Motorola Solutions, Inc.
For the period ended Sep 27, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2025 · Filed Oct 30, 2025
MSI$514.51-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-28; filed 2025-08-07.
0000068505-25-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-27; filed 2025-10-30.
0000068505-25-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 181 current paragraphs.
58 unchanged; 90 reworded; 32 added; 28 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
Third Quarter Financial Results
Current report
•Operating earnings were $770 million in the third quarter of 2025 compared to $711 million in the third quarter of 2024.
Current report
We continue to see demand for our products and services supported by a multitude of funding sources. In July 2025, the “One Big Beautiful Bill Act” (“OBBB”) was enacted into law by the President of the United States, which provided a number of changes, including funding over the next four years for border security, national security and other opportunities. We expect OBBB to provide an additional source of funding to our federal government customers over the four-year period available through OBBB.
Current report
As of October 1, 2025 the U.S. government entered into a shutdown, which, as of October 30, 2025, is still ongoing. A prolonged shutdown may impact our ability to ship and fulfill contracts for certain federal government customers, which may negatively impact our results of operations.
Current report
•an increase in the Products and Systems Integration segment, inclusive of $111 million of revenue from acquisitions, driven by an increase in MCN and Video;
Current report
•an increase in the Software and Services segment, inclusive of $12 million of revenue from acquisitions, driven by an increase in MCN, Command Center and Video; and
Current report
•inclusive of $21 million from favorable currency rates.
Current report
•a 13% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center.
Current report
The 6% increase in the Products and Systems Integration segment was driven by the following:
Current report
•$106 million, or 7%, growth in MCN, inclusive of revenue from acquisitions, driven by the International and North America regions;
Current report
The 11% increase in the Software and Services segment was driven by the following:
Current report
•$27 million, or 13%, growth in Video, driven by the International and North America regions; and
Current report
•inclusive of $10 million from favorable currency rates.
Current report
SG&A expenses increased 10% in the third quarter of 2025 compared to the third quarter of 2024 primarily driven by:
Current report
SG&A expenses were 16.1% of net sales in the third quarter of 2025 compared to 15.7% of net sales in the third quarter of 2024.
Current report
Other charges increased $13 million in the third quarter of 2025 compared to the third quarter of 2024. The increase was primarily driven by:
Current report
•a $12 million increase in the Products and Systems Integration segment, primarily driven by higher sales, improved operating leverage, and a $74 million gain on the Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets, partially offset by an increase in acquisition related transaction fees related to the Silvus acquisition, higher intangible amortization expense, higher employee incentive costs, including share-based compensation, higher expenses associated with acquired businesses, and higher tariffs.
Current report
Results of Operations—Nine months ended September 27, 2025 compared to Nine months ended September 28, 2024
Current report
•an increase in the Software and Services segment, inclusive of $83 million of revenue from acquisitions, driven by an increase in MCN, Video and Command Center;
Current report
•an increase in the Products and Systems Integration segment, inclusive of $111 million of revenue from acquisitions, driven by an increase in MCN and Video; and
Current report
•a 5% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center.
Current report
•$157 million, or 4% growth in MCN, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current report
•inclusive of $1 million from favorable currency rates.
Current report
•$139 million, or 8% growth in MCN, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current report
SG&A expenses increased 8% in the first nine months of 2025 compared to the first nine months of 2024 primarily driven by:
Current report
R&D expenditures increased 4% in the first nine months of 2025 compared to the first nine months of 2024 primarily driven by:
Current report
R&D expenditures were 8.4% of net sales in the first nine months of 2025 compared to 8.6% of net sales in the first nine months of 2024.
Current report
•$63 million of acquisition related transaction fees, primarily related to the acquisition of Silvus, in the first nine months of 2025 compared to $11 million of acquisition related transaction fees in the first nine months of 2024;
Current report
•$142 million of intangible amortization expense in the first nine months of 2025 compared to $114 million of intangible amortization expense in the first nine months of 2024; and
Current report
During the third quarter of 2024, we recorded net reorganization of business charges of $7 million, including $5 million of charges recorded within Other charges and $2 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations. Included in the $7 million were charges of $8 million related to employee separation costs, partially offset by $1 million of reversals for employee separation accruals that are no longer needed.
Current report
•$923 million increase in net proceeds from short-term borrowings, including commercial paper, in the first nine months of 2025 which did not occur in the first nine months of 2024; partially offset by
Current report
During the three months ended September 27, 2025, we repaid the $70 million aggregate principal amount of the 6.5% debentures due 2025. Additionally, during the nine months ended September 27, 2025, we repaid the $252 million aggregate principal amount of the 7.5% debentures due 2025.
Removed paragraphs (28)
Previous report
Second Quarter Financial Results
Previous report
•Operating earnings were $692 million in the second quarter of 2025 compared to $644 million in the second quarter of 2024.
Previous report
On May 27, 2025, we entered into a purchase and sale agreement with Silvus Technologies Group LLC ("Seller") to acquire Silvus Technologies Holdings Inc. (“Silvus”), which subsequent to the quarter end closed on August 6, 2025, for $4.4 billion in upfront consideration, comprising $4.38 billion in cash, subject to customary adjustments for cash, net working capital, transaction expenses and indebtedness, and $20 million in restricted stock to certain employee equity holders. Additionally, under the terms of the transaction, the Seller will have the potential to earn earnout consideration following the achievement of certain financial targets of up to $150 million for the annual period from July 5, 2026 through July 3, 2027 and up to $450 million for the annual period from July 4, 2027 through July 1, 2028 (with the potential to earn a catch-up earnout consideration based on performance in the annual period from July 4, 2027 through July 1, 2028 if the maximum earnout for the annual period from July 5, 2026 through July 3, 2027 is not earned). The earnout consideration, if any, will be made in shares of common stock. Silvus designs and develops software-defined high-speed mobile ad-hoc network (MANET) technology that enables highly secure data, video and voice communications without the need for fixed infrastructure. This acquisition brings mobile ad-hoc network expertise and new applications to the Company's public safety and enterprise portfolio. This business will be part of both the Products and Systems Integration segment and the Software and Services segment.
Previous report
•an increase in the Software and Services segment, inclusive of $39 million of revenue from acquisitions, driven by an increase in LMR services, Video and Command Center;
Previous report
•the Products and Systems Integration segment was flat, driven by a decrease in LMR, partially offset by an increase in Video; and
Previous report
•inclusive of $9 million from favorable currency rates.
Previous report
•a 4% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in LMR.
Previous report
The Products and Systems Integration segment was flat driven by the following:
Previous report
•$7 million, or 1%, decrease in LMR, driven by both the the International and North America regions; partially offset by
Previous report
The 15% increase in the Software and Services segment was driven by the following:
Previous report
•$71 million, or 12%, growth in LMR services, driven by the North America and International regions;
Previous report
SG&A expenses increased 5% in the second quarter of 2025 compared to the second quarter of 2024 primarily driven by:
Previous report
SG&A expenses were 16.3% of net sales in the second quarter of 2025 compared to 16.4% of net sales in the second quarter of 2024.
Previous report
Other charges decreased $5 million in the second quarter of 2025 compared to the second quarter of 2024. The decrease was primarily driven by:
Previous report
•a $16 million decrease in the Products and Systems Integration segment, primarily driven by decreased sales, higher employee incentive costs, including share based compensation and investments in video, and higher intangible amortization expenses, partially offset by lower direct material costs, despite higher tariffs, and a gain on the Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets.
Previous report
Results of Operations—Six months ended June 28, 2025 compared to Six months ended June 29, 2024
Previous report
•an increase in Software and Services, inclusive of $71 million of revenue from acquisitions, driven by an increase in Video, LMR services and Command Center;
Previous report
•an increase in the Products and Systems Integration segment, driven by an increase in LMR; and
Previous report
•inclusive of $17 million from unfavorable currency rates.
Previous report
•the International region was flat, inclusive of revenue from acquisitions, driven by an increase in Command Center and Video, partially offset by LMR.
Previous report
•$1 million decrease in Video, driven by the International region, partially offset by North America region; and
Previous report
•$91 million, or 26% growth in Video, inclusive of revenue from acquisitions, driven by both the North America and International regions;
Previous report
•inclusive of $6 million from unfavorable currency rates.
Previous report
SG&A expenses increased 7% in the first half of 2025 compared to the first half of 2024 primarily driven by:
Previous report
R&D expenditures increased 6% in the first half of 2025 compared to the first half of 2024 primarily driven by:
Previous report
R&D expenditures were 8.8% of net sales in the first half of 2025 compared to 8.7% of net sales in the first half of 2024.
Previous report
•$4 million of operating lease asset impairments in the first half of 2024 that did not occur in the first half of 2025; partially offset by
Previous report
During the second quarter of 2024, we recorded net reorganization of business charges of $4 million, including $4 million of charges recorded in Other charges in our Condensed Consolidated Statements of Operations. Included in the $4 million were charges of $10 million related to employee separation costs, partially offset by $2 million of reversals for employee separation accruals and $4 million of reversals for exit costs that are no longer needed.
Reworded paragraphs (90)
Previous wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three and six months ended June 28, 2025 and June 29, 2024, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K").
Current wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three and nine months ended September 27, 2025 and September 28, 2024, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "Form 10-K").
Previous wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended June 28, 2025 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements included in: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of global tariffs and volatility in the global supply chain and our expected ability to mitigate increased costs related thereto; (b) the impact of acquisitions and other investments on our business; (c) the impact of existing and future laws, regulations, international treaties and industry standards relating to climate change and other environmental and social impacts on our business; (d) market growth, demand, spending and resulting opportunities; (e) industry growth and demand, including opportunities resulting from such growth; (f) expected impacts to operating leverage; (g) the growth of sales opportunities in our Products and Systems Integration and Software and Services segments; (h) the return of capital to shareholders through dividends and/or repurchasing shares; (i) the impact and success of our business strategy and portfolio; (j) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (k) our ability and cost to repatriate funds; (l) the liquidity of our investments; (m) our ability and cost to access the capital markets; (n) our ability to borrow and the amount available under our credit facilities; (o) adequacy of internal resources to fund expected working capital, capital expenditure and cash requirements; (p) expected payments pursuant to commitments under agreements and other obligations in the short-term and long-term; (q) the ability to meet minimum purchase obligations (r) the impact of contractual damage claims exceeding the underlying contract value; (s) our ability to sell accounts receivable and the terms and amounts of such sales; (t) th…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended September 27, 2025 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements included in: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of changes in the global trade environment, volatility in the global supply chain and our expected ability to mitigate increased costs related thereto; (b) the impact of the "One Big Beautiful Bill Act" on our business and our government customers; (c) the impact of a prolonged U.S. government shutdown to our business; (d) the impact of acquisitions on our business; (e) our plans to assess the impact of changes to tax law on our business; (f) the return of capital to shareholders through dividends and/or repurchasing shares; (g) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (h) expected payments of exit costs related to our exit of Emergency Services Network ("ESN") contract with the U.K. Home Office; (i) our ability and cost to repatriate funds; (j) the liquidity of our investments; (k) our ability and cost to access the capital markets; (l) our ability to borrow and the use of proceeds of and amount available under our credit facilities; (m) adequacy of internal resources to generate adequate amount of cash to meet expected working capital, capital expenditure and cash requirements; (n) future cash flows generated from operations, and future uses of such cash; and (o) the impact of the adoption of accounting pronouncements on our financial results; (2) “Quantitative and Qualitative Disclosures about Market Risk,” about: (a) the impact of foreign currency risk; and (b) future hedging activity and expectations of the Company; and (3) “Legal Proceedings,” about the ultimate disposition of legal matters and timing. We undertake no obligation to publicl…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The Company manages the business organizationally through two segments: “Products and Systems Integration” and “Software and Services." Within these segments the Company has three principal product lines in which the Company reports net sales: Land Mobile Radio Communications (“LMR” or “LMR Communications”), Video Security and Access Control ("Video") and Command Center.
Current wording
The Company manages the business organizationally through two segments: “Products and Systems Integration” and “Software and Services." Within these segments the Company has three principal product lines in which the Company reports net sales: Mission Critical Networks ("MCN"), Video Security and Access Control ("Video") and Command Center. With the acquisition of Silvus Technologies Holdings Inc. (“Silvus”) in August 2025, the Company will now report net sales from its principal product lines by combining the former Land Mobile Radio Communications and newly acquired Silvus under the new technology name Mission Critical Networks. This name change does not require any financial information to be reclassified from previous periods.
Previous wording
•LMR Communications: Infrastructure, devices (two-way radio and broadband, including both for public safety and professional and commercial radio (PCR)) and software that enable communications, inclusive of installation and integration, backed by services, to assure availability, security and resiliency.
Current wording
•MCN: Infrastructure, mobile ad-hoc network technology ("MANET"), devices (two-way radio and broadband, including both for public safety and professional and commercial radio (PCR)) and software inclusive of installation and integration, and backed by managed and support services to help assure mission-critical communications availability, security and resiliency.
Previous wording
•Video: Cameras (fixed, body-worn, in-vehicle), access control, sensors, infrastructure, video management, software and artificial intelligence (AI)-powered analytics that help enable visibility and bring attention to what’s important.
Current wording
•Video: Cameras (fixed, body-worn, in-vehicle), access control, sensors, infrastructure, video management, software and artificial intelligence ("AI")-powered analytics that help enable visibility to what's happening and bring attention to what’s important to help inform decisions and actions.
Previous wording
•Command Center: Command center solutions and software applications that unify voice, video, data and analytics from public safety agencies, enterprises and the community to create a broad informational view to help simplify workflows and improve the accuracy and speed of decisions.
Current wording
•Command Center: Command center solutions and software applications, including AI-powered analytics, that unify voice, video, and data from public safety agencies, enterprises and the community, enabling a broad informational view of operations and incidents to help accelerate workflows and improve the accuracy and speed of decisions.
Previous wording
•Net sales were $2.8 billion in the second quarter of 2025 compared to $2.6 billion in the second quarter of 2024.
Current wording
•Net sales were $3.0 billion in the third quarter of 2025 compared to $2.8 billion in the third quarter of 2024.
Previous wording
•Net earnings attributable to Motorola Solutions, Inc. was $513 million, or $3.04 per diluted common share, in the second quarter of 2025, compared to $443 million, or $2.60 per diluted common share, in the second quarter of 2024.
Current wording
•Net earnings attributable to Motorola Solutions, Inc. was $562 million, or $3.33 per diluted common share, in the third quarter of 2025, compared to $562 million, or $3.29 per diluted common share, in the third quarter of 2024.
Previous wording
•Operating cash flow increased $221 million to $783 million in the first half of 2025 compared to $562 million in the first half of 2024.
Current wording
•Operating cash flow increased $260 million to $1.6 billion in the first nine months of 2025 compared to $1.3 billion in the first nine months of 2024.
Previous wording
•We repurchased $543 million of common stock and paid $364 million in dividends in the first half of 2025.
Current wording
•We repurchased $664 million of common stock and paid $546 million in dividends in the first nine months of 2025.
Previous wording
The current global tariff environment is complex and evolving. In early 2025, the United States initiated a series of trade actions which imposed new tariffs and increased existing tariffs on goods imported from various countries, contributing to a global trade landscape subject to evolving tariffs, import/export regulations, trade barriers and trade disputes. As a result, we continue to observe elevated volatility and uncertainty around the global supply chain.
Current wording
The current global trade environment is complex and evolving. In early 2025, the U.S. initiated a series of trade actions which imposed new tariffs and increased existing tariffs on goods imported from various countries, contributing to a global trade landscape subject to evolving tariffs, import/export regulations, including restrictions around rare earth minerals, trade barriers and trade disputes. As a result, we continue to observe elevated volatility and uncertainty around the global supply chain.
Previous wording
We engage with global suppliers across a diverse network of locations around the world. We continue to work with our global supply base to mitigate our exposure to the risks to global reciprocal (and sectoral) tariffs that have developed, and which may continue to develop, in order to ensure supply continues at levels in order to meet our current customer demand. As a result of the dynamic environment, we expect increased costs on materials and components in 2025, which we currently expect to substantially mitigate.
Current wording
We engage with global suppliers across a diverse network of locations around the world. We continue to work with our global supply base to mitigate our exposure to the risks to global reciprocal (and sectoral) tariffs and import/export regulations that have developed, and which may continue to develop, in order to ensure supply continues at levels in order to meet our current customer demand. As a result of the dynamic tariff environment, we have experienced increased costs on materials and components, which we have substantially mitigated during the year and for which we expect to continue to develop mitigation actions going forward.
Previous wording
The results of operations for the second quarter of 2025 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Current wording
The results of operations for the third quarter of 2025 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Previous wording
The Products and Systems Integration segment’s net sales represented 60% of our net sales in the second quarter of 2025 and 63% in the second quarter of 2024. The Software and Services segment’s net sales represented 40% of our net sales in the second quarter of 2025 and 37% in the second quarter of 2024.
Current wording
The Products and Systems Integration segment’s net sales represented 63% of our net sales in the third quarter of 2025 and 64% in the third quarter of 2024. The Software and Services segment’s net sales represented 37% of our net sales in the third quarter of 2025 and 36% in the third quarter of 2024.
Previous wording
Net sales increased $137 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024. The $142 million, or 15%, increase in net sales within the Software and Services segment was driven by an increase of 15% in the North America region and an increase of 13% in the International region. The $5 million decrease in net sales within the Products and Systems Integration segment was driven by a decrease of $11 million, or 3%, in the International region, partially offset by a $6 million increase in the North America region. Net sales includes:
Current wording
Net sales increased $219 million, or 8%, in the third quarter of 2025 compared to the third quarter of 2024. The $113 million, or 6% increase in net sales within the Products and Systems Integration segment was driven by an increase of 12% in the International region and an increase of 4% in the North America region. The $106 million, or 11%, increase in net sales within the Software and Services segment was driven by an increase of 8% in the North America region and an increase of 16% in the International region. Net sales includes:
Previous wording
•a 6% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in Video, LMR and Command Center; and
Current wording
•a 6% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in MCN, Command Center and Video; and
Previous wording
•$51 million, or 2% growth in LMR, driven by the North America region, partially offset by the International region; partially offset by
Current wording
•$7 million, or 2%, growth in Video, driven by the North America and International regions; and
Previous wording
•inclusive of $11 million from unfavorable currency rates.
Current wording
•inclusive of $11 million from favorable currency rates.
Previous wording
•$91 million, or 8% growth in LMR services, driven by both the North America and International regions;
Current wording
•$47 million, or 8%, growth in MCN, inclusive of revenue from acquisitions, driven by the International and North America regions;
Previous wording
•$26 million, or 12%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America region; and
Current wording
•$32 million, or 16%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America and International regions;
Previous wording
Gross margin was 51.1% of net sales in the second quarter of 2025 compared to 51.0% in the second quarter of 2024. The primary drivers of this increase in gross margin as a percentage of net sales were:
Current wording
Gross margin was 51.6% of net sales in the third quarter of 2025 compared to 51.4% in the third quarter of 2024. The primary drivers of this increase in gross margin as a percentage of net sales were:
Previous wording
•a 0.4% increase in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by higher sales partially offset by acquisitions; and
Current wording
•a 1.3% increase in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by higher sales; partially offset by
Previous wording
•a 0.2% decrease in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, driven by higher expenses associated with acquired businesses.
Current wording
•a 0.2% decrease in gross margin as a percentage of net sales in the Products and Systems Integration segment, inclusive of acquisitions, primarily driven by higher tariffs.
Previous wording
•a $13 million, or 4%, increase in Products and Systems Integration SG&A expenses primarily due to higher employee incentive costs, including share based compensation and investments in video; and
Current wording
•a $38 million, or 11%, increase in Products and Systems Integration SG&A expenses primarily due to higher employee incentive costs, including share-based compensation, and higher expenses associated with acquired businesses; and
Previous wording
•a $7 million, or 8%, increase in Software and Services SG&A expenses primarily due to higher expenses associated with acquired businesses.
Current wording
•an $8 million, or 9%, increase in Software and Services SG&A expenses primarily due to higher expenses associated with acquired businesses and higher employee incentive costs.
Previous wording
R&D expenditures increased $11 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024 primarily driven by higher employee incentive costs, including investments in video and share based compensation, and higher expenses associated with acquired businesses. R&D expenditures were 8.4% of net sales in both the second quarter of 2025 and in the second quarter of 2024.
Current wording
R&D expenditures increased $3 million, or 1%, in the third quarter of 2025 compared to the third quarter of 2024 primarily driven by higher expenses associated with acquired businesses. R&D expenditures were 7.9% of net sales in the third quarter of 2025 and 8.4% of net sales in the third quarter of 2024.
Previous wording
•$2 million of acquisition related transaction fees in the second quarter of 2025 compared to $4 million of acquisition related transaction fees in the second quarter of 2024; partially offset by
Current wording
•$55 million of acquisition related transaction fees, primarily related to the acquisition of Silvus, in the third quarter of 2025 compared to $4 million of acquisition related transaction fees in the third quarter of 2024;
Previous wording
•$39 million of intangible amortization expense in the second quarter of 2025 compared to $36 million of intangible amortization expense in the second quarter of 2024; and
Current wording
•$66 million of intangible amortization expense in the third quarter of 2025 compared to $38 million of intangible amortization expense in the third quarter of 2024; and
Previous wording
•$8 million of reorganization of business expenses in the second quarter of 2025 compared to $4 million of reorganization of business expenses in the second quarter of 2024.
Current wording
•$12 million of reorganization of business expenses in the third quarter of 2025 compared to $5 million of reorganization of business expenses in the third quarter of 2024; partially offset by
Previous wording
•$10 million of gains on the Hytera litigation for the amounts recovered through legal proceedings due to theft of our trade secrets in the second quarter of 2025 that did not occur in the second quarter of 2024; and
Current wording
•$74 million of gains on the Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets in the third quarter of 2025 that did not occur in the third quarter of 2024.
Previous wording
Operating earnings increased $48 million, or 7%, in the second quarter of 2025 compared to the second quarter of 2024. The increase in Operating earnings was due to:
Current wording
Operating earnings increased $59 million, or 8%, in the third quarter of 2025 compared to the third quarter of 2024. The increase in Operating earnings was due to:
Previous wording
•a $64 million increase in the Software and Services segment, primarily driven by higher sales and improved operating leverage, partially offset by higher expenses associated with acquired businesses and higher employee incentive costs, including investments in video and share based compensation; partially offset by
Current wording
•a $47 million increase in the Software and Services segment, primarily driven by higher sales and improved operating leverage, partially offset by higher expenses associated with acquired businesses and higher employee incentive costs, including share-based compensation; and
Previous wording
The $14 million decrease in Interest expense, net in the second quarter of 2025 compared to the second quarter of 2024 was primarily driven by interest accruals related to audits with tax authorities in foreign jurisdictions in 2024.
Current wording
The $28 million increase in Interest expense, net in the third quarter of 2025 compared to the third quarter of 2024 was primarily driven by higher outstanding debt, partially offset by higher interest income.
Previous wording
The $38 million increase in Other, net in the second quarter of 2025 compared to the second quarter of 2024 was primarily driven by:
Current wording
The $1 million decrease in Other, net in the third quarter of 2025 compared to the third quarter of 2024 was primarily driven by:
Previous wording
•a $42 million loss on foreign currency in the second quarter of 2025 compared to a $3 million gain on foreign currency in the second quarter of 2024.
Current wording
•a $4 million gain on foreign currency in the third quarter of 2025 compared to a $26 million loss on foreign currency in the third quarter of 2024; partially offset by
Previous wording
•a $34 million gain on derivatives in the second quarter of 2025 compared to a $5 million loss on derivatives in the second quarter of 2024;
Current wording
•a $6 million loss on derivatives in the third quarter of 2025 compared to a $22 million gain on derivatives in the third quarter of 2024.
Previous wording
Income tax expense increased by $30 million in the second quarter of 2025 compared to the second quarter of 2024, resulting in an effective tax rate of 24%. Our effective tax rate for the three months ended June 28, 2025 of 24% was higher than the effective tax rate for the three months ended June 29, 2024 of 23%, primarily due to tax benefits recognized upon settlement of audits with taxing authorities in foreign jurisdictions in 2024 and lower excess tax benefits of share-based compensation in 2025.
Current wording
The effective tax rate for the three months ended September 27, 2025 of 22% was higher than the effective tax rate for the three months ended September 28, 2024 of 19%, primarily due to non-deductible transaction costs related to the acquisition of Silvus, favorable U.S. return-to-provision adjustments from implementing a business initiative in 2024, and tax benefits recognized upon settlement of audits with taxing authorities in foreign jurisdictions in 2024, partially offset by higher excess tax benefits of share-based compensation in 2025.
Previous wording
Subsequent to quarter end, on July 4, 2025, the "One Big Beautiful Bill Act" was enacted into law and included tax cut extensions and modifications to the international tax framework and corporate income tax deductions. We are currently evaluating the potential effects of these changes on our financial statements, inclusive of our income tax provision, income tax payable, and deferred tax asset balances. We will recognize the effects of this legislation in accordance with the enactment and effective dates of the applicable provisions.
Current wording
On July 4, 2025, the "One Big Beautiful Bill Act" was enacted into law, introducing a broad range of changes to the U.S. corporate income tax framework. The legislation includes business provisions that impact our tax position, including tax cut extensions and modifications to the international tax framework and corporate income tax deductions. We have evaluated the effects of these changes on our income tax provision, income tax payable, and deferred tax asset balances, which are reflected in this quarter's results. As of the three months ended September 27, 2025, the 2025 impact of the enacted legislation on our tax position was not material. We will continue to recognize the effects of the legislation in accordance with the effective dates of the applicable provisions, and plan to continue to assess the ongoing impact of this legislation as further guidance is made available.
Previous wording
The Products and Systems Integration segment's net sales represented 60% of our net sales in the first half of 2025 and 63% in the first half of 2024. Net sales from the Software and Services segment represented 40% of our net sales in the first half of 2025 and 37% in the first half of 2024.
Current wording
The Products and Systems Integration segment's net sales represented 61% of our net sales in the first nine months of 2025 and 63% in the first nine months of 2024. Net sales from the Software and Services segment represented 39% of our net sales in the first nine months of 2025 and 37% in the first nine months of 2024.
Previous wording
Net sales increased $276 million, or 6%, in the first half of 2025 compared to the first half of 2024. The $226 million, or 12%, increase in net sales within the Software and Services segment was driven by an increase of 13% in the North America region, and an increase of 10% in the International region. The $50 million, or 2%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 4% in the North America region, partially offset by a decrease of 6% in the International region. Net sales includes:
Current wording
Net sales increased $496 million, or 6%, in the first nine months of 2025 compared to the first nine months of 2024. The $334 million, or 12%, increase in net sales within the Software and Services segment was driven by an increase of 11% in the North America region and an increase of 12% in the International region. The $162 million, or 3%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 4% in the North America region and an increase of $4 million in the International region. Net sales includes:
Showing the first 40 of 90 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The 3% increase in the Products and Systems Integration segment was driven by the following:
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Subsequent to the quarter end, with the acquisition of Silvus Technologies Holdings Inc. (“Silvus”), we will now report net sales from our principal product lines by combining the former LMR Communications and newly acquired Silvus under the new technology name Mission Critical Networks (MCN).
Previous report — wording carried elsewhere
•an $18 million gain on fair value adjustments to equity investments in the second quarter of 2025 compared to a $11 million loss on fair value adjustments to equity investments in the second quarter of 2024; and
Previous report — wording carried elsewhere
•an $11 million loss on assessments of uncertain tax positions in the second quarter of 2024 that did not occur in the second quarter of 2025; partially offset by
Previous report — wording carried elsewhere
The 2% increase in the Products and Systems Integration segment was driven by the following: