L3harris Technologies (LHX) UBS Global Industrials and Transportation Conference summary

Strategic focus and adaptability

• Emphasizes agility and readiness to support evolving government priorities and threats, maintaining a platform-agnostic approach.

• Acts as an honest broker, leveraging partnerships and a diverse portfolio to address complex customer needs.

• Closely monitors administration and congressional actions to align strategies and remain responsive to budget and mission changes.

LHX Next efficiency program

• LHX Next targets $1 billion in annual run-rate cost savings by 2026, with $600 million expected in 2024.

• Savings achieved through labor, facilities, supply chain improvements, and data-driven decision-making.

• About 40% of savings improve margins, while 60% benefit government customers, enhancing competitiveness.

• Recognized by government stakeholders for progress and collaborative efforts.

Aerojet Rocketdyne integration and impact

• Integration exceeded initial $50 million savings target, leveraging shared services and digital capabilities.

• Transformation includes supply chain scale, digital engineering, and talent acquisition from major defense primes.

• Integration phase expected to complete in Q1 next year, with ongoing efficiency gains.