L3Harris Technologies, Inc. (LHX) Bundle
A Brief History of L3Harris Technologies, Inc.
L3Harris Technologies, Inc. (NYSE: LHX) is a leading global aerospace and defense technology company formed through the merger of L3 Technologies and Harris Corporation in June 2019. As of 2024, L3Harris continues to enhance its position in the marketplace through strategic acquisitions and ongoing innovation.
Recent Acquisitions
In July 2023, L3Harris acquired Aerojet Rocketdyne Holdings, Inc. (AJRD) for approximately $4.4 billion. This acquisition significantly expanded L3Harris's capabilities in advanced propulsion and power systems, positioning the company as a key player in major U.S. government space and missile programs. The integration of AJRD contributed an incremental $1.26 billion in revenue for the three quarters ended September 27, 2024, compared to the previous year.
Financial Performance Overview
For the three quarters ended September 27, 2024, L3Harris reported total revenue of $15.80 billion, reflecting a 12% increase from $14.08 billion for the same period in 2023. The operating income for the same period was $1.35 billion, up from $1.27 billion in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue (in millions) | $15,802 | $14,079 | +12% |
| Operating Income (in millions) | $1,349 | $1,272 | +6% |
| Net Income (in millions) | $1,056 | $1,072 | -1.5% |
| Earnings per Share (Diluted) | $5.50 | $5.61 | -1.96% |
Segment Performance
L3Harris operates through four business segments: Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR). The AR segment, following the acquisition of AJRD, reported a revenue increase of 31% for the quarter ended September 27, 2024, significantly impacting overall company performance.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| SAS | $5,141 | $5,056 | +2% |
| IMS | $5,069 | $5,003 | +1% |
| CS | $4,022 | $3,707 | +8% |
| AR | $1,719 | $455 | Not meaningful |
Stock Performance and Share Repurchase Program
As of September 27, 2024, L3Harris had a remaining authorization of $3.4 billion for share repurchases. The company repurchased approximately 2.3 million shares at an average price of $220.18 during the three quarters ended September 27, 2024, totaling $512 million.
Dividends
On February 23, 2024, L3Harris announced an increase in the quarterly dividend from $1.14 to $1.16 per share, resulting in an annualized dividend of $4.64 per share.
Backlog and Future Outlook
As of September 27, 2024, L3Harris reported a backlog of $33.8 billion, with approximately 45% expected to be recognized as revenue over the next twelve months. The company remains focused on leveraging its enhanced capabilities post-acquisition to drive future growth and profitability.
Key financial indicators for L3Harris Technologies, Inc. reflect a strong performance trajectory, driven by strategic acquisitions and robust operational execution.
A Who Owns L3Harris Technologies, Inc. (LHX)
Major Shareholders
As of 2024, the ownership structure of L3Harris Technologies, Inc. (LHX) reveals a mix of institutional and individual shareholders. The largest institutional shareholders include:
| Shareholder | Type | Ownership (%) |
|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8.5% |
| BlackRock, Inc. | Institutional | 7.9% |
| State Street Corporation | Institutional | 4.1% |
| Capital Research Global Investors | Institutional | 3.5% |
| Wellington Management Group LLP | Institutional | 3.0% |
Insider Ownership
Insider ownership at L3Harris Technologies includes key executives and board members. As of the latest reports:
| Name | Position | Ownership (%) |
|---|---|---|
| Christopher E. Kubasik | Chair and CEO | 0.5% |
| Ross Niebergall | President, AR | 0.3% |
| Other Executives | Various | 0.4% |
Stock Performance and Market Capitalization
As of September 27, 2024, L3Harris Technologies, Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $36.7 billion |
| Current Stock Price | $192.50 |
| 52-Week Range | $180.00 - $210.00 |
| Dividend Yield | 3.1% |
Recent Share Repurchase Program
L3Harris has been actively repurchasing its shares. The details of the recent share repurchase program include:
| Period | Shares Repurchased | Average Price ($) | Total Value ($ million) |
|---|---|---|---|
| Q3 2024 | 836,383 | 231.20 | 193.3 |
Stock Options and Share-Based Compensation
As of September 27, 2024, L3Harris Technologies had the following share-based compensation awards:
| Award Type | Shares Granted | Weighted-Average Grant-Date Fair Value ($) |
|---|---|---|
| Stock Options | 0.4 million | 50.99 |
| Restricted Stock Units | 0.2 million | 214.00 |
| Performance Share Units | 0.2 million | 230.09 |
Summary of Financial Results
For the three quarters ended September 27, 2024, L3Harris reported:
| Financial Metric | Value (in millions) |
|---|---|
| Revenue | $15,802 |
| Net Income | $1,049 |
| Diluted Earnings per Share | $5.50 |
Overall, the ownership of L3Harris Technologies, Inc. is characterized by strong institutional presence, with significant management involvement and active shareholder engagement through repurchase programs and compensation strategies.
L3Harris Technologies, Inc. (LHX) Mission Statement
Mission Statement Overview
L3Harris Technologies, Inc. focuses on delivering innovative solutions that enhance the safety and security of customers worldwide. Their mission emphasizes operational excellence, technological advancements, and commitment to customer satisfaction.
Financial Performance
As of September 27, 2024, L3Harris reported:
- Revenue: $5,292 million for the quarter; $15,802 million for the three quarters.
- Net income: $404 million for the quarter; $1,056 million for the three quarters.
- Diluted EPS: $2.10 for the quarter; $5.50 for the three quarters.
Segment Performance
The company operates through various segments, each contributing to its mission through specialized services and products. Below is a summary of revenue and operating income by segment for the quarter ended September 27, 2024:
| Segment | Revenue (in millions) | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|---|
| SAS | $1,683 | $195 | 11.6 |
| IMS | $1,671 | $204 | 12.2 |
| CS | $1,382 | $359 | 26.0 |
| AR | $596 | $75 | 12.6 |
| Total | $5,292 | $495 | 9.4 |
Backlog and Future Revenue
As of September 27, 2024, L3Harris's backlog, representing future revenue from contracted work, stood at:
- Total Backlog: $33.8 billion
- Expected Revenue Recognition: 45% over the next twelve months
- Another 25% over the following twelve months
Stock Performance and Shareholder Value
In terms of shareholder returns, L3Harris has been active in share repurchase programs:
- Share repurchase authorization: $3 billion announced in October 2022.
- Maximum approximate dollar value of shares that may yet be purchased: $3,422 million as of September 27, 2024.
Key Acquisitions
In July 2023, L3Harris acquired Aerojet Rocketdyne (AJRD), contributing significantly to its operational capabilities and revenue stream:
- Acquisition Date: July 28, 2023
- Goodwill from acquisition: $2,902 million
Commitment to Innovation
The company's mission is supported by its ongoing initiatives, including:
- Investment in Research and Development: Approximately $1,243 million in non-cash adjustments for the three quarters ended September 27, 2024.
- Focus on emerging technologies and solutions in defense and communications.
Conclusion
L3Harris Technologies, Inc. remains committed to enhancing global security through innovative solutions, robust financial performance, and strategic growth initiatives.
How L3Harris Technologies, Inc. (LHX) Works
Company Overview
L3Harris Technologies, Inc. (LHX) operates as a global aerospace and defense technology innovator, specializing in providing communications and electronic systems. The company was formed by the merger of L3 Technologies and Harris Corporation in 2019, and it is structured into four main segments: Communication Systems (CS), Space and Airborne Systems (AR), Strategic Communications (SAS), and Integrated Mission Solutions (IMS).
Financial Performance
As of September 27, 2024, L3Harris reported the following financial results:
| Financial Metrics | Quarter Ended September 27, 2024 | Quarter Ended September 29, 2023 | Three Quarters Ended September 27, 2024 | Three Quarters Ended September 29, 2023 |
|---|---|---|---|---|
| Revenue | $5,292 million | $4,915 million | $15,802 million | $14,079 million |
| Cost of Revenue | ($3,873 million) | ($3,608 million) | ($11,675 million) | ($10,419 million) |
| Gross Margin | $1,419 million | $1,307 million | $4,127 million | $3,660 million |
| Operating Income | $495 million | $479 million | $1,349 million | $1,272 million |
| Net Income | $404 million | $382 million | $1,056 million | $1,072 million |
| Diluted EPS | $2.10 | $2.02 | $5.50 | $5.61 |
Segment Performance
Revenue and operating income by segment for the quarter ended September 27, 2024 are as follows:
| Segment | Revenue (in millions) | Operating Income (in millions) | Operating Margin |
|---|---|---|---|
| Communication Systems (CS) | $1,382 | $359 | 26.0% |
| Space and Airborne Systems (AR) | $596 | $75 | 12.6% |
| Strategic Communications (SAS) | $1,683 | $195 | 11.6% |
| Integrated Mission Solutions (IMS) | $1,671 | $204 | 12.2% |
Backlog and Future Revenue
As of September 27, 2024, L3Harris reported a total backlog of $33.8 billion, with an expectation to recognize approximately 45% of this revenue over the next twelve months.
Cash Flow and Capital Structure
Cash flow from operating activities for the three quarters ended September 27, 2024 was $1,430 million, compared to $1,307 million for the same period in the previous year. The cash and cash equivalents at the end of the period were $539 million.
| Cash Flow Metrics | Three Quarters Ended September 27, 2024 | Three Quarters Ended September 29, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,430 million | $1,307 million |
| Net Cash Used in Investing Activities | ($151 million) | ($6,938 million) |
| Net Cash (Used in) Provided by Financing Activities | ($1,309 million) | $5,254 million |
Debt and Credit Arrangements
As of September 27, 2024, L3Harris had total long-term debt of $11.733 billion. The company had no outstanding borrowings under its 2024 Credit Agreement and had available borrowing capacity of $2.3 billion.
| Debt Type | Amount (in millions) |
|---|---|
| 3.832% notes, due April 27, 2025 | $600 |
| 5.40% notes, due January 15, 2027 | $1,250 |
| 4.40% notes, due June 15, 2028 | $1,850 |
| 5.05% notes, due June 1, 2029 | $750 |
| 1.80% notes, due January 15, 2031 | $650 |
Research and Development
L3Harris invests heavily in research and development (R&D), with company-funded R&D costs amounting to $135 million for the quarter ended September 27, 2024, compared to $125 million for the same quarter in 2023.
Acquisitions and Divestitures
On July 28, 2023, L3Harris completed the acquisition of AJRD, a significant contributor to the company's growth and revenue increase in the AR segment.
| Acquisition/Divestiture | Details |
|---|---|
| AJRD Acquisition | Completed on July 28, 2023 |
| Visual Information Solutions (VIS) Sale | Completed on April 6, 2023 for $70 million |
How L3Harris Technologies, Inc. (LHX) Makes Money
Revenue Segments
L3Harris Technologies generates revenue through four primary business segments: Communication Systems (CS), Intelligence, Surveillance and Reconnaissance (ISR), Space and Airborne Systems (SAS), and Integrated Mission Systems (IMS). As of September 27, 2024, the revenue breakdown by segment is as follows:
| Segment | Revenue (Q3 2024, in millions) | Operating Income (Q3 2024, in millions) | Operating Margin (%) |
|---|---|---|---|
| SAS | $1,683 | $195 | 11.6% |
| IMS | $1,671 | $204 | 12.2% |
| CS | $1,382 | $359 | 26.0% |
| AR | $596 | $75 | 12.6% |
| Total | $5,292 | $495 | 9.4% |
Financial Performance
For the quarter ended September 27, 2024, L3Harris reported total revenue of $5,292 million, an increase of 8% compared to the previous year. The cost of revenue was $3,873 million, resulting in a gross margin of $1,419 million, or 26.8% of total revenue.
Operating Income and Expenses
The operating income for the quarter was $495 million, with general and administrative expenses amounting to $924 million, representing 17% of total revenue. The effective tax rate for this period was 6.0%.
Acquisition Impact
The acquisition of AJRD on July 28, 2023, significantly impacted revenue generation, particularly in the AR segment, which saw revenue increase by $141 million due to a full quarter of revenue recognition from the acquisition. Overall, the AR segment revenue for Q3 2024 was $596 million, compared to $455 million in Q3 2023.
Cash Flow Analysis
For the three quarters ended September 27, 2024, net cash provided by operating activities was $1,430 million, compared to $1,307 million in the same period the previous year. Investing activities resulted in a net cash usage of $151 million, while financing activities accounted for a net cash outflow of $1,309 million.
Backlog and Future Revenue Potential
As of September 27, 2024, L3Harris reported a backlog of $33.8 billion. Approximately 45% of this backlog is expected to convert to revenue over the next twelve months, indicating a strong revenue pipeline moving forward.
Summary of Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue (in millions) | $5,292 | $4,915 |
| Net Income (in millions) | $404 | $382 |
| Diluted EPS | $2.10 | $2.02 |
| Gross Margin (%) | 26.8% | 26.6% |
| Operating Income (in millions) | $495 | $479 |
Segment Revenue Growth Comparison
The following table details the revenue growth by segment for the three quarters ended September 27, 2024, compared to the same period in the previous year:
| Segment | Revenue Growth (in millions) |
|---|---|
| SAS | $85 |
| IMS | $66 |
| CS | $315 |
| AR | $1,264 |
L3Harris Technologies continues to leverage its diverse business segments to drive revenue growth, supported by strategic acquisitions and a robust backlog, positioning itself favorably for future performance.
L3Harris Technologies, Inc. (LHX) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- L3Harris Technologies, Inc. (LHX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of L3Harris Technologies, Inc. (LHX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View L3Harris Technologies, Inc. (LHX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.