L3harris Technologies (LHX) Q3 2025 earnings summary

Executive summary

• Orders reached up to $7 billion, driving a record backlog and a book-to-bill ratio of 1.2x, reflecting strong demand and robust pipeline.

• Revenue for Q3 2025 was $5.7 billion, up 7% year-over-year, with organic growth of 10% and strong performance across all segments, especially international deliveries.

• Non-GAAP EPS rose 10% to $2.70, while diluted EPS was $2.46, supported by higher operating income and lower interest expense.

• Guidance for 2025 was raised due to strong execution, robust international wins, and higher expectations.

• Major divestiture of the CAS disposal group completed in March 2025, generating $831 million in net proceeds.

Financial highlights

• Q3 revenue was $5.7 billion, with total backlog at $36.3 billion and operating income of $621 million.

• Adjusted segment operating margin was 15.9%, marking the eighth consecutive quarter of expansion.

• Free cash flow for Q3 was $449 million, impacted by temporary customer payment delays; full-year guidance reaffirmed at $2.65 billion.

• Year-to-date revenue reached $16.2 billion, up 3% from the prior year.

• Dividend per share increased to $1.20 quarterly, marking the 24th consecutive annual increase.

Outlook and guidance

• 2025 revenue guidance increased to ~$22 billion (previously ~$21.75 billion), with 2026 outlook at $23 billion.

• Non-GAAP diluted EPS guidance for 2025 is $10.50–$10.70 (previously $10.40–$10.60).

• Adjusted segment operating margin guidance set at high 15% for 2025, low 16% for 2026.

• Strongest cash generation expected in Q4, assuming resolution of government shutdown.

• Management expects continued revenue growth, supported by a $36.3 billion backlog, with 45% expected to convert to revenue in the next 12 months.