L3Harris Technologies Reports Strong Q2 2025 Results

L3Harris Technologies has released its second quarter 2025 financial results, showcasing robust performance and an optimistic outlook for the remainder of the year. The company reported a notable increase in revenue and earnings per share (EPS), driven by strong order volumes and operational efficiencies.

Financial Highlights

For the second quarter of 2025, L3Harris Technologies reported:

• Revenue of $5.4 billion, a 2% increase from the previous year, and a 6% organic growth.
• Operating margin of 10.5%, with an adjusted segment operating margin of 15.9%.
• GAAP diluted EPS of $2.44, a 27% increase from the previous year.
• Non-GAAP diluted EPS of $2.78, up 16% from the previous year.
• Orders totaling $8.3 billion, resulting in a book-to-bill ratio of 1.5x.

Business and Operational Highlights

The company experienced growth across all segments, driven by higher volumes, new program ramps, and increased international demand. Key segments reported the following:

• Communication Systems: Revenue increased by 2% to $1.376 billion, driven by international demand for resilient communication equipment.
• Integrated Mission Systems: Revenue decreased by 3% to $1.622 billion, primarily due to the divestiture of the Commercial Aviation Solutions (CAS) business. Excluding this impact, organic revenue increased by 6%.
• Space & Airborne Systems: Revenue increased by 5% to $1.787 billion, with organic growth of 7% excluding the impact of divestitures.
• Aerojet Rocketdyne: Revenue increased by 10% to $698 million, with organic growth of 12% driven by increased production volumes and new program ramps.

Strategic Initiatives and Corporate Developments

L3Harris Technologies continues to align its portfolio with key growth areas such as space, missiles, shipbuilding, autonomy, and resilient communications. The company’s business-model agnostic approach allows it to win contracts as a prime, sub, or merchant supplier, enhancing its competitive momentum.

Management's Perspective

Christopher E. Kubasik, Chair and CEO, commented on the results, stating, “We delivered impressive second-quarter results, led by a record book-to-bill of 1.5x, solid organic growth, and year-over-year adjusted segment operating margin expansion for the seventh consecutive quarter. This marks a clear inflection point, with our strongest top-line growth in six quarters and meaningful progress towards our 2026 Financial Framework.”

Future Outlook

Based on the strong performance in the first half of 2025, L3Harris Technologies has increased its full-year guidance. The company now expects:

• Revenue of approximately $21.75 billion, up from the previous range of $21.4 billion to $21.7 billion.
• Non-GAAP diluted EPS in the range of $10.40 to $10.60, up from the previous range of $10.30 to $10.50.
• Adjusted free cash flow of approximately $2.65 billion, up from the previous range of $2.4 billion to $2.5 billion.

SEC Filing: L3HARRIS TECHNOLOGIES, INC. /DE/ [ LHX ] - 8-K - Jul. 24, 2025