Motorola Q4 2024 Earnings Report
Key Takeaways
Motorola Solutions delivered a solid Q4 2024, with revenue rising 6% YoY to $3.01 billion. Growth was driven by strong demand in North America and a significant 11% increase in Software & Services. Operating margin improved, and the company ended the quarter with a record $14.7 billion backlog, positioning it for continued growth in 2025.
Revenue increased 6% YoY to $3.01 billion.
Software & Services grew 11% YoY, outpacing other segments.
Record backlog of $14.7 billion, up 3% YoY.
Operating margin improved to 27.0%, driven by strong sales and cost efficiencies.
Motorola Revenue
Motorola EPS
Motorola Revenue by Segment
Forward Guidance
Motorola expects continued growth in 2025, with revenue projected to increase by approximately 5.5% and non-GAAP EPS between $14.64 and $14.74. The company sees strong demand across its portfolio, particularly in software and AI-driven solutions.
Positive Outlook
- Expected revenue growth of 5.0%-5.5% in Q1 2025.
- Non-GAAP EPS guidance for Q1 2025 set at $2.98 - $3.03.
- Full-year 2025 revenue forecasted to grow ~5.5%.
- Strategic acquisitions, including Theatro, to enhance AI capabilities.
- Continued strength in backlog supports long-term growth.
Challenges Ahead
- Foreign exchange headwinds expected to impact revenue by $120 million in 2025.
- Higher tax rate projected at approximately 23% for full-year 2025.
- Ongoing litigation in the UK related to Airwave contract.
- Potential higher employee incentive costs affecting margins.
- Increased competition in the software and AI communication market.
Revenue & Expenses
Visualization of income flow from segment revenue to net income