Motorola Solutions CEO Greg Brown told CNBC on Thursday that demand for the company’s public safety and enterprise security products has never been stronger.
In an interview on “Mad Money,” Brown indicated Motorola’s business remains resilient despite concerns of a slowing global economy because a major upgrade cycle is underway.
“What we do is a need to have, not a nice to have. This is the strongest demand environment I’ve ever seen,” said Brown, who has led Motorola Solutions for more than a decade. Motorola makes two-way radios used by police and fire departments; security video systems; and command center software, among other things.
Brown said Motorola Solutions stands to benefit from the Biden administration’s $1.9 trillion Covid relief bill, which passed in 2021 and included dedicated funds for public safety investments. More generally, Brown told Jim Cramer there’s a private-network radio upgrade cycle taking place that will boost the company’s business in the years to come.
“Those radios refresh every seven years. And we’re in the first or second inning radio refresh here in North America — so New York, Chicago, Las Vegas, L.A., they’re Motorola,” Brown said. “The demand is the best, record backlog. The funding is the best, and the innovation coming out of this company and the acquisitions we’re making, there’s a lot of room to run,” Brown added.
Shares of Motorola Solutions rose 0.3% Thursday to close at $244.17 apiece. The stock is up more than 180% in the past five years, significantly outperforming the S&P 500 in that stretch.