L3Harris Technologies Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did LHX Beat Earnings? Q4 2025 Results
L3Harris Technologies posted a mixed but broadly encouraging fourth quarter, with non-GAAP earnings per share of $2.86 beating the $2.77 consensus by 3.25%, even as revenue of $5.65 billion came in 1.92% below expectations despite growing 2.3% year over year. The real story was the company's remarkable cash generation, with Q4 operating cash flow surging 74% to $1.96 billion, driven by tax planning strategies, lower interest payments, and higher net income, underlining what CEO Christopher Kubasik called "a clear inflection point" for the defense contractor. Record orders of $27.50 billion and a book-to-bill ratio of 1.3x signal a strong demand pipeline, reflecting customer urgency around national and global defense priorities, including growing momentum in missile and munitions programs following the Aerojet Rocketdyne integration. A non-cash goodwill impairment of $85.00 million weighed on GAAP EPS, which fell to $1.59 from $2.37 a year earlier. Looking ahead, L3Harris guided fiscal 2026 revenue of $23.00 billion to $23.50 billion, with GAAP diluted EPS of $11.30 to $11.50 and free cash flow of approximately $3.00 billion.
- Record orders of $27.5 billion with 1.3x book-to-bill ratio
- 5% organic revenue growth across all segments
- LHX NeXt driven cost savings across all segments
- Monetization of legacy end-of-life assets
- Favorable tax planning strategies and tax reform
- Lower average outstanding short-term debt balances reducing interest expense
- Increased international deliveries
- Higher FAS pension income
“2025 was a clear inflection point for L3Harris. Our portfolio is directly aligned with the most critical national and global defense priorities, which drove record orders and strong organic growth, margins and cash flow. Throughout the year, we saw customers move with greater urgency, and our investments and agility allowed us to deliver on their missions with speed and scale.”
L3Harris Technologies CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, L3Harris guides total revenue of $23.0 billion to $23.5 billion across three reorganized segments: Space & Mission Systems (~$11.5B), Communication & Spectrum Dominance (~$8.0B), and Missile Solutions (~$4.4B). Segment operating margin is expected in the low 16% range, with Communication & Spectrum Dominance at ~25%, Space & Mission Systems at mid-10%, and Missile Solutions at mid-12%. GAAP diluted EPS is guided at $11.30 to $11.50, representing the company's transition from non-GAAP to GAAP EPS guidance. Free cash flow is anticipated at approximately $3.0 billion, with operating cash flow of ~$3.6 billion and capex of ~$600 million. The 2026 guidance includes the Space Technology disposal group financials, which will be updated when the majority stake sale closes in 2H 2026.
LHX YoY Financials
LHX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.