Summary
L3Harris Technologies, Inc. (LHX) reported solid performance in its fiscal year ending December 29, 2023, marked by significant growth driven by strategic acquisitions and organic expansion across its key segments. The company's revenue increased by 14% year-over-year, largely attributed to the full-year impact of the Tactical Data Links (TDL) acquisition and the significant Aerojet Rocketdyne (AJRD) acquisition completed in July 2023. These acquisitions have reshaped the company's operational landscape, with AJRD forming the new Aerojet Rocketdyne (AR) segment, bolstering L3Harris's capabilities in propulsion, power, and armament. Operationally, L3Harris demonstrated resilience and strategic focus. The Space & Airborne Systems (SAS) segment saw revenue growth and improved operating margin, while the Integrated Mission Systems (IMS) segment remained stable. The Communication Systems (CS) segment experienced substantial revenue and operating income growth, partly due to the TDL acquisition. Despite challenges such as inflation and supply chain disruptions, the company's backlog increased significantly to $32.7 billion. L3Harris also advanced its "LHX NeXt" initiative, aimed at enhancing organizational agility and performance, and continues to prioritize returning capital to shareholders through dividends and share repurchases.
Financial Highlights
29 data points| Revenue | $19.42B |
| Cost of Revenue | $14.31B |
| Gross Profit | $5.11B |
| SG&A Expenses | $3.31B |
| Operating Income | $1.43B |
| Net Income | $1.23B |
| EPS (Basic) | $6.47 |
| EPS (Diluted) | $6.44 |
| Shares Outstanding (Basic) | 189.60M |
| Shares Outstanding (Diluted) | 190.60M |
Key Highlights
- 1Revenue increased by 14% to $19.4 billion in fiscal 2023, driven by acquisitions and segment growth.
- 2Completed the significant acquisition of Aerojet Rocketdyne (AJRD) for $4.7 billion, establishing a new Aerojet Rocketdyne (AR) segment.
- 3Acquired the Tactical Data Links (TDL) product line for $1.96 billion, enhancing the Communication Systems (CS) segment.
- 4Company-wide total backlog grew to $32.7 billion, a 47% increase year-over-year, indicating strong future demand.
- 5Invested $480 million in company-funded R&D, focusing on technology expansion across its domains.
- 6Continued share repurchases, with $0.5 billion repurchased in fiscal 2023, and maintained a $3.9 billion remaining authorization.
- 7Effective tax rate decreased significantly to 1.9% in fiscal 2023 from 16.7% in fiscal 2022, primarily due to favorable impacts from divestitures and restructuring.