L3Harris increased third-quarter revenue by 7 per cent to 6.060 billion dollars and raised its annual revenue and earnings outlooks. New orders reached 19.3 billion dollars, with multiyear missile propulsion contracts contributing to the total. Free cash flow also increased, while the defence contractor maintained its full-year forecast for that measure at 3 billion dollars.
Defence contractor L3Harris increased third-quarter revenue to 6.060 billion dollars, up 7 per cent from a year earlier. Zacks put revenue 2.80 per cent above its consensus estimate. The company’s organic growth measure, which adjusts for changes in business scope, showed a 9 per cent increase. Space and mission systems and missile solutions delivered double-digit growth.[1], [2]
New orders totalled 19.3 billion dollars, lifting backlog to 53.2 billion dollars. Multiyear missile propulsion contracts contributed to bookings. The quarterly ratio of orders to sales was 3.2 across the company and 11.8 in Missile Solutions. Management said it would continue investing in production capacity.[1]
The operating margin rose 200 basis points to 13.0 per cent, while the adjusted segment operating margin held at 15.9 per cent. Earnings per share increased 33 per cent to 3.28 dollars. L3Harris cited higher volumes, lower corporate and interest expenses and a lower tax rate as contributors.[1]
Annual revenue guidance rose to 23.5–23.7 billion dollars from 23.2–23.7 billion dollars. Management raised its earnings forecast to 12.25–12.35 dollars per share from 11.80–12.00 dollars. Operating cash flow in the quarter was 1.4 billion dollars and capital expenditure 179 million dollars. Free cash flow increased 195 per cent to 1.3 billion dollars; its annual forecast remained 3 billion dollars.[1]
