Motorola Solutions Reports 9% Revenue Growth, Strong Operating Earnings in Q3 2024

Motorola Solutions, Inc. reported strong financial performance for the third quarter and the first nine months of 2024, with notable increases in net sales, operating earnings, and profitability compared to the same periods in 2023.

For the third quarter of 2024, net sales reached $2,790 million, a 9% increase from $2,556 million in Q3 2023. This growth was driven by an 11% rise in the Products and Systems Integration segment, which generated $1,784 million, and a 7% increase in the Software and Services segment, contributing $1,006 million. The gross margin improved to $1,433 million, representing 51.4% of sales, up from 50.1% in the prior year. Operating earnings for the quarter were $711 million, an increase of 11% from $639 million in Q3 2023, with net earnings attributable to Motorola Solutions rising to $562 million, or $3.29 per diluted share, compared to $464 million, or $2.70 per diluted share, in the previous year.

For the nine months ended September 28, 2024, total net sales were $7,806 million, up from $7,129 million in the same period in 2023. The Products and Systems Integration segment accounted for 63% of total sales, while Software and Services represented 37%. Operating earnings for the nine-month period increased to $1,874 million from $1,556 million, although net earnings decreased to $970 million from $1,117 million, reflecting a decline in earnings per diluted share from $6.46 to $5.66.

Strategically, Motorola Solutions has been active in acquisitions, enhancing its capabilities in software and services. Notable acquisitions include Noggin for $91 million, a vehicle location and management solutions provider for $132 million, and Silent Sentinel for $37 million, all completed in 2024. The company also repurchased $1.0 billion of Silver Lake Convertible Debt for $1.59 billion, resulting in a loss on extinguishment of $585 million.

The company’s cash and cash equivalents as of September 28, 2024, were $1,404 million, down from $1,705 million at the end of 2023. Long-term debt increased to $5,674 million from $4,705 million, reflecting the financing activities undertaken during the year. The effective tax rate for the third quarter was 19%, down from 21% in the prior year, attributed to higher excess tax benefits from share-based compensation.

Overall, Motorola Solutions demonstrated robust revenue growth and strategic expansion through acquisitions, despite facing challenges in net earnings and increased debt levels.