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L3Harris Beats on Q2 Earnings, Raises '25 Revenue View
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Key Takeaways
L3Harris posted Q2 EPS of $2.78, topping estimates by 12.1% and rising 15.8% from the prior year.
Revenues rose 2.4% Y/Y to $5.43B, led by higher volume, program ramps and international demand.
LHX raised 2025 revenue guidance to $21.75B and EPS outlook to $10.40-$10.60 from prior view.
L3Harris Technologies, Inc. (LHX - Free Report) reported second-quarter 2025 adjusted earnings (from continuing operations) of $2.78 per share, which beat the Zacks Consensus Estimate of $2.48 by 12.1%. The bottom line also increased 15.8% from the year-ago quarter’s $2.40.
Including one-time items, the company reported GAAP earnings of $2.44 per share, up from $1.92 in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as operating income.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris’ revenues totaled $5.43 billion, which beat the Zacks Consensus Estimate of $5.30 billion by 2.3%. The top line also improved 2.4% from the year-ago quarter’s $5.30 billion.
The year-over-year increase in top line was driven by growth across all segments, primarily from higher volumes, new program ramps and increased international demand.
LHX’s Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.62 billion, down 2.9% year over year. This was due to the divestiture of the company’s CAS business in the first quarter of 2025.
This segment recorded an operating income of $214 million compared with $200 million in the second quarter of 2024. The segment’s operating margin contracted 120 basis points (bps) to 13.2% due to monetization of legacy end-of-life assets, aligned with LHX’s transformation and value creation priorities.
Space and Airborne Systems: Net revenues from the segment were $1.79 billion, reflecting a year-over-year improvement of 4.3%. The upside was driven by increased FAA volume in its Mission Networks business and higher volume and improved program performance in Airborne Combat Systems business.
The segment’s operating income improved to $220 million from $215 million in the year-ago quarter. The operating margin, however, contracted 30 bps to 12.3% owing to unfavorable mix.
Communication Systems: Net revenues from this segment increased 2.2% to $1.38 billion. This improvement was driven by increased international volume for resilient communication equipment and related waveforms.
The unit’s operating income improved to $336 million from $329 million in the year-ago quarter. The operating margin remained flat year over year.
Aerojet Rocketdyne: This segment reported revenues of $698 million, which improved 10.3% year over year. This rise was driven by increased production volume across key missile and munitions programs and new program ramp-up.
The unit’s operating income of $93 million improved from $81 million in the second quarter of 2024. The operating margin expanded 50 bps to 13.3% driven by LHX NeXt driven cost savings and a favorable contract resolution.
Financial Position of LHX
As of June 27, 2025, L3Harris had $482 million in cash and cash equivalents compared with $615 million as of Jan. 3, 2025.
The long-term debt as of the same date was $10.98 billion compared with $11.08 billion as of Jan. 3, 2025.
The net cash flow from operating activities was $598 million during the first six months of 2025 compared with $650 million in the prior-year period.
At the end of the second quarter of 2025, L3Harris’ adjusted free cash flow was $502 million compared with $558 million at the end of the second quarter of 2024.
LHX 2025 Guidance
L3Harris updated its financial guidance for 2025.
It now expects to generate approximately $21.75 billion in revenues, higher than its earlier guidance of $21.40-$21.70 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.59 billion, which lies much lower than the company’s new guidance.
L3Harris expects adjusted earnings to be in the range of $10.40-$10.60 per share, higher than the prior guidance of $10.30-$10.50. The consensus estimate for adjusted earnings is pegged at $10.48 per share, which lies below the mid-point of the company’s newly guided range.
It currently expects adjusted free cash flow to be around $2.65 billion, higher than the prior guidance of $2.40-$2.50 billion.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.
Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.
NOC’s total sales of $10.35 billion beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) second-quarter 2025 adjusted EPS of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41 due to growth in adjusted operating profit.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
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L3Harris Beats on Q2 Earnings, Raises '25 Revenue View
Key Takeaways
L3Harris Technologies, Inc. (LHX - Free Report) reported second-quarter 2025 adjusted earnings (from continuing operations) of $2.78 per share, which beat the Zacks Consensus Estimate of $2.48 by 12.1%. The bottom line also increased 15.8% from the year-ago quarter’s $2.40.
Including one-time items, the company reported GAAP earnings of $2.44 per share, up from $1.92 in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as operating income.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
LHX’s Total Revenues
L3Harris’ revenues totaled $5.43 billion, which beat the Zacks Consensus Estimate of $5.30 billion by 2.3%. The top line also improved 2.4% from the year-ago quarter’s $5.30 billion.
The year-over-year increase in top line was driven by growth across all segments, primarily from higher volumes, new program ramps and increased international demand.
LHX’s Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.62 billion, down 2.9% year over year. This was due to the divestiture of the company’s CAS business in the first quarter of 2025.
This segment recorded an operating income of $214 million compared with $200 million in the second quarter of 2024. The segment’s operating margin contracted 120 basis points (bps) to 13.2% due to monetization of legacy end-of-life assets, aligned with LHX’s transformation and value creation priorities.
Space and Airborne Systems: Net revenues from the segment were $1.79 billion, reflecting a year-over-year improvement of 4.3%. The upside was driven by increased FAA volume in its Mission Networks business and higher volume and improved program performance in Airborne Combat Systems business.
The segment’s operating income improved to $220 million from $215 million in the year-ago quarter. The operating margin, however, contracted 30 bps to 12.3% owing to unfavorable mix.
Communication Systems: Net revenues from this segment increased 2.2% to $1.38 billion. This improvement was driven by increased international volume for resilient communication equipment and related waveforms.
The unit’s operating income improved to $336 million from $329 million in the year-ago quarter. The operating margin remained flat year over year.
Aerojet Rocketdyne: This segment reported revenues of $698 million, which improved 10.3% year over year. This rise was driven by increased production volume across key missile and munitions programs and new program ramp-up.
The unit’s operating income of $93 million improved from $81 million in the second quarter of 2024. The operating margin expanded 50 bps to 13.3% driven by LHX NeXt driven cost savings and a favorable contract resolution.
Financial Position of LHX
As of June 27, 2025, L3Harris had $482 million in cash and cash equivalents compared with $615 million as of Jan. 3, 2025.
The long-term debt as of the same date was $10.98 billion compared with $11.08 billion as of Jan. 3, 2025.
The net cash flow from operating activities was $598 million during the first six months of 2025 compared with $650 million in the prior-year period.
At the end of the second quarter of 2025, L3Harris’ adjusted free cash flow was $502 million compared with $558 million at the end of the second quarter of 2024.
LHX 2025 Guidance
L3Harris updated its financial guidance for 2025.
It now expects to generate approximately $21.75 billion in revenues, higher than its earlier guidance of $21.40-$21.70 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.59 billion, which lies much lower than the company’s new guidance.
L3Harris expects adjusted earnings to be in the range of $10.40-$10.60 per share, higher than the prior guidance of $10.30-$10.50. The consensus estimate for adjusted earnings is pegged at $10.48 per share, which lies below the mid-point of the company’s newly guided range.
It currently expects adjusted free cash flow to be around $2.65 billion, higher than the prior guidance of $2.40-$2.50 billion.
LHX’s Zacks Rank
L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2025 adjusted earnings of $7.29 per share, which beat the Zacks Consensus Estimate of $6.49 by 12.3%. The bottom line increased 2.5% from the year-ago quarter's reported figure of $7.11.
Net sales were $18.16 billion, which missed the Zacks Consensus Estimate of $18.56 billion by 2.2%. The top line, however, inched up 0.2% from $18.12 billion in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported second-quarter 2025 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.71 by 6%.
NOC’s total sales of $10.35 billion beat the Zacks Consensus Estimate of $10.06 billion by 2.9%. The top line also rose 1.3% from $10.22 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) second-quarter 2025 adjusted EPS of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41 due to growth in adjusted operating profit.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.