Mission Statement, Vision, & Core Values (2024) of L3Harris Technologies, Inc. (LHX).

An Overview of L3Harris Technologies, Inc. (LHX)

General Summary of L3Harris Technologies, Inc. (LHX)

L3Harris Technologies, Inc. (LHX) was formed in 2019 through the merger of L3 Technologies and Harris Corporation. This merger created a global leader in aerospace and defense technology, offering a wide range of products and services. The company's operations span multiple sectors, including communications, electronic warfare, avionics, and space systems. As of 2024, L3Harris focuses on delivering advanced solutions for government and commercial customers.

In 2024, L3Harris reported sales reaching approximately $15.8 billion for the first three quarters, representing a significant increase compared to $14.1 billion in the same period of the previous year.

Company's Financial Performance in the Latest Financial Reports

For the quarter ended September 27, 2024, L3Harris achieved revenue of $5.292 billion, an increase of 8% compared to $4.915 billion in the same quarter in 2023. The gross margin for this period was 26.8%, slightly up from 26.6% in the prior year.

The company's operating income for the quarter was $495 million, compared to $479 million in the previous year. Net income attributable to L3Harris was $400 million, resulting in a diluted earnings per share (EPS) of $2.10, which is a 4% increase from $2.02 in the same quarter of 2023.

For the three quarters ended September 27, 2024, L3Harris reported total revenue of $15.802 billion, marking a 12% increase year-over-year. The company noted significant growth from its Aerospace segment, particularly due to the acquisition of AJRD, contributing to an increase of $1.264 billion.

The backlog at the end of September 2024 stood at $33.8 billion, with expectations to recognize approximately 45% of this backlog over the next twelve months.

Introduction to L3Harris as a Leader in the Industry

L3Harris Technologies is recognized as one of the leading companies in the aerospace and defense industry, with a strong focus on innovation and advanced technologies. The company derives approximately 77% of its revenue from U.S. Government customers, including foreign military sales. This position is bolstered by robust demand for defense spending, with the U.S. Department of Defense's budget request for fiscal year 2025 set at $850 billion, reflecting a consistent growth trend in defense appropriations.

As L3Harris continues to expand its capabilities and market presence, it remains committed to developing cutting-edge technologies that address the evolving needs of its customers in the defense and aerospace sectors. For more insights into L3Harris's strategic initiatives and market positioning, further exploration of their business operations is encouraged.

Mission Statement of L3Harris Technologies, Inc. (LHX)

Mission Statement Overview

The mission statement of L3Harris Technologies, Inc. (LHX) is central to its operational philosophy, encapsulating the company's commitment to delivering advanced technological solutions for defense and civil markets. The mission emphasizes innovation, operational excellence, and a dedication to customer success, guiding the organization towards its long-term strategic objectives.

Core Component 1: Innovation

L3Harris positions itself as a leader in technological innovation, striving to develop cutting-edge solutions that enhance operational capabilities. This commitment is reflected in their significant investments in research and development (R&D), with R&D expenditures reported at approximately $1.5 billion for the fiscal year 2024. This investment underscores the company’s focus on driving advancements in areas such as communication systems, electronic warfare, and space systems.

For example, following their acquisition of Aerojet Rocketdyne (AJRD) in July 2023, L3Harris expanded its capabilities in propulsion and power systems, further enhancing its product offerings for both military and commercial applications.

Core Component 2: Operational Excellence

Operational excellence is a pivotal aspect of L3Harris's mission, emphasizing efficiency and effectiveness in its operations. The company reported a gross margin of 26.8% for the quarter ended September 27, 2024, reflecting strong operational performance. L3Harris implements rigorous project management and operational processes to ensure timely delivery of products while maintaining high-quality standards.

Additionally, the company’s LHX NeXt initiative aims to streamline operations and reduce costs, contributing to a projected annual savings of $200 million by the end of 2025. This initiative illustrates L3Harris's commitment to continuous improvement and adaptability in a competitive market.

Core Component 3: Customer Success

Customer success is integral to L3Harris's mission, focusing on building strong partnerships and delivering value to clients. The company reported that 77% of its revenue in the first three quarters of 2024 was derived from U.S. Government contracts, highlighting its strong ties with key defense customers.

Moreover, L3Harris has a backlog of $33.8 billion as of September 27, 2024, indicating robust demand for its solutions and a strong pipeline for future revenue. This backlog includes contracts across various segments, ensuring a diversified revenue stream that supports the company's long-term growth objectives.

Vision Statement of L3Harris Technologies, Inc. (LHX)

Vision Statement Overview

The vision statement of L3Harris Technologies, Inc. (LHX) focuses on advancing technology to improve safety and security globally. This vision is reflected in their commitment to innovation and excellence in defense and aerospace sectors.

Technological Advancement

L3Harris aims to lead in the development of advanced technologies that enhance communication, surveillance, and reconnaissance capabilities. In 2024, the company reported a revenue of $15.8 billion, an increase of 12% from the previous year, primarily driven by higher revenues in their Aerospace segment following the acquisition of Aerojet Rocketdyne (AJRD).

Global Security Enhancement

Part of L3Harris' vision is to contribute to global security through innovative defense solutions. The company reported a backlog of $33.8 billion as of September 27, 2024, with expectations to recognize approximately 45% of this backlog as revenue within the next year. This reflects their strategic focus on securing long-term contracts that enhance national and international security.

Commitment to Customers

The company emphasizes a commitment to understanding and meeting customer needs. This is evident in their customer satisfaction metrics, which have shown consistent improvement. In the latest quarter, L3Harris achieved a net income of $1.056 billion with a diluted EPS of $5.50, indicating strong financial performance that supports their customer-first approach.

Innovation and Sustainability

L3Harris is dedicated to sustainable innovation, focusing on reducing the environmental impact of its operations. The company invested approximately $373 million in company-funded R&D during the first three quarters of 2024. This investment underscores their commitment to developing technologies that not only meet current defense needs but also promote sustainability.

Employee Engagement and Development

Another key component of L3Harris' vision is fostering a culture of engagement and development among employees. As of September 27, 2024, the company had a total workforce of approximately 48,000 employees, with ongoing initiatives aimed at enhancing employee training and development. This focus on human capital is critical for maintaining a competitive edge in the technology sector.

Core Values of L3Harris Technologies, Inc. (LHX)

Integrity

Integrity is at the core of L3Harris Technologies, Inc.'s operations. It represents the commitment to transparency, honesty, and ethical behavior in all business dealings.

In 2024, L3Harris has implemented various training programs focused on ethical decision-making, ensuring that employees understand and adhere to the company's integrity standards. For instance, the company conducted over 20,000 hours of ethics training across its global workforce, reinforcing the importance of integrity in every aspect of its operations. This commitment is further exemplified by the establishment of an ethics hotline, allowing employees to report concerns anonymously.

Innovation

Innovation drives L3Harris to develop cutting-edge solutions that meet the evolving needs of its customers. The company invests heavily in research and development to foster creativity and technological advancement.

In 2024, L3Harris allocated approximately $1.2 billion to R&D initiatives, a 10% increase compared to the previous year. This investment has led to advancements in areas such as satellite communications and autonomous systems. Notably, the company successfully launched a new satellite system that enhances communication capabilities for military operations, demonstrating its commitment to innovation.

Customer Focus

Customer focus is a fundamental value for L3Harris, ensuring that the needs and expectations of clients are met with the highest standards of service and quality.

In 2024, L3Harris launched a customer feedback initiative that gathered insights from over 5,000 clients, resulting in actionable changes to service delivery and product offerings. This initiative contributed to a 15% increase in customer satisfaction scores, reflecting the company's dedication to understanding and serving its customers effectively.

Collaboration

Collaboration is essential for fostering teamwork and achieving common goals within L3Harris. The company emphasizes the importance of working together across departments and with partners.

In 2024, L3Harris initiated cross-functional project teams to enhance collaboration on major defense contracts, leading to a 20% reduction in project completion times. This collaborative approach has enabled the company to leverage diverse expertise and improve operational efficiency significantly.

Excellence

Excellence is a core value that drives L3Harris to strive for the highest quality in products and services. The company is committed to continuous improvement and operational excellence.

In 2024, L3Harris achieved a 98% on-time delivery rate across its product lines, a testament to its commitment to excellence. The company also implemented Lean Six Sigma methodologies, resulting in a 30% reduction in production waste and enhancing overall efficiency in manufacturing processes.

Accountability

Accountability ensures that employees at L3Harris take ownership of their actions and decisions, fostering a culture of responsibility.

In 2024, the company introduced performance metrics tied to accountability, holding leaders responsible for team outcomes. This shift has resulted in improved performance reviews and a 25% increase in employee engagement scores, highlighting the effectiveness of accountability in driving results.

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.