01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Motorola Solutions, Inc. (MSI) reported solid performance for the fiscal year ended December 30, 2024, with net sales reaching $10.8 billiona, an 8% increase year-over-year, and operating earnings growing to $2.7 billion, up 17%.
This growth was driven by strong performance in both the Products and Systems Integration segment, which saw a 10% increase in net sales, and the Software and Services segment, with a 5% increase. The company highlighted continued investment in research and development, with R&D expenditures at $917 millionb, focusing on enhancing its core LMR, Video, and Command Center technologies, and further integrating them into a unified safety and security ecosystem. MSI continues to prioritize shareholder returns, returning approximately $898 million through dividends and share repurchases in 2024, and increasing its quarterly dividend by 11%.
The company also reported a robust backlog of $14.7 billionc, providing visibility into future revenue. Despite economic uncertainties and ongoing investments, MSI demonstrated strong operational cash flow and maintained financial flexibility with a $2.25 billion revolving credit facility and significant remaining authority under its share repurchase program.
02—Key points
Key Highlights
- Net sales increased by 8% to $10.8 billion in 2024, driven by growth in both Products & Systems Integration (10% increase) and Software & Services (5% increase) segments.
- Operating earnings grew by 17% to $2.7 billion, reflecting improved sales and operational efficiencies.
- The company returned $898 million to shareholders in 2024 via dividends ($654 million) and share repurchases ($244 million), and increased its quarterly dividend by 11%.
- Research and Development (R&D) expenditures were $917 million, underscoring continued investment in technology innovation across LMR, Video, and Command Center.
- Backlog remained strong at $14.7 billion, providing a solid foundation for future revenue.
- The company successfully repurchased $1 billion of its Silver Lake convertible debt, resulting in a $585 million loss on extinguishment, but enhancing financial flexibility.
- Acquisitions in 2024 included 3tc Software, Noggin, and a vehicle location/management solutions business, strengthening its Software & Services and Video segments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Motorola Solutions, Inc. kept $0.15.
- Revenue$10.82B100.0%
- Cost of revenue−$5.30B49.0%
- Gross profit$5.51B51.0%
- Operating costs−$2.82B26.1%
- Operating income$2.69B24.8%
- Interest, other & tax−$1.11B10.3%
- Net income$1.58B14.6%
Where FY2024 revenue went
$10.82B- Cost of revenue: $5.30B, 49% of revenue
- SG&A: $1.75B, 16% of revenue
- Net income: $1.58B, 15% of revenue
- R&D: $917.0M, 8.5% of revenue
- Other operating costs: $155.0M, 1.4% of revenue
- Interest, other & tax: $1.11B, 10% of revenue
Kept 15% as net incomeOther operating costs $155.0M · 1.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 14, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $10.82B$9.98B | +8.4% |
| Cost of Revenue | $5.30B$5.01B | +5.9% |
| Gross Profit | $5.51B$4.97B | +10.9% |
| R&D Expenses | $917.00M$858.00M | +6.9% |
| SG&A Expenses | $1.75B$1.56B | +12.2% |
| Operating Income | $2.69B$2.29B | +17.2% |
| Interest Expense | $295.00M$249.00M | +18.5% |
| Net Income | $1.58B$1.71B | −7.7% |
| EPS (Basic) | $9.45$10.23 | −7.6% |
| EPS (Diluted) | $9.23$9.93 | −7.0% |
| Shares Outstanding (Basic) | 166.80M167.00M | −0.1% |
| Shares Outstanding (Diluted) | 170.80M172.10M | −0.8% |
05—Questions
Frequently Asked Questions
What were the key drivers of Motorola Solutions' revenue growth in 2024?
Motorola Solutions' net sales increased by 8% to $10.8 billion in 2024. This growth was primarily driven by a 10% increase in the Products and Systems Integration segment and a 5% increase in the Software and Services segment. Growth within these segments was supported by strong demand for LMR Communications and Video technologies, as well as advancements in Command Center solutions.
How did Motorola Solutions return capital to shareholders in 2024?
In 2024, Motorola Solutions returned approximately $898 million to shareholders. This included $654 million in dividends and $244 million through share repurchases. The company also announced an 11% increase in its quarterly dividend, demonstrating a commitment to shareholder value.
What is the significance of the company's backlog?
The company ended 2024 with a strong backlog of $14.7 billion, an increase of $438 million from the prior year. This substantial backlog provides strong visibility into future revenue streams and indicates ongoing demand for Motorola Solutions' safety and security technologies.
How is Motorola Solutions investing in future growth?
Motorola Solutions is strategically investing in future growth through continued research and development, with expenditures of $917 million in 2024. The company is focused on enhancing its core LMR, Video, and Command Center technologies and integrating them into a unified ecosystem. Additionally, MSI has completed several strategic acquisitions in 2024, such as 3tc Software and Noggin, to bolster its offerings in command center solutions and critical event management.
06—Continue