Summary
L3Harris Technologies, Inc. (LHX) reported its financial results for the second quarter and first half of fiscal year 2024. The company demonstrated solid revenue growth, primarily driven by the inclusion of the Aerojet Rocketdyne (AJRD) acquisition and increased demand in its Communication Systems (CS) segment. Total revenue for the quarter increased by 13% year-over-year, reaching $5.3 billion, while first-half revenue grew 15% to $10.5 billion. Profitability saw an increase in operating income for both periods, with a notable 28% rise in the SAS segment for the quarter. However, diluted Earnings Per Share (EPS) for the first half of the year saw a slight decrease, primarily due to increased general and administrative expenses and higher interest expenses, partially offset by improved gross margins. The company continues to manage its debt effectively, having repaid significant portions of its term loan and notes, and maintains a strong liquidity position with ample availability under its credit facilities.
Financial Highlights
51 data points| Revenue | $5.30B |
| Cost of Revenue | $3.94B |
| Gross Profit | $1.36B |
| SG&A Expenses | $884.00M |
| Operating Income | $476.00M |
| Net Income | $366.00M |
| EPS (Basic) | $1.93 |
| EPS (Diluted) | $1.92 |
| Shares Outstanding (Basic) | 189.70M |
| Shares Outstanding (Diluted) | 190.60M |
Key Highlights
- 1Revenue increased by 13% to $5.3 billion for the quarter and 15% to $10.5 billion for the first half of fiscal year 2024, significantly boosted by the AJRD acquisition and growth in the CS segment.
- 2Operating income for the quarter increased by 19% to $476 million, and by 8% to $854 million for the first half.
- 3The SAS segment showed a significant 28% increase in operating income for the quarter, indicating improved performance and cost management.
- 4The company repaid $2.25 billion of its Term Loan 2025 and $350 million of its 3.95% 2024 Notes during the first half of the year, strengthening its debt profile.
- 5Despite revenue and operating income growth, diluted EPS for the first half decreased to $3.40 from $3.60 in the prior year, impacted by higher G&A and interest expenses.
- 6L3Harris successfully completed the divestiture of its Antenna Disposal Group in May 2024, generating net cash proceeds of $166 million.
- 7The company maintains a strong liquidity position with $547 million in cash and cash equivalents and $1.4 billion in available borrowing capacity under its credit facilities.