Q2 2026 Motorola Solutions Inc Earnings Call Transcript
Key Points
- Motorola Solutions Inc (MSI) delivered record Q2 sales and earnings, with revenue up 13% driven by double-digit growth in both segments and all three technologies.
- The company raised its full-year guidance for both sales and EPS, reflecting strong momentum and confidence in the second half of the year.
- Record Q2 ending backlog of $15.6 billion, up 11% year-over-year, provides strong visibility into future revenue.
- Silvus continues to outperform, with full-year revenue expectations raised to approximately $850 million, driven by strong demand in defense and unmanned systems.
- The pending acquisition of D-Fend, a leader in counter-drone solutions, is expected to further strengthen MSI's position in the rapidly growing public safety and security ecosystem.
- The company faces increased memory costs, with direct memory spend expected to rise to approximately $150 million this year, up from $50 million last year.
- Tariff headwinds, although offset by IEEPA refunds in Q2, remain a factor that could impact future results.
- Sequential backlog declined by $71 million, primarily due to revenue recognition for the UK Home Office, which may raise concerns about near-term growth sustainability.
- The acquisition of D-Fend is pending regulatory approvals, and there is uncertainty regarding the timing and successful completion of the deal.
- Higher interest expense partially offset EPS growth in the quarter, and the company expects to issue additional debt to finance the D-Fend acquisition, which could increase financial leverage.
Good afternoon, and thank you for holding. Welcome to the Motorola Solutions second-quarter 2026 earnings conference call. Today's call is being recorded. If you have any objections, please disconnect at this time.
The presentation material and additional financial tables are posted on the Motorola Solutions Investor Relations website. In addition, a webcast replay of this call will be available on our website within three hours after the conclusion of this call. The website address is www.motorolasolutions.com/investor. (Operator Instructions)
I would now like to introduce Mr. Brian Piotrowski, Vice President of Investor Relations. Mr. Piotrowski, you may begin your conference.
Good afternoon. Welcome to our 2026 second-quarter earnings call. With me today are Greg Brown, Chairman and CEO; Jason Winkler, Executive Vice President and CFO; Jack Molloy, Executive Vice President and COO
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