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1. Company Snapshot

1.a. Company Description

Motorola Solutions, Inc.provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally.The company operates in two segments, Products and Systems Integration, and Software and Services.


The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation, and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce.Its land mobile radio communications and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions.The Software and Services segment provides repair, technical support, and hardware maintenance services.


This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software, unified communications applications, and video software solutions through on-premise and as a service.It serves government, public safety, and commercial customers.The company was formerly known as Motorola, Inc.


and changed its name to Motorola Solutions, Inc.in January 2011.Motorola Solutions, Inc.


was founded in 1928 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on MSI

Motorola Solutions' recent performance faced challenges due to increasing competition in the wireless equipment sector. The company's Q3 earnings revealed a mixed bag, with revenue and EPS beating estimates, but key metrics comparisons to Wall Street estimates and year-ago numbers are being scrutinized. Despite robust demand for safety and security solutions, concerns arise from investors regarding the Silvus acquisition's long-term impact. With a "Hold" rating from analysts at Barclays Bank PLC, investors are closely monitoring Motorola's top-line improvement and its AI-driven security and communication systems.

1.c. Company Highlights

2. Motorola Solutions' Q3 2025 Earnings: A Strong Performance

Motorola Solutions reported a robust third-quarter 2025, with revenue growing 8% year-over-year, driven by an 11% increase in software and services revenue and a 6% rise in Products and Systems Integration (SI) revenue. Non-GAAP earnings per share (EPS) came in at $4.06, surpassing analyst estimates of $3.85 and marking a 9% increase from $3.74 in the same quarter last year. The company's operating cash flow was $799 million, and it achieved record third-quarter operating earnings in both segments. The strong financial performance was highlighted by CEO Greg Brown, who expressed optimism about the company's growth prospects, citing "strong demand for safety and security solutions, a solid balance sheet, and continued innovation."

Publication Date: Nov -04

📋 Highlights
  • Revenue Growth and EPS Increase: Q3 2025 revenue rose 8% YoY, with software/services up 11% and Products/SI up 6%; non-GAAP EPS reached $4.06, up 9% from $3.74.
  • Silvus Acquisition Performance: Silvus revenue expectation raised to $500M in 2025 (from $475M) and EPS contribution increased to $0.30–$0.40 (from $0.20), driven by $200M in backlog and international defense demand.
  • Full-Year Guidance Raised: EPS guidance raised to $15.09–$15.15 (from $14.88–$14.98); Q4 revenue growth expected at ~11% with non-GAAP EPS of $4.30–$4.36.
  • Operational and Financial Strength: Record Q3 operating cash flow of $799M, $14.6B ending backlog, and 16% growth in command center business (APX NEXT adoption). Product margins remained resilient despite $70M–$80M tariff costs.
  • Software/Services Momentum: Software/services revenue grew 11%, with 1,000+ customers using Assist digital evidence solution and 70 customers for SVX body-worn cameras. Expected low-double-digit growth (up from prior 10% guidance).

Guidance and Outlook

The company raised its full-year earnings per share guidance to between $15.09 and $15.15, up from $14.88 to $14.98. For the fourth quarter, it expects revenue growth of approximately 11% and non-GAAP EPS between $4.30 and $4.36 per share. The acquisition of Silvus, closed for $4.4 billion, is off to a strong start, with expected revenue of $500 million in 2025, up from the previous expectation of $475 million.

Segment Performance

The company's product segment saw double-digit order growth in Q3, and management expects this trend to continue, with a strong product backlog exiting the year in the mid- to high-3s. Software and services are expected to grow low double digits, up from the earlier guide of 10%. The command center business grew 16% in the quarter, driven by APX NEXT applications and cloud adoption.

Valuation and Ratios

With a current P/E Ratio of 30.82 and EV/EBITDA of 21.6, Motorola Solutions is trading at a premium. However, its ROIC of 15.75% and ROE of 110.8% indicate strong profitability. The Net Debt / EBITDA ratio of 2.63 suggests a manageable debt burden. Analysts estimate next year's revenue growth at 8.2%, which is in line with the company's historical performance.

Silvus Acquisition

The acquisition of Silvus Technologies is expected to be accretive, with a contribution of $0.30 to $0.40 to earnings next year. Silvus' growth is primarily international, focused on defense, borders, and unmanned systems. Motorola plans to invest in Silvus' go-to-market strategy, including adding headcount and increasing R&D. The company views Silvus as well-positioned for long-term growth, particularly in major Army programs.

3. NewsRoom

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Arrowstreet Capital Limited Partnership Trims Stock Holdings in Motorola Solutions, Inc. $MSI

Dec -03

Source: defenseworld.net

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Motorola Solutions, Inc. (MSI) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Stock Market Live December 1: S&P 500 (VOO) Sinks Amidst Crypto Selloff

Dec -01

Source: 247wallst.com

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Bell Asset Management Ltd Invests $6.31 Million in Motorola Solutions, Inc. $MSI

Nov -27

Source: defenseworld.net

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Jason Winkler, Executive Vice President and CFO, Motorola Solutions to Participate in the UBS Global Technology and AI Conference

Nov -24

Source: businesswire.com

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These 3 Tech Companies Are Suddenly Paying Bigger Dividends

Nov -24

Source: marketbeat.com

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Bahl & Gaynor Inc. Buys 1,253 Shares of Motorola Solutions, Inc. $MSI

Nov -22

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Decreases Stake in Motorola Solutions, Inc. $MSI

Nov -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.61%)

6. Segments

Products and Systems Integration

Expected Growth: 4.5%

Motorola Solutions' integration of products and systems drives growth, fueled by increasing demand for public safety and commercial communications solutions.

Software and Services

Expected Growth: 10.3%

Motorola Solutions' public safety software and services segment is driven by increasing adoption of digital technologies, growing demand for mission-critical communications, and expanding presence in emerging markets.

7. Detailed Products

APX Radios

Mission-critical communication devices for public safety and first responders

MOTOTRBO Radios

Digital two-way radios for business and commercial use

Video Security Cameras

IP-based surveillance cameras for security and monitoring

Avigilon AI-powered Security Cameras

Intelligent surveillance cameras with artificial intelligence and machine learning capabilities

CommandCentral Software

Cloud-based software for public safety and emergency response

Records and Evidence Management Software

Digital evidence management system for law enforcement agencies

LTE Broadband Devices

High-speed wireless broadband devices for public safety and commercial use

8. Motorola Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Motorola Solutions, Inc. operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the increasing adoption of digital technologies and IoT solutions may lead to the emergence of new substitutes.

Bargaining Power Of Customers

Motorola Solutions, Inc. has a diverse customer base, including government agencies, public safety organizations, and enterprises. While customers have some bargaining power, the company's strong brand reputation and customized solutions reduce their negotiating power.

Bargaining Power Of Suppliers

Motorola Solutions, Inc. relies on a network of suppliers for components and materials. While the company has some bargaining power due to its size and scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The barriers to entry in Motorola Solutions, Inc.'s markets are relatively high, including significant R&D investments, regulatory hurdles, and established relationships with customers. New entrants would face significant challenges in replicating the company's capabilities and market presence.

Intensity Of Rivalry

The markets in which Motorola Solutions, Inc. operates are highly competitive, with established players and new entrants vying for market share. The company faces intense competition from rivals such as Harris Corporation, Thales Group, and Nokia Networks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 89.46%
Debt Cost 4.76%
Equity Weight 10.54%
Equity Cost 8.50%
WACC 5.15%
Leverage 848.48%

11. Quality Control: Motorola Solutions, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cisco

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Value: 2.2

Growth: 4.1

Quality: 7.7

Yield: 5.0

Momentum: 8.0

Volatility: 9.7

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IBM

A-Score: 5.5/10

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QUALCOMM

A-Score: 5.3/10

Value: 3.4

Growth: 6.2

Quality: 8.1

Yield: 4.0

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NetApp

A-Score: 5.2/10

Value: 3.4

Growth: 5.8

Quality: 7.2

Yield: 4.0

Momentum: 4.0

Volatility: 7.0

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HPE

A-Score: 5.0/10

Value: 4.8

Growth: 4.0

Quality: 3.6

Yield: 5.0

Momentum: 7.5

Volatility: 5.3

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Motorola Solutions

A-Score: 5.0/10

Value: 1.0

Growth: 6.4

Quality: 7.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

371.49$

Current Price

371.49$

Potential

-0.00%

Expected Cash-Flows