L3Harris Technologies (LHX) Announces First Quarter 2025 Earnings Results, Updates 2025 Guidance

L3Harris Technologies, Inc. (LHX) today announced its financial results for the latest quarter, revealing a challenging period for the company. The company reported quarterly revenue of $5.13 billion, falling short of the estimated $5.50 billion, marking a miss in revenue expectations. Additionally, L3Harris posted a quarterly diluted earnings per share of $2.04, which was below the anticipated $3.42, resulting in a significant miss in earnings projections.

Key Highlights:

• L3Harris Technologies reported first quarter 2025 revenue of $5.1 billion and a diluted EPS of $2.04.
• The company updated its 2025 guidance due to a divestiture and strong Q1 performance.
• Operating margin improved to 10.2%, with an adjusted segment operating margin of 15.6%.
• L3Harris repurchased $569 million of shares and increased its dividend for the 24th consecutive year.
• The company is focused on strategic partnerships and delivering mission-critical solutions aligned with national security priorities.
• Revenue declined by 2% due to divestitures, but organic revenue remained flat.
• The company expects 2025 non-GAAP diluted EPS to be between $10.30 and $10.50, reflecting a 7% growth.

Summary:

L3Harris Technologies reported a strong start to 2025 with a first quarter revenue of $5.1 billion and a diluted EPS of $2.04. The company updated its 2025 guidance to reflect recent portfolio actions, including a divestiture and an internal business realignment. The operating margin improved to 10.2%, with an adjusted segment operating margin of 15.6%. L3Harris repurchased $569 million of shares and increased its dividend for the 24th consecutive year, demonstrating a clear capital deployment strategy. CEO Christopher E. Kubasik emphasized the company’s alignment with key national security priorities and its focus on strategic partnerships to deliver mission-critical solutions. He stated, “We are well-positioned to support the new administration’s evolving defense priorities, with strategic partnerships at the core of our Trusted Disruptor strategy.”

Despite a 2% decline in revenue due to divestitures, L3Harris maintained flat organic revenue, driven by growth in Communication Systems and Aerojet Rocketdyne. The company expects its 2025 non-GAAP diluted EPS to be between $10.30 and $10.50, reflecting a 7% growth. The updated guidance accounts for the divestiture of the Commercial Aviation Solutions business and the realignment of the Fuzing and Ordnance Systems business. L3Harris remains confident in its ability to meet its targets and drive long-term, profitable growth as it works toward its 2026 financial framework.

L3Harris Technologies, Inc. (LHX) has experienced a rollercoaster ride in its stock price over the past year, with a notable 6.29% increase over the year despite a recent six-month decline of 11.10%. The company’s one-month performance shows a promising 4.01% uptick, suggesting a potential recovery or positive market sentiment. However, the one-week dip of 1.17% indicates some short-term volatility. On the fundamentals side, L3Harris boasts a robust revenue growth with a two-year compound annual growth rate (CAGR) of 11.80%, alongside a healthy free cash flow CAGR of 6.23%. The company’s return on invested capital stands at 7.27%, reflecting efficient use of its capital investments. Despite these strengths, the astronomical negative price-to-earnings ratio suggests potential concerns or anomalies in earnings, possibly due to extraordinary items or accounting adjustments. Nevertheless, with a net profit margin of 7.02%, L3Harris continues to demonstrate solid profitability, which may underpin future stock performance.

L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company’s Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems. In addition, this segment offers advanced electro-optical and infrared solutions. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems. The company’s Communication Systems segment provides tactical communications; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, ground stations, and transportable tactical satellite communication (SATCOM) systems for use in manned aircraft, unmanned aerial vehicles, and naval ships; and helmet and weapon mounted integrated night vision systems. This segment also offers radios, systems applications, and equipment for critical public safety and professional communications; and SATCOM terminals and battlefield management networks. Its Aviation Systems segment offers defense aviation products; commercial pilot training; and mission networks solutions for air traffic management. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.