Summary
Motorola Solutions, Inc. (MSI) reported solid performance for the fiscal year ended December 30, 2024, with net sales reaching $10.8 billion, 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 million, 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 billion, 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.
Financial Highlights
55 data points| Revenue | $10.82B |
| Cost of Revenue | $5.30B |
| Gross Profit | $5.51B |
| R&D Expenses | $917.00M |
| SG&A Expenses | $1.75B |
| Operating Income | $2.69B |
| Interest Expense | $295.00M |
| Net Income | $1.58B |
| EPS (Basic) | $9.45 |
| EPS (Diluted) | $9.23 |
| Shares Outstanding (Basic) | 166.80M |
| Shares Outstanding (Diluted) | 170.80M |
Key Highlights
- 1Net 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.
- 2Operating earnings grew by 17% to $2.7 billion, reflecting improved sales and operational efficiencies.
- 3The company returned $898 million to shareholders in 2024 via dividends ($654 million) and share repurchases ($244 million), and increased its quarterly dividend by 11%.
- 4Research and Development (R&D) expenditures were $917 million, underscoring continued investment in technology innovation across LMR, Video, and Command Center.
- 5Backlog remained strong at $14.7 billion, providing a solid foundation for future revenue.
- 6The company successfully repurchased $1 billion of its Silver Lake convertible debt, resulting in a $585 million loss on extinguishment, but enhancing financial flexibility.
- 7Acquisitions in 2024 included 3tc Software, Noggin, and a vehicle location/management solutions business, strengthening its Software & Services and Video segments.