Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q1 2025 Earnings Presentation
21 slides from Motorola Solutions's earnings presentation, May 1, 2025
Slide 1: Earnings Presentation Q1 2025 Results
Earnings Presentation Q1 2025 Results | May 1, 2025
Slide 2: Safe Harbor
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 f
Slide 3: Q1 2025 Highlights
Highlights • Sales of $2.5B, up 6% Y/Y ● Products and Systems Integration up 4% Q1 2025 ● Software and Services up 9% ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 4% ■ Video Security and Access Control (“Video”) up 11% ■ Command Center up 10% • GAAP EPS of $2.53; Non-GA
Slide 4: Financial Results
Financial Results Q1 24 Q1 25 Change Revenue $2,389 $2,528 6% Non-GAAP $638 $716 12% Operating Earnings* Non-GAAP 26.7% 28.3% 160 bps Operating Margin* Non-GAAP $2.81 $3.18 13% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based c
Slide 5: Cash Flow
Cash Flow ($M) Q1 24 Q1 25 Change FY 24 FY 25E Change Operating Cash Flow $382 $510 $128 $2,391 $2,650 $259 Capital Expenditures ($46) ($37) $9 ($257) ($290) ($33) Free Cash Flow* $336 $473 $137 $2,134 $2,360 $226 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provide
Slide 6: Products & SI
Products & SI • Revenue up 4% driven by growth in LMR Q1 2025 • Non-GAAP operating margin* up 330 bps driven by Revenue ($M) higher sales, favorable mix and lower direct material costs • Notable wins and achievements: $1,490 $1,546 • $19M TETRA award for a customer in Germany • $10M fixed video orde
Slide 7: Software & Services
Software & Services • Revenue up 9% driven by strong demand in all three Q1 2025 technologies Revenue ($M) • Non-GAAP operating margin* down 110 bps driven by acquisitions • Notable wins and achievements: $982 $899 • $19M LMR managed services extension for an international customer 2024 2025 • $18M
Slide 8: Regional Revenue
Regional Revenue Q1 2025 ($M) Q1 24 Q1 25 Change • North America growth driven by LMR, Video and Command Center North America $1,693 $1,852 9% • International decline driven by LMR, offset by growth in Command Center and Video International $696 $676 (3)% Total $2,389 $2,528 6%
Slide 9: Backlog Trend
Backlog Trend Software & Services Q1 2025 • Y/Y up $732M driven by strong demand in all three technologies, partially offset by revenue recognition for the U.K. Home Office ($B) • Q/Q down $72M primarily driven by revenue recognition for the U.K. Home Office and North America order seasonality $14.4
Slide 10: Outlook
Outlook (Non-GAAP) Q2 2025 Q2 Details • Effective tax rate of approximately 23.5% Revenue Growth Approx. 4% • Fully diluted share count approx. 170M shares Non-GAAP EPS $3.32 - $3.37 Full-Year 2025 Full-Year Details • Effective tax rate of approximately 23.0% Revenue Growth Approx. 5.5% • Fully dilu
Slide 11: SVX with Assist
SVX with Assist Features • Enhances APX NEXT family with advanced AI capabilities through an integrated body-worn camera • Provides secure, P25 superior audio that significantly improves AI experience and evidence capture • Streamlines operations and improves user experience through a converged spea
Slide 12: Q&A Participants
Q&A Participants Greg Brown Chairman and CEO Jack Molloy Executive Vice President and COO Jason Winkler Executive Vice President and CFO Mahesh Saptharishi Executive Vice President and CTO Tim Yocum Vice President, Investor Relations
Slide 13: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this presentation, Motorola Solutions, Inc. (the “Company”) also has included non-GAAP measurements of results, including free cash flow, non-GAA
Slide 14: Supplemental Disaggregation of Revenues
Supplemental Motorola Solutions, Inc. Disaggregation of Revenues Below is an updated presentation of the disaggregation of revenues for the Company’s major products and services for the Disaggregation three months ended March 30, 2024 and March 29, 2025 to provide a more comprehensive view of the Co
Slide 15: Supplemental Non-GAAP Measures
Motorola Solutions, Inc. and Subsidiaries Supplemental Net sales Non-GAAP Trends (in millions, except for per share amounts) Q1 '23 $2,171 Q2 '23 $2,403 Q3 '23 $2,556 Q4 '23 $2,848 Q1 '24 $2,389 Q2 '24 $2,628 Q3 '24 $2,790 Q4 '24 $3,010 Q1 '25 $2,528 Non-GAAP GAAP gross margin 1,046 1,189 1,280 1,45
Slide 16: Supplemental Non-GAAP Measures: EPS Reconciliation
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of EPS to Non-GAAP EPS Non-GAAP (per diluted common share) Q1 2024 Q1 2025 Measures GAAP EPS Highlighted Items: $ (0.23) $ 2.53 Share-based compensation expenses $ 0.32 $ 0.39 Intangible assets amortization expense 0.23 0.22 Reorg
Slide 17: Supplemental Non-GAAP Measures: Operating Earnings
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin Non-GAAP (in millions) Three Months Ended Measures Products and Systems March 29, 2025 Software and Products and Systems March
Slide 18: Supplemental Non-GAAP Measures: Free Cash Flow
Supplemental Non-GAAP Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Measures (in millions) Three Months Ended March 29, 2025 March 30, 2024 Net cash provided by operating activities $ 510 $ 382 Capital expenditures (37) (46) F
Slide 19: Supplemental Non-GAAP Measures: EBITDA and Net Debt
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP ($ in millions) Q2 2024 Q3 2024 Q4 2024 Q1 2025 TTM GAAP Net earnings attributable to Motorola Solutions, Inc. $ 443 $ 562 $ 611 $ 430 $ 2,046 Interest Expense, Net 69 58 56 51 234 Measures Income Tax Expense Dep
Slide 20: Supplemental Non-GAAP Measures: EBITDA FY2015-FY2024
Supplemental Non-GAAP Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Measures ($ in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 GAAP Net Earnings (Loss) from Continuing Operations $ 640 $ 560 $ (155) $ 966 $ 868 $ 949 $ 1,245 $ 1,363 $
Slide 21: Solving for safer communities
Solving for safer communities schools hospitals businesses everywhere. MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners.