Motorola Solutions (MSI) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record revenue of $2.8B, up 9% year-over-year, with strong growth in both segments and robust cash flow.

• GAAP EPS rose 22% to $3.29; non-GAAP EPS increased 17% to $3.74 year-over-year.

• Operating cash flow was $759M, up $45M year-over-year; free cash flow was $702M.

• Full-year revenue and earnings guidance raised following strong Q3 performance.

• Major contract wins included a $191M LMR services award from the U.S. Navy and significant orders in both segments.

Financial highlights

• Q3 revenue grew 9% year-over-year to $2.8B, with 11% growth in Products & SI and 7% in Software & Services (13% excluding U.K. Home Office).

• GAAP operating earnings were $711M (25.5% margin); non-GAAP operating earnings were $830M (29.7% margin, up 70 bps).

• Net earnings attributable to the company were $562M, up from $464M a year ago.

• Gross margin improved to 51.4% from 50.1% year-over-year.

• North America revenue increased 13%; International up 1% (high single digits excluding U.K. Home Office).

Outlook and guidance

• Full-year 2024 revenue growth expected at 8.25%, up from prior 8% guidance.

• Full-year non-GAAP EPS expected between $13.63 and $13.68, up from previous $13.22–$13.30.

• Full-year operating cash flow guidance raised to $2.3B.

• Assumes 171M diluted shares and a non-GAAP tax rate of ~22.5%.

• 2025 revenue growth expected at 5–6%, with Software & Services projected to grow about 2x Products & SI.