L3Harris Technologies Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did LHX Beat Earnings? Q3 2025 Results
L3Harris Technologies posted a strong third quarter of fiscal 2025, with non-GAAP diluted EPS of $2.70 clearing the $2.57 consensus estimate by 5.09% and revenue of $5.66 billion topping expectations by 2.68% while climbing 6.9% year-over-year, signaling that the defense electronics giant's operational turnaround is gaining real traction. The single most important engine behind the beat was Aerojet Rocketdyne, which delivered 13% revenue growth driven by surging production volumes across missile, munitions, and space programs, complementing broad organic momentum that reached 10% across all four segments. A book-to-bill ratio of 1.2x on $6.70 billion in orders underscored the durability of demand, a point reinforced by analysts who argue the share price has not yet fully reflected the company's opportunities amid rising global defense needs. On the strength of the quarter, management raised full-year 2025 guidance, lifting revenue expectations to approximately $22.00 billion and non-GAAP EPS to a range of $10.50 to $10.70, with the heaviest cash generation expected in the fourth quarter assuming government shutdown resolution.
- 10% organic revenue growth across all segments
- Eighth consecutive quarter of year-over-year adjusted segment operating margin expansion
- LHX NeXt driven cost savings across all segments
- Higher production volumes across missile, munitions, and space programs
- Increased international deliveries for software-defined resilient communications and data-link equipment
- Lower interest expense from decreased average outstanding short-term debt balances
“We delivered another strong quarter, with robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution as drivers of profitable growth. We are driving sustained performance, marking our eighth consecutive quarter of year-over-year adjusted segment operating margin expansion, and advancing our strategic priorities in support of our customers' missions. With increasing demand, a record pipeline, and timely investments made ahead of the curve in growth areas like space and munitions, we are on track to achieve our 2026 Financial Framework and positioned to deliver long-term profitable growth.”
L3Harris Technologies CEO, on the earnings call
Forward Guidance & Outlook
L3Harris raised its full-year 2025 guidance across key metrics. Revenue is now expected at approximately $22 billion (up from ~$21.75 billion). Non-GAAP diluted EPS guidance was raised to $10.50–$10.70 (from $10.40–$10.60). Adjusted segment operating margin is expected at high 15% (narrowed from mid-to-high 15%). Adjusted free cash flow is expected at approximately $2.65 billion. The company expects the strongest cash generation of the year in the fourth quarter, assuming government shutdown resolution. Segment-level guidance was also raised: Communication Systems revenue ~$5.7 billion, Integrated Mission Systems ~$6.5 billion, Space & Airborne Systems ~$7.1 billion, and Aerojet Rocketdyne $2.8–$2.9 billion. Capital expenditures are expected at ~2% of revenue, with net interest expense of ~$600 million and an effective non-GAAP tax rate of 13.5%–14.5%.
LHX YoY Financials
LHX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.