Loading...
01/11 03:11
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary shows strong financial performance with revenue and EPS growth, improved margins, and increased operating cash flow. The Q&A section indicates no major concerns from analysts, with positive demand trends and strong federal market demand. Despite a slight backlog decrease, the positive outlook for video product growth, strong shareholder return via dividends and share repurchases, and optimistic demand trends support a positive sentiment. Guidance is maintained, suggesting confidence in future performance, leading to an overall positive sentiment.
Revenue $1.9 billion, up 6% year-over-year, driven by growth in all three technologies despite $25 million in FX headwinds and $32 million from acquisitions.
GAAP Operating Earnings $582 million, or 23% of sales, up from 21.7% year-over-year, reflecting strong sales and improved operational efficiency.
Non-GAAP Operating Earnings $716 million, up 12% year-over-year, with a non-GAAP operating margin of 28.3%, up 160 basis points, driven by higher sales, favorable mix, and lower direct material costs.
GAAP Earnings Per Share (EPS) $2.53, up from $0.23 year-over-year, the previous year included a non-operating loss related to convertible debt.
Non-GAAP EPS $3.18, up 13% from $2.81 last year, driven by higher sales and margins.
Operating Cash Flow $510 million, up $128 million year-over-year, primarily driven by higher earnings and improvements in working capital.
Free Cash Flow $473 million, up $137 million year-over-year, attributed to higher earnings and better working capital management.
Operating Expenses (OpEx) $603 million, up $35 million year-over-year, driven by investments in video and acquisitions.
Ending Backlog $14.1 billion, down $306 million or 2% year-over-year, due to strong LMR shipments and revenue recognition, partially offset by growth in Software and Services.
Share Repurchases $325 million in Q1, part of capital allocation strategy.
Cash Dividends $182 million in Q1, part of capital allocation strategy.
Capital Expenditures (CapEx) $37 million in Q1, part of capital allocation strategy.
New Product Launches: Launched SVX and Assist, two groundbreaking technologies for public safety officers.
Recurring Revenue Growth: Expect to have over 200,000 APX NEXT devices with an app subscription generating an average of $300 per year per device.
Acquisitions: Closed acquisitions of RapidDeploy and Theatro, enhancing software offerings for public safety and enterprise customers.
Market Positioning: Customers are prioritizing investments in safety and security, driving demand for new products and solutions.
Operational Efficiency: Achieved record first quarter revenue, operating earnings, and cash flow.
Cost Management: Implementing cost-saving measures to offset tariff-related increases estimated at up to $100 million.
Strategic Shifts: Focus on expanding public safety ecosystem with new products and solutions.
Capital Allocation: Over $800 million deployed in acquisitions and share repurchases year to date.
Tariff Costs: The company estimates up to $100 million in higher costs due to the current tariff environment, which poses a risk to profitability.
Foreign Currency Headwinds: The company faced $25 million in foreign exchange headwinds during the quarter, which could impact future revenue and earnings.
Supply Chain Challenges: The company is navigating a dynamic supply chain environment and implementing cost-saving measures to offset increased costs.
Competitive Pressures: The need for continuous innovation and adoption of new technologies, such as the SVX and Assist products, is critical to maintain market position against competitors.
Economic Factors: General economic conditions may affect customer spending on safety and security solutions, impacting revenue growth.
Backlog Decrease: The ending backlog decreased by $306 million or 2% year-over-year, which may indicate potential future revenue challenges.
Acquisitions: Closed on the acquisitions of RapidDeploy and Theatro, enhancing software offerings for public safety and enterprise customers.
Product Launches: Launched SVX and Assist, innovative technologies aimed at transforming public safety operations.
Software Adoption: Increased adoption of APX NEXT devices and associated software applications, expected to generate significant recurring revenue.
Cost Mitigation: Implemented actions to offset cost increases related to tariffs, estimated at up to $100 million for the year.
Recurring Revenue Growth: Expecting software and services to contribute almost 40% of total revenue this year.
Q2 Sales Growth: Expecting approximately 4% sales growth for Q2.
Q2 EPS Guidance: Non-GAAP EPS expected between $3.32 and $3.37 per share.
Full Year Revenue Growth: Continuing to expect revenue growth of 5.5% for the full year.
Full Year EPS Guidance: Non-GAAP EPS expected between $14.64 and $14.74 per share.
Operating Cash Flow: Expecting double-digit operating cash flow growth, approximately $2.7 billion for the year.
Cash Dividends: $182 million in cash dividends paid during Q1 2025.
Share Repurchases: $325 million in share repurchases during Q1 2025.
The earnings call highlighted strong financial performance with increased revenue and EPS guidance, a significant acquisition, and promising growth in key segments like AI and defense. Despite some concerns about tariffs and unclear long-term impacts, the overall sentiment was positive, supported by strong order growth and strategic investments. The Q&A session reinforced confidence in future growth, with management addressing key concerns and emphasizing strong demand drivers and backlog. The company's strategic initiatives and product innovations are expected to drive stock price positively over the next two weeks.
The earnings call reveals strong financial performance, strategic acquisitions, and product launches that align with growth strategies. Positive guidance and expected growth in key areas like software, services, and unmanned systems contribute to a favorable outlook. The Q&A section supports this with optimistic insights on new products and market expansion. Despite some tariff impacts, the company expects margin improvement. Overall, the sentiment is positive, indicating potential stock price growth.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
