AI Earnings Predictions for L3Harris Technologies Inc. (LHX)

EX-99.1

2 exhibit991q3cy26earnings.htm

EX-99.1

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Exhibit 99.1

L3Harris Delivers Record Backlog and Strong Third-Quarter Results

Broad-based growth with robust earnings and cash flow; increases full-year guidance

•Orders of $19.3 billion drove record backlog of $53.2 billion; book-to-bill of 3.2x

•Revenue of $6.1 billion, up 7%, and up 9% on an organic1 basis

•Operating income margin of 13.0%, up 200 bps vs. prior year; segment operating margin2 of 15.9%

•Diluted EPS of $3.28, up 33% year-over-year

•Operating cash flow of $1.4 billion; free cash flow3 of $1.3 billion, up 195% compared to prior year

•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)

MELBOURNE, Fla., October 29, 2026 — L3Harris Technologies (NYSE: LHX) reported its third quarter 2026 results.

“Our team’s exceptional execution delivered solid financial performance in the third quarter. We grew backlog to record levels, underscoring the consistently strong demand for our mission-critical capabilities. Our priority now is to convert that demand into results. We will continue to invest in production capacity and differentiated capabilities across missiles and missile solutions, space, resilient communications and multi-domain sensing, which will enable us to deliver for the warfighter, our customers and our shareholders,” said Sam Mehta, President and CEO, L3Harris.

Third-Quarter Summary

Revenue of $6.1 billion increased $401 million compared to prior year, up 7%, and up 9% on an organic1 basis, driven by double-digit growth in the Space & Mission Systems and Missile Solutions segments. Operating income margin was 13.0%, up 200 bps compared to prior year, driven by higher revenues and continued management of corporate expenses. Segment operating margin2 was 15.9%, flat to prior year. Third quarter GAAP EPS increased 33% to $3.28 driven by higher volumes, a lower level of corporate expense, lower interest expense and a lower effective tax rate.

Third-Quarter Cash Generation

Net cash provided by operating activities in the quarter totaled $1.4 billion. Capital expenditures were $179 million. Free cash flow3 was $1.3 billion, up 195% over prior year. The Company ended the quarter with $11.0 billion in total debt, $2.5 billion in cash and equivalents and $550 million in short-term investments.

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Backlog and Orders

Orders received in the quarter totaled $19.3 billion, resulting in backlog of $53.2 billion. Book-to-bill ratio was 3.2x for the quarter. By segment, Space & Mission Systems book-to-bill was 1.0x, Communications & Spectrum Dominance was 1.9x and Missile Solutions was 11.8x.

FY26 Guidance

Management increases the 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) and maintains FY26 Free Cash Flow guidance of $3 billion3.

Third Quarter & Recent Business Highlights

•Captured a $6.3 billion (excluding escalations), seven-year undefinitized contract to scale propulsion production for the Terminal High Altitude Area Defense (THAAD) system

•Captured a $4.7 billion (excluding escalations), seven-year undefinitized contract to scale propulsion production for the PAC-3 Missile Segment Enhancement (MSE) interceptor

•Announced a $250 million follow-on contract to manufacture standard-range Guided Multiple Launch Rocket System (GMLRS) propulsion units

•Secured more than $500 million in VAMPIRE C-UAS orders from the United States and allies. Delivered the first VAMPIRE units to the U.S. Army for hostile drone defense just two months after receiving their order

•Awarded an $876 million contract modification to advance the development and production preparation of the U.S. Navy Next Generation Jammer Low Band (NGJ-LB) tactical electronic warfare system

•Opened the ‘Arsenal of Freedom’ solid rocket motor production facility in Camden, Arkansas in October – one of approximately 60 new facilities being built to address rising demand for munitions

•Completed the launch of NASA's Nancy Grace Roman Space Telescope with L3Harris' 2.4-meter Optical Telescope Assembly (OTA), which serves as Roman’s eye, as well as L3Harris’ radiation-hardened electronics, which keep the telescope in operation approximately 1 million miles from Earth

1 Organic revenue is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 5.

2 Segment operating margin is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 4.

3 Free cash flow is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 6.

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SUMMARY FINANCIAL RESULTS

Third QuarterYear to Date2026 Guidance

($ millions, except per share data)2026 2025 2026 2025

Revenue

Space & Mission Systems$

EX-99.1

2 exhibit991q2cy26earnings.htm

EX-99.1

Document

Exhibit 99.1

Earnings Release

L3Harris Technologies Reports Robust Second Quarter 2026 Results

MELBOURNE, Fla., July 29, 2026 — L3Harris Technologies (NYSE: LHX) reports second quarter 2026 results.

Highlights

•Orders of $7.3 billion; book-to-bill of 1.2x increases backlog to record $42 billion

•Revenue of $5.9 billion, up 8%

•Operating margin of 11.1%, up 60 bps; Segment operating margin of 16.0%

•Diluted EPS of $3.13, up 28%

•Operating cash flow of $879 million; Free cash flow of $771 million, both up 37%

•Increased 2026 guidance for consolidated revenue and EPS

“Our Trusted Disruptor culture, underpinned by early and strategic investments and leveraging our commercial business model, continues to deliver results. We deploy capabilities to support the warfighter's need to sense, connect and respond, addressing today’s complex threat environment quickly and at scale,” said Christopher Kubasik, Chairman and CEO.

Kubasik added, “Our purpose-built portfolio and focus on execution drove outstanding second quarter results. Strong orders, record backlog and double-digit first half growth reinforce our multi-year track record of delivering on our financial commitments.”

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SUMMARY FINANCIAL RESULTS

Second QuarterYear to Date2026 Guidance

($ millions, except per share data)2026 2025 2026 2025

Revenue

Space & Mission Systems$2,966$2,770$5,956$5,181

Communications & Spectrum Dominance1,9431,8613,7983,670

Missile Solutions1,0549252,0441,765

Intersegment(82)(130)(173)(204)

Segment revenue1 5,8815,42611,62510,412

Other2 ———146

Revenue$5,881$5,426$11,625$10,558

$23.2B - $23.7B

(Prior: $23B - $23.5B)

Operating income

Space & Mission Systems$290$289$603$527

Communications & Spectrum Dominance522458987901

Missile Solutions130116254212

Segment operating income1 9428631,8441,640

Unallocated corporate items and other, net2 (see Table 4) (288)(292)(538)(544)

Operating income$654$571$1,306$1,096

Operating margin11.1%10.5%11.2%10.4%

Segment operating margin1 16.0%15.9%15.9%15.8%low 16%

Tax rate

Effective tax rate15.5%12.6%14.4%14.1%

GAAP EPS

Diluted EPS$3.13$2.44$5.85$4.48 $11.80 - $12.00

(Prior: $11.40 - $11.60)

Diluted weighted-average common shares outstanding187.3187.8187.7188.5

Cash flow

Cash from operations$879$640$784$598$3.6B

Free cash flow3

$771$561$584$460$3.0B

Repurchases of common stock$229$253$525$822

Dividends paid$232$225$470$453

1 Segment revenue, operating income, and margin are non-GAAP Financial Measures as defined by Regulation G and reconciled to GAAP in Table 5. A reconciliation of segment operating margin on a forward-looking basis to GAAP is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results.

2 Includes other non-reportable businesses, which is the divested Commercial Aviation Solutions business ("CAS disposal group").

3Free cash flow is a non-GAAP Financial Measure defined and reconciled to GAAP in Table 6. Net cash provided by operating activities is anticipated to be approximately $3.6 billion and capital expenditures are anticipated to be approximately $600 million.

PAGE 2

Revenue: Second quarter revenue increased $455 million, up 8%, driven by growth across all segments resulting from new program starts and strong execution against our record backlog.

Operating Income: Second quarter operating income increased $83 million, up 15%. Operating margin was 11.1%, up 60 bps. The improvement in operating income was driven by an increase in segment operating income primarily at Communications & Spectrum Dominance and lower corporate and other expense.

Segment Operating Income: Second quarter segment operating income increased $79 million, up 9%. Segment operating margin was 16.0%, up 10 bps. Segment operating income grew across all segments due to increased volume and improved program performance, partially offset by the absence of $92 million in gains recognized in connection with the sale of assets in second quarter 2025 as well as increased research and development costs.

GAAP EPS: Second quarter GAAP EPS increased 28% to $3.13 driven by higher volume, improved program performance, lower corporate and other expense, including the non-cash preferred stock deemed dividend, partially offset by lower net asset and investment gains.

Cash Flow: Cash from operations was $879 million, driven by higher net income and working capital timing. Capital expenditures were $108 million, contributing to free cash flow of $771 million, up 37%.

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SEGMENT RESULTS

Space & Mission Systems

Second QuarterYear to Date2026 Guidance

($ millions)20262025Change20262025Change

Revenue$2,966$2,7707%$5,956$5,18115% ~$11,700

(Prior: ~$11,500)

Operating margin9.8%10.4%(60) bps10.1%10.2%(10) bps mid 10%

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