L3Harris Technologies: A Leading Player in Defense and Aerospace It has made waves across the globe with its cutting-edge technology and strategic acquisitions. But how solid is this company financially? Both, for investors and industry analysts, as well as the curious ‘you’ who just wants to know about the financial backbone of L3Harris. We will discuss L3Harris’s net worth, market cap, revenues, and other crucial financial indicators in this article.
| Financial Metric | Value |
|---|---|
| $41.45B | |
| $36.66B | |
| $1.502B | |
| $1.227B | |
| $5.5B | |
| $2.37 | |
| $7.87, $7.88 | |
| 27.97, 24.84 | |
| $4.64 | |
| 2.37% |
What does L3Harris Technologies do?
To understand L3Harris financial correctly first look at what company do and its importance in the global economy.
Company Overview
L3Harris Technologies is an aerospace and defense technology innovator, delivering end-to-end solutions that provide a mission advantage to customers. The company was created in 2019 through the merger of L3 Technologies and Harris Corporation. With the merger, the largest defense contractor in the world was born, dedicated to working through superior solutions across multiple industries and solutions.
Key Products and Services
The product portfolio of L3Harris is extensive and multifaceted. The company is focused on advanced technologies supported for military and commercial markets that include:
- C4ISR Systems: Command, control, communications, computers, intelligence, surveillance, and reconnaissance systems.
- Sensors and Avionics: Advanced systems for navigation, communication, and threat detection
- Military and Commercial Training Services: Innovative simulation and training solutions for pilots and operators.
Recent Developments
L3Harris is always adding new capabilities. This acquisition in 2023 of Aerojet Rocketdyne, a propulsion system powerhouse, was a key milestone. The move strengthened its position in the space and defense sectors. Further, partnerships with unique organizations such as Palantir Technologies have only enhanced its capabilities in providing data-driven solutions.
What you need to know about market capitalization
Market capitalization (or market cap for short) is often brought into the discussion when assessing a company’s financial strength. But what does this term really mean?
What is the definition of Market Capitalization?
Market capitalization simply refers to the overall valuation of a company’s shares outstanding. It is computed with the formula:
Market Cap Price of Stock Shares Out.
Say L3Harris’s stock is $200 and there are 154 million shares outstanding, then its market cap would be $30.8 billion.
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Why is Market Cap Important?
Market cap is an important figure because it shows how much investors think the company is worth. It is also used to categorize companies into small-cap, mid-cap, and large-cap. L3Harris being a large-cap is showing a wealth of stability and growth as well as is indicative of a strong market position.
Market Capitalization of L3Harris Technologies
So what is a market cap, and how does L3Harris stack up in this class?
Current Market Cap
L3Harris Market Cap As of early March 2025, L3Harris has a market cap of around $30.8 billion. This is indicative of its strong market presence and investor faith in its viability.
Historical Growth
L3Harris’s market cap has evolved greatly since the early days. In 1968, the company had a market cap of only $410.72 million. It has delivered a CAGR of 7.84% over the decades through constant innovation and acquiring strategic businesses.
Year-over-Year Changes
But the trajectory of its market cap is fundamentally upward even if it oscillates based on economic conditions and defense budgets. The industry has seen recent growth driven by rising defense spending and demand for advanced technologies.
Financial Performance and Revenue
Another important KPI for assessing a company’s financial health is revenue. Let’s now look into the revenue and financial performance of L3Harris.
Annual Revenue
In Fiscal Year 2024, which ended in October 2023, L3Harris recorded $21.3B in annual revenue, up 10% from Fiscal Year 2023. This increase demonstrates the company’s capability to address growing demand and implement its business strategies successfully.”
Segment Performance
- L3Harris provides products and services across several major business segments that add up to total revenue:
- Segment Contribution to Revenue Communications Systems35%Integrated Mission Systems30%Space & Airborne Systems25%Other Services10%
- It continues to be the dominant segment due to its sophisticated radio and satellite communication technologies.
Recent Earnings Reports
L3Harris Beats Q4 2024 Earnings Affects Jobs Segment Full Steam Training on data until October 2023 Operational efficiencies and various cost-curb initiatives also acted as a strong lever in driving profitability.
Guidance for 2025
For guidance, the company has offered guidance for 2025, forecasting revenue between $21.8 billion and $22.2 billion. Indicating that it is assured of its income-tracing even with possible headwinds in the worldwide industry.
Orders and Backlog
Another lens for measuring a company’s financial health is to look at its orders and backlog.
Recent Orders
L3Harris received orders worth $24.2 billion in 2024, leading to a book-to-bill of 1.14x, which is favorable, meaning that new orders exceeded sales.
Record Backlog
L3Harris said backlog hit $34 billion at the end of 2024. That means there is already secured future revenue accumulated in the backlog, offering a solid base for the future.
Impact on Future Growth
Not only does a strong backlog guarantee future revenue, it sets the company up for long-term profitability. For L3Harris this backlog is evidence of its success in winning big contracts that allow it to retain a leadership role in the defense and aerospace markets.
Cost-Saving Initiatives
L3Harris is also investing in cost-saving programs for greater operational efficiency.
LHX NeXt Program
The company said its LHX NeXt program has realized $800 million in cost savings in 2024, exceeding its original target. The savings stemmed from streamlined operations, overhead cost reductions and improved supply chain management.
Future Goals
L3Harris has also increased its cost-savings target for 2025 to $1.2 billion, underscoring its focus on driving margin and shareholder value.
Debt and Capital Allocation
Management of debt and allocation of capital are important parts of a firm’s financial policy.
Net Debt Ratio
As of Q4 2024, the net debt ratio of L3Harris is 3.1x, with plans to reduce it to below 3.0x by the end of 2025. This shows that the company is committed to a healthy balance sheet.
Share Buybacks
L3Harris is also focused on returning value to its shareholders. The restais i passati ink a companys no return 2-center of excess cash through share buybacks, and $3.4 billion is available for repurchased authorization.
Conclusion
In short, L3Harris Technologies is a financial behemoth in defense and aerospace. Therefore, with a market cap of $30.8 billion, solid revenue growth, a record backlog, and numerous cost savings initiatives well underway, this company is positioned for continued success.
As we will see, L3Harris’s financials and strategic initiatives make it an attractive stock for investors and analysts. With its innovative and expanding business model, the company’s net worth and market presence will continue to flourish.
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