NYSE: LHX · Aerospace & Defense
L3Harris
L3Harris Technologies, based in Melbourne, Florida, is a defense technology company serving customers in more than 100 countries across space, air, land, sea and cyber, with about 45,000 employees including 18,000 engineers and scientists. About 75% of fiscal 2025 revenue came from the U.S. government. In fiscal 2025 (ended January 2, 2026) revenue rose to $21,865 million across four segments — Space & Airborne Systems ($6,946 million), Integrated Mission Systems ($6,630 million), Communication Systems ($5,673 million) and Aerojet Rocketdyne ($2,845 million), the rocket-motor maker acquired in July 2023 — and net income rose to $1,606 million. Backlog was $38.7 billion. From fiscal 2026 it reports three segments (Space & Mission Systems, Communication & Spectrum Dominance, Missile Solutions), and it plans an IPO of Missile Solutions in the second half of 2026 with the Department of War as a $1.0 billion anchor investor.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 27, 2026 15:53 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-1210-Q (quarter ended 2026-10-02) · filed 2026-10-29Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 3.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 9.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -1.4 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.8x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.93x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 24.1x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.61
Higher than 16% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 24% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 21% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 70% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 71% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-10-02
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$263.10close on 2026-11-04
Market cap$49.16B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 24.1x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.5x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 17.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 5.5%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.8%
At FY2025 year-end: 35.7x
Earnings: trailing 12 months to 2026-10-02
At FY2025 year-end: 2.9x
Book value at FY2025 year-end
At FY2025 year-end: 19.9x
EBITDA for FY2025
At FY2025 year-end: 4.7%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Oct 2, 2026.
- Net income$462M → $632M (vs. a year earlier)↑ +36.8%$462M → $632M (vs. a year earlier)
- Diluted EPS$2.46 → $3.28 (vs. a year earlier)↑ +33.3%$2.46 → $3.28 (vs. a year earlier)
- Cash$1.52B → $2.47B (vs. previous quarter-end)↑ +62.5%$1.52B → $2.47B (vs. previous quarter-end)
- Long-term debt$9.18B → $9.18B (vs. previous quarter-end)→ −0.0%$9.18B → $9.18B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 29, 2026.
Management outlook ↑ Raised
Raised the low end of revenue guidance to $23.5B–$23.7B. Source sentence
Guidance Update: Increases bottom end of the revenue guidance range to $23.5 billion to $23.7 billion (prev. $23.2 billion to $23.7 billion), increases GAAP EPS range to $12.25 to $12.35 (prev. $11.80 to $12.00)
Key changes
Orders of $19.3B drove record backlog of $53.2B. Source sentence
Orders of $19.3 billion drove record backlog of $53.2 billion; book-to-bill of 3.2x
Q3 revenue $6.1B, up 7%. Source sentence
Revenue of $6.1 billion, up 7%, and up 9% on an organic 1 basis
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- L3HARRIS TECHNOLOGIES, INC. /DE/
- Headquarters
- MELBOURNE, FL
- Incorporated in
- Delaware
- Fiscal year end
- 01/02
- Exchange & ticker
- NYSE: LHX
- Industry
- Aerospace & Defense
- CIK
- 202058
- Website
- https://www.l3harris.com/ ↗
Workforce (as of FY2025 year-end)
Employees
45,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: January 2027. In past years, Q4 results were released 27 days after quarter end (Jan 29, 2026; Jan 30, 2025; Jan 25, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around January 2.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 26–27 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Oct 2, 2026 | Oct 29, 2026 (+27 days) | Oct 29, 2026 10-Q (+27 days) |
| Q2 FY2026 | Jul 3, 2026 | Jul 29, 2026 (+26 days) | Jul 30, 2026 10-Q (+27 days) |
| Q1 FY2026 | Apr 3, 2026 | Apr 30, 2026 (+27 days) | Apr 30, 2026 10-Q (+27 days) |
| Q4 FY2025 | Jan 2, 2026 | Jan 29, 2026 (+27 days) | Feb 12, 2026 10-K (+41 days) |
| Q3 FY2025 | Oct 3, 2025 | Oct 30, 2025 (+27 days) | Oct 30, 2025 10-Q (+27 days) |
| Q2 FY2025 | Jun 27, 2025 | Jul 24, 2025 (+27 days) | Jul 24, 2025 10-Q (+27 days) |
| Q1 FY2025 | Mar 28, 2025 | Apr 24, 2025 (+27 days) | Apr 24, 2025 10-Q (+27 days) |
| Q4 FY2024 | Jan 3, 2025 | Jan 30, 2025 (+27 days) | Feb 14, 2025 10-K (+42 days) |
| Q3 FY2024 | Sep 27, 2024 | Oct 24, 2024 (+27 days) | Oct 25, 2024 10-Q (+28 days) |
| Q2 FY2024 | Jun 28, 2024 | Jul 25, 2024 (+27 days) | Jul 26, 2024 10-Q (+28 days) |
| Q1 FY2024 | Mar 29, 2024 | Apr 25, 2024 (+27 days) | Apr 26, 2024 10-Q (+28 days) |
| Q4 FY2023 | Dec 29, 2023 | Jan 25, 2024 (+27 days) | Feb 20, 2024 10-K (+53 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Communication Systems
Tactical and resilient communications
Secure radios and communications for the DoW and international customers.
Space & Airborne Systems
Space payloads and airborne systems
Satellites and payloads incl. missile warning, plus airborne mission systems.
Integrated Mission Systems
Mission systems
Intelligence, surveillance and maritime systems.
Aerojet Rocketdyne
Missile and space propulsion
Solid rocket motors for strategic, missile defense, hypersonic and tactical systems; space propulsion.
From the Form 10-K, FY2025, year ended 2026-01-02.
U.S. and worldwide share of flagship products/services
The 10-K calls L3Harris a leading provider of resilient communication solutions for the DoW but gives no market-share figures.
Reviewed: Form 10-K (FY2025, year ended 2026-01-02) · Form 10-Q (quarter ended 2026-10-02)
07
Recent strategic focusSite analysis
Recent developments.
Segment reorganization
From fiscal 2026: Space & Mission Systems, Communication & Spectrum Dominance and Missile Solutions.
Source: Form 10-K (FY2025, year ended 2026-01-02)
Missile Solutions IPO
January 13, 2026: Department of War to anchor a $1.0B convertible preferred investment in Missile Solutions, converting at an IPO planned for the second half of 2026; L3Harris expects to keep control.
Source: Form 10-K (FY2025, year ended 2026-01-02)
Portfolio pruning
Sold the commercial aviation solutions (CAS) disposal group on March 28, 2025. On August 3, 2026 it sold a 60% controlling interest in its Space Technology business for $539M net, keeping a 40% stake valued at $248M.
Source: Form 10-K (FY2025, year ended 2026-01-02); Form 10-Q (quarter ended 2026-10-02)
Q3 2026
Orders $19.3B lifted backlog to a record $53.2B (book-to-bill 3.2x); revenue $6.1B (+7%, organic +9%); operating margin 13.0% (+200 bp); EPS $3.28 (+33%); free cash flow $1.3B. 2026 GAAP EPS guidance raised to $12.25–12.35.
Source: Q3 2026 earnings release
Capex ÷ D&A (FY2025)
0.35x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$424M ÷ $1,224M = 0.35x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$6.69B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $368M in FY2020 to $424M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$21.87B
As reported in the 10-K
Revenue CAGR (5 years)
+3.7%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($21,865M ÷ $18,194M) ^ (1÷5) − 1 = 3.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
9.7%▼caution
-2.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,110M ÷ $21,865M × 100 = 9.7%
ROE (FY2025)
8.2%▲favorable
6-year average: 7.2%
As reported in the 10-K
P/B (FY2025 end)
2.90x
formulafiscal year-end closing price ÷ book value per share
e.g.$304.48 ÷ $105.09 = 2.90x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
19.9x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($56,890M + $10,443M − $1,069M) ÷ ($2,110M + $1,224M) = 19.9x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +3.7% a year over 5 years (modest growth)
From $18.19B in FY2020 to $21.87B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 11.9% → 9.7%
How much operating profit is left per $100 of revenue. It moved -2.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 47.7% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ―
ROE averaged 7.2% over 6 years (latest: 8.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Space & Airborne Systems
- Integrated Mission Systems
- Communication Systems (tactical radios, resilient communications)
- Aerojet Rocketdyne (missile propulsion, space propulsion)
06 · what it draws on
Key resources
- About 45,000 employees incl. 18,000 engineers and scientists
- Aerojet Rocketdyne propulsion capabilities
- Classified and commercial technology portfolio
02 · why customers buy
Value propositions
- Communications, space, airborne and missile systems; competes on quality, reliability, technology, service and past performance.
04 · how it keeps them
Customer relationships
- Long-term contracts and a backlog, about 45% of which is expected to convert to revenue by the end of fiscal 2026.
03 · how it reaches them
Channels
- Contracts with U.S. government agencies, prime contractors and allied governments.
01 · who it serves
Customer segments
- U.S. government (≈75% of revenue incl. FMS)
- International allies and prime contractors
09 · where money goes
Cost structure
FY2025, share of revenue ($21.87B)
- Selling, general & administrative15.7%
- Other operating costs (incl. cost of goods sold)74.7%
Operating profit left: 9.7% of revenue. Depreciation & amortization (inside the costs above): $1.22B. Capital spending: $424M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Space & Airborne Systems $6,946M (FY2025)
- Integrated Mission Systems $6,630M
- Communication Systems $5,673M
- Aerojet Rocketdyne $2,845M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Develops and produces communications equipment, space and airborne systems, intelligence and mission systems, and rocket motors and propulsion for defense and government customers, mostly under U.S. government contracts.
01 what it draws on
Inputs & resources
- About 45,000 employees incl. 18,000 engineers and scientists
- Aerojet Rocketdyne propulsion capabilities
- Classified and commercial technology portfolio
02 what it does
Activities
- Space & Airborne Systems
- Integrated Mission Systems
- Communication Systems (tactical radios, resilient communications)
- Aerojet Rocketdyne (missile propulsion, space propulsion)
03 who it serves
Customers
- U.S. government (≈75% of revenue incl. FMS)
- International allies and prime contractors
04 how money comes in
How it earns
- Space & Airborne Systems $6,946M (FY2025)
- Integrated Mission Systems $6,630M
- Communication Systems $5,673M
- Aerojet Rocketdyne $2,845M
How the business makes money
- Contractual backlog $38.7B; about 45% expected to convert to revenue by end of fiscal 2026.
- No customer other than the U.S. government exceeded 5% of revenue.
- Hired about 6,000 employees in fiscal 2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
L3Harris sells mainly to the U.S. government, directly or through prime contractors.
Government as customer
U.S. government as main customer
U.S. government customers, including foreign military sales, were 75% of revenue; no other customer exceeded 5%.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Political engagement
Unallowable lobbying costs
Federal cost rules (FAR/CAS) make lobbying costs, charitable donations and some other costs unallowable on government contracts.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Export controls
Subject to import and export controls and government procurement rules.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Space & Airborne Systems
6,946 (31%)Integrated Mission Systems
6,630 (30%)Communication Systems
5,673 (26%)Aerojet Rocketdyne
2,845 (13%)
Source: Form 10-K (FY2025, year ended 2026-01-02) Segment revenue before $229M intersegment eliminations; total $21,865M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
U.S. government departments and agencies, prime contractors and international allies.
Named by the company
- U.S. government — About 75% of revenue in fiscal 2025 (76% in 2024 and 2023), including foreign military sales.Form 10-K (FY2025, year ended 2026-01-02)
Suppliers
Subcontractors and component suppliers.
Named by the company
No material supplier is named.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K says its programs compete with programs managed by other government contractors but does not name them.
Competitors named in the 10-K
Peer group the company chose
Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Fiscal 2025 compensation peers from the 2026 proxy statement.
- Eatonsite ↗
- Jacobs Solutionssite ↗
- Parker-Hannifinsite ↗
- Emersonsite ↗
- Leidossite ↗
- RTXsite ↗
- General Dynamicssite ↗
- Lockheed Martinsite ↗
- Rockwell Automationsite ↗
- Honeywellsite ↗
- Motorola Solutionssite ↗
- Textronsite ↗
- Illinois Tool Workssite ↗
- Northrop Grummansite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 18,194 | 17,814 | 17,062 | 19,419 | 21,325 | 21,865 |
| Operating income | 2,162 | 2,109 | 1,127 | 1,426 | 1,918 | 2,110 |
| Pretax income | 1,322 | 2,283 | 1,273 | 1,221 | 1,597 | 1,932 |
| Net income (attributable) | 1,119 | 1,846 | 1,062 | 1,227 | 1,502 | 1,606 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -2.1% | -4.2% | 13.8% | 9.8% | 2.5% |
| Operating margincalcoperating income ÷ revenue × 100 | 11.9% | 11.8% | 6.6% | 7.3% | 9.0% | 9.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 6.2% | 10.4% | 6.2% | 6.3% | 7.0% | 7.3% |
| Balance sheet ($M) | ||||||
| Total assets | 36,960 | 34,709 | 33,524 | 41,687 | 42,001 | 41,195 |
| Total equity | 20,841 | 19,319 | 18,624 | 18,829 | 19,579 | 19,635 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 6,945 | 7,050 | 6,227 | 12,762 | 11,596 | 10,443 |
| Equity ratio | 56.1% | 55.4% | 55.3% | 45.0% | 46.5% | 47.7% |
| ROE | 5.4% | 9.2% | 5.6% | 6.6% | 7.8% | 8.2% |
| Cash flow ($M) | ||||||
| Operating CF | 2,790 | 2,687 | 2,158 | 2,096 | 2,559 | 3,106 |
| Investing CF | 751 | 1,394 | -250 | -7,021 | -263 | 407 |
| Financing CF | -3,112 | -4,413 | -1,951 | 4,594 | -2,224 | -3,082 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,422 | 2,345 | 1,906 | 1,647 | 2,151 | 2,682 |
| Cash and equivalents | 1,276 | 941 | 880 | 560 | 615 | 1,069 |
| Per share & other | ||||||
| EPS ($) | 5.19 | 9.09 | 5.49 | 6.44 | 7.87 | 8.53 |
| BVPS ($) | 99.52 | 99.29 | 97.18 | 98.86 | 102.82 | 105.09 |
| Dividend per share ($) | 3.40 | 4.08 | 4.48 | 4.56 | 4.64 | 4.80 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 65.5% | 44.9% | 81.6% | 70.8% | 59.0% | 56.3% |
| P/E (x) | 36.4 | 23.5 | 37.9 | 32.7 | 26.7 | 35.7 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 14.1 | 15.4 | 21.8 | 20.1 | 15.8 | 19.9 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 1.90 | 2.15 | 2.14 | 2.13 | 2.04 | 2.90 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Operating income | Net income | Diluted EPS |
|---|---|---|---|
| 2026-10-02 | $786M+26.6% | $632M+36.8% | $3.28 |
| 2026-07-03 | $654M+14.5% | $600M+31.0% | $3.13 |
| 2026-04-03 | $652M+24.2% | $512M+32.6% | $2.72 |
| 2026-01-02 † | $2.11B+10.0% | $300M-33.8% | — |
| 2025-10-03 | $621M | $462M | $2.46 |
| 2025-06-27 | $571M | $458M | $2.44 |
| 2025-03-28 | $525M | $386M | $2.04 |
| 2025-01-03 † | $1.92B | $453M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
6.3%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,110M × (1 − 9%) ÷ $30,627M × 100 = 6.3%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.72%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $56.89B ÷ ($56.89B + $10.44B) = 84.5%
e.g.Debt weight: $10.44B ÷ ($56.89B + $10.44B) = 15.5%
e.g.WACC: 8.3% × 84.5% + 5.0% × (1 − 9%) × 15.5% = 7.72%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.4%–9.3% and ROIC − WACC runs −3.1 to −0.2 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 7.72% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.61 (price-derived adjusted beta, but correlation with the market is low (R² 0.07), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.30%
- Cost of debt
- 4.95% (no debt on record, using the risk-free rate)
- Tax rate
- 9% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 84% : 16%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.72%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.61 (price-derived adjusted beta. Raw β 0.42, R² 0.07, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.419 + 0.33 = 0.611
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.61 × 5.5% = 8.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
3.1%
Perpetual FCF growth: g = r − FCF ÷ EV = 7.7% − 4.6%
Past FCF growth (FY2020–FY2025)
+2.1%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+3.7%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $2.68B (operating CF − capex); enterprise value $58.53B = market cap $49.16B (latest close, 2026-11-04) + debt $10.44B − cash and short-term investments $1.07B; r = WACC of 7.7% using this page’s default assumptions (β 0.61, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$58.3B
FCF $2.68B ÷ (7.7% − 3.1%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 5.7% | 6.7% | 7.7% | 8.7% | 9.7% |
|---|---|---|---|---|---|
| 0% | 0.80x | 0.68x | 0.60x | 0.53x | 0.47x |
| 2% | 1.24x | 0.97x | 0.80x | 0.68x | 0.60x |
| 4% | 2.70x | 1.70x | 1.24x | 0.97x | 0.80x |
| 6% | — | 6.55x | 2.70x | 1.70x | 1.24x |
| 8% | — | — | — | 6.55x | 2.70x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
16
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.89x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 109%
Most profit comes from core operations.
- ✓
Days sales outstanding: 27 → 20 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,106M ÷ $1,606M = 1.93x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,110M ÷ $1,932M × 100 = 109%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($1,072M + $1,371M) ÷ 2 ÷ $21,865M × 365 = 20 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 87.9%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 12.1%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 226 of 416
- Beta (adjusted)
- 0.61
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 54% of covered companies have more
above 1 = swings more than the market
- 163.6M shares reported by 1,691 13F filers ÷ 186.2M shares outstanding on 2026-07-24. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-01 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-24)
18
Strengths & weaknessesSite analysis
Strengths
1. Large backlog
Contractual backlog of $38.7B at the end of fiscal 2025.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Growing earnings
Net income rose from $1,062M (2022) to $1,606M (fiscal 2025); operating cash flow $3.1B.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
3. Dividend growth
Dividends per share rose every year from $3.40 (2020) to $4.80 (fiscal 2025).
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
Weaknesses
1. Government dependence
About 75% of revenue comes from the U.S. government.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Higher debt since AJRD
Interest-bearing debt rose from $6.2B (2022) to about $10.4B after the 2023 Aerojet Rocketdyne acquisition.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
3. Fixed-price contract risk
Under fixed-price incentive contracts, costs above the ceiling are borne by L3Harris.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
35.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.58%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
56%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.7%
(Operating CF − capex) ÷ market cap
1. Missile and space demand
Aerojet Rocketdyne revenue rose to $2,845M in fiscal 2025 from $2,580M.
- What has to hold
- Defense budgets keep funding munitions and space.
- The other side
- Execution and capacity constraints.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Unlocking value
Planned Missile Solutions IPO could highlight segment value.
- What has to hold
- IPO completes on terms.
- The other side
- Market conditions.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
Fiscal years end on the Friday nearest December 31; fiscal 2024 had 53 weeks.
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
1.6x
$1.07B vs. $673M
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
3.0x
$2.68B vs. $903M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -4.2% in FY2022 ($17.81B → $17.06B) | Yes, by FY2023 |
| Operating income | -46.6% in FY2022 ($2.11B → $1.13B) | Yes, by FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable through the cycle
Net income stayed above $1.0B every year 2020–2025.
Source: Form 10-K (FY2025, year ended 2026-01-02)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
L3Harris discloses no specific material legal proceedings; it is subject to government contract audits and ordinary-course claims, and cannot estimate losses beyond accruals.
Company statement:
Based on Form 10-K (FY2025, year ended 2026-01-02) — Legal Proceedings and Contingencies, reviewed 2026-10-28. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
U.S. defense budgets
- Company disclosure (summarized from the 10-K)
- Funding depends on appropriations, continuing resolutions and shifting priorities.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 2Competition & technology shift
Competition for programs
- Company disclosure (summarized from the 10-K)
- Programs compete with other contractors and other policy priorities for limited funding.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Costs & inflation
Fixed-price contract overruns
- Company disclosure (summarized from the 10-K)
- Cost overruns on fixed-price contracts reduce profits.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4M&A & integration
Missile Solutions IPO and portfolio changes
- Company disclosure (summarized from the 10-K)
- IPO of the MSL business and divestitures add execution risk.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Law & regulation
Government audits and investigations
- Company disclosure (summarized from the 10-K)
- Contracts are subject to audits that could lead to adjustments.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (5)
Our business with government customers is also subject to a variety of procurement regulations and a variety of socioeconomic, environmental and other requirements that increase our operational and compliance costs, including governmental action through Executive Orders. These costs might increase in the future, particularly for certain international markets and customers, thereby reducing our margins.
Changes in trade policies, including tariffs, could cause adverse impacts to our business. Read more
Beginning in first quarter 2025, we observed a significant shift in U.S. trade policy, with increased tariffs and the imposition of new tariffs that could impact our supply chain and our business. While certain of such tariffs have been paused, ultimately trade policy decisions are outside of our control and may have consequences for our business. Changes in trade policies, such as new tariffs or increases in tariffs, or reactionary measures including retaliatory tariffs, legal challenges, or currency manipulation, could adversely impact us.
Even though we primarily sell our products and services to U.S. Read more
Government customers and our suppliers are primarily domestic, we still rely on imported materials, components, or finished goods, and if tariffs increase, our supply chain costs may rise, adversely affecting our business, results of operations and cash flows. We also operate a business in Canada that supports both domestic and international programs. If we are not granted exemptions from tariffs due to the nature of our business and customers, we could see greater impacts than we currently expect, especially as it relates to tariffs between the U.S. and Canada. Additionally, retaliatory measures, or prolonged uncertainty in trade relationships could result in supply chain disruptions, delayed shipments, or increased operational complexity, which could also adversely affect our business, results of operations and cash…
The competitive landscape is also evolving, with increased competition from non-traditional new entrants, including technology start-ups. Read more
While these competitors may lack our scale, production capacity, and established customer trust, they may possess innovative or low-cost technologies and the ability to rapidly deploy new solutions. The emergence of such players may intensify pricing pressure and threaten our market share or competitive advantage.
The failure to effectively maintain and modernize our IT systems and infrastructure could adversely affect our business. Read more
Rapid development cycles and the growth and expansion of our business has created technical debt within our enterprise. As part of our digital transformation, we are modernizing our infrastructure, applications, and information ecosystem, inclusive of cloud migrations, increasing automation and expanding the use of AI. Until our digital transformation is fully complete, we will continue to rely on significant manual processes and procedures that subject us to increased risk of error and internal control failure compared to automated processes. Our ability to modernize our technology systems and infrastructure requires us to execute large-scale, complex programs and projects, which rely on the commitment of significant financial and managerial resources and effective…
No longer in the text (4)
award contracts. Further, competitive bidding processes involve significant cost and managerial time to prepare bids
and proposals for contracts and the risk that we may fail to accurately estimate the resources and costs required to
changes in policy positions and spending priorities from the new Administration. Read more
Our U.S. Government programs
administration, and are affected by numerous factors, including the U.S. Read more
Government’s budget deficit and the
40 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 12, 2026 ↗ with the 10-K filed Feb 14, 2025 ↗.
24
What to watch going forwardSite analysis
- Missile Solutions IPO in the second half of 2026.
- Missile and munitions demand.
- Backlog conversion.
- Debt reduction.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 27, 2026 15:53 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-12Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent L3Harris’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.