01—Abstract
Summary
Summary of the 10-K filed February 14, 2025. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies, Inc. (LHX) demonstrated solid performance in fiscal year 2024, with total revenue reaching $21.3 billiona, a significant increase driven primarily by the full-year inclusion of Aerojet Rocketdyne (AR) following its acquisition.
The company maintained strong operational performance across its four segments: Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR). Notably, IMS saw substantial operating income growth due to the absence of prior year goodwill impairment charges and improved program performance. The company's strategic priorities remain focused on performance, growth, and innovation.
L3Harris ended the fiscal year with a robust backlog of $34.2 billionb, indicating strong future revenue potential. Investments in company-funded R&D totaled $515 million, underscoring a commitment to technological advancement.
The company also made progress on its LHX NeXt initiative aimed at enhancing organizational agility and competitiveness, with significant investments in enterprise tools and process optimization. L3Harris continued its commitment to shareholder returns by paying quarterly dividends and repurchasing shares, with $3.38 billionc remaining on its share repurchase authorization.
02—Key points
Key Highlights
- Total revenue increased to $21.3 billion in fiscal 2024, up from $19.4 billion in fiscal 2023, largely due to the full-year impact of the Aerojet Rocketdyne acquisition.
- Backlog grew by 5% to $34.2 billion at the end of fiscal 2024, signaling strong future revenue potential.
- Company-funded R&D investment was $515 million (2% of total revenue), focused on expanding capabilities across key domains.
- IMS segment operating income saw a significant increase of 83%, driven by improved program performance, cost savings, and the absence of a large goodwill impairment charge from the prior year.
- CS segment demonstrated consistent growth with revenue up 8% and operating margin stable at 24.3%, supported by demand for communication equipment and vision solutions.
- The company repurchased $554 million of its common stock in fiscal 2024, with $3.38 billion remaining on its share repurchase authorization.
- L3Harris is strategically realigning its businesses and investing in its LHX NeXt initiative to drive operational efficiency and competitiveness.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, L3HARRIS Technologies, Inc. kept $0.07.
- Revenue$21.32B100.0%
- Cost of revenue−$15.80B74.1%
- Gross profit$5.52B25.9%
- Operating costs−$3.61B16.9%
- Operating income$1.92B9.0%
- Interest, other & tax−$416.0M2.0%
- Net income$1.50B7.0%
Where FY2025 revenue went
$21.32B- Cost of revenue: $15.80B, 74% of revenue
- SG&A: $3.57B, 17% of revenue
- Net income: $1.50B, 7.0% of revenue
- Interest, other & tax: $416.0M, 2.0% of revenue
Kept 7.0% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 14, 2025Financial Statements
| Revenue | $21.32B |
| Cost of Revenue | $15.80B |
| Gross Profit | $5.52B |
| SG&A Expenses | $3.57B |
| Operating Income | $1.92B |
| Net Income | $1.50B |
| EPS (Basic) | $7.91 |
| EPS (Diluted) | $7.87 |
| Shares Outstanding (Basic) | 189.80M |
| Shares Outstanding (Diluted) | 190.70M |
05—Questions
Frequently Asked Questions
What were the main drivers of L3Harris's revenue growth in fiscal year 2024?
The primary driver of L3Harris's revenue growth in fiscal year 2024 was the full-year impact of the Aerojet Rocketdyne (AR) acquisition, which contributed significantly to both products and services revenue. Additionally, increases in revenue were seen in the Communication Systems (CS) and Integrated Mission Systems (IMS) segments.
How is the company managing its debt and capital resources?
L3Harris Technologies maintains a strong liquidity position with $615 million in cash and cash equivalents as of January 3, 2025. The company has access to significant borrowing capacity under its credit facilities and commercial paper program. It is focused on funding its operations, investing in R&D and infrastructure, repaying debt, and returning cash to shareholders through dividends and share repurchases.
What is the significance of the LHX NeXt initiative?
LHX NeXt is L3Harris's targeted three-year program designed to enhance organizational agility and performance by leveraging its scale and cross-segment relationships. The company is investing in enterprise tools and optimized processes to drive operational efficiency, margin expansion, and create additional value for shareholders.
What are the key risks the company highlighted in its 10-K filing?
Key risks identified include significant dependence on U.S. Government customers, which are subject to budget fluctuations and policy changes. Other risks involve competition, potential supply chain disruptions, cybersecurity threats, attracting and retaining key talent, and the inherent risks associated with long-term government contracts, including cost overruns and regulatory compliance.
06—Continue