L3Harris Technologies, Inc. (LHX)

L3Harris reported third-quarter 2026 revenue of $6.1 billion on 29 October, up 7 percent 1. Orders of $19.3 billion pushed backlog, the work under contract but not yet delivered, to a record $53.2 billion 1. Diluted earnings per share were $3.28, up 33 percent 1.

Two seven-year contracts drove the orders 1. One is $6.3 billion to scale propulsion production for the THAAD missile defense system, and the other is $4.7 billion for the PAC-3 MSE interceptor 1. Both are undefinitized, a type of award whose final terms are settled later 1.

The company raised its full-year earnings guidance to $12.25 to $12.35 a share from $11.80 to $12.00, and kept its free cash flow guidance at $3 billion 1.

Sam Mehta became chief executive on 17 August, when the board said Christopher Kubasik had stepped down 4. The board said it learned of conduct by Kubasik that did not fit the company's code of conduct and was unrelated to financial reporting 4.

The open question is the planned public offering of the Missile Solutions business, which the company said in April it intended to pursue in the second half of 2026, pending market conditions 6. The Department of War's $1 billion preferred investment in that business converts to shares if a qualifying offering happens by 31 December 2027 2.

Harris Corporation and L3 Technologies agreed on 12 October 2018 to combine in an all-stock merger, and the deal closed on 29 June 2019 8.

L3 brought work on surveillance aircraft, aircraft upkeep, simulation and training, and night vision gear 8. The merged company also moved its fiscal year to end near 31 December instead of near 30 June 8.

Revenue fell 2 percent to $17.8 billion in fiscal 2021 from $18.2 billion in fiscal 2020, mainly because of sold businesses in aviation and supply chain limits in communications 8.

In fiscal 2022 the company said the decrease came mainly from $655 million of lower revenue from the divestitures completed in fiscal 2021 and from supply chain disruptions 9. It also wrote down goodwill, the premium paid in past purchases, by $355 million, $313 million and $134 million in three units 9.

On 3 January 2023 the company bought the Tactical Data Links product line for $1.96 billion 10. On 28 July 2023 it completed the purchase of Aerojet Rocketdyne Holdings, a maker of rocket propulsion, for a net $4.7 billion 10.

Revenue for fiscal 2023 rose 14 percent, helped by $1,052 million from Aerojet Rocketdyne and $365 million from the tactical data links purchase 10. A new Aerojet Rocketdyne segment was set up to report the propulsion business 10.

In fiscal 2024, products revenue rose $1,440 million, mostly because Aerojet Rocketdyne counted for a full year instead of a partial one 11.

In 2025 the company sold its Commercial Aviation Solutions business for net cash proceeds of $831 million, on 28 March 23. Revenue still rose $540 million, or 3 percent, for the year on new program ramps and more international deliveries 3.

The year ended with contractual backlog of $38.7 billion, up 13 percent from the year before 3. The company also put $536 million into its own research, 2 percent of revenue 3.

On 5 January the company cut its segments from four to three 7. On 23 April it closed a $1 billion investment from the Department of War in the Missile Solutions business 6.

On 3 August 2026 it sold a 60 percent controlling interest in its Space Technology group for cash proceeds of $539 million and kept 40 percent 2. Mehta replaced Kubasik as chief executive two weeks later 4.

Space & Mission Systems

This segment supplies full mission solutions as a prime and subsystem integrator in the space, airborne, maritime and cyber domains 2. Its sectors are airborne surveillance (ISR), space systems, maritime, mission networks, airborne solutions, and intelligence and cyber 2.

In the third quarter its revenue grew on missile warning and tracking programs, up $127 million, and surveillance work tied to classified contracts, up $107 million 2. Air traffic work for the FAA added $36 million and F-35 electronics $25 million 2.

The segment also built the 2.4-meter optical telescope assembly and radiation-hardened electronics for NASA's Nancy Grace Roman Space Telescope, which completed its launch 1. Its third-quarter book-to-bill ratio, orders divided by revenue, was 1.0x 1.

Communications & Spectrum Dominance

This segment makes secure radios, satellite terminals, tactical data links, electronic warfare gear, infrared sensors, counter-drone systems and night vision goggles 2.

Year to date its revenue rose $136 million in Mission Critical Communications, including a $280 million increase in international radio deliveries 2. The VAMPIRE counter-drone systems added $35 million 2. Its third-quarter book-to-bill ratio was 1.9x 1.

More than $500 million of VAMPIRE orders came from the United States and allies, and the first units reached the U.S. Army two months after the order 1. A $876 million modification advanced the Navy's Next Generation Jammer Low Band electronic warfare system 1.

Missile Solutions

This segment, built around the former Aerojet Rocketdyne, supplies propulsion, steering and fuzing systems for missile defense interceptors, strategic deterrence and precision strike weapons, plus space propulsion 2. It also makes guidance, sensing and weapons release systems under Advanced Effects 2.

Its year-to-date revenue rose $253 million in propulsion, with $335 million from production and development volumes on key missile programs 2. A $250 million follow-on contract covers standard-range GMLRS rocket propulsion units 1. Third-quarter book-to-bill was 11.8x 1.

Its backlog of $20.0 billion is the largest of the three segments by funding gap, with $7.7 billion funded and $12.3 billion unfunded 2. Unfunded means the contract is signed but Congress has not yet paid for the later years 2.

Customers, rivals and people

The U.S. Government, directly or through prime contractors, bought 75 percent of revenue in fiscal 2025, and sales outside the U.S. were $4.8 billion, 22 percent of revenue, from over 100 countries 3.

The 10-K names BAE Systems, Boeing, General Dynamics, Lockheed Martin, Northrop Grumman, RTX and Thales as rivals, plus newer firms Anduril, Ursa Major and Silvus Technologies 3. It also names partnerships with Palantir Technologies, Shield Capital, Anduril and Amazon Kuiper 3.

Mehta leads the company and Lewis Hay III is independent chairman, as of 17 August 4. Lauren Barnes was named to run Space & Mission Systems and Christopher Aebli Communications & Spectrum Dominance, while Kenneth Bedingfield leads Missile Solutions 4.

On 22 October the board added Kimberly Fields, chair and chief executive of ATI, Inc. 5. The company had about 45,000 employees at 2 January 2026, including about 18,000 engineers and scientists, and 90 percent worked in the U.S. 3.

Plants and sites

At 2 January 2026 the company ran about 230 locations with about 25 million square feet, owning about 11 million and leasing about 14 million 3. Missile propulsion sites include Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia 36.

The company opened its 'Arsenal of Freedom' solid rocket motor facility in Camden in October, one of about 60 new facilities being built for rising munitions demand 1. A lease of about $700 million tied to a larger Camden expansion is set to start in January 2028 3.

Problems and risks

The company says a bill requiring second sources for missile parts it alone supplies could move contracts to rivals and leave its expanded lines with unused capacity 2. It adds that the capacity plan depends on funding across several years 2.

The government began operating on a continuing resolution on 1 October 2026 that runs through 11 December 2026 and is limited to the earlier base budget of $860 billion 2. Congress is to address final appropriations after the midterm elections 2.

The quarterly report says legal claims are routine and that the accrual for those judged probable of an unfavorable outcome was not material at 2 October 2026 2.

The umbrella, in words

The company sells under its own name and describes itself as the Trusted Disruptor in the defense industry 3. Its February 2026 subsidiaries exhibit lists entities such as Aerojet Rocketdyne Holdings, Inc. and L3 Technologies, Inc., both Delaware companies, with 100 percent ownership unless noted 12.

Stake owned: after the 3 August 2026 sale, L3Harris owns 40 percent of RocketForce Technologies LLC, the newly formed Space Technology company 2. Stake invested by others: the Department of War holds convertible preferred stock and warrants in the Missile Solutions subsidiary, called AXYV Inc. in the quarterly report 2.

The warrants cover 3 percent of AXYV on a fully diluted basis 2. L3Harris said in April it would remain the majority owner of the business, with more than 80 percent, and would consolidate its results 6.

Control of the parent: the 10-K shows 8,747 holders of record of its common stock as of 6 February 2026 3.

For the full year the company expects revenue of $23.5 billion to $23.7 billion and earnings of $12.25 to $12.35 a share, and it maintained free cash flow guidance of $3 billion 1.

Of the $38.7 billion backlog, the company expects about 45 percent as revenue by the end of fiscal 2026 and about 70 percent by the end of fiscal 2027 3.

The company says it is executing a capacity plan of more than $3 billion of capital investment through 2030 in Missile Solutions, to raise output of solid rocket motors, attitude control systems and precision fuzes 2.

The company said in April it intends to pursue a public offering of the Missile Solutions business in the second half of 2026, pending market conditions 6. If none occurs by 31 December 2027, the quarterly report says the Department of War may convert its shares, with redemption possible on or after 17 April 2031 2.

On 2 November 2026 the company priced two note issues, $500 million of 5.200 percent notes due 2029 and $500 million of 5.400 percent notes due 2032, with settlement set for 5 November 13.

Mehta said the priority is to turn demand into results and to keep investing in production capacity across missiles, space, resilient communications and multi-domain sensing 1.

The 10-Q notes that almost all NATO allies have committed to spend 5 percent of GDP a year on defense and security over the next decade, 3.5 percent of it on core defense articles 2.

The same report says the President's budget requested $18.8 billion for NASA, a decrease of 23 percent from the enacted level, which bears on the company's space work 2.

It had $1.6 billion left on its share repurchase authorization at 2 October 2026 2. The budget picture depends on Congress: the President's request for fiscal 2027 called for about $1.5 trillion for national defense, and final appropriations await the midterm elections 2.