L3Harris Technologies, Inc. (LHX) is listed on NYSE and operates in the Aerospace & Defense industry (Industrials sector).
L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems. In addition, this segment offers advanced electro-optical and infrared solutions. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems. The company's Communication Systems segment provides tactical communications; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, ground stations, and transportable tactical satellite communication (SATCOM) systems for use in manned aircraft, unmanned aerial vehicles, and naval ships; and helmet and weapon mounted integrated night vision systems. This segment also offers radios, systems applica...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 24 |
| Hold | 6 |
| Sell | 2 |
| Strong Sell | 0 |
L3Harris Technologies, Inc. operates in the aerospace and defense sector, providing essential solutions for government and commercial clients globally. The Integrated Mission Systems segment delivers intelligence, surveillance, and reconnaissance (ISR) systems, communication systems, and fleet management support. It also offers sensor development, modification, and maintenance services for ISR and airborne missions, as well as mission systems for maritime platforms, including signals intelligence and unmanned solutions. Additionally, this segment provides electro-optical and infrared solutions. The Space and Airborne Systems segment focuses on space payloads, sensors, classified intelligence, cyber defense solutions, mission avionics, and electronic warfare systems. The Communication Systems segment supplies tactical communications, secured mobile networked communication equipment, and SATCOM systems for various platforms, alongside radios and equipment for public safety and professional communications. The Aviation Systems segment offers defense aviation products, commercial pilot training, and air traffic management solutions. Founded in 1895 and headquartered in Melbourne, Florida, the company was formerly known as Harris Corporation before adopting its current name in June 2019.
Over the past three fiscal years, the company has demonstrated robust growth and improving financial health. Revenue consistently increased at a 6.1% CAGR, rising from $19.42 billion in 2023 to $21.87 billion in 2025. This growth was accompanied by a significant increase in earnings per share (EPS), which grew at a 15.1% CAGR, reaching $8.53 in 2025. Despite a slight compression in operating margin by 0.4pp to 10.0%, net margin expanded by 1.0pp to 7.3%, indicating improved cost management and profitability. Cash generation has been strong, with operating cash flow (OCF) and free cash flow (FCF) both consistently increasing, the latter growing at a 27.6% CAGR to $2.68 billion, reflecting a healthy FCF margin of 12.3%. The company's net debt position decreased significantly from $13.39 billion to $9.37 billion, showcasing effective debt management. Additionally, the company's return on invested capital (ROIC) improved consistently, reaching 7.2%, and the cash conversion ratio (CCR) increased to 1.93, indicating that earnings are well-supported by cash flows. Overall, the company's financial performance over this period highlights effective growth strategies, improved profitability, and strong cash flow generation, all while maintaining a disciplined approach to leverage.
Recent developments for L3Harris Technologies focus on strategic expansions and collaborations. On April 15, L3Harris announced a significant billion-dollar expansion to enhance solid rocket motor production in Orange County, Virginia, signaling a substantial investment in its manufacturing capabilities. Earlier, on April 7, L3Harris and Xoople revealed a partnership to co-develop a cutting-edge space-borne measurement system tailored for the AI era, highlighting the company's commitment to innovation in space technology. Additionally, L3Harris played a pivotal role in powering the first crewed mission around the Moon in 50 years, as reported on April 1. In leadership news, Sam Mehta was appointed as President of the Space & Mission Systems and Communications & Spectrum Dominance segments on March 12, indicating a strategic focus on these critical areas. Furthermore, L3Harris selected Intuitive Machines to support the SDA Proliferated Warfighter Space Architecture Tranche 3 Tracking Layer, with Intuitive Machines tasked with delivering 18 advanced spacecraft platforms. These developments underscore L3Harris's strategic initiatives in expanding production capabilities and enhancing its presence in space technology and defense sectors.