FOURTH QUARTER 2025 EARNINGS PRESENTATION January 29, 2026 DELIVERING SHAREHOLDER VALUE | | | 2025 | 2026 | | --- | --- | --- | --- | | | | Actuals | Guidance | | Strategy aligned to fastest | | | | | growing defense priorities | Revenue | $21.9B | $23B - $23.5B | | | Growth1,2 | 5% | 7%3 | | 2026 Guidance exceeded initial | Adjusted Segment | | | | 2026 Financial Framework | Operating | 15.8% | low 16% | | | Margin2,4 | | | | Disciplined capital deployment | | | | | | Adjusted Free | $2.8B | $3.0B | | | Ca ...

Defense contractor L3Harris Technologies missed Wall Street estimates for fourth-quarter revenue on Thursday, as a prolonged U.S. government shutdown delayed contract awards. ...

L3Harris Technologies Inc. (NYSE:LHX) reported financial results for the fourth quarter before the market opened on Thursday.Revenue of $5.64 billion, up 2% versus the prior year, missed the consensus of $5.77 billion.Non-GAAP diluted EPS of $2.86 beat the consensus of $2.76.In the fourth quarter of 2025, L3Harris reported cash from operations of $1.96 billion, compared with $1.13 billion in the same period a year earlier; on an adjusted basis, free cash flow was $1.86 billion, versus $1.03 billion in the f ...

L3Harris Technologies (LHX) reported fourth quarter net income attributable to company of $300 million compared to $453 million, prior year. Earnings per share was $1.59 compared to $2.37. Non-GAAP EPS increased to $2.86 from $2.60. Pension adjusted non-GAAP EPS was $2.32 compared to $2.17. Revenue was $5.6 billion, up 2% versus prior year, or up 6% organically."As we look to 2026, our investments in and capacity along with a record backlog and strong demand signals give us confidence to deliver strong res ...

L3Harris Technologies posts mixed fourth-quarter earnings and issues weak full-year guidance. ...

Revenue and Growth - Full year revenue increased by 3% to $21.9 billion, with organic growth of 5%[8] - Orders totaled $27.5 billion, resulting in a book-to-bill ratio of 1.3x[5] - Fourth quarter revenue for Aerojet Rocketdyne was $763 million, a 10% increase from $694 million in the same quarter of 2024[24] - Full year revenue reached $2.845 billion, up 10% from $2.580 billion in 2024[24] - Organic revenue growth was 12%, driven by increased production volumes across key missile, munitions, and space programs[24] - For fiscal year 2025, total revenue reached $21,865 million, with an operating income of $2,110 million and an operating margin of 9.7%[44] - The Space & Mission Systems (SMS) segment generated $10,711 million in revenue, with an operating income of $1,055 million and a margin of 9.8%[44] - The Communication & Spectrum Dominance (CSD) segment reported revenue of $7,566 million, achieving an operating income of $1,924 million and a margin of 25.4%[44] - The Missile Solutions (MSL) segment earned $3,797 million in revenue, with an operating income of $364 million and a margin of 9.6%[44] Profitability and Margins - Diluted EPS for the full year increased by 8% to $8.53, with non-GAAP diluted EPS rising by 11% to $10.73[12] - Operating margin for the full year improved by 70 basis points to 9.7%, and adjusted segment operating margin increased by 40 basis points to 15.8%[9] - The operating margin for the fourth quarter decreased to 0.7%, down 980 basis points from 10.5% in the previous year[25] - Adjusted segment operating margin improved to 11.8% in the fourth quarter, an increase of 130 basis points from 10.5%[25] - The adjusted segment operating income for the full year 2025 was $3,451 million, reflecting a margin of 15.8%[44] - The CSD segment's operating margin improved to 27.8% in Q4 2025, with revenue of $1,961 million[43] Cash Flow and Assets - Cash from operations rose by 21% to $3.1 billion, while adjusted free cash flow also increased by 21% to $2.8 billion[13] - Free cash flow for 2026 is anticipated to be $3.0 billion, with net cash from operating activities expected to be approximately $3.6 billion[29] - Free cash flow for the fourth quarter of 2025 was $1,849 million, compared to $1,012 million in the fourth quarter of 2024, reflecting an increase of 82.2%[40] - Adjusted free cash flow for the full year 2025 reached $2,814 million, up from $2,319 million in 2024, indicating a growth of 21.3%[40] - Total current assets increased to $8,593 million in January 2026 from $8,218 million in January 2025, representing a growth of 4.6%[35] - Cash and cash equivalents rose significantly to $1,069 million, up from $615 million, marking a 73.8% increase year-over-year[35] - Total liabilities decreased to $21,560 million in January 2026 from $22,422 million in January 2025, a reduction of 3.9%[35] Future Outlook - The company anticipates strong results for 2026, supported by a record backlog and strong demand signals[5] - For 2026, revenue guidance is projected to be between $23 billion and $23.5 billion, with segment revenues of approximately $11.5 billion for Space & Mission Systems, $8.0 billion for Communication & Spectrum Dominance, and $4.4 billion for Missiles Solutions[29] - The expected diluted EPS for 2026 is between $11.30 and $11.50[29] - The company plans to reorganize its business structure into three segments starting in Q1 2026[28] - A majority stake in the Space Technology disposal group is expected to be sold, with the transaction anticipated to close in the second half of 2026[28] Segment Performance - Integrated Mission Systems segment revenue remained flat at $6.6 billion, but organic revenue increased by 8% excluding the impact of divestitures[20] - Communication Systems segment revenue grew by 4% to $5.7 billion, with an operating margin of 25.2%[15] - Space and Airborne Systems segment revenue increased by 1% to $6.9 billion, with an operating margin of 12.3%[23] Corporate Actions and Adjustments - The company plans to realign its segments into three reportable segments effective for fiscal 2026, focusing on common capabilities and business models[41] - The company reported a goodwill impairment of $85 million in the fourth quarter, impacting overall operating income[44] - Corporate expenses totaled $(355) million for the full year 2025, compared to $(369) million in 2024[44] - Amortization of acquisition-related intangibles for the full year 2025 was $769 million, down from $853 million in 2024, a decrease of 9.8%[36]

26 January 2026 Global Aerospace & Defense US Defense: Land of Confusion? Answers - but, more questions; And Q4 preview Douglas S. Harned, Ph.D. +1 917 344 8430 douglas.harned@bernsteinsg.com Adrien Rabier +44 20 7676 6820 adrien.rabier@bernsteinsg.com Jennifer Ma +1 917 344 8408 jennifer.ma@bernsteinsg.com Specialist Sales Steve Song +1 917 344 8401 steve.song@bernsteinsg.com US defense stocks outperformed during the first three weeks of 2026, as geopolitical tensions rose and President Trump reiterated hi ...

Group 1 - L3Harris Technologies Inc. is benefiting from increased geopolitical spending in the defense and aerospace sector [1] - UBS has reiterated a Neutral rating on L3Harris with a price target of $323, highlighting a $1 billion investment from the Department of Defense in its missile solution business [1][2] - Bernstein analysts have given an Outperform rating with a price target of $398, noting the company's intention to retain a majority stake in the Missile Solutions business during its planned IPO [3] Group 2 - The $1 billion investment will enhance L3Harris's production capabilities for solid rocket motors, aligning with the anticipated increase in capital expenditure within the industry [2] - L3Harris Technologies provides advanced solutions across military, government, and commercial sectors, focusing on integrating various domains for national security and exploration [4]

Financial giants have made a conspicuous bullish move on L3Harris Technologies. Our analysis of options history for L3Harris Technologies (NYSE:LHX) revealed 8 unusual trades.Delving into the details, we found 50% of traders were bullish, while 37% showed bearish tendencies. Out of all the trades we spotted, 2 were puts, with a value of $157,651, and 6 were calls, valued at $859,901.What's The Price Target?Based on the trading activity, it appears that the significant investors are aiming for a price territ ...

The investment part of this plan is expected to happen this quarter, the first quarter of 2026. Missile solutions will then be spun off and taken public as a separate company in the second half of 2026. After the initial public offering (IPO), the Department of Defense is expected to convert its preferred stock into common stock in the new company.L3Harris announced its latest big move just this past Tuesday. In what management termed "a first-of-its-kind proposed partnership with the Department of War" -- ...