L3Harris Soars on Strong Q3 Earnings, Revenue Up 6.9%

Ticker: LHX · Form: 10-Q · Filed: 2025-10-30T00:00:00.000Z

Sentiment: bullish

Topics: Defense, Aerospace, Government Contracts, Earnings Growth, Share Repurchases, Q3 2025, Financial Performance

Related Tickers: LHX, RTX, NOC, GD, BA

TL;DR

**L3Harris is a buy; strong earnings and aggressive buybacks signal continued upside in defense tech.**

AI Summary

L3Harris Technologies, Inc. reported a strong third quarter and year-to-date performance for 2025. Revenue increased to $5,659 million in Q3 2025 from $5,292 million in Q3 2024, a 6.9% rise. Year-to-date revenue also grew to $16,217 million in 2025 from $15,802 million in 2024, a 2.6% increase. Net income attributable to L3Harris saw a significant jump, reaching $462 million in Q3 2025 compared to $400 million in Q3 2024, an increase of 15.5%. Year-to-date net income was $1,306 million in 2025, up from $1,049 million in 2024, a 24.5% improvement. Diluted EPS rose to $2.46 in Q3 2025 from $2.10 in Q3 2024, and to $6.92 year-to-date 2025 from $5.50 year-to-date 2024. The company divested its Commercial Aviation Solutions (CAS disposal group) on March 28, 2025, which was part of the Integrated Mission Systems segment. Cash and cash equivalents decreased from $615 million at January 3, 2025, to $339 million at October 3, 2025, primarily due to significant share repurchases totaling $998 million year-to-date 2025.

Why It Matters

L3Harris's robust financial performance, with significant increases in revenue and net income, signals strong demand for its defense and aerospace technologies, particularly from U.S. Government customers. This positive trend could lead to increased investor confidence and potentially further stock appreciation, especially given the company's aggressive share repurchase program of $998 million year-to-date 2025. For employees, this indicates job stability and potential growth opportunities within a thriving defense contractor. Customers, primarily government entities, benefit from L3Harris's continued investment in advanced systems, enhancing national security capabilities. In a competitive landscape, L3Harris's growth outpaces some peers, solidifying its market position.

Risk Assessment

Risk Level: medium — While L3Harris shows strong financial performance, the risk level is medium due to its heavy dependence on U.S. Government contracts, as explicitly stated in the cautionary statement. Changes in contract mix, potential unilateral contract actions by the U.S. Government, and impacts of government shutdowns are cited risks. Additionally, uncertain economic conditions, future geopolitical events, and supply chain disruptions could affect future results, despite current growth.

Analyst Insight

Investors should consider L3Harris as a potential long-term holding, given its consistent revenue and net income growth, coupled with a strong commitment to shareholder returns through dividends and significant share repurchases. Monitor geopolitical developments and U.S. defense spending trends, as these are primary drivers for the company's future performance. The recent divestiture of the Commercial Aviation Solutions group suggests a strategic focus on core defense segments.

Financial Highlights

revenue
$5,659 million
total Assets
$41,014 million
net Income
$462 million
eps
$2.46
cash Position
$339 million
revenue Growth
+6.9%

Revenue Breakdown

SegmentRevenueGrowth
Total Revenue$5,659 million+6.9%

Key Numbers

Key Players & Entities

FAQ

What were L3Harris Technologies' key financial results for the third quarter of 2025?

L3Harris Technologies reported revenue of $5,659 million for the third quarter of 2025, a 6.9% increase from $5,292 million in Q3 2024. Net income attributable to L3Harris rose to $462 million, up 15.5% from $400 million in the prior year quarter, with diluted EPS reaching $2.46.

How did L3Harris's year-to-date performance in 2025 compare to 2024?

For the year-to-date period in 2025, L3Harris's revenue was $16,217 million, a 2.6% increase from $15,802 million in 2024. Net income attributable to L3Harris significantly improved by 24.5% to $1,306 million in 2025 from $1,049 million in 2024, and diluted EPS grew to $6.92 from $5.50.

What strategic business changes did L3Harris make in 2025?

Effective in the first quarter of 2025, L3Harris realigned its fuzing and ordnance (FOS) business from the Integrated Mission Systems (IMS) segment to the Aerojet Rocketdyne (AR) segment. Additionally, the Commercial Aviation Solutions (CAS disposal group) was divested on March 28, 2025.

What are the primary risks L3Harris Technologies faces according to the 10-Q filing?

L3Harris faces risks primarily from its dependence on competitive markets from U.S. Government customers, changes in contract mix, inflation, unilateral contract actions by the U.S. Government, and the impacts of government shutdowns. Other risks include uncertain economic conditions, future geopolitical events, and supply chain disruptions.

How has L3Harris returned capital to shareholders in 2025?

L3Harris has actively returned capital to shareholders through significant share repurchases and dividends. Year-to-date 2025, the company repurchased $998 million of common stock, a substantial increase from $512 million in the same period of 2024. Cash dividends per share also increased to $1.20 in Q3 2025 from $1.16 in Q3 2024.

What was the change in L3Harris's cash and cash equivalents?

Cash and cash equivalents for L3Harris Technologies decreased from $615 million as of January 3, 2025, to $339 million as of October 3, 2025. This net decrease of $276 million was primarily influenced by significant share repurchases and dividends paid.

What is the significance of L3Harris's dependence on U.S. Government customers?

L3Harris's dependence on U.S. Government customers means its financial performance is highly sensitive to government spending, budget conditions, and policy changes. This concentration of customers introduces risks such as contract changes, potential government shutdowns, and shifts in defense priorities, which could materially impact the company's revenue and profitability.

How did L3Harris's operating income perform in Q3 2025?

L3Harris's operating income for the third quarter of 2025 was $621 million, a significant increase from $495 million in the third quarter of 2024. This 25.5% improvement indicates enhanced operational efficiency and profitability.

What is the current number of L3Harris common shares outstanding?

As of October 24, 2025, the number of shares outstanding of L3Harris Technologies' common stock was 187,052,847. This figure reflects the impact of share repurchases made during the year.

What was the impact of the FOS business realignment on L3Harris's segments?

Effective in the first quarter of 2025, L3Harris realigned its fuzing and ordnance (FOS) business from the Integrated Mission Systems (IMS) segment to the Aerojet Rocketdyne (AR) segment. This change was reflected in the historical results of the business segments to ensure comparable presentation, with no impact on previously reported consolidated financial statements.

Risk Factors

Industry Context

L3Harris operates in the highly competitive defense and aerospace industry, characterized by long-term government contracts and significant technological innovation. Key trends include increasing defense spending globally, a focus on advanced technologies like AI and cyber, and consolidation within the sector.

Regulatory Implications

As a major defense contractor, L3Harris is subject to stringent government regulations, including export controls (ITAR/EAR) and cybersecurity mandates. Compliance is critical to maintaining contracts and avoiding penalties, with ongoing scrutiny from regulatory bodies.

What Investors Should Do

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Key Dates

Glossary

FAS
Financial Accounting Standards (Used in the context of pension income, indicating the accounting framework applied.)
Noncontrolling interests
The portion of equity ownership in a subsidiary that is not attributable to the parent company. (Indicates the net income and comprehensive income attributable to other owners, which was minimal in this period.)
Contract assets
Represents the company's right to consideration in exchange for goods or services that the company has transferred to a customer. It arises when the company performs before it has an unconditional right to payment. (A significant component of current assets, reflecting revenue recognized before billing.)
Contract liabilities
Represents the company's obligation to transfer goods or services to a customer for which the company has received consideration from the customer. It arises when the customer pays before the company performs. (A significant component of current liabilities, representing deferred revenue.)

Year-Over-Year Comparison

L3Harris Technologies demonstrated robust year-over-year performance in the third quarter and year-to-date 2025. Revenue saw a healthy increase of 6.9% in Q3 and 2.6% year-to-date, driven by strong operational execution. Net income attributable to L3Harris surged by 15.5% in Q3 and an impressive 24.5% year-to-date, indicating improved profitability. Diluted EPS also saw significant growth, reflecting these positive financial trends. A notable change is the substantial increase in common stock repurchases, which contributed to a decrease in cash and cash equivalents from $615 million to $339 million, signaling a strong commitment to returning capital to shareholders.

Filing Stats: 4,500 words · 18 min read · ~15 pages · Grade level 15.2 · Accepted 2025-10-30 12:18:52

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information:

Financial Statements ( Unaudited)

ITEM 1. Financial Statements ( Unaudited): Condensed Consolidated Statement of Operations for Third Quarter and Year to Date 2025 and 2024 3 Condensed Consolidated Statement of Comprehensive Income for Third Quarter and Year to Date 2025 and 2024 4 Condensed Consolidated Balance Sheet as of October 3, 2025 and January 3, 2025 5 Condensed Consolidated Statement of Cash Flows for Year to Date 2025 and 2024 6 Condensed Consolidated Statement of Equity f or Third Quarter and Year to Date 2025 and 2024 7 Notes to Condensed Consolidated Financial Statements 8 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 22

M anagement's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. M anagement's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 32

Controls and Procedures

ITEM 4. Controls and Procedures 33

Other Information

Part II. Other Information:

Legal Proceedings

ITEM 1. Legal Proceedings 34

Risk Factors

ITEM 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 35

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 35

Other Information

ITEM 5. Other Information 35

Exhibits

ITEM 6. Exhibits 36

Signatures

Signatures 37 This Quarterly Report on Form 10-Q (this "Report") contains trademarks, service marks and registered marks of L3Harris Technologies, Inc. and its subsidiaries. All other trademarks are the property of their respective owners. _____________________________________________________________________ 1 Cautionary Statement Regarding Forward-Looking Statements This Report contains forward-looking statements within the meaning of federal securities laws that involve risks, uncertainties and assumptions that could cause our results to differ materially from such forward-looking statements. Examples include, but are not limited to, statements concerning: our plans, strategies and objectives for future operations; new products, systems, technologies, services or developments; future economic conditions, performance or outlook, including expectations regarding trade policies; future political or budget conditions; the outcome of contingencies or litigation; expected contractual backlog recognition; effective tax rate forecast; the potential level of share repurchases, dividends or pension contributions; capital expenditures and capital structure; other financial items; and assumptions underlying any of the foregoing. Terminology, such as "believes," "expects," "may," "could," "should," "would," "will," "intends," "plans," "estimates," "anticipates," "projects" and similar words or expressions may also identify forward-looking statements. You should not place undue reliance on forward-looking statements, which reflect our management's current expectations, estimates, projections and assumptions and information currently available to our management as of the date of filing of this Report and are not guarantees of future performance or actual results. Important risks that could cause our results to differ materially from those expressed in or implied by these forward-looking statements or from our historical results include, but are not limited to, risks ar

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Third Quarter Year to Date (In millions, except per share amounts) 2025 2024 2025 2024 Revenue $ 5,659 $ 5,292 $ 16,217 $ 15,802 Cost of revenue ( 4,165 ) ( 3,873 ) ( 12,038 ) ( 11,675 ) General and administrative expenses ( 873 ) ( 924 ) ( 2,462 ) ( 2,778 ) Operating income 621 495 1,717 1,349 Non-service FAS pension income and other, net (1) 98 101 287 275 Interest expense, net ( 152 ) ( 166 ) ( 454 ) ( 514 ) Income before income taxes 567 430 1,550 1,110 Income taxes ( 105 ) ( 26 ) ( 244 ) ( 54 ) Net income 462 404 1,306 1,056 Noncontrolling interests, net of income taxes — ( 4 ) — ( 7 ) Net income attributable to L3Harris $ 462 $ 400 $ 1,306 $ 1,049 Earnings per share attributable to common shareholders Basic $ 2.47 $ 2.11 $ 6.96 $ 5.53 Diluted $ 2.46 $ 2.10 $ 6.92 $ 5.50 _______________ (1) "FAS" is defined as Financial Accounting Standards. See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited). _____________________________________________________________________ 3 L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Third Quarter Year to Date (In millions) 2025 2024 2025 2024 Net income $ 462 $ 404 $ 1,306 $ 1,056 Other comprehensive (loss) income, net of income taxes: Foreign currency translation and other, net ( 1 ) 48 67 24 Pension and other postretirement benefits — — ( 43 ) 3 Other comprehensive (loss) income recognized during the period ( 1 ) 48 24 27 Reclassification adjustments for gains included in net income ( 8 ) ( 8 ) ( 29 ) ( 23 ) Other comprehensive (loss) income ( 9 ) 40 ( 5 ) 4 Other comprehensive income 453 444 1,301 1,060 Comprehensive income attributable to noncontrolling interest — ( 4 ) — ( 7 ) Other comprehensive income attributable to L3Harris $ 453 $ 440 $ 1,301 $ 1,0

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