Company Reports

L3Harris Technologies is the sixth-largest US defense contractor by sales. It was formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The addition of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne reflected L3Harris' strategy of becoming a more well-rounded defense prime contractor. These additions brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We still think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

L3Harris replaced its board chair and CEO Chris Kubasik with independent director Lewis Hay and Sam Mehta, respectively, following an investigation into Kubasik and the firm's code of conduct. The company in turn promoted new heads of the space and communications units formerly led by Mehta.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The addition of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne reflected L3Harris' strategy of becoming a more well-rounded defense prime contractor. These additions brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We still think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

Revenue grew 8.4% in the second quarter to $5.9 billion, and while operating margin in the communications segment expanded to 27%, the other newly reorganized segment margins declined, lifting consolidated GAAP operating margin from 10.5% to 11.1% compared with the year-ago quarter.

Two of L3Harris' newly realigned segments saw double-digit revenue growth in the first quarter, and all three delivered at least 60 basis points of operating margin expansion, totaling $652 million operating profit on $5.7 billion in revenue, consolidated margin having risen from 10.2% to 11.4%.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The addition of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne reflected L3Harris' strategy of becoming a more well-rounded defense prime contractor. These additions brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We still think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

On Feb. 28, the US and Israel led widespread military strikes on Iran and signaled that the operation could last weeks. Iran retaliated, with consequences across the region and in the oil market. In premarket trading on March 2, most US defense contractors' stocks rose several percentage points.

L3Harris' revenue and segment operating income grew 3% year on year to $21.9 billion and $3.4 billion, respectively, resulting in 9.7% operating margin for the year. In early 2026, the company realigned some of its operating units into three segments meant to more efficiently pursue growth.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The addition of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne reflected L3Harris' strategy of becoming a more well-rounded defense prime contractor. These additions brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We still think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

L3Harris announced further restructuring of its missiles business, catalyzed by a $1 billion investment from the US Department of Defense's industrial fund. The company will invest in modernizing its missile and rocket motor production capacity to accelerate deliveries in the coming years.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The addition of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne reflected L3Harris' strategy of becoming a more well-rounded defense prime contractor. These additions brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We still think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

In early trading on Jan. 8, after President Donald Trump declared he would seek a $1.5 trillion fiscal 2027 defense budget, shares of US defense contractors appreciated by as much as 5%.

In afternoon trading on Jan. 7, after reports that President Trump had suggested he would prohibit US defense contractors' dividends and stock repurchases, shares of US defense contractors declined by as much as 5%.

L3Harris announced a reorganization of its business lines and the sale to an aerospace-focused private equity firm of a 60% stake in certain space exploration-focused portions of its rocket motor business for $845 million.

L3Harris' revenue grew 7% year on year while segment operating income rose 8% to $900 million, a solid 15.9% margin. Management increased its full-year expectations and highlighted that growing non-US military budgets could drive exports to reach 25% of company sales in the medium term.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The recent additions of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne have vaulted L3Harris' strategy into becoming a more well-rounded defense prime contractor. These additions have brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

In afternoon trading on Oct. 15, after reports of a comment by US Treasury Secretary Scott Bessent about US defense contractors' stock repurchases at the "Invest in America Forum" hosted by CNBC, shares in the sector traded downward between around 1% and 3%.

L3Harris Technologies is the sixth-largest US defense contractor by sales. It formed in 2019 from the merger of L3 Technologies, a decentralized and acquisitive maker of sensors, and Harris, a sensor and radio manufacturer that ran a more unified business. Underpinning the merger was an assumption that additional scale would primarily generate cost synergies and, eventually, the firms could produce meaningful revenue synergies. The recent additions of Viasat's tactical data link business and the $4.7 billion acquisition of Aerojet Rocketdyne have vaulted L3Harris' strategy into becoming a more well-rounded defense prime contractor. These additions have brought munitions, space exploration, and hypersonic missile components and capabilities to its very radio- and communications-heavy base. That said, Aerojet supplies components to many other defense contractors, which isn't likely to change, and competes with the space segment of Northrop Grumman. We think it will take time for meaningful revenue synergies that weren't already in the backlog for L3Harris, Viasat, or Aerojet to materialize.

L3Harris' revenue grew 2% year on year while segment operating income rose 5% to $863 million, a solid 15.9% margin. Management increased its full-year expectations and highlighted opportunities emerging in the nascent 2026 military budgets for expanded missile capacity and space-based sensors.

Early on June 22 local time, the US deployed long-range bombers and missiles to strike Iran's underground nuclear enrichment and armament sites. Shares of US defense firms were mostly flat in premarket trading on June 23.