10-QPeriod: Q3 FY2026

L3HARRIS TECHNOLOGIES, INC. /DE/ Quarterly Report for Q3 Ended Oct 3, 2025

Filed October 30, 2025For Securities:LHX

Summary

L3Harris Technologies, Inc. reported a solid third quarter for fiscal year 2025, demonstrating revenue growth and improved profitability. Total revenue increased by 7% year-over-year to $5.7 billion, driven by higher volumes and new program ramps across its various segments, particularly in Aerospace Systems and Communication Systems. Operating income saw a significant increase, reflecting the benefits of cost-saving initiatives like LHX NeXt and favorable changes in contract estimates, partially offset by the absence of the divested CAS disposal group. The company's year-to-date performance also shows positive momentum with a 3% revenue increase and a substantial jump in diluted Earnings Per Share (EPS) to $6.92, up from $5.50 in the prior year. This growth is supported by strategic cost management and contributions from key segments. Despite a slight increase in the effective tax rate due to new legislation and divestitures, the company's overall financial health remains robust. Management highlighted continued strength in its backlog, which stood at $36.3 billion, providing a strong revenue outlook for the coming periods.

Financial Statements
Beta

Key Highlights

  • 1Total revenue for the third quarter of fiscal year 2025 increased by 7% to $5.7 billion, compared to $5.3 billion in the prior year period.
  • 2Operating income rose significantly to $621 million from $495 million in the prior year's third quarter, driven by revenue growth and cost efficiencies.
  • 3Diluted Earnings Per Share (EPS) for the year-to-date period was $6.92, a notable increase from $5.50 in the same period last year.
  • 4The company maintained a strong contractual backlog of $36.3 billion as of October 3, 2025, indicating robust future revenue potential.
  • 5Net cash provided by operating activities was $1.14 billion year-to-date, although this was a decrease from the prior year, largely due to working capital timing.
  • 6The company repurchased $998 million of its common stock year-to-date, demonstrating a commitment to returning capital to shareholders.
  • 7Divestiture of the CAS disposal group was completed in March 2025, contributing $831 million in cash proceeds and impacting year-over-year segment comparisons.

Frequently Asked Questions

Revenue growth was primarily driven by higher volumes and new program ramps across all segments, with notable contributions from Communication Systems and Space & Airborne Systems, especially from international deliveries and increased FAA volume respectively.

The company benefited from cost-saving initiatives, including the LHX NeXt program, and favorable changes in contract estimates. General and Administrative (G&A) expenses decreased year-over-year due to lower LHX NeXt implementation costs and the absence of certain business divestiture-related losses. These factors contributed to the significant increase in operating income and net income.

The company ended the quarter with a strong contractual backlog of $36.3 billion, with approximately 45% expected to be recognized as revenue within the next twelve months. This substantial backlog provides good visibility and supports management's confidence in future revenue streams.

The company has been actively managing its debt, including repayments and refinancing. As of October 3, 2025, it had $725 million in outstanding commercial paper and maintained significant availability under its credit facilities ($2.3 billion net of CP program). The company expressed confidence in its liquidity for the next 12 months and beyond, despite ongoing government budget uncertainties.