for about 9% of revenues, with potential growth from new funding sources [41] Silvus Acquisition - **Silvus Overview**: - Silvus has achieved $500 million in annual revenue with 45% EBITDA margins [45] - The technology focuses on mobile ad hoc networks (MANET) for mission-critical applications [45] - The total addressable market (TAM) for Silvus is estimated at $3 billion, expected to double in the next four to five years [51] Product Innovations - **APX NEXT Transition**: - The transition to APX NEXT is ongoing, with expectations to increase from 200,000 to 300,000 subscribers by the end of the next year [21][56] - The introduction of the SVX device is expected to enhance the value proposition and drive further adoption of APX NEXT [57] Video and Command Center Software - **Video Business**: - The video business is projected to grow at 10%-12% annually, with a strong focus on software and services [60] - Transitioning customers from on-premise to cloud solutions is a key growth driver [61] - **Command Center Software**: - The command center software business is growing at 12%, with a focus on integrating various modules into PSAPs [74] - Motorola is in over 60% of the 6,000 911 centers in the U.S. [72] Capital Return and M&A Strategy - **Financial Strategy**: - Motorola Solutions has a strong balance sheet, allowing for continued M&A activity and capital returns through buybacks and dividends [75] - The company is on track to buy back over $1 billion in stock this year [76] Conclusion - Motorola Solutions is positioned for steady growth across its LMR, video, and command center software segments, with strategic acquisitions like Silvus enhancing its market presence and technological capabilities. The company is optimistic about its funding environment and customer engagement, setting a positive outlook for the upcoming fiscal year.