Summary
L3Harris Technologies, Inc. (LHX) operates as a global aerospace and defense technology innovator, providing a broad spectrum of advanced technologies and integrated solutions. The company structures its operations around four key business segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems. A significant event impacting the period was the completion of the L3Harris Merger on June 29, 2019, which created a larger, more diversified entity. The company's primary customer base consists of U.S. Government departments and agencies, making it heavily reliant on government contracts, which constituted approximately 73% of revenue in the two quarters ended January 3, 2020. Financially, the company demonstrated strong performance post-merger, with revenue increasing substantially due to the inclusion of L3's operations. L3Harris is actively reshaping its portfolio, evidenced by the planned divestiture of its airport security and automation business for $1 billion. The company also continues to focus on shareholder returns, increasing its quarterly dividend and engaging in share repurchases. Despite the significant integration activities and the ongoing market dynamics, L3Harris remains focused on operational excellence, innovation, and strategic growth across its core technology areas.
Financial Highlights
54 data points| Revenue | $12.86B |
| Cost of Revenue | $9.09B |
| Gross Profit | $3.77B |
| SG&A Expenses | $2.54B |
| Operating Expenses | $1.93B |
| Operating Income | $1.60B |
| Interest Expense | $217.00M |
| Net Income | $1.33B |
| EPS (Basic) | $8.04 |
| EPS (Diluted) | $7.89 |
| Shares Outstanding (Basic) | 166.00M |
| Shares Outstanding (Diluted) | 169.00M |
Key Highlights
- 1The L3Harris Merger, completed on June 29, 2019, significantly reshaped the company, creating a larger, more diversified aerospace and defense technology provider.
- 2The company reported strong revenue growth in the period ending January 3, 2020, largely driven by the consolidation of L3's operations.
- 3U.S. Government contracts represent a substantial portion of revenue, accounting for approximately 73% of total revenue in the two quarters ended January 3, 2020.
- 4L3Harris is strategically divesting non-core assets, announcing the sale of its airport security and automation business for $1 billion, intended to focus resources on core technologies.
- 5The company increased its quarterly cash dividend and continued its share repurchase program, demonstrating a commitment to shareholder returns.
- 6L3Harris operates across four key segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems, each serving critical defense and commercial needs.