10-KPeriod: FY2026

L3HARRIS TECHNOLOGIES, INC. /DE/ Annual Report, Year Ended Jan 2, 2026

Filed February 12, 2026For Securities:LHX

Summary

L3Harris Technologies, Inc. reported a solid performance for fiscal year 2025, with revenue increasing by 3% to $21.9 billion, driven by higher volumes and new program ramps across its segments. The company's contractual backlog grew by 13% to $38.7 billion, indicating strong future revenue potential. Operating income saw a notable increase of 10% to $2.1 billion, reflecting successful cost management initiatives like LHX NeXt and gains from asset monetization, although partially offset by a goodwill impairment charge related to a pending divestiture. The company continues to prioritize strategic growth and innovation, investing $536 million in company-funded R&D. L3Harris also advanced its portfolio shaping strategy with the divestiture of its Commercial Aviation Solutions (CAS) business. Looking ahead, the company is streamlining its segments into three reportable units, effective fiscal 2026, to better align capabilities and business models. Furthermore, L3Harris announced a strategic investment from the Department of War in its Missile Solutions business, positioning it for a potential IPO in the second half of 2026.

Financial Highlights

48 data points
Beta

Net Income

$1.61B

EPS (Diluted)

$8.53

Total Assets

$41.20B

Cash & Equivalents

$1.07B

Free Cash Flow

$2.68B

Financial Statements
Beta
SG&A Expenses$3.43B
Operating Income$2.11B
Net Income$1.61B
EPS (Basic)$8.57
EPS (Diluted)$8.53
Shares Outstanding (Basic)187.40M
Shares Outstanding (Diluted)188.40M

Key Highlights

  • 1Revenue increased 3% to $21.9 billion in fiscal year 2025, driven by higher volumes and new program ramps.
  • 2Contractual backlog grew 13% year-over-year to $38.7 billion, indicating robust future demand.
  • 3Operating income rose 10% to $2.1 billion, supported by cost efficiencies and asset monetization, despite an $85 million goodwill impairment charge.
  • 4Company-funded R&D investment was $536 million (2% of revenue), focusing on expanding capabilities.
  • 5Successfully divested the Commercial Aviation Solutions (CAS) disposal group for net cash proceeds of $820 million.
  • 6Secured a strategic investment from the Department of War for its Missile Solutions business, with plans for a potential IPO in H2 2026.
  • 7Streamlined business segments from four to three, effective fiscal year 2026, for improved alignment.

Frequently Asked Questions

In fiscal year 2025, L3Harris reported a 3% increase in revenue to $21.9 billion and a 10% increase in operating income to $2.1 billion. The company's contractual backlog also grew by 13% to $38.7 billion.

L3Harris is implementing a new three-segment reporting structure starting fiscal year 2026. Additionally, the company is pursuing a strategic investment from the Department of War for its Missile Solutions business, with plans to potentially take this business public via an IPO in the second half of 2026.

The divestiture of the Commercial Aviation Solutions (CAS) disposal group in March 2025 yielded net cash proceeds of $820 million. While it reduced overall segment revenue, the company benefited from higher revenues in its remaining segments, primarily due to increased volumes and new program escalations.

L3Harris remains heavily reliant on U.S. Government funding, with 75% of its revenue derived from these sources. The company notes that government budget processes, spending priorities, and procurement reforms can impact its business, but it also highlights favorable aspects of recent budget allocations and authorizations for defense spending, which align with its key programs.