Motorola Solutions Inc at UBS Global Technology and AI Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Spinola - UBS AG - Analyst : Thanks for coming. Maybe a great place to start would be just on your LMR business. You guys have put together a string of pretty strong years, let's say, the last --pretty much post 2020 -- of high single-digit, double-digit growth on the product business. You gave guidance that was ahead of my numbers by about $100 million for 2026. So maybe just start out, what does the environment look like in public safety? How are the customers looking? What's the outlook for that business? Maybe we can drill in after that.

Question: Andrew Spinola - UBS AG - Analyst : Right. Before I move on to the next question, I should have mentioned that we do have an app where you can ask questions. I'll try to get to them at the end if you want. Let's break that down. The LMR business is really made up of the device side, the infrastructure side, and then the Software and Services. For a number of years now, well, you launched the APX NEXT, which is the higher-end device that's been driving an upgrade cycle. Maybe help us understand, like, in terms of the outlook for the business, how far are you into that upgrade cycle? How much of demand is coming from the high end? How much further penetration do you think you can get from APX NEXT?

Question: Andrew Spinola - UBS AG - Analyst : Have you ever said how much of that market? I think you've said [2 million] first responder to the US. Maybe how much the high end can be applicable to? Or it sounds like now you've got a --?

Question: Andrew Spinola - UBS AG - Analyst :

Question: Andrew Spinola - UBS AG - Analyst : 20-25. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 01, 2025 / 11:55PM, MSI.N - Motorola Solutions Inc at UBS Global Technology and AI Conference

Question: Andrew Spinola - UBS AG - Analyst : Right. Got it. I think -- help me think about how you guys talk about the long-term growth opportunity for the LMR business, what the growth rate is. If I think about -- I think my view is to -- the Products side, maybe 3% to 4%; the Services, maybe [5], [6], something roughly. As we talk about these, it sounds like infrastructure is on the verge of a big upgrade cycle. I think that you guys described it as having a large funnel. The APX NEXT is really hitting its stride, in terms of upgrade. I would think you'd be at the higher end of that range. I'd throw out that there's also a lot of money coming in the federal government from the OBB bill. So it seems like a good environment.

Question: Andrew Spinola - UBS AG - Analyst : Got it. Let's talk about that in a second but, just, you mentioned the backlog and the headwind that it created. I think, coming into your outlook for 2026, I was a little concerned you were going to come up short of it. You actually beat me by $100 million, in line with the Street. But it has been difficult trying to understand there was -- the backlog was built and then, it was worked down over a couple of years. Is the right way to look at it -- I think we don't know what exactly the drawdown was until you report the fourth quarter but maybe it's $500 million, particularly a headwind in Q1, when I think a lot of it was recognized. So the right way to think about your 2026 growth, which is a little bit lower, I think, organically, ex-Silvus. (inaudible) the LMR business (inaudible), historically, is just the normalization of that backlog trend. Is that the right way to think about it? But to our initial discussion, the actual organic trends are actually right where you want it to be

Question: Andrew Spinola - UBS AG - Analyst : Right. You mentioned $15 billion of backlog. I don't have the backlog number in front of me. Is that by the end of this year?

Question: Andrew Spinola - UBS AG - Analyst : Great. Just before I move on to Silvus, obviously, the federal government shutdown was an issue you guys called out on the last call. You said that if it got -- that's resolved relatively shortly after -- that you would be able to meet the demand for the rest of this quarter. Any thoughts on how things have worked out around the federal government, in general? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 01, 2025 / 11:55PM, MSI.N - Motorola Solutions Inc at UBS Global Technology and AI Conference

Question: Andrew Spinola - UBS AG - Analyst : Right. You mentioned the Silvus acquisition. This is a pretty meaningful deal for you guys. You've renamed the LMR business just generically the mission-critical networks because of this acquisition. So maybe talk about where this fits into your portfolio; why you like this acquisition so much; and what you think it does, long term, for Motorola?

Question: Andrew Spinola - UBS AG - Analyst : Interesting. You mentioned that you -- one of the things you'd like to help them do is diversify their customer base. Can you give us a sense of the profile of their customers and where a lot of their revenue is coming from? I think you said Ukraine, directly, is 20%.

Question: Andrew Spinola - UBS AG - Analyst : Right. You just mentioned that you expect the TAM to double in the next three to four years.

Question: Andrew Spinola - UBS AG - Analyst : Four to five, sorry. What would drive that doubling? Is it --?

Question: Andrew Spinola - UBS AG - Analyst : Got it. What is -- I think one of the questions I've gotten plenty is what this means for your generically capital allocation priorities going forward, specifically, M&A in the defense area? Is this the beginning of something? When you sought this company out -- it seems like, acquired them. So a lot of people are curious if this is a new strategy or if this is something that just fits well with your current strategy. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 01, 2025 / 11:55PM, MSI.N - Motorola Solutions Inc at UBS Global Technology and AI Conference

Question: Andrew Spinola - UBS AG - Analyst : Got it. I think you've pointed out it has a 45% EBITDA margin. It leads me to ask you about the margin, right?If I look at the last five years, you've taken op margins from 25% to 30%, roughly. I was just looking. Half of it came from gross margin. Half of it came from OpEx. You just printed a quarter that, despite tariff pressure, was up, I think, pretty significantly. It was a record, if I recall, from your presentation. So I think we're all trying to figure out if you can keep the 40% incremental margins going. Maybe, the better way to look at it, if you step back, just what is driving these strong margins in the last few years? Is it just revenue upside? Or is there more to it? Is there more mix, right? You talked about -- obviously, Silvus is going to help but you talked about a lot of the software. We haven't talked about it yet on the software -- on the Video and Command side. There's also the applications on the mobile side, as well. So what's driving that margin?

Question: Andrew Spinola - UBS AG - Analyst : Right. Has any one of those segments been bigger contributors? I know you guys don't report margins by segments but you do have a lot of transition in Video and Command to Software. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 01, 2025 / 11:55PM, MSI.N - Motorola Solutions Inc at UBS Global Technology and AI Conference

Question: Andrew Spinola - UBS AG - Analyst : Can we talk about the growth? We might, as well, move to those segments. We could talk about them together. What's the growth drivers and outlook in the Video business? Why don't we start there? It's the bigger of the two; has the bigger TAM, as well, which is interesting.

Question: Andrew Spinola - UBS AG - Analyst : Right, right. In the Video business, are you growing with the TAM? Are you taking share? What -- and I'm talking -- let's start with fixed because I know they're very different.

Question: Andrew Spinola - UBS AG - Analyst : Let's talk about SVX. It's very interesting that your -- you've brought the LMR piece where you're dominant into the body camera to compete against another stronger player in that space. How should we think about you using LMR as a lever to win share in that space? Is that really where you're seeing the advantage? How successfully this could be?

Question: Andrew Spinola - UBS AG - Analyst : Okay. You mentioned that you've got the applications for the APX NEXT; and that you're tying again in another area, LMR business, into CAD. Is that another part of what you're talking about?

Question: Andrew Spinola - UBS AG - Analyst : You think in Command Center -- is doing 10% to 12% this year?

Question: Andrew Spinola - UBS AG - Analyst : Sorry, 12%. Is that a -- is that, again, a TAM growth or you --?

Question: Andrew Spinola - UBS AG - Analyst : Sure. Makes sense. Well, this has been great. Thank you so much, Jason.

Question: Andrew Spinola - UBS AG - Analyst : Right. Fantastic. Thank you so much.