01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies, Inc. (LHX) reported strong financial results for the second quarter and year-to-date 2026, demonstrating robust growth and operational efficiency.
Total revenue increased by 8%a in the second quarter and 10% year-to-date, driven by higher volumes and new program ramps across all segments. Net income available to common shareholders saw a significant rise of 28% for the quarter and 31% year-to-date, leading to a substantial increase in diluted Earnings Per Share (EPS). The company's strategic investments, particularly in its Missile Solutions segment through a partnership with the U.S. Department of War, are positioning it for future growth and technological advancement.
The company maintains a strong liquidity position with substantial cash and cash equivalents and ample borrowing capacity. Despite ongoing geopolitical uncertainties and inflationary pressures, L3Harris's diversified business model, strong backlog, and strategic focus on defense and aerospace sectors provide resilience. The company's disciplined capital allocation, including share repurchases and consistent dividend payments, further underscores its commitment to shareholder value.
02—Key points
Key Highlights
- Total revenue grew by 8% year-over-year to $5.88 billion in Q2 2026 and by 10% year-to-date to $11.63 billion, indicating broad-based demand across segments.
- Net income available to common shareholders increased significantly by 28% to $586 million in Q2 2026 and by 31% year-to-date to $1.10 billion.
- Diluted EPS rose by 28% to $3.13 in Q2 2026 and by 31% year-to-date to $5.85, reflecting improved profitability.
- The Missile Solutions segment saw strong revenue growth of 14% in Q2 2026, driven by increased production and development volumes.
- The company secured a significant strategic investment of $1 billion in its Missile Solutions segment from the U.S. Department of War, aimed at expanding production capacity.
- L3Harris ended the period with a strong cash and cash equivalents balance of $1.52 billion, up from $1.07 billion at the beginning of the year.
- Contractual backlog remains substantial at $42.0 billion, providing visibility for future revenue.
03—Questions
Frequently Asked Questions
What is the primary driver of L3Harris's revenue growth in the recent quarter?
L3Harris's revenue growth in the second quarter of 2026 was primarily driven by increased volumes across all its segments, fueled by new program ramps and strong execution. Specific drivers included higher revenues in Space & Mission Systems due to ISR and Space Systems programs, Communications & Spectrum Dominance from international deliveries, and Missile Solutions from increased production and development volumes.
How has the strategic investment in the Missile Solutions segment impacted the company's financial position?
The $1 billion strategic investment from the U.S. Department of War in the Missile Solutions segment has provided significant capital to expand production capacity and enhance capabilities. This investment is reflected in the balance sheet through the issuance of Redeemable Subsidiary Series A Convertible Preferred Stock and related warrants, contributing to mezzanine equity and derivative liabilities. The proceeds are earmarked for development and construction activities, supporting long-term growth prospects for this key segment.
What is the company's outlook on liquidity and financial flexibility?
L3Harris maintains a strong liquidity position with $1.52 billion in cash and cash equivalents and $2.5 billion in available borrowing capacity under its revolving credit facility. The company expects its current cash, operational funds, and access to capital markets to be sufficient to meet its anticipated working capital needs, capital expenditures, dividend payments, and debt obligations for the next 12 months and the foreseeable future. The company also indicated no material issues with liquidity for the next 12 months and longer-term.
Are there any significant impacts from divestitures or new accounting standards?
The company completed the sale of its Commercial Aviation Solutions (CAS) disposal group in March 2025. It is also proceeding with the establishment of a new space technology company, in which it will retain a 40% noncontrolling interest, expected to close in early second half of 2026. There are no material impacts from recently issued accounting pronouncements that have become effective during Q2 2026.
04—Continue