L3Harris(LHX) ZACKS·2025-04-04 17:10Company Overview - L3Harris Technologies, Inc. (LHX) has delivered the first missionized OA-1K Skyraider II aircraft to the U.S. Air Force Special Operations Command, which is expected to enhance LHX's revenue performance in the first quarter of 2025 [1] - The Skyraider II is based on the multi-purpose OA-1 Sky Warden aircraft and can perform various missions, including close air support and armed intelligence, surveillance, and reconnaissance [2] Product Features - The versatility of the Skyraider II allows Special Operations Forces (SOF) to counter rivals across a wide range of military operations, with the capability to operate from challenging airfields [3] - L3Harris is on track to deliver more Skyraider II aircraft, which may attract additional customers and lead to increased contract flows [3] Market Growth Potential - Rising military conflicts and technological advancements are driving nations to increase defense spending, with a forecasted compound annual growth rate of 4.7% for the global military aviation market from 2025 to 2030 [4] - L3Harris is positioned to benefit from this market growth as a major supplier of innovative avionic systems tested on various aircraft platforms, including the F-35 Lightning II [5] Competitive Landscape - Other defense companies likely to benefit from the military aviation market include Boeing, Lockheed Martin, and Embraer, each with strong product portfolios and growth estimates [6][7][8] - Boeing has a long-term earnings growth rate of 17.4% and a projected 25.7% sales improvement for 2025 [7] - Lockheed Martin has a long-term earnings growth rate of 10.6% with a 4.6% sales improvement forecast for 2025 [8] - Embraer is expected to see a 15.1% sales growth in 2025, with a notable earnings surprise average of 138.39% over the last four quarters [9] Stock Performance - Over the past three months, L3Harris shares have increased by 2.8%, while the industry has seen a growth of 12.2% [10]