L3Harris(US:LHX)2025-10-30 10:55Financial Performance - L3Harris Technologies reported third quarter 2025 revenue of $5.7 billion, a 7% increase year-over-year, with organic growth of 10%[5] - Revenue for Q3 2025 was $5,659 million, an increase of 6.9% from $5,292 million in Q3 2024[30] - Year-to-date revenue reached $15,802 million, with an adjusted free cash flow of $951 million[37] - Total revenue for the third quarter of 2024 was $5,292 million, with organic revenue of $5,124 million after adjustments[33] Profitability Metrics - Diluted EPS for the third quarter increased 17% to $2.46, while non-GAAP diluted EPS rose 10% to $2.70[13][14] - Operating income for Q3 2025 reached $621 million, up 25.4% from $495 million in Q3 2024[30] - Net income attributable to L3Harris for Q3 2025 was $462 million, compared to $400 million in Q3 2024, reflecting a 15.5% increase[30] - The diluted EPS for the third quarter of 2024 was $2.10, while the non-GAAP diluted EPS was $2.46, reflecting a significant increase[36] Segment Performance - Revenue from the Communication Systems segment was $1.462 billion, a 6% increase, driven by international deliveries and program ramps[17] - The Integrated Mission Systems segment reported revenue of $1.7 billion, a 6% increase, with organic revenue growth of 17% excluding the impact of a business divestiture[19] - Space & Airborne Systems revenue increased 7% to $1.809 billion, supported by higher volumes in the Mission Networks and Airborne Combat Systems businesses[21] - Aerojet Rocketdyne's revenue grew 13% to $755 million, with organic revenue up 15% due to increased production across key programs[23] Operational Efficiency - Adjusted segment operating margin for the third quarter was 15.9%, up 10 basis points from the previous year, driven by improved program performance and cost savings[12] - Cash from operations decreased 30% to $546 million, primarily due to temporary customer payment delays[15] - The company reported a net cash provided by operating activities of $546 million for Q3 2025, compared to $780 million in Q3 2024[32] - Capital expenditures were approximately 2% of revenue, consistent with prior periods[26] Guidance and Future Outlook - The company increased its 2025 revenue guidance to approximately $22 billion, up from the previous estimate of $21.75 billion[7] - The company anticipates ongoing impacts from competitive markets and U.S. Government spending priorities affecting future performance[27] Tax and Financial Position - The effective tax rate on non-GAAP income is projected to be between 13.5% and 14.5%[26] - Total assets decreased to $41,014 million as of October 3, 2025, down from $42,001 million on January 3, 2025[31] - Cash and cash equivalents decreased to $339 million from $615 million during the same period[31] Historical Comparisons - Operating income for the third quarter of 2024 was $495 million, leading to an adjusted segment operating income of $834 million[34] - The effective tax rate on non-GAAP income for the third quarter of 2024 was 9.7%, compared to 6.0% for the previous year[35] - The company incurred $25 million in merger, acquisition, and divestiture-related expenses during the third quarter of 2024[34] - The total cash used for merger, acquisition, and severance was $146 million year-to-date[37]