Core Insights - L3Harris has been awarded a $3 billion contract to deliver 75 modified Air Tractor AT-802U Sky Warden turboprop aircraft for the U.S. Special Operations Command (SOCOM) [3] - The new aircraft, named Skyraider II, is designed for close air support and can carry up to 6,000 pounds of ordnance, making it comparable to the F-35 in terms of load capacity [4][6] - The program could generate approximately $580 million in incremental revenue for L3Harris as early as this year, although this represents only 2.7% of the company's annual revenue [7] Company Overview - L3Harris is not traditionally associated with fighter planes, focusing instead on radios, sensors, and rocket engines [1][2] - The company has already built the first two Skyraiders and plans to deliver operationally configured planes early this year [6] - The Air Force has reduced its order to 62 planes, with a per-plane cost of approximately $48.4 million [5] Market Potential - There is significant international interest in the Skyraider II, with 22 potential overseas buyers and another 15 countries considering the aircraft [8][9] - The program's success could position L3Harris favorably in the global defense market, expanding beyond SOCOM and the U.S. [8] Financial Considerations - L3Harris stock is currently priced at 28 times trailing earnings, necessitating mid-teens annual growth to be considered a buy [10] - Analysts project that L3Harris may struggle to achieve earnings growth beyond 7% annually over the next five years [10][11]

Core Insights - Shield AI has successfully completed a $240 million F-1 strategic funding round, raising its valuation to $5.3 billion, aimed at scaling its Hivemind Enterprise platform [1] - The funding round saw participation from strategic investors such as L3Harris and Hanwha Aerospace, along with existing investors like Andreessen Horowitz [1][4] - The raised funds will facilitate the deployment of Hivemind Enterprise to various sectors, including OEMs and government entities, enhancing the robotics and drone industrial base [1] Company Overview - Shield AI, founded in 2015, focuses on developing intelligent autonomous systems to protect service members and civilians [5] - The company’s product suite includes Hivemind Enterprise, V-BAT, and Sentient Vision Systems, with operations in multiple global locations [5] Product and Technology - Hivemind Enterprise is designed to accelerate autonomy development for intelligent machines, providing a comprehensive software suite for building, testing, and deploying autonomous systems [2] - The platform includes an integrated autonomy factory, production-ready middleware, and a rich autonomy catalog, enabling developers to create mission-ready solutions quickly [2] - Shield AI's technology has already demonstrated capabilities in autonomously flying military aircraft and operating in GPS-denied environments [3] Industry Context - There is a growing demand for advanced autonomy solutions across various industries, with industry leaders recognizing the urgency for scalable autonomy [4] - L3Harris's CEO highlighted the inevitability of autonomy at scale, aligning with Shield AI's mission to deliver AI-enabled solutions efficiently [4]

Group 1: Dividend Increase - L3Harris Technologies, Inc. announced a 3.4% increase in its quarterly dividend rate, raising it to $1.20 per share, payable on March 21, 2025 [1] - This increase marks the company's 24th consecutive annual dividend hike, resulting in a new annualized dividend rate of $4.80 per share and an annualized dividend yield of 2.33% based on a share price of $206.11 as of February 28, 2025 [2] Group 2: Defense Budget and Market Position - The U.S. defense budget significantly benefits L3Harris, with the Fiscal Year 2025 Defense Appropriations Act providing a total of $852.2 billion, including over $1 billion for classified Space Force requirements [3] - L3Harris has a strong international presence, with nearly 20% of its revenues coming from international markets, and continues to see high demand for its defense solutions from various regions including Asia-Pacific and Latin America [4] Group 3: Contract Wins and Future Prospects - In January 2025, L3Harris was awarded a contract by BAE Systems Maritime Australia to provide the Integrated Platform Management System for the Royal Australian Navy's Hunter class frigates, indicating growth potential in its ISR technologies [5] - The company's global presence and contract wins ensure strong revenue generation, supporting the sustainability of shareholder-friendly initiatives in the future [6] Group 4: Stock Performance - Over the past month, L3Harris shares have declined by 2.2%, while the industry has seen a smaller decline of 0.5% [8]

Core Insights - Shield AI and L3Harris Technologies are collaborating on a demonstration for electronic warfare operations using AI-enabled unmanned systems that can sense, adapt, and act in real-time [1] - The collaboration integrates L3Harris' DiSCO™ system with Shield AI's Hivemind autonomy software to enhance decision-making capabilities in complex battlefield environments [2][3] Company Overview - Shield AI, founded in 2015, focuses on defense technology and intelligent systems to protect service members and civilians, with its Hivemind software enabling reliable operations in contested environments [4] - L3Harris Technologies is recognized as a trusted disruptor in the defense industry, providing end-to-end technology solutions across multiple domains for national security [5] Strategic Importance - The integration of Hivemind with L3Harris' electronic warfare capabilities aims to create dynamic maneuverability in contested environments, addressing the complexities of modern warfare [3] - Both companies plan to continue demonstrations and integrations to deliver scalable, multi-domain solutions for the U.S. and its allies [3]

Core Insights - L3Harris Technologies is participating in the Barclays 42nd Annual Industrial Select Conference, indicating its engagement with investors and stakeholders [1] - The company anticipates 2025 to be a year of unprecedented change, uncertainty, and volatility, reflecting broader industry trends and challenges [4] Company Overview - Ken Bedingfield serves as the Senior Vice President and Chief Financial Officer, while Chris Kubasik is the Chair and Chief Executive Officer, highlighting the leadership structure of the company [1] - The company is preparing for discussions around the budget process, including considerations related to continuing resolutions (CR), fiscal year 2025 budget reconciliation, and the debt ceiling for 2026 [3] Industry Context - The company views the top line as a proxy for defense spending, suggesting a focus on government contracts and defense-related revenue streams [4] - There has been a notable increase in executive orders, with over 70 issued in a short period, indicating a dynamic regulatory environment that could impact the defense sector [4]

Financial Performance - Company-wide total backlog was $34.2 billion as of January 3, 2025, up from $32.7 billion on December 29, 2023, with expectations to recognize approximately 45% of this backlog revenue by the end of fiscal 2025 and 75% by the end of fiscal 2026 [31]. - In fiscal 2024, 76% of the company's revenue was derived from sales to U.S. Government customers, with no other customer accounting for more than 5% of total revenue [35]. Workforce and Talent Management - The company hired approximately 4,500 new employees in fiscal 2024, focusing on attracting and retaining skilled talent, particularly in technical and engineering fields [48]. Environmental Sustainability - The company plans to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 60% and water usage by 20% by 2030, compared to 2021 levels [49]. Debt and Financial Risk - At January 3, 2025, the company had long-term debt with a carrying value of $11,530 million, all of which is fixed-rate debt [269]. - The cumulative impact of translating foreign subsidiary assets and liabilities to U.S. dollars resulted in a $265 million loss as of January 3, 2025 [266]. - The company has open foreign currency forward contracts with an aggregate notional amount of $201 million to hedge against currency risk [267]. - Approximately 10% of the company's business was transacted in local currency environments in fiscal 2024 [266]. - As of January 3, 2025, the company had $515 million in short-term variable-rate debt outstanding under its CP Program [270]. - The fair value of the short-term debt approximates the carrying value due to its short-term nature [270]. - The outstanding notes under the CP Program bear interest that is variable based on certain short-term indices, exposing the company to interest-rate risk [270]. - A hypothetical 10% change in interest rates on short-term debt obligations would not have had a material impact on the company's results of operations or cash flows [270]. - The company cannot assure that interest rates will not change significantly or have a material effect on the fair value of its debt obligations over the next twelve months [271]. - Information regarding the maturities of the company's fixed-rate debt obligations and CP program can be found in Note 8: Debt and Credit Arrangements [271]. Strategic Partnerships and Innovation - The company collaborates with strategic partners like Palantir Technologies and Shield Capital to enhance technological capabilities and meet customer demands [30]. Safety and Risk Management - The company maintains a proactive safety culture and implements programs to reduce workplace incidents and risks [46].

Core Insights - The Motley Fool aims to enhance the financial literacy and well-being of individuals by providing various financial services and educational resources [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through premium investing solutions, free guidance, market analysis, personal finance education, top-rated podcasts, and its non-profit foundation [1]

Core Viewpoint - L3Harris Technologies, Inc. (LHX) reported strong fourth-quarter and full-year earnings for 2024, surpassing consensus estimates, driven by increased revenues and operating income across various segments [1][2][4]. Financial Performance - The adjusted earnings per share (EPS) for Q4 2024 were $3.47, exceeding the Zacks Consensus Estimate of $3.43 by 1.2% and up 3.6% from $3.35 in the same quarter last year [1] - For the full year 2024, adjusted EPS was $13.10, higher than $12.36 in 2023 and beating the consensus estimate of $13.07 [2] - Total revenues for Q4 2024 reached $5.52 billion, slightly above the consensus estimate of $5.51 billion and a 3.4% increase from $5.34 billion in Q4 2023 [3] - Full-year revenues for 2024 were $21.33 billion, up from $19.42 billion in 2023, also surpassing the consensus estimate of $21.31 billion [4] Segmental Performance - Integrated Mission Systems segment reported net revenues of $1.77 billion, a 9% year-over-year growth, driven by higher aircraft missionization volumes and demand for advanced electronics [5] - Space and Airborne Systems segment saw net revenues decline by 4% to $1.73 billion, attributed to the divestiture of the antenna business and lower organic revenues [7] - Communication Systems segment revenues increased by 5.4% to $1.44 billion, supported by strong demand for resilient communication equipment, although operating income decreased [9] - Aerojet Rocketdyne segment reported revenues of $628 million, a 5.2% increase year-over-year, driven by higher production volumes across key missile programs [10] Financial Position - As of January 3, 2025, L3Harris had $615 million in cash and cash equivalents, an increase from $560 million at the end of 2023 [12] - Long-term debt decreased to $11.08 billion from $11.16 billion as of December 29, 2023 [12] - Net cash flow from operating activities for 2024 was $2.56 billion, up from $2.10 billion in the previous year, with adjusted free cash flow at $2.32 billion compared to $2.03 billion in 2023 [12] 2025 Guidance - L3Harris expects 2025 revenues to be in the range of $21.80-$22.20 billion, higher than the Zacks Consensus Estimate of $21.70 billion [13] - The company anticipates adjusted EPS to be between $10.55-$10.85, lower than the previous guidance of $13.70-$14.00, with the consensus estimate at $14.19 [14] - Adjusted segment operating margin is expected to be in the mid-to-high 15% range, with adjusted free cash flow projected between $2.40-$2.50 billion [14]

FOURTH QUARTER 2024 EARNINGS PRESENTATION JANUARY 30, 2025 Forward-Looking Statements; Non-GAAP Measures This presentation contains forward-looking statements within the meaning of federal securities laws made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples include, but are not limited to, statements about 2025 guidance, 2025 supplemental information, 2026 financial framework, capital allocation priorities, future product deliveries; projection of ...

Core Insights - L3Harris (LHX) reported revenue of $5.52 billion for the quarter ended December 2024, marking a year-over-year increase of 3.4% and an EPS of $3.47, up from $3.35 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue from Corporate eliminations was -$43 million, better than the average estimate of -$49.14 million, representing a year-over-year change of -8.5% [4] - Revenue from Space and Airborne Systems was $1.73 billion, below the estimated $1.82 billion, reflecting a -4% change year-over-year [4] - Revenue from Communication Systems was $1.44 billion, surpassing the estimated $1.39 billion, showing a +5.4% change year-over-year [4] - Revenue from Integrated Mission Systems was $1.77 billion, exceeding the average estimate of $1.63 billion, with a year-over-year change of +9% [4] - Revenue from Aerojet Rocketdyne was $628 million, below the average estimate of $701.13 million [4] Segment Operating Income - Integrated Mission Systems (IMS) reported operating income of $238 million, exceeding the average estimate of $191.18 million [4] - Communication Systems (CS) reported operating income of $326 million, below the estimated $348.41 million [4] - Space and Airborne Systems (SAS) reported operating income of $186 million, compared to the average estimate of $222.28 million [4] - Aerojet Rocketdyne reported operating income of $72 million, below the average estimate of $83.29 million [4] Stock Performance - L3Harris shares returned +0.8% over the past month, compared to the Zacks S&P 500 composite's +1.2% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]