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Motorola Solutions forecasts weak second-quarter profit amid tariff uncertainty
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Motorola Solutions forecasts weak second-quarter profit amid tariff uncertainty
May 26, 2025 12:17 AM

(This May 1 story has been corrected to remove references to dwindling demand for its safety and security services in paragraph 1, and to businesses and government agencies cutting tech budgets in paragraph 5)

(Reuters) -Safety and enterprise security services provider Motorola Solutions ( MSI ) forecast second-quarter profit below Wall Street estimates on Thursday.

Shares of the Chicago, Illinois-based company fell about 5% in extended trading.

"As a result of the dynamic environment, the company expects increased costs on materials and components in 2025, which the company currently expects to substantially mitigate," Motorola Solutions ( MSI ) said.

Motorola has a globally spread supply chain and the growing volatility and uncertainty around global trade sparked by U.S. President Donald Trump's imposed tariffs might lead to increased prices.

Motorola ended the quarter with a backlog of $14.1 billion, down 2%, or $306 million, from last year.

The company provides critical communications gear including walkie-talkies, video-surveillance cameras and software solutions, helping communities served by its customers during emergencies.

Motorola expects second-quarter adjusted profit per share between $3.32 and $3.37, below analysts' average estimate of $3.47 per share, according to data compiled by LSEG.

It expects revenue growth of 4% in the second quarter, below analysts' estimates of 5.3%.

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