Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q2 2025 Earnings Presentation
21 slides from Motorola Solutions's earnings presentation, Aug 7, 2025
Slide 1: Earnings Presentation Q2 2025 Results
Earnings Presentation Q2 2025 Results | August 7, 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: Q2 2025 Highlights
• Sales of $2.8B, up 5% Y/Y Highlights ● Software and Services up 15% ● Products and Systems Integration flat Q2 2025 ● Growth in all technologies ■ Land Mobile Radio Communications (“LMR”) up 3% ■ Video Security and Access Control (“Video”) up 10% ■ Command Center up 12% • GAAP EPS of $3.04; Non-GA
Slide 4: Financial Results
Financial Results Q2 24 Q2 25 Change Revenue $2,628 $2,765 5% Non-GAAP $758 $818 8% Operating Earnings* Non-GAAP 28.8% 29.6% 80 bps Operating Margin* Non-GAAP $3.24 $3.57 10% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based com
Slide 5: Cash Flow
Cash Flow ($M) Q2 24 Q2 25 Change FY 24 FY 25E Change Operating Cash Flow $180 $272 $92 $2,391 $2,750 * $359 Capital Expenditures ($68) ($48) $20 ($257) ($290) ($33) Free Cash Flow** $112 $224 $112 $2,134 $2,460 $326 *FY 25E Operating Cash Flow up from the prior expectation of $2.65 billion, inclusi
Slide 6: Products & SI
Products & SI • Revenue flat versus prior year Q2 2025 • Non-GAAP operating margin* comparable to prior year Revenue with lower direct material costs, offset by higher tariff ($M) costs and investments in Video in the current year • Notable wins and achievements: $1,658 $1,653 • $82M P25 system upgr
Slide 7: Software & Services
Software & Services • Revenue up 15% driven by strong demand in all three Q2 2025 technologies Revenue • Non-GAAP operating margin* up 150 bps driven by ($M) higher sales and improved operating leverage, partially offset by acquisitions $1,112 • Notable wins and achievements: $970 • $44M Command Cen
Slide 8: Regional Revenue
Regional Revenue Q2 2025 ($M) Q2 24 Q2 25 Change • North America growth driven by Video, LMR and Command Center North America $1,917 $2,027 6% • International growth driven by LMR International $711 $738 4% Total $2,628 $2,765 5% 8
Slide 9: Backlog Trend
Backlog Trend Software & Services Q2 2025 • Y/Y up $1.0B driven by strong demand in all three technologies, partially offset by revenue recognition for the ($B) U.K. Home Office $14.0 $14.1 $14.1 • Q/Q up $191M driven by strong demand in all three technologies, partially offset by revenue recognitio
Slide 10: Outlook
Outlook (Non-GAAP) Q3 2025 Q3 Details Revenue Growth Approx. 7% • Effective tax rate of approximately 24% Non-GAAP EPS $3.82 - $3.87 • Fully diluted share count approx. 169M shares Prior Full-Year 2025 Revenue Growth Approx. 5.5% or $11.4B Non-GAAP EPS $14.64 - $14.74 Full-Year Details • Effective t
Slide 11: Silvus Overview
Silvus Overview • Adds high-speed mobile ad-hoc network (“MANET”) technology to Motorola Solutions' safety and security ecosystem that enables highly secure data, video and voice communications without the need for fixed infrastructure • Rapid customer adoption for drone and unmanned systems communi
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 12
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 Revenue
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 June 29, 2024 and June 28, 2025 to provide a more comprehensive view of the Comp
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 Q2 '25 $2,765 Non-GAAP GAAP gross margin 1,046 1,
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) Q2 2024 Q2 2025 Measures GAAP EPS Highlighted Items: $ 2.60 $ 3.04 Share-based compensation expenses $ 0.37 $ 0.44 Intangible assets amortization expense 0.21 0.23 Reorgan
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 June 28, 2025 Software and Products and Systems June 2
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 Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net cash provided by operating activities $
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) Q3 2024 Q4 2024 Q1 2025 Q2 2025 TTM GAAP Net earnings attributable to Motorola Solutions, Inc. $ 562 $ 611 $ 430 $ 513 $ 2,116 Interest Expense, Net 58 56 51 55 220 Measures Income Tax Expense Dep
Slide 20: Supplemental Non-GAAP Measures: Annual EBITDA
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 everywhere
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.