Motorola Solutions (MSI) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $2.6B, up 9% year-over-year, with record Q2 sales and operating earnings, and strong performance across all technology segments.

• GAAP EPS increased 21% to $2.60; non-GAAP EPS up 22% to $3.24 year-over-year.

• Operating cash flow was $180M, up $87M from Q2 2023; free cash flow was $112M, up $72M year-over-year.

• Products and Systems Integration sales rose 15%, while Software and Services were flat but up 11% excluding U.K. Home Office.

• Full-year revenue and earnings guidance raised following strong Q2 and robust backlog.

Financial highlights

• Net sales: $2.63B, up 9% year-over-year; organic revenue also up 9%.

• Non-GAAP operating earnings rose 18% to $758M; non-GAAP operating margin improved 210 bps to 28.8%.

• GAAP operating margin rose to 24.5% from 21.6%; non-GAAP operating margin up to 28.8% from 26.7%.

• Net earnings attributable to MSI: $443M, up from $371M; diluted EPS $2.60 vs. $2.15.

• Operating cash flow for Q2: $180M; free cash flow: $112M.

Outlook and guidance

• Full-year 2024 revenue growth now expected at ~8% (up from ~7% prior); non-GAAP EPS raised to $13.22–$13.30 (prior $12.98–$13.08).

• Q3 2024 revenue growth expected between 7% and 8% year-over-year; non-GAAP EPS guidance of $3.32–$3.37.

• Full-year operating margin expansion now expected at 100 basis points, up from 75.

• Operating cash flow guidance increased to $2.25B for the year.

• Video segment expected to grow ~12% for the year, including recent M&A.