Motorola Solutions (MSI) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year revenue of $10.8B, up 8% year-over-year, with double-digit growth in video and command center solutions and strong performance across all technologies and segments.

• Q4 sales reached $3.0B, up 6% year-over-year, with growth in both Products and Systems Integration and Software and Services.

• Ended the year with a record backlog of $14.7B, up $438M year-over-year, despite $226M in unfavorable currency rates.

• Expanded operating margins and grew non-GAAP EPS by 16% year-over-year; operating cash flow increased 17% to a record $2.4B.

• Completed four acquisitions in video and command center technologies and announced a definitive agreement to acquire Theatro, an AI and voice-powered workflow software provider.

Financial highlights

• Q4 revenue grew 6% year-over-year, exceeding guidance, with $37M from acquisitions and $6M from favorable FX.

• Q4 GAAP operating earnings were $814M (27% of sales), up from 25.9% last year, aided by Hytera litigation recovery.

• Q4 non-GAAP operating earnings were $916M, up 5% year-over-year; non-GAAP EPS was $4.04, up 4%.

• Full-year non-GAAP operating earnings were $3.1B (29% margin), up from 27.9% last year; non-GAAP EPS was $13.84, up 16%.

• Full-year GAAP EPS was $9.23, down due to a $3.42/share pre-tax loss from Silver Lake convertible note settlement.

• Record free cash flow of $2.1B; operating cash flow up 17% year-over-year.

Outlook and guidance

• Q1 2025 sales expected to grow 5%-5.5%, with non-GAAP EPS between $2.98 and $3.03.

• Full-year 2025 revenue growth projected at 5.5%, including $120M FX headwinds; non-GAAP EPS expected between $14.64 and $14.74.

• Anticipates $2.7B in operating cash flow for 2025, targeting a third consecutive year of double-digit growth.

• S&S segment expected to grow high single to double digits (normalized for FX); product segment to see low to mid-single digit growth.

• Video and command center technologies forecasted for 10%-12% and 12% growth, respectively.