Motorola Solutions, Inc. (NYSE: MSI) has just posted impressive second-quarter results for 2025, with record-breaking revenue and earnings. The company’s strong performance has led to an updated forecast for the full year, with higher revenue, earnings, and operating cash flow projections.
Greg Brown, Chairman and CEO of Motorola Solutions, shared his excitement, stating, “Q2 was outstanding, marked by record revenue and earnings. Demand for our safety and security solutions continues to rise, as reflected in our record-breaking Q2 orders. With this strong momentum, we are confident in our revised expectations for the year.”
Key Financial Results (in millions, except per share data)
| Category | Q2 2025 | Q2 2024 | % Change | |---------------------------------|-------------|-------------|--------------| | Sales | $2,765 | $2,628 | +5% | | Operating Earnings (GAAP) | $692 | $644 | +7% | | Operating Earnings (% of Sales) | 25.0% | 24.5% | +0.5% | | GAAP EPS | $3.04 | $2.60 | +17% | | Non-GAAP EPS | $3.57 | $3.24 | +10% | | Operating Cash Flow | $272 | $180 | +51% |
Sales for the quarter reached $2.8 billion, representing a 5% increase compared to the same period last year. Revenue growth was driven by strong performance in North America and international markets. The company also saw a 15% increase in its Software and Services segment, driven by the rise of Land Mobile Radio Communications (LMR), Video Security, and Command Center solutions. Meanwhile, revenue from the Products and Systems Integration segment remained stable.
Operating earnings for the quarter were up by 7%, reaching $692 million, with an operating margin of 25%. Non-GAAP operating earnings increased by 8%, pushing the operating margin to 29.6%. This increase was largely due to strong sales and better operational efficiency, as well as an improved ability to leverage existing resources.
Noteworthy Orders and Acquisitions
Motorola Solutions secured several key contracts, including:
- $44 million Command Center order for a state and local U.S. customer.
- $29 million P25 system upgrade and LMR services order for the City of Chicago.
- $12 million LMR cybersecurity order for the State of Victoria, Australia.
- $82 million P25 system upgrade for a tri-county system in the St. Louis region.
Subsequent to the quarter, Motorola Solutions completed the acquisition of Silvus Technologies for $4.4 billion in cash, further expanding its capabilities in wireless communications and secure networks. This acquisition is expected to contribute an additional $185 million to revenue in 2025.
Operating Cash Flow and Capital Allocation
Operating cash flow surged to $272 million, marking a $92 million increase from last year. Free cash flow also saw significant improvement, jumping to $224 million. The company allocated $218 million towards repurchasing common stock and paid $182 million in dividends.
Motorola Solutions also secured a new $2.25 billion revolving credit facility, replacing its existing credit facility set to mature in March 2026.
Business Outlook for 2025
Looking ahead to the third quarter, the company expects a 7% revenue growth year-over-year and a non-GAAP EPS range of $3.82 to $3.87 per share. For the full year, Motorola Solutions has revised its forecast to project a total revenue of $11.65 billion, which represents a 7.7% increase from 2024. Non-GAAP EPS is expected to fall between $14.88 and $14.98, up from previous guidance.
The updated forecast also includes a $75 million one-time transaction cost from the Silvus acquisition, which will impact the company’s operating cash flow expectations, bringing it to $2.75 billion for 2025.
Global Challenges and Supply Chain Adjustments
Motorola Solutions has been closely monitoring the evolving global trade environment, particularly with new U.S. tariffs affecting imported goods. The company has taken steps to mitigate risks by working with its suppliers across multiple regions to address potential increases in costs, ensuring that the supply chain continues to meet customer demands.
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