L3Harris Technologies (LHX) AI Stock Analysis

• Market Cap: $51.94B
• Dividend Yield: 1.72%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.54
• Revenue Growth: 2.93%
• EPS Growth: 43.29%
• Country: US
• Employees: 47,000
• Sector: Industrials
• Sector Strength: 80
• Industry: Aerospace & Defense
• EPS (TTM): 2.78
• Shares Outstanding: 187,094,800
• 10 Day Avg. Volume: 963,917
• 30 Day Avg. Volume: 1,272,007
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 12.17
• Enterprise Value/Ebitda: 15.74
• 1Y Price Target: $302.93
• Price Target Upside: 10.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: $310.00 ▲(12.68% Upside)

L3Harris Technologies receives a strong overall score driven by its robust financial performance and positive earnings call sentiment. The company's strategic initiatives and increased guidance highlight its growth potential. While the valuation is relatively high, the technical indicators support a positive trend, making it an attractive option in the Aerospace & Defense sector.

Positive Factors

Earnings

LHX has improved its guidance for sales and earnings due to a strong performance in Q2 and a robust bookings and bid pipeline.

Growth Opportunities

LHX has many growth opportunities, particularly in its Golden Dome initiatives such as SDA Tranche 3 and propellant targets.

Strategic Partnerships

LHX partnered with Shield AI on demonstrating autonomous electronic warfare capabilities and announced collaboration with Amazon’s Kuiper Government Solutions on resilient satellite communications.

Negative Factors

Earnings Quality

The Q2 earnings per share 'beat' was inflated by one-time asset sales, which suggests the underlying performance trends might not be as strong.

Revenue Impact

The sale of Commercial Aviation Solutions is expected to remove $480 million from L3Harris Technologies' 2025 revenue estimates.

Segment Performance

Segment operating margins are expected to decline, particularly for Aerojet, due to productivity issues.

L3Harris Technologies Business Overview & Revenue Model

Company Description

L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems. In addition, this segment offers advanced electro-optical and infrared solutions. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems. The company's Communication Systems segment provides tactical communications; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, ground stations, and transportable tactical satellite communication (SATCOM) systems for use in manned aircraft, unmanned aerial vehicles, and naval ships; and helmet and weapon mounted integrated night vision systems. This segment also offers radios, systems applications, and equipment for critical public safety and professional communications; and SATCOM terminals and battlefield management networks. Its Aviation Systems segment offers defense aviation products; commercial pilot training; and mission networks solutions for air traffic management. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

How the Company Makes Money

L3Harris generates revenue through a diversified business model that includes government contracts, commercial sales, and international sales. The majority of its revenue comes from the U.S. Department of Defense and other government agencies, focusing on defense contracts that encompass technology development, equipment manufacturing, and service provisions. Key revenue streams include sales of communication systems, electronic warfare systems, and avionics, as well as support and maintenance services. Additionally, L3Harris has established significant partnerships with various defense organizations and other technology companies, which enhance its capabilities and expand its market reach. The company's ongoing investment in research and development ensures a steady pipeline of innovative products and solutions that help sustain its competitive position in the aerospace and defense sectors.

L3Harris Technologies Financial Statement Overview

Summary

L3Harris Technologies demonstrates robust financial health with strong profitability metrics and stable growth. The company maintains a solid financial foundation with low leverage and efficient cash flow operations, suitable for sustaining its growth trajectory in the Aerospace & Defense industry.

Income Statement

L3Harris Technologies shows a strong financial performance with a solid gross profit margin of 25.1% and a net profit margin of 7.9% for TTM (Trailing-Twelve-Months). The revenue growth rate from the previous fiscal year to TTM is approximately 9.4%, indicating robust growth. EBIT and EBITDA margins are healthy at 9.9% and 15.8%, respectively, reflecting efficient core operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.067 for TTM, indicating low leverage. ROE stands at 8.8%, showcasing moderate profitability for shareholders. The equity ratio is 46.4%, highlighting a balanced capital structure with reasonable reliance on equity financing.

Cash Flow

Cash flow metrics are strong, with a free cash flow growth rate of 5.5% from the previous fiscal year to TTM. The operating cash flow to net income ratio of 1.56 indicates adequate cash generation relative to net earnings. Similarly, the free cash flow to net income ratio is 1.35, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.25B	21.32B	19.42B	17.06B	17.81B	18.19B
Gross Profit	4.77B	4.75B	4.43B	4.93B	5.38B	5.34B
EBITDA	3.69B	3.56B	2.93B	2.50B	3.52B	2.64B
Net Income	1.60B	1.50B	1.23B	1.06B	1.85B	1.12B
Balance Sheet
Total Assets	41.25B	42.00B	41.69B	33.52B	34.71B	36.96B
Cash, Cash Equivalents and Short-Term Investments	517.00M	615.00M	560.00M	880.00M	941.00M	1.28B
Total Debt	12.25B	12.98B	13.95B	7.79B	7.83B	7.69B
Total Liabilities	22.12B	22.42B	22.86B	14.90B	15.39B	16.12B
Stockholders Equity	19.13B	19.51B	18.77B	18.52B	19.21B	20.72B
Cash Flow
Free Cash Flow	2.27B	2.15B	1.65B	1.91B	2.35B	2.42B
Operating Cash Flow	2.62B	2.56B	2.10B	2.16B	2.69B	2.79B
Investing Cash Flow	597.00M	-263.00M	-7.02B	-250.00M	1.39B	751.00M
Financing Cash Flow	-3.17B	-2.22B	4.59B	-1.95B	-4.41B	-3.11B

L3Harris Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 275.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LHX, the sentiment is Positive. The current price of 275.12 is above the 20-day moving average (MA) of 274.18, above the 50-day MA of 266.63, and above the 200-day MA of 231.61, indicating a bullish trend. The MACD of 2.76 indicates Positive momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LHX.

L3Harris Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	79 Outperform	$87.31B	21.79	17.91%	1.80%	11.85%	16.12%
LHX	78 Outperform	$51.94B	31.00	8.90%	1.72%	2.93%	43.29%
NOC	77 Outperform	$84.48B	21.70	26.50%	1.48%	-0.65%	77.20%
RTX	76 Outperform	$212.29B	34.85	10.13%	1.66%	15.44%	164.00%
LMT	71 Outperform	$106.37B	25.65	73.06%	2.92%	1.09%	-35.50%
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
BA	58 Neutral	$177.46B	―	-162.23%	―	2.41%	-193.57%

L3Harris Technologies Corporate Events

L3Harris Increases Board Members’ Equity Retainer

On July 17, 2025, L3Harris Technologies‘ Board of Directors approved an increase in the annual equity retainer for its board members from $190,000 to $200,000 in director share units, effective January 3, 2026. This adjustment reflects the company’s commitment to competitive compensation and may impact its governance and stakeholder relations.

L3Harris CEO Sets Stock Option Sales Plan

On June 13, 2025, L3Harris Technologies‘ CEO, Christopher E. Kubasik, established a pre-arranged plan for exercising employee stock options and selling shares under Rule 10b5-1. This plan, covering options granted in 2018, will see sales starting in September 2025 and ending by December 11, 2025, with transactions disclosed through SEC filings.