Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings results for the first quarter of 2025.

"Q1 was an excellent start to the year, with record first-quarter sales, operating earnings and cash flow,” said Greg Brown, chairman and CEO, Motorola Solutions. “Our customers are continuing to prioritize investments in safety and security, which is driving our continued expectations for strong revenue, earnings and cash flow growth for the year.”

SELECTED FINANCIAL RESULTS

• Revenue - Sales were $2.5 billion, up 6% from the year-ago quarter driven by growth in North America, partially offset by a decline internationally due to foreign currency headwinds and lower Ukraine revenue. Revenue from acquisitions was $32 million and foreign currency headwinds were $25 million in the quarter. The Products and Systems Integration segment grew 4%, driven by growth in Land Mobile Radio Communications ("LMR"). The Software and Services segment grew 9%, driven by growth in Video Security and Access Control ("Video"), LMR services and Command Center.

• Operating margin - GAAP operating margin was 23.0% of sales, up from 21.7% in the year-ago quarter. Non-GAAP operating margin was 28.3% of sales, up 160 basis points from 26.7% in the year-ago quarter. The increase in both GAAP and non-GAAP operating margins was driven by higher sales, favorable mix and lower direct material costs, partially offset by acquisitions.

• Taxes - The GAAP effective tax rate during the quarter was 21.0%, down from 57.8% in the year-ago quarter driven by a non-deductible loss on the extinguishment of the Silver Lake convertible debt in the prior year. The non-GAAP effective tax rate was 21.1%, down from 22.1% in the year-ago quarter primarily due to higher benefits from share-based compensation recognized in the current quarter.

• Cash flow - Operating cash flow was $510 million, compared to $382 million in the year-ago quarter and free cash flow was $473 million, up from $336 million in the year-ago quarter. Both the operating cash flow and free cash flow for the quarter increased primarily due to higher earnings and working capital improvements.

• Capital allocation - During the quarter, the company repurchased $325 million of common stock, paid $182 million in cash dividends and incurred $37 million of capital expenditures. Additionally, the company closed two acquisitions in Command Center; RapidDeploy, a cloud-native NG 911 solution provider, and Theatro, a maker of AI and voice-powered communication and digital workflow software for frontline workers, for a combined $414 million, net of cash acquired.    

• Backlog - The company ended the quarter with backlog of $14.1 billion, down 2% or $306 million from the year-ago quarter. Products and Systems Integration segment backlog was down $1.0 billion, or 22%, driven primarily by strong LMR shipments. Software and Services segment backlog was up $732 million, or 8%, driven by strong demand across all three technologies, partially offset by revenue recognition from the U.K. Home Office.
   

Continue by accessing the full results here.