L3Harris Technologies Inc.
LHXBusiness Overview
ticker: LHX step: 01 generated: 2026-05-12 source: quick-research
L3Harris Technologies Inc. (LHX) — Business Overview
Business Description
L3Harris Technologies is a leading defense technology company formed by the 2019 merger of L3 Technologies and Harris Corporation, headquartered in Melbourne, Florida. The company is a top-10 U.S. defense prime contractor specializing in the electronics, communications, and intelligence systems that form the "nervous system" of modern military platforms — secure tactical radios, space-based surveillance, electronic warfare, missile defense components, and undersea communication systems. With ~$21B in annual revenue and a $38.7B backlog, L3Harris derives approximately 76% of revenue from the U.S. Government and 24% from international and commercial customers.
Revenue Model
L3Harris earns revenue through long-term U.S. Government contracts (Department of Defense, intelligence community, NASA) and allied nation defense programs. Revenue is split between cost-plus contracts (lower risk, modest margin) and fixed-price development/production contracts (higher risk but higher potential margin). The LHX NeXt transformation program has delivered $1.2B in cumulative cost savings (exceeding the original target one year ahead of schedule), expanding margins. Aerojet Rocketdyne (propulsion) is an embedded capability that makes L3Harris vertically integrated on missiles and satellite programs.
Products & Services
- Tactical and strategic communications systems (encrypted radios, satellite comms)
- Space systems: earth observation, missile warning, space sensors
- Electronic warfare and jamming systems
- Avionics and aircraft mission systems
- Night vision and imaging sensors
- Undersea communication systems (submarine programs)
- Missile defense components (THAAD interceptors, Aerojet Rocketdyne propulsion)
- ISR (Intelligence, Surveillance, Reconnaissance) platforms
- Training and simulation systems
Business Segments (post-Jan 2026 reorganization)
- Space & Mission Systems — satellites, missile warning, maritime/air special missions
- Integrated Mission Systems — ISR, avionics, electronic warfare
- Communication Systems — tactical radios, night vision, space/airborne antennas
Customer Base & Go-to-Market
Primary customer is the U.S. DoD (Army, Navy, Air Force, SOCOM) and U.S. intelligence agencies. International customers include NATO allies, Australia, Israel, and Middle East partners purchasing tactical communications and electronic warfare systems. Contracts are won through competitive proposals and sole-source awards on highly specialized systems where L3Harris has unique technology positions.
Competitive Position
L3Harris competes with Raytheon (RTX), Northrop Grumman, BAE Systems, General Dynamics, and Leidos on various programs. Its unique position is at the subcomponent and subsystem level — embedded in virtually every major U.S. military platform — rather than as a platform prime like Lockheed or Boeing. This "merchant supplier" plus lead integrator model increases addressable market. The recent THAAD propulsion contract and largest-ever submarine communication award demonstrate deep program incumbent advantages that take years to displace.
Key Facts
- Founded: 2019 (merger of L3 Technologies + Harris Corporation; Harris Corp. founded 1895)
- Headquarters: Melbourne, FL
- Employees: ~47,000
- Exchange: NYSE
- Sector / Industry: Industrials / Aerospace & Defense
- Market Cap: ~$45–50B
Financial Snapshot
ticker: LHX step: 04 generated: 2026-05-12 source: quick-research
L3Harris Technologies Inc. (LHX) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$17.1B | $19.4B | $21.3B | +9.8% |
| Gross Margin | ~18% | ~19% | ~20% | |
| Adj. Operating Margin | ~13% | ~13% | ~14% | +1pp |
| Net Income (GAAP) | ~$1.1B | ~$1.2B | ~$1.5B | |
| GAAP EPS | ~$5.70 | $6.44 | $7.87 | +22% |
| Non-GAAP EPS | ~$10.50 | $12.36 | ~$13.50 |
Note: GAAP/non-GAAP spread reflects significant amortization of intangibles from the 2019 L3/Harris merger and 2023 Aerojet Rocketdyne acquisition. Non-GAAP EPS is more representative of operating performance. FY2022 revenue includes partial-year Aerojet contribution.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.3B |
| Free Cash Flow | ~$2.0B (FY2023); ~$2.65B (FY2025 guidance, raised) |
| Cash & Equivalents | ~$1.0B |
| Total Debt | ~$10B (reflecting Aerojet acquisition financing) |
Key Ratios (approximate)
- P/E (GAAP): ~37x | P/E (Non-GAAP): ~20x | FCF Yield: ~5%
- Revenue Growth (FY2024): +10% | Backlog: $38.7B (~1.8x annual revenue)
- Net Margin: ~7.3% | LHX NeXt Savings: $1.2B cumulative
Growth Profile
Revenue grew 13.8% in 2023 (first full year with Aerojet) and 9.8% in 2024, with organic growth of 4% in 2024 and 12% organically in Q2 2025 (missiles/munitions ramp). Management guidance for 2025 is $21.5–22.2B revenue with FCF raised to $2.65B. Record backlog of $38.7B provides multi-year revenue visibility. The LHX NeXt cost program exceeded its $1.2B target a year ahead of schedule.
Forward Estimates
- FY2025 Revenue: ~$21.8B (raised guidance mid-year); FCF ~$2.65B (+$200M vs. prior guide)
- FY2026E: ~$23B revenue (consensus); Non-GAAP EPS ~$14–15
- Backlog: $38.7B (provides ~1.8x revenue visibility)
- Proposed FY2026 U.S. defense budget: +13% to $1.01T — a tailwind for bookings
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $LHX.