L3Harris
L3Harris' revenue rose 2.5% to $21.9 billion in fiscal 2025. Its operating margin was 9.7%, up from 9.0% a year earlier. Free cash flow was $2.7 billion, up 24.7%. It paid out $2.1 billion in dividends and buybacks, 77% of free cash flow. The diluted share count fell 1.2%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What L3Harris does
L3Harris makes defense technology: secure radios and communications networks, sensors, space systems, and rocket and missile propulsion. Its largest customers are U.S. Government departments and agencies, the prime contractors (main contractors) that work for them, and allied governments, and it serves customers in more than 100 countries. Sales to U.S. Government customers, including foreign military sales the U.S. Government funds, made up 75% of fiscal 2025 revenue. Revenue from customers outside the U.S., counting those same foreign military sales, was $4.8 billion, or 22%.
In fiscal 2025 it reported four segments. Communication Systems makes tactical radios, night vision goggles, and radios for first responders and other public agencies. Integrated Mission Systems builds surveillance and targeting systems for aircraft, and power, sensor and autonomous systems for navy vessels. Space & Airborne Systems makes space systems for surveillance, navigation and weather monitoring, air traffic management networks, and electronics and weapons for combat aircraft. Aerojet Rocketdyne makes propulsion and armament systems for missiles and space missions. L3Harris names BAE Systems, Boeing, General Dynamics, Lockheed Martin, Northrop Grumman, RTX and Thales as competitors, along with newer defense contractors such as Anduril.
L3Harris had about 45,000 employees as of January 2, 2026, including about 18,000 engineers and scientists, with 90% in the U.S. Its contractual backlog, work under contract still to be done, was $38.7 billion. It divested its Commercial Aviation Solutions business in March 2025, and starting in fiscal 2026 it reorganized into three segments.
Its biggest risks, as it describes them
- Its heavy reliance on U.S. Government defense contracts, which it must keep winning in competitive bidding.
- Cuts or shifts in U.S. Government spending, or delays and shutdowns in the federal budget process.
- Losses from cost overruns on fixed-price contracts, especially for development programs.
- Problems at its suppliers and subcontractors, including the limited approved sources of microelectronic parts.
- An explosion, fire or improper handling of the dangerous materials used in its business.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2016 to 2025, earnings per share grew 14.2% a year and net income 19.5% a year, as new shares raised the share count by 51% and diluted each share's earnings.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value L3Harris yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from L3Harris' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from L3Harris' fiscal 2025 free cash flow of $2.7B, net cash of −$10.0B at January 2, 2026 and 188 million diluted shares, from its filings. The scenarios are fitted to L3Harris: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 8.6% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Aerospace & Defense), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $260.23
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from L3Harris' earnings per share of $9.92 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 26.2×, the middle of L3Harris' own P/E today, its peers' median and its sector's median (L3Harris' own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $260.23
- Value at this multiple, against the last close
- —
- L3Harris' P/E at the last close
- 26.2×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| GE AerospaceGE | $288.43 | $8.66 | 33.3× |
| L3HarrisLHX | $260.23 | $9.92 | 26.2× |
| Northrop GrummanNOC | $565.41 | $31.67 | 17.9× |
| Huntington Ingalls IndustriesHII | $281.05 | $16.78 | 16.7× |
| TextronTXT | $78.11 | $5.31 | 14.7× |
Balance sheet
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 0.9 | 0.9 | 0.6 | 0.6 | 1.1 |
| Debt incl. finance leases | 7.1 | 7.0 | 13.1 | 12.2 | 11.1 |
| Net debt (negative means net cash) | 6.1 | 6.2 | 12.6 | 11.6 | 10.0 |
| Net debt to EBITDA | 2.0x | 3.0x | 4.8x | 3.6x | 3.0x |
| Debt to equity | 0.4x | 0.4x | 0.7x | 0.6x | 0.6x |
| Interest coverage | 7.4x | 3.8x | 2.9x | 2.9x | 3.5x |
| Current ratio | 1.4x | 1.2x | 1.0x | 1.1x | 1.2x |
| Quick ratio | 1.2x | 0.9x | 0.8x | 0.9x | 1.0x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought L3Harris shares on the open market, and 4 insiders sold $9.7 million, all of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| May 5, 2026 | Melanie RakitaVice President & CHRO | Sold plan | 2,180 | $310.45 | $676,781 | Form 4 |
| Mar 2, 2026 | Jon RambeauPres., Coms. & Spec. Dom. | Sold plan | 5,528 | $370.32 | $2.0 million | Form 4 |
| Mar 2, 2026 | Melanie RakitaVice President & CHRO | Sold plan | 751 | $370.32 | $278,110 | Form 4 |
| Feb 26, 2026 | Melanie RakitaVice President & CHRO | Sold plan | 2,378 | $341.45 | $811,968 | Form 4 |
| Feb 5, 2026 | Samir MehtaPres., Space & Missions Sys. | Sold plan | 4,840 | $338.85 | $1.6 million | Form 4 |
| Nov 13, 2025 | Christopher E KubasikChair and CEO, Director | Sold plan | 14,171 | $301.05 | $4.3 million | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Pass | Pass |
| Current ratio rose | Fail | Pass | Pass |
| Share count didn't rise | Pass | Fail | Pass |
| Gross margin rose | Fail | Fail | Fail |
| Revenue rose relative to assets | Pass | Fail | Pass |
| F-score | 6 of 9 | 5 of 9 | 8 of 9 |
| Accruals ratio | −2.3% | −2.5% | −3.6% |
Compare
Put L3Harris side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| L3Harris | FY25 | 2.5% | 9.7% | 12.3% | 5.8% | 3.0x | 8 | |
| Textron | FY25 | 8.0% | — | 6.3% | — | — | — | Compare |
| Huntington Ingalls Industries | FY25 | 8.2% | 5.3% | 6.4% | 7.3% | 1.9x | 7 | Compare |
| Northrop Grumman | FY25 | 2.2% | 10.8% | 7.9% | 13.5% | 1.9x | 6 | Compare |
| GE Aerospace | FY25 | 18.5% | — | 15.8% | 35.8% | 0.7x | 5 | Compare |
10 years of figures
| Fiscal year | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 6.0 | 5.9 | 6.2 | 6.8 | 18.2 | 17.8 | 17.1 | 19.4 | 21.3 | 21.9 |
| Revenue growth | 54.2% | −1.5% | 4.8% | 10.0% | 167.5% | −2.1% | −4.2% | 13.8% | 9.8% | 2.5% |
| Gross profit | 2.2 | 2.0 | 2.1 | 2.3 | 3.9 | 5.4 | 4.9 | 5.1 | 5.5 | 5.6 |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | 1.1 | 1.1 | 1.1 | 1.4 | 2.2 | 2.1 | 1.1 | 1.4 | 1.9 | 2.1 |
| Net income | 0.3 | 0.5 | 0.7 | 0.9 | 1.1 | 1.8 | 1.1 | 1.2 | 1.5 | 1.6 |
| Diluted EPS (US$) | 2.59 | 4.36 | 5.76 | 7.86 | 5.19 | 9.09 | 5.49 | 6.44 | 7.87 | 8.53 |
| Diluted shares (millions) | 125 | 124 | 121 | 120 | 216 | 203 | 194 | 191 | 191 | 188 |
| Cash flow | ||||||||||
| Cash from operations | 0.9 | 0.6 | 0.8 | 1.2 | 2.8 | 2.7 | 2.2 | 2.1 | 2.6 | 3.1 |
| Capital expenditure | 0.2 | 0.1 | 0.1 | 0.2 | 0.4 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 |
| Free cash flow | 0.8 | 0.5 | 0.6 | 1.0 | 2.4 | 2.3 | 1.9 | 1.6 | 2.2 | 2.7 |
| Dividends paid | 0.3 | 0.3 | 0.3 | 0.3 | 0.7 | 0.8 | 0.9 | 0.9 | 0.9 | 0.9 |
| Share buybacks | 0.0 | 0.7 | 0.3 | 0.2 | 2.3 | 3.7 | 1.1 | 0.5 | 0.6 | 1.2 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 6.7 | 0.0 | 0.0 |
| Stock-based compensation | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 0.5 | 0.5 | 0.3 | 0.5 | 1.3 | 0.9 | 0.9 | 0.6 | 0.6 | 1.1 |
| Debt incl. finance leases | 4.1 | 4.0 | 3.8 | 3.5 | 7.0 | 7.1 | 7.0 | 13.1 | 12.2 | 11.1 |
| Total assets | 12.0 | 10.1 | 9.9 | 10.1 | 37.0 | 34.7 | 33.5 | 41.7 | 42.0 | 41.2 |
| Total liabilities | 9.0 | 7.2 | 6.6 | 6.8 | 16.1 | 15.4 | 14.9 | 22.9 | 22.4 | 21.6 |
| Shareholders' equity | 3.1 | 2.9 | 3.3 | 3.4 | 20.7 | 19.2 | 18.5 | 18.8 | 19.5 | 19.6 |
| Margins and ratios | ||||||||||
| Gross margin | 36.0% | 34.7% | 34.2% | 34.3% | 21.4% | 30.2% | 28.9% | 26.3% | 25.9% | 25.7% |
| Operating margin | 17.6% | 18.2% | 18.1% | 21.3% | 11.9% | 11.8% | 6.6% | 7.3% | 9.0% | 9.7% |
| Net margin | 5.4% | 9.2% | 11.3% | 13.9% | 6.2% | 10.4% | 6.2% | 6.3% | 7.0% | 7.3% |
| Free cash flow margin | 12.9% | 7.6% | 9.9% | 15.1% | 13.3% | 13.2% | 11.2% | 8.5% | 10.1% | 12.3% |
| Return on capital | 9.8% | 11.5% | 13.1% | 18.9% | 10.8% | 6.5% | 3.7% | 5.0% | 5.8% | 5.8% |
| Return on equity | 10.0% | 18.2% | 22.6% | 28.6% | 9.3% | 9.2% | 5.6% | 6.6% | 7.8% | 8.2% |
| Return on assets | 2.6% | 4.9% | 7.0% | 9.5% | 4.8% | 5.2% | 3.1% | 3.3% | 3.6% | 3.9% |
| Net debt to EBITDA | 2.6x | 2.6x | 2.5x | 1.8x | 1.8x | 2.0x | 3.0x | 4.8x | 3.6x | 3.0x |