L3Harris Technologies Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did LHX Beat Earnings? Q2 2025 Results
L3Harris Technologies posted a standout second quarter for 2025, beating Wall Street on both the top and bottom lines as defense demand continued to accelerate. The company reported earnings per share of $2.78, clearing the consensus estimate of $2.49 by 11.69%, while revenue came in at $5.43 billion, ahead of the $5.31 billion estimate and up 2.4% year-over-year. The most telling signal of underlying momentum, however, was the company's record book-to-bill ratio of 1.5x on $8.30 billion in orders, reflecting what CEO Christopher Kubasik described as a "clear inflection point" toward its 2026 financial targets. Organic revenue grew 6%, the strongest top-line performance in six quarters, driven by missile and munitions production ramps, international communications demand, and classified ISR program activity. Adjusted segment operating margin improved for the seventh consecutive quarter, reaching 15.9%. Riding the strength, L3Harris raised its full-year revenue outlook to approximately $21.75 billion and lifted non-GAAP diluted EPS guidance to $10.40 to $10.60, with analysts subsequently raising their consensus price target to $291.
- Record book-to-bill of 1.5x with $8.3 billion in orders
- 6% organic revenue growth, strongest top-line growth in six quarters
- Seventh consecutive quarter of year-over-year adjusted segment operating margin expansion
- LHX NeXt driven cost savings across all segments
- Monetization of legacy end-of-life assets
- Increased international demand for resilient communication equipment
- ISR classified program ramp in Integrated Mission Systems
- Increased FAA volume in Mission Networks business
- Higher missile and munitions production volume in Aerojet Rocketdyne
- Lower unallocated corporate expenses including lower LHX NeXt implementation costs
“We delivered impressive second-quarter results, led by a record book-to-bill of 1.5x, solid organic growth, and year-over-year adjusted segment operating margin expansion for the seventh consecutive quarter. This marks a clear inflection point, with our strongest top-line growth in six quarters and meaningful progress towards our 2026 Financial Framework. Our Trusted Disruptor strategy continues to drive differentiated, mission-critical solutions that meet our customers' evolving needs while creating value for shareholders.”
L3Harris Technologies CEO, on the earnings call
Forward Guidance & Outlook
L3Harris raised its 2025 guidance across key metrics. Full-year revenue guidance was increased to approximately $21.75 billion (from $21.4B-$21.7B). Non-GAAP diluted EPS guidance was raised to $10.40-$10.60 (from $10.30-$10.50), reflecting ~$0.40 of H1 2025 operational outperformance partially offset by ~$0.30 headwind from higher effective tax rate (now 13.5%-14.5%, up from 11.0%-12.0%). Adjusted free cash flow guidance was raised to approximately $2.65 billion (from $2.4B-$2.5B). Adjusted segment operating margin is expected at mid-to-high 15%. The company also increased its 2026 outlook on strong performance and improved expectations. Segment-level revenue guidance was raised for Integrated Mission Systems (to ~$6.4B from ~$6.3B) and Space and Airborne Systems (to ~$7.1B from $6.9B-$7.1B). Management emphasized alignment with a generational defense investment cycle and confidence in sustained profitable growth.
LHX YoY Financials
LHX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.