Motorola Solutions Inc Q2 2025 Earnings Call Summary

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

Question: Joseph Cardoso - JPMorgan Chase & Co - Analyst : Hey, good afternoon, everyone. Thanks for the question. Greg, maybe I just wanted to start off. Last quarter, you put out this mid-3s product or mid-$3 billion product backlog [bogey] out there for year-end. And which based on the 2Q orders looks like you're well on track to. Maybe you can just take a moment and talk about like on a product level, where you're seeing this growth in the product orders across your portfolio? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 9:00PM, MSI.N - Q2 2025 Motorola Solutions Inc Earnings Call Obviously, it sounds like the P25 devices are doing well. You mentioned a couple of deals on the base stations as well as anything else that you can think of that you think is really driving the momentum there. And then as you kind of think about that by that you put out for a year and how are you feeling about momentum, tracking towards that, and particularly, any update just given now that I guess, solves under the bell. And it sounds like that's going to be leverage towards product side? And then I have a follow-up.

Question: Joseph Cardoso - JPMorgan Chase & Co - Analyst : No. I appreciate the thoughts there. Sounds wonderful. And maybe as my second question, it's more of a big picture question. Like obviously, it's been like a little bit more than a month since we've had the Beautiful Bill get passed, there's various programs in Europe that are aiming funds towards areas that look right for Motorola, particularly now with Silvus under the covers here. So just maybe one curious as you look across these opportunities, where are you feeling most excited about and then in both the US as well as internationally and if there's any difference between like the opportunities between the two areas? And then two, how do you think investors should think about the timing around these opportunities materializing from Motorola? And then, I mean, just to kind of hit it on the nose, are you seeing any of these opportunities trickling into your orders today?

Question: Joseph Cardoso - JPMorgan Chase & Co - Analyst : Orders. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 9:00PM, MSI.N - Q2 2025 Motorola Solutions Inc Earnings Call

Question: Andrew Spinola - UBS AG - Analyst : Thank you. I want to follow up on the question on Silvus. The question I've gotten mostly is people are trying to understand why Silvus, and it's interesting. It reminds me a little bit about Avigilon because when you made that acquisition, it wasn't clear why you wanted to be in video that obviously become a much bigger part of public safety. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 9:00PM, MSI.N - Q2 2025 Motorola Solutions Inc Earnings Call So are you thinking about Silvus that way? Do you see this technology be becoming something much bigger to public safety and it's going to be incorporated into your LMR technology longer term, or is this a new avenue that you're going down and we're going to see you investing more in defense tech and acquiring more and creating a new business line? How should we think about it?

Question: Meta Marshall - Morgan Stanley - Analyst : Great. A couple of smaller questions for me. Just on you guys have been talking about kind of the software transition, particularly on the video side of the business. Is that any meaningful headwind to revenue growth at this point, clearly kind of helping the backlog transition. So just a question there. And then just second, kind of any update on APX NEXT adoption rates?

Question: Ben Bollin - Cleveland Research Co LLC - Analyst : Good afternoon, everyone. Thank you for taking the question. The first one, I'm interested in your thoughts on what the Silvus sales motion looks like. Could you maybe compare and contrast it to your existing sales motion? And any preliminary thoughts you have on getting your existing sales teams up to speed and out there accelerating this and driving more attach? And then I have a follow-up.

Question: Ben Bollin - Cleveland Research Co LLC - Analyst : Okay. That's great. I guess the follow-up, probably more for you, Jack. I'm interested a lot of the US states closed their fiscal year in June. How do you think budgets are coming together into fiscal '26? Just any high-level thoughts on what you're hearing. I understand the orders have been exceptional. Just interested if you've got much visibility into incremental fiscal '26 budgets at this point.

Question: Tomer Zilberman - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hey, guys. A question for you on the core LMR business. If I think about the long-term of historical growth trajectory of this market, it's anywhere between 1% to 3%. Last two quarters, you've been growing 3% to 4%. And I believe you previously guided for that similar type of growth rate, 3%, 4% for the rest of the year. My question more so is, as we think about next year or the next few years, are these trends that you're talking about, about in regards to this ecosystem with APX NEXT and SVX and the other positive trends you're seeing enough to sustain these kind of above-market growth rates? Or do you think that these trends have a long enough tail that we might be more exposed to cyclical growth fluctuations of growth over the next few years.

Question: Tomer Zilberman - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Got it. Maybe as a quick follow-up, just a housekeeping question. Apologies if I missed it earlier, your guidance raise includes a mix of the Silvus acquisition, but also core improvements, did you break out what you expect Silvus to contribute in Q3 versus Q4? I know you have this stub period going on. So any direction you can give us would be helpful.

Question: Louie DiPalma - William Blair Capital Partners - Analyst : Greg, Jason, Jack, Mahesh, Tim, and [Vicky], congrats on closing Silvus.

Question: Louie DiPalma - William Blair Capital Partners - Analyst : Great. I was wondering, does Silvus give you a competitive advantage for your drone as a first responder offering on the law enforcement side? Today, nearly all of Silvus revenue is for the battlefield, but it seems you can significantly enhance their first responder capabilities, especially at that scale? Or alternatively, do you today view Silvus as too powerful of a solution for law enforcement? So are you going to focus all of your efforts on the battlefield? What's the strategy there with the Silvus expansion?

Question: Louie DiPalma - William Blair Capital Partners - Analyst : That makes sense. And Greg, you mentioned LEO satellite connectivity being integrated into your network. Can you elaborate further there? Or maybe Mahesh. Are you partnering with Starlink or FirstNet via AST SpaceMobile there?