Motorola Solutions, Inc.

Motorola Solutions is a global leader in mission-critical safety and security technologies for public safety, government, including defense, and enterprise customers. The company's business is focused on safety and security, driven by a commitment to help create safer communities, schools, hospitals, businesses, and nations. Grounded in nearly 100 years of close customer and community collaboration, the company designs and advances technology for more than 100,000 customers in over 100 countries. The company's ecosystem of safety and security technologies includes Mission Critical Networks (MCN), Video Security and Access Control (Video), and Command Center. The company's strategy is to generate value through technologies that help meet the changing needs of customers around the world in protecting people, property and places, by uniting these technologies as a comprehensive integrated safety and security system.

Motorola Solutions operates in highly competitive markets that are sensitive to technological advances. Competitive factors include product quality and reliability, technological capabilities, cost-effectiveness and industry experience. The company has broadened how it works with customers, expanding from its LMR focus to include an integrated suite of physical security solutions via its Video and Command Center capabilities, complemented by its MANET solutions. Major competitors within MCN include Airbus, BK Technologies, DTC, Doodle Labs, Hytera, iCOM, JVCKenwood Corporation, L3Harris Technologies, Persistent Systems, RCA, Samsung, Sepura, Tait, TrellisWare Technologies, and Zebra. Within Video, competitors include Axis Communications, Axon Enterprise, Bosch, Brivo, Dahua Technology Company, Eagle Eye Networks, ECAM, Flock, Genetec, Hanwha Group, Hikvision, Honeywell, Johnson Controls, Milestone Systems, NetWatch, Pro-Vigil, Rhombus, and Verkada. Within Command Center, competitors include AlertMedia, AT&T, Axon Enterprise, Carbyne, CentralSquare Technologies, Comtech Telecommunications, Everbridge, Hexagon, Intrado, Mark43, Crisis24, Oracle Public Safety, RapidSOS, Tyler Technologies, and Versaterm.

The company generates revenue through two segments: Products and Systems Integration and Software and Services. In 2025, the Products and Systems Integration segment's net sales were $7.3 billion ¹, representing 62% of consolidated net sales. The Software and Services segment's net sales were $4.4 billion ², representing 38% of consolidated net sales. The company serves government agencies, including defense, state and local public safety agencies, as well as enterprise customers, including schools, hospitals, businesses and stadiums. The sales model includes both direct sales by an in-house sales force and sales through a channel partner program. The largest customer is the U.S. government, representing approximately 8% of consolidated net sales in 2025 ³.

Within the Products and Systems Integration segment, MCN technology includes infrastructure and devices for LMR, MANET, as well as devices for public safety LTE and public carrier LTE. Primary sources of revenue for this technology come from selling devices and building communications systems, including the installation and integration of infrastructure equipment. The MCN technology within the Products and Systems Integration segment represented 84% of the net sales of the total segment in 2025 ⁴. Video technology within this segment includes video management infrastructure, AI-powered security cameras, including fixed and certain mobile video equipment, as well as on-premises and cloud-based access control solutions. The Video technology within the Products and Systems Integration segment represented 16% of the net sales of the total segment in 2025 ⁵.

Within the Software and Services segment, MCN services include support and managed services, offering a broad continuum of support for customers. The MCN technology within the Software and Services segment represented 58% of the net sales of the total segment in 2025 ⁶. Video software includes video network management and access control software, decision management and digital evidence management software, certain mobile video equipment and advanced vehicle location data analysis software. The Video technology within the Software and Services segment represented 21% of the net sales of the total segment in 2025 ⁷. The Command Center portfolio offers cloud-native, on-premises and hybrid software solutions that support the entire public safety workflow, from the initial 911 call through case closure. The Command Center technology within the Software and Services segment represented 21% of the net sales of the total segment in 2025 ⁸.

During the period, the company completed several acquisitions. On August 6, 2025, the company acquired Silvus Technologies Holdings Inc. for $4.4 billion ⁹ and share-based compensation of $20 million ¹⁰. On November 18, 2025, the company acquired Blue Eye for $79 million ¹¹ and share-based compensation of $1 million ¹². On March 6, 2025, the company acquired Theatro for $174 million ¹³ and share-based compensation of $5 million ¹⁴. On February 21, 2025, the company acquired RapidDeploy for $240 million ¹⁵ and share-based compensation of $6 million ¹⁶. The company also repurchased 2.7 million ¹⁷ shares for $1,154 million ¹⁸ under its share repurchase program. The company declared regular quarterly dividends of $1.09 per share ¹⁹ for each of the first three quarters of fiscal 2025, and $1.21 per share ²⁰ for the fourth quarter of fiscal 2025. On June 16, 2025, the company issued $600 million ²¹ of 4.85% senior notes due 2030, $500 million ²² of 5.2% senior notes due 2032 and $900 million ²³ of 5.55% senior notes due 2035. On August 6, 2025, the company borrowed $1.5 billion ²⁴ of senior delayed draw term loan facilities.

Net sales were $11.7 billion ²⁵ in 2025 compared to $10.8 billion ²⁶ in 2024. Operating earnings were $3.0 billion ²⁷ in 2025 compared to $2.7 billion ²⁸ in 2024. Net earnings attributable to Motorola Solutions, Inc. were $2.2 billion ²⁹, or $12.75 ³⁰ per diluted common share in 2025, compared to earnings of $1.6 billion ³¹, or $9.23 ³² per diluted common share in 2024. Operating cash flow was $2.8 billion ³³ in 2025 compared to $2.4 billion ³⁴ in 2024. The company returned approximately $1.9 billion ³⁵ of capital to shareholders, in the form of $728 million ³⁶ in dividends and $1.2 billion ³⁷ in share repurchases in 2025. The company ended 2025 with a backlog position of $15.7 billion ³⁸, up $1.0 billion compared to 2024.

The company expects continued growth opportunities spanning public safety, government, including defense, and enterprise industries, driven by investments, including acquisitions, in its integrated ecosystem of MCN, Video and Command Center technologies. The company believes uniting these safety and security technologies into a tightly integrated workflow enables better outcomes and drives long-term growth. The company expects customers will increasingly turn to these integrated solutions to modernize operations and bridge data silos. Within Video, the company expects growth across its fixed and mobile solutions as it converges video with other mission-critical technologies. The company believes other growth drivers include the expansion of advanced analytics and "video-as-a-service" beyond traditional enterprise markets to government, including defense, and public safety customers, and the continued adoption of cloud video security solutions. The company also anticipates increasing demand for scalable, cloud-based access control and multi-factor authentication.

The company believes its Command Center portfolio will continue to serve as the central operational hub for its customers, unifying technologies to streamline workflows from "911 call to case closure" and across complex enterprise environments, while accelerating the transition to its cloud solutions. The company expects that its customers will continue to turn to cloud-based integrated solutions which will drive increased growth across its portfolio of native cloud and hybrid solutions. The company remains focused on providing customers the flexibility to deploy technology with the model that best fits their sovereignty and operational needs. As the digital threat landscape evolves, the company expects customers to increasingly rely on its cybersecurity protection and 24/7 managed and support services.

The filing does not contain explicit margin or cost outlook with specific figures.

The company continues to monitor the impact of the current trade environment, including tariffs implemented under the International Emergency Economic Powers Act (IEEPA), for the impacts of policy volatility, pending judicial outcomes, and evolving geopolitical events that may impact its supply chain costs and operational efficiency. The company is observing shifting dynamics in the memory market driven by substantial demand from the AI data center sector. As a result, the company continues to observe elevated volatility and uncertainty around the global supply chain. The company engages with global suppliers across a diverse network of locations around the world and continues to work with its global supply base to mitigate its exposure to the risks to global reciprocal tariffs, navigate import/export regulations, and mitigate its exposure to rising costs.

Research and development expenditures were $970 million ³⁹ in 2025. Capital expenditures were $265 million ⁴⁰ in 2025. As of December 31, 2025, the company had used approximately $16.9 billion ⁴¹ of the share repurchase authority to repurchase shares, leaving approximately $1.1 billion ⁴² of authority available for future repurchases. The company increased its quarterly dividend by 11% to $1.21 per share ⁴³ in November 2025.

The company faces risks related to the success of new products and services, as the markets for certain products and services are characterized by evolving technologies, industry standards and customer preferences. For example, the software and video security industries have been characterized by rapidly changing customer preferences in favor of cloud solutions and the adoption of AI capabilities. There have been and are currently initiatives by governments in several countries to transition public safety communications away from LMR networks onto public mobile broadband networks. The company's MCN sales could also be adversely affected by evolving technologies created to defeat encryption or its products' ability to communicate in a contested environment. The company also faces risks from catastrophic events that may interrupt its business, or its customers' or suppliers' business.

The company faces risks related to its global operations, as 28% of its revenue was generated outside of North America in 2025 ⁴⁴, and 49% of its employees were employed outside of North America in 2025 ⁴⁵. The company is exposed to risks including currency fluctuations, import/export regulations, tariffs, trade barriers and trade disputes, compliance with and changes in U.S. and non-U.S. laws or regulations, tax issues, challenges in collecting accounts receivable, instability in economic or political conditions, and natural disasters. The company also faces risks related to its reliance on third-parties to develop, design and/or manufacture many of its components and some of its products, and to assist in performing certain IT, network connectivity, HR information systems, manufacturing, repair, distribution and engineering services.

The company faces material risks from the success of new products and services in markets characterized by evolving technologies, industry standards and customer preferences, such as the shift toward cloud solutions and AI capabilities in the software and video security industries. There are initiatives by governments to transition public safety communications away from LMR networks onto public mobile broadband networks, which could adversely affect MCN sales. The company is exposed to risks under large, multi-year system and services contracts, including technological risks, financial risks such as potential penalties if performance commitments are not met, and cybersecurity risks. The company's business with U.S. government customers, which represented approximately 8% of consolidated net sales in 2025 ⁴⁶, is subject to risks including government budgetary constraints, budget uncertainty, and the fact that all contracts with the U.S. government can be terminated for convenience. The company faces risks related to its global operations, with 28% of revenue generated outside of North America in 2025 ⁴⁷ and 49% of employees employed outside of North America in 2025 ⁴⁸, exposing it to currency fluctuations, import/export regulations, tariffs, and trade disputes.

Management's message emphasizes the company's position as a global leader in mission-critical safety and security technologies, focused on creating safer communities, schools, hospitals, businesses, and nations. The key themes include the company's strategy to generate value through its integrated ecosystem of MCN, Video, and Command Center technologies, and the belief that uniting these technologies enables better outcomes for customers. Management highlights the company's investments across these three technologies organically and through acquisitions to evolve its LMR focus and expand its ecosystem. The strategic priorities for the period ahead include continued growth opportunities spanning public safety, government, including defense, and enterprise industries, driven by investments in the integrated ecosystem. Management expects customers will increasingly turn to integrated solutions to modernize operations and bridge data silos. The company also expects its investments in its intelligent network footprint will position it well within the defense sector as global investments in drones, unmanned systems and resilient tactical networks rise.