Motorola Solutions (MSI) Q4 2024 earnings summary

Executive summary

• Achieved record full-year sales of $10.8B, up 8% year-over-year, with record operating earnings and cash flow, and double-digit growth in video and command center technologies.

• Q4 2024 sales reached $3.0B, up 6% year-over-year, with growth across all technologies and segments.

• Ended the year with a record backlog of $14.7B, up $438M year-over-year despite FX headwinds.

• Expanded operating margins and grew non-GAAP EPS by 16% to $13.84, with strong cash flow and four acquisitions in video and command center technologies.

• Announced a definitive agreement to acquire Theatro, expanding AI and voice-powered software capabilities for frontline workers.

Financial highlights

• Q4 GAAP EPS was $3.56 (up 3% YoY); non-GAAP EPS was $4.04 (up 4% YoY); Q4 GAAP operating earnings were $814M (27% of sales); non-GAAP operating earnings were $916M.

• Full-year 2024 GAAP EPS was $9.23 (down 7% YoY); non-GAAP EPS was $13.84 (up 16% YoY); GAAP operating earnings were $2.7B (24.8% of sales); non-GAAP operating earnings were $3.1B (29% margin).

• Q4 operating cash flow was $1.1B; full-year operating cash flow reached $2.4B, up 17% year-over-year; free cash flow for the year was $2.1B.

• Paid $654M in dividends and repurchased $244M of shares in FY 2024; invested $282M in acquisitions.

• Settled Silver Lake convertible debt for $1.59B and issued $1.3B in long-term debt.

Outlook and guidance

• Q1 2025 revenue growth expected at 5.0%-5.5%, with non-GAAP EPS guidance of $2.98-$3.03.

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

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

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

• Video and command center technologies projected to grow 10%-12% and 12%, respectively.