L3Harris Technologies : 1QCY25 Earnings Presentation

Published: 2025-04-24 08:58:08 ET LHX

FIRST QUARTER 2025 EARNINGS PRESENTATION

APRIL 24, 2025

DELIVERING SHAREHOLDER VALUE

Trusted Disruptor strategy ensures we are agile, fast, and align with key defense priorities

Drive profitable growth, ensuring we continue to deliver on commitments to customers and shareholders

Disciplined capital deployment to invest in the business and return excess cash to shareholders

2025

2026

Guidance

Framework

Revenue

$21.4B - $21.7B

$23B

Adjusted Segment

mid - high 15%

low 16.0%

Operating Margin1

Adjusted Free

$2.4B - $2.5B

$2.8B

Cash Flow1

4% Organic

2023 - 2026

CAGR

120 bps+

2023 - 2026*

11%

2023 - 2026

CAGR

*FY23 Adjusted Segment Operating Margin of 14.8%

1) NGFM - reference the 1Q25 earnings release for a reconciliation to comparable GAAP measure. A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort.

L3HARRIS

2025 First Quarter Earnings Presentation

FIRST QUARTER 2025 FINANCIAL RESULTS

$5.1B $800M 15.6% $2.41

Revenue

Adjusted Segment

Non-GAAP

Operating Income2

Operating Margin1

Diluted EPS1

($72M)

$228M

$569M

Adjusted Free

Dividends

Share Repurchases

Cash Flow1

$4.3B

0.84x

$33.2B

Orders

Book-to-Bill

Total Backlog

The first quarter of fiscal 2025 included 12 weeks, whereas the first quarter of fiscal 2024 included 13 weeks. 1) NGFM - reference the 1Q25 earnings release for a reconciliation to comparable GAAP measure.

L3HARRIS

2025 First Quarter Earnings Presentation

TRUSTED DISRUPTOR STRATEGY AT WORK…

Communication Systems (CS)

Integrated Mission Systems (IMS)

TRUSTED

Signed long term framework agreement with Dutch MoD for

communicationsDISRUPTIVE modernization

Successful demonstration of European C5ISR capability

TRUSTED

First missionized Skyraider II aircraft was delivered to U.S. Air Force Special Operations Command

DISRUPTIVE

Out of 130+ proposals,

1 of 3 companies selected to prototype collaborative autonomy for DIU

Space and Airborne Systems (SAS)

TRUSTED

US Air Force Completes

First Flight of L3Harris

Viper Shield Electronic

Warfare System

DISRUPTIVE

L3Harris leadership

highlights space-based

capabilities critical for

Golden Dome

Aerojet Rocketdyne (AR)

TRUSTED

US Space Force certifies ULA Vulcan with AR's RL10 engines for National Security Space Launch missions

DISRUPTIVE

New Advanced Large

Solid Rocket Motors

Power Successful US

Missile Defense Test

L3HARRIS

2025 First Quarter Earnings Presentation

The appearance of U.S. Department of Defense visual information does not imply or constitute DOD endorsement.

COMMUNICATION SYSTEMS

($ millions)

Revenue

$1,294 $1,352

1Q24 1Q25

1Q25 DRIVERS

Revenue: increased 4%

Adjusted Operating Income

and Margin

$310 $345

24.0% 25.5%

1Q24 1Q25

Margin: increased 150 basis points

L3HARRIS

2025 First Quarter Earnings Presentation

INTEGRATED MISSION SYSTEMS

($ millions)

Revenue

Adjusted Operating Income

and Margin

$1,627 $1,592

$185 $203

11.4% 12.8%

1Q24

1Q25

1Q24

1Q25

1Q25 DRIVERS

Revenue: decreased 2%

Margin: increased 140 basis points

L3HARRIS

2025 First Quarter Earnings Presentation

SPACE & AIRBORNE SYSTEMS

($ millions)

Revenue

Adjusted Operating Income

and Margin

$1,751

$1,611

$216

$176

12.3%

10.9%

1Q24

1Q25

1Q24

1Q25

1Q25 DRIVERS

Revenue: decreased 8%, 6% organically

+ FAA safety of flight networks

Margin: decreased 140 basis points

+ LHX NeXt

L3HARRIS

2025 First Quarter Earnings Presentation

AEROJET ROCKETDYNE

($ millions)

Revenue

$584 $629

1Q24 1Q25

1Q25 DRIVERS

Revenue: increased 8%, 9% organically

Adjusted Operating Income

and Margin

$77 $76

13.2% 12.1%

1Q24 1Q25

Margin: decreased 110 basis points

L3HARRIS

2025 First Quarter Earnings Presentation

2025 GUIDANCE

Guidance has been updated to reflect recent portfolio actions. These changes include both a divestiture and an internal business realignment:

CONSOLIDATED

SEGMENT

Revenue

Adjusted segment

operating margin1

$21.4B - $21.7B

mid - high 15%

(Prior: $21.8B - $22.2B)

Non-GAAP

Diluted EPS1

FCF

$10.30 - $10.50

$2.4B - $2.5B

Revenue

Operating Margin1

$5.6B - $5.7B

~25%

(Prior: high 24%)

IMS

~$6.3B

high 11%

(Prior: $7.0B - $7.2B)

(Prior: low 12%)

SAS

$6.9B - $7.1B

low 12%

~$2.8B

mid 12%

(Prior: ~$2.5B)

1) NGFM - a reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort.

L3HARRIS

2025 First Quarter Earnings Presentation

2025 SUPPLEMENTAL INFORMATION

2025

Current

Prior

FAS/CAS operating adjustment

~$15 million

Non-service FAS pension income

~$270 million

~$260 million

Net FAS/CAS pension

~$285 million

~$275 million

Net interest expense

~$600 million

~$630 million

Effective tax rate on non-GAAP earnings1

11.0%

- 12.0%

11.0% - 12.0%

Weighted average diluted shares

188

- 189

~190

Capital expenditures

~2% revenue

1) NGFM - A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort.

L3HARRIS

2025 First Quarter Earnings Presentation

Disclaimer

L3Harris Technologies Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 12:57 UTC.