Financial Data and Key Metrics Changes - Revenue for 2025 was $21.9 billion, representing a 5% organic growth, with adjusted segment operating margin at 15.8%, up 40 basis points [16] - Non-GAAP EPS increased to $10.73, an 11% rise over 2024, while adjusted free cash flow grew to $2.8 billion, over 20% increase [16] - For Q4, revenue was $5.6 billion, up 6% organically, with a segment operating margin of 15.7%, also up 40 basis points [16] Business Line Data and Key Metrics Changes - Communications Systems (CS) generated $5.7 billion in revenue for 2025, with a margin of 25.2%, reflecting 4% growth and 50 basis points margin expansion [17] - Integrated Mission Systems (IMS) reported $6.6 billion in revenue, achieving 8% organic growth with a margin of 12.2% [17] - Space and Airborne Systems (SAS) delivered $6.9 billion in revenue, with a margin of 12.3% [18] - Aerojet Rocketdyne (AR) achieved 12% organic revenue growth, exceeding $2.8 billion with a margin of 12.5% [19] Market Data and Key Metrics Changes - The company ended 2025 with a record backlog exceeding $38 billion and a Book-to-Bill ratio of 1.3 [11] - Key awards included a $2.2 billion contract from South Korea for airborne early warning jets and an $850 million contract for 18 satellites for missile defense [12][14] Company Strategy and Development Direction - The company is focusing on evolving its business model, aligning its portfolio with defense priorities, and pursuing strategic partnerships to drive growth [4][5] - Plans include an IPO for the Missile Solutions business in the second half of 2026, with the Department of War as an anchor investor [5][20] - The company aims to enhance production capacity for missile systems and solid rocket motors to meet increasing demand [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted a complex and rapidly evolving defense environment, emphasizing the need for speed and execution [8] - The company anticipates continued double-digit growth for the Missile Solutions business, driven by strong demand signals [30] - Guidance for 2026 includes revenue expectations of $23 billion to $23.5 billion, with a 7% organic growth rate at the midpoint [20] Other Important Information - The company has reorganized its business segments from four to three to better align technology and business models [5] - The LHX NeXt program has exceeded its $1 billion savings commitment one year ahead of schedule [14] Q&A Session Summary Question: Long-term agreements for Missile Solutions - Management confirmed ongoing discussions with the Department of War regarding long-term agreements and expressed optimism about the potential for significant growth in the Missile Solutions business [26][27][30] Question: CapEx expectations - Management indicated a planned increase in CapEx to about 2.5% of sales for 2026, with a focus on modernizing production capabilities [32][33] Question: Government stake in Missile Solutions - Management clarified that the government is expected to hold a single-digit ownership stake in the Missile Solutions business [40] Question: Revenue outlook for RemainCo - Management projected solid mid-single-digit growth for RemainCo, with expectations for increased defense budgets to drive further growth [46][49] Question: Tactical radios funding - Management acknowledged reductions in funding for tactical radios but expressed optimism about future growth opportunities in this area [60][76]

Core Insights - L3Harris Technologies, Inc. (LHX) has proposed a partnership with the U.S. Department of War (DoW) to enhance its production capacity for solid rocket motors, crucial for U.S. and allied missile systems [2][4] Partnership Details - The DoW will invest $1 billion in L3Harris' Missile Solutions business through a convertible preferred security, which will convert into common equity upon an IPO planned for the second half of 2026 [3] - This partnership aims to secure government-backed capital, reducing funding risk and supporting the scale-up of high-priority missile programs such as PAC-3, THAAD, Tomahawk, and Standard Missile [4][5] Strategic Benefits - The partnership strengthens L3Harris' position in the U.S. defense industrial base, enhances growth prospects, and aligns the company with U.S. defense acquisition priorities [5] - The planned IPO will create a focused propulsion company, improving operational execution and transparency while allowing L3Harris to maintain a controlling stake [5] Industry Trends - Aerospace and defense companies are increasingly forming partnerships to accelerate growth, enhance capabilities, and strengthen market positions, particularly in high-investment areas like missile systems and advanced propulsion [6] - Other companies in the sector, such as Lockheed Martin and RTX Corporation, are also pursuing strategic partnerships to expand operations and integrate new technologies [7][8][10] Stock Performance - L3Harris shares have increased by 30.7% over the past six months, outperforming the industry growth of 11.6% [12]

Core Insights - Recent military actions in Venezuela have brought attention to defense and oil stocks, with L3Harris Technologies Inc (NYSE:LHX) being a potential beneficiary due to its defense focus [1] - Members of Congress have purchased LHX stock, indicating potential insider interest in defense spending and military actions [2][5] Company Developments - L3Harris Technologies plans to spin off its missile business into a separate public company, which will focus on defense platforms and missiles such as Tomahawk and THAAD [3] - The U.S. Defense Department is investing $1 billion in the separated missile company through convertible preferred securities, which will convert to common stock at the anticipated IPO in the second half of 2026 [4] Stock Performance - L3Harris stock reached an all-time high of $361.59, currently trading at $347.59, reflecting a 62.5% increase over the past 52 weeks [6] Congressional Involvement - Specific members of Congress have made significant purchases of LHX stock, with Rep. Richard McCormick, Rep. Gil Cisneros, and Sen. Markwayne Mullin all holding shares [7] - These members serve on various defense committees, raising potential concerns about conflicts of interest regarding their investments in defense companies [5][8]

INVESTOR UPDATE PRESENTATION January 13 , 2026 L3HARRIS Investor Update Call 1 L3HARRIS ACCELERATES THE 'ARSENAL OF FREEDOM' New company capital deployment focused on growth (CAPEX and R&D), no dividend or share repurchase expected in the near -term L3HARRIS Investor Update Call 2 SRM – Solid Rocket Motors, EO/IR – Electro -Optical / Infrared, ISR – Intelligence Surveillance and Reconnaissance 1Sector includes the Space Propulsion and Power Systems majority stake that will be sold as previously announced on ...

Core Insights - Raytheon, a unit of RTX Corp., has expanded its partnership with Avio USA to accelerate the development of the Mk 104 dual-thrust rocket motor, essential for the Standard Missile program, with a purchase order valued at up to $26 million [1][2] Group 1: Partnership and Development - The new order will support Critical Design Review milestones, acquisition of long-lead materials, and enhance manufacturing capacity for solid rocket motors [2][3] - The partnership aims to reinforce supply chain strength and production readiness by implementing second sourcing for critical materials, thereby enhancing the ability to meet customer demand [3] Group 2: Technical Milestones and Production Readiness - Early technical milestones have been completed, including a System Requirements Review and Preliminary Design Review, with the next phase focusing on full qualification and readiness for scaled production [3] - The demand for missile defense systems is expected to grow globally, prompting this advancement [3] Group 3: Broader Strategic Efforts - This deal is part of RTX's broader strategy to strengthen its defense portfolio across propulsion and aerospace technologies [4] - The Pratt & Whitney unit of RTX has recently completed critical engine testing for collaborative combat aircraft, indicating a push towards next-generation military capabilities [4] Group 4: Recent Testing Achievements - Raytheon has also completed testing of a ground-launched prototype of its StormBreaker smart weapon, which was developed and flight-tested in just 50 days, successfully reaching around 20,000 feet during trials [5]

Core Points - Raytheon and Avio USA have executed a purchase order for up to $26 million to support the Mk 104 dual-thrust rocket motor, enhancing production capacity for solid rocket motors [1][2] - The funding will cover the Critical Design Review phase and procurement of long lead materials, ensuring resilience and availability of the Mk 104 rocket motor [2] - The project aims to strengthen the supply chain and production capacity for Raytheon's Standard Missile franchise [2][3] Company Overview - Raytheon, part of RTX, is a leading provider of defense solutions, focusing on integrated air and missile defense, smart weapons, and advanced sensors [4] - RTX is the world's largest aerospace and defense company, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [5] - Avio USA, a subsidiary of Avio S.p.A., specializes in compliance with US security regulations and is led by retired US Navy Vice Admiral James Syring [6][7]