L3Harris Technologies Reports Strong Third Quarter 2024 Results, Increases 2024 Guidance

Highlights*

  • Orders of $7.2 billion; book-to-bill of 1.4x
  • Revenue of $5.3 billion, up 8%, and 5% organically
  • Operating margin of 9.4%; adjusted segment operating margin of 15.7%
  • Diluted earnings per share (EPS) of $2.10; non-GAAP diluted EPS of $3.34
  • 2024 revenue guidance range increased to $21.1B - $21.3B
  • 2024 adjusted segment operating margin guidance increased to ~15.5%
  • 2024 non-GAAP diluted EPS guidance range increased to $12.95 - $13.15

MELBOURNE, Fla. — (BUSINESS WIRE) — October 24, 2024 — L3Harris Technologies (NYSE: LHX) reported third quarter 2024 diluted EPS of $2.10, an increase of 4% from third quarter 2023, on third quarter 2024 revenue of $5.3 billion, an increase of 8%. Third quarter 2024 non-GAAP diluted EPS was $3.34, a 5% increase from third quarter 2023. A reconciliation of non-GAAP results are detailed in tables beginning on page 11.

"We delivered strong third-quarter results, highlighted by outstanding book-to-bill of 1.4x, solid organic growth, and while continuing to improve margins as we make progress toward the financial framework announced at our 2023 Investor Day. These results reaffirm that our Trusted Disruptor strategy is working, driving value for our customers, shareholders and employees," said Christopher E. Kubasik, Chair and CEO.

Kubasik added, "We are making impressive progress on our LHX NeXt initiative and expect to exceed the 2024 cost savings target of $400 million. As a result, we are updating our 2024 savings target to at least $600 million and now expect to reach the overall target of $1 billion a year early. Our pipeline provides opportunity for additional cost savings opportunities to exceed the $1 billion target. All of this gives us confidence to deliver 2026 segment operating margins of at least 16%."

*Organic revenue, adjusted segment operating margin and non-GAAP diluted EPS are non-GAAP financial measures defined on page 17. A reconciliation of adjusted segment operating margin guidance and non-GAAP diluted EPS guidance is not available. See the note on page 2 and Non-GAAP Financial Measures on page 7 for more information.

SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Year to Date

 

2024 Guidance

 

 

($ millions, except per share data)

 

2024

 

 

 

2023

 

 

Change

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (see Table 4 for organic revenue)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space & Airborne Systems

$

1,683

 

 

$

1,686

 

 

 

 

$

5,141

 

 

$

5,056

 

 

 

 

 

 

 

Integrated Mission Systems

 

1,671

 

 

 

1,568

 

 

 

 

 

5,069

 

 

 

5,003

 

 

 

 

 

 

 

Communication Systems

 

1,382

 

 

 

1,255

 

 

 

 

 

4,022

 

 

 

3,707

 

 

 

 

 

 

 

Aerojet Rocketdyne

 

596

 

 

 

455

 

 

 

 

 

1,719

 

 

 

455

 

 

 

 

 

 

 

Corporate eliminations

 

(40

)

 

 

(49

)

 

 

 

 

(149

)

 

 

(142

)

 

 

 

 

 

 

Revenue

$

5,292

 

 

$

4,915

 

 

8

%

 

$

15,802

 

 

$

14,079

 

 

12

%

 

$21.1B - $21.3B
(Prior: $21.0B - $21.3B)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space & Airborne Systems

$

195

 

 

$

210

 

 

 

 

$

626

 

 

$

565

 

 

 

 

 

 

 

Integrated Mission Systems

 

204

 

 

 

187

 

 

 

 

 

600

 

 

 

534

 

 

 

 

 

 

 

Communication Systems

 

359

 

 

 

282

 

 

 

 

 

998

 

 

 

873

 

 

 

 

 

 

 

Aerojet Rocketdyne

 

75

 

 

 

56

 

 

 

 

 

222

 

 

 

56

 

 

 

 

 

 

 

Corporate unallocated items

 

(338

)

 

 

(256

)

 

 

 

 

(1,097

)

 

 

(756

)

 

 

 

 

 

 

Operating income

$

495

 

 

$

479

 

 

3

%

 

$

1,349

 

 

$

1,272

 

 

6

%

 

 

 

 

Unallocated items (see Table 5)

 

338

 

 

 

256

 

 

 

 

 

1,097

 

 

 

795

 

 

 

 

 

 

 

Adjusted segment operating income

$

833

 

 

$

735

 

 

13

%

 

$

2,446

 

 

$

2,067

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

9.4

%

 

 

9.7

%

 

 

 

 

8.5

%

 

 

9.0

%

 

 

 

 

 

 

Adjusted segment operating margin

 

15.7

%

 

 

15.0

%

 

70 bps

 

 

15.5

%

 

 

14.7

%

 

80 bps

 

~15.5%
(Prior: 15.2% - 15.4%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate (GAAP)

 

6.0

%

 

 

4.5

%

 

 

 

 

4.9

%

 

 

6.4

%

 

 

 

 

 

 

Effective tax rate (non-GAAP)

 

12.9

%

 

 

12.9

%

 

 

 

 

13.0

%

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

2.10

 

 

$

2.02

 

 

4

%

 

$

5.50

 

 

$

5.61

 

 

(2

%)

 

 

 

 

Non-GAAP diluted EPS

$

3.34

 

 

$

3.19

 

 

5

%

 

$

9.63

 

 

$

9.01

 

 

7

%

 

$12.95 - $13.15
(Prior: $12.85 - $13.15)

 

 

Pension adjusted non-GAAP diluted EPS

$

2.94

 

 

$

2.71

 

 

8

%

 

$

8.44

 

 

$

7.62

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash from operations

$

780

 

 

$

543

 

 

44

%

 

$

1,430

 

 

$

1,307

 

 

9

%

 

 

 

 

Adjusted free cash flow

$

728

 

 

$

617

 

 

18

%

 

$

1,286

 

 

$

1,273

 

 

1

%

 

~$2.2B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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