L3Harris Reports Strong FY25 Results, Record Orders, and Positive 2026 Guidance

summarizeSummary

L3Harris Technologies delivered robust full-year 2025 financial results, marked by strong organic revenue growth, double-digit increases in non-GAAP diluted EPS, and significant cash flow generation. The company achieved record orders with a book-to-bill ratio of 1.3x, indicating strong demand for its defense-aligned portfolio. Despite a GAAP operating margin and diluted EPS decrease in Q4 due to divestiture-related losses and goodwill impairment, adjusted metrics showed improvement. The company also provided positive 2026 guidance, projecting increased revenue, diluted EPS, and free cash flow, which incorporates the previously announced business reorganization and divestiture of a majority stake in its Space Technology disposal group. This outlook reinforces confidence in the company's strategic direction and operational execution.

check_boxKey Events

• Strong Full Year 2025 Performance

  L3Harris reported full-year 2025 revenue of $21.9 billion, up 3% (5% organically), with non-GAAP diluted EPS increasing 11% to $10.73. Adjusted segment operating margin rose 40 basis points to 15.8%.

• Robust Cash Flow and Record Orders

  Cash from operations increased 21% to $3.1 billion, and adjusted free cash flow also grew 21% to $2.8 billion. The company achieved record orders of $27.5 billion, resulting in a strong book-to-bill ratio of 1.3x.

• Positive 2026 Financial Guidance

  L3Harris initiated 2026 guidance, projecting total revenue between $23 billion and $23.5 billion, diluted EPS of $11.30 to $11.50, and free cash flow of $3.0 billion, all indicating continued growth.

• Strategic Reorganization and Divestiture Update

  The 2026 guidance reflects the previously announced reorganization into three business segments and includes financials for the Space Technology disposal group, a majority stake of which was announced for sale on January 5, 2026.

auto_awesomeAnalysis

L3Harris Technologies delivered robust full-year 2025 financial results, marked by strong organic revenue growth, double-digit increases in non-GAAP diluted EPS, and significant cash flow generation. The company achieved record orders with a book-to-bill ratio of 1.3x, indicating strong demand for its defense-aligned portfolio. Despite a GAAP operating margin and diluted EPS decrease in Q4 due to divestiture-related losses and goodwill impairment, adjusted metrics showed improvement. The company also provided positive 2026 guidance, projecting increased revenue, diluted EPS, and free cash flow, which incorporates the previously announced business reorganization and divestiture of a majority stake in its Space Technology disposal group. This outlook reinforces confidence in the company's strategic direction and operational execution.