How Does L3Harris Technologies Company Work?

L3Harris Technologies' core operations encompass secure communications, electronic warfare systems, ISR platforms, avionics, night vision equipment, and propulsion systems. The 2023 acquisition of Aerojet Rocketdyne significantly expanded its capabilities in propulsion.

Approximately 77% of L3Harris's revenue is derived from the U.S. Department of Defense, with 22% from international markets. Other U.S. government agencies and commercial aerospace firms also represent significant client segments.

L3Harris's operational processes are designed for agility and efficiency, integrating manufacturing, advanced technology development, and logistics support. The company historically invests around 4% of its revenue in research and development to drive innovation.

The company maintains an ethical and agile supply chain with certified suppliers, emphasizing quality and cybersecurity. Its Small Business Program actively promotes opportunities for smaller enterprises within its procurement activities.

Formed in 2019 by merging L3 Technologies and Harris Corporation, L3Harris Technologies reorganized its core businesses in 2022 into three segments: Integrated Mission Systems, Space and Airborne Systems, and Communication Systems. This was followed by the acquisition of Aerojet Rocketdyne in 2023, adding propulsion systems and missile defense to its portfolio, creating a fourth segment.

To address market challenges, L3Harris launched the LHX NeXt program, exceeding its 2024 cost-savings target by achieving $800 million and raising the goal to $1.2 billion by the end of 2025. The company also divested 13 non-core businesses, totaling approximately $2 billion in revenue, while acquiring businesses with $2.7 billion in strategically aligned revenue.

L3Harris's competitive edge is built on its intellectual property, especially in electronic warfare and AI. Its technology leadership is highlighted by securing a $919 million contract for the SDA Tranche 2 Tracking Layer, building 18 satellites for missile tracking, and successfully demonstrating hypersonic threat tracking in 2024. Strategic partnerships, including one with Palantir Technologies for AI, further enhance its capabilities.

The company's record backlog of $34 billion at the end of 2024 indicates strong demand for its solutions. L3Harris continues to adapt by integrating advanced technologies and focusing on agile deployment to meet evolving national security requirements, reinforcing its role as a 'Trusted Disruptor'. This focus on innovation is a key aspect of the Growth Strategy of L3Harris Technologies.

L3Harris Technologies is a leading global innovator in aerospace and defense, holding the position of the sixth-largest defense contractor in the United States. The company actively competes with industry giants, showcasing a strong market presence and a broad international customer base.

The company navigates several critical risks, including intense competition, geopolitical instability, and evolving regulatory landscapes. Technological disruption, budgetary constraints, particularly in the space sector, and supply chain vulnerabilities are also significant factors that L3Harris actively manages.

L3Harris is focused on its 'Trusted Disruptor' strategy, aiming for substantial cost savings through initiatives like the LHX NeXt program. The company is heavily investing in advanced technologies such as hypersonic defense and AI-driven systems, positioning itself for sustained growth.

For 2026, L3Harris projects $23 billion in revenue and aims for a low 16% adjusted segment operating margin. The company demonstrates a commitment to shareholder returns, having returned nearly $800 million in Q1 2025 and increasing its dividend for the 24th consecutive year.