Summary
L3Harris Technologies, Inc. (LHX) reported a strong third quarter and first nine months of 2023, driven by significant revenue growth and strategic acquisitions. Total revenue for the quarter increased by 16% year-over-year to $4.9 billion, and for the first nine months, it rose 13% to $14.1 billion. This growth was largely fueled by the recent acquisitions of Aerojet Rocketdyne (AJRD) and Viasat's Tactical Data Links (TDL) business, which have expanded the company's capabilities and market reach, particularly in missile solutions and communication systems. Despite increased interest expenses due to higher debt levels from these acquisitions, the company maintained solid profitability. Net income attributable to L3Harris for the quarter was $383 million ($2.02 per diluted share), a significant improvement from a net loss in the prior year's comparable quarter. For the first nine months, net income was $1.1 billion ($5.61 per diluted share). The company's strategic focus on integrating these acquisitions and managing operational efficiencies positions it well for future growth, supported by a robust backlog of $31.8 billion.
Financial Highlights
52 data points| Revenue | $4.92B |
| Cost of Revenue | $3.61B |
| Gross Profit | $1.31B |
| SG&A Expenses | $828.00M |
| Operating Income | $479.00M |
| Net Income | $383.00M |
| EPS (Basic) | $2.02 |
| EPS (Diluted) | $2.02 |
| Shares Outstanding (Basic) | 189.30M |
| Shares Outstanding (Diluted) | 190.10M |
Key Highlights
- 1Revenue increased by 16% to $4.9 billion in Q3 2023 and by 13% to $14.1 billion for the first nine months of 2023, primarily driven by the acquisitions of Aerojet Rocketdyne (AJRD) and Viasat's TDL business.
- 2Net income attributable to L3Harris for Q3 2023 was $383 million, or $2.02 per diluted share, a substantial improvement compared to a net loss in Q3 2022.
- 3The acquisition of Aerojet Rocketdyne (AJRD) was completed on July 28, 2023, for $4.7 billion, creating a new 'AR' (Aerojet Rocketdyne) segment focused on missile solutions and space propulsion.
- 4Goodwill increased significantly from $17.3 billion to $20.7 billion, largely due to the goodwill recognized from the AJRD ($2.3 billion) and TDL ($1.1 billion) acquisitions.
- 5Total debt increased substantially to $11.5 billion from $7.0 billion, primarily due to financing the AJRD and TDL acquisitions through new debt issuances and term loans.
- 6The company maintained a strong backlog of $31.8 billion as of September 29, 2023, with approximately 55% expected to be recognized by the end of 2024.
- 7Despite increased interest expenses, the effective tax rate for the first nine months of 2023 was 6.4%, benefiting from R&D credits and other favorable tax items.