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Mar 28, 2025
L3Harris Q1 2025 Earnings Report
L3Harris reported solid performance in Q1 2025 with increased EPS and margin improvements.
Key Takeaways
L3Harris delivered a strong first quarter marked by higher earnings, improved margins, and continued capital returns to shareholders. Operational efficiency and divestiture impacts played a notable role in shaping the results.
Revenue reached $5.132 billion, slightly down due to divestitures.
GAAP EPS increased 38% to $2.04; Non-GAAP EPS rose to $2.41.
Net income improved to $386 million, aided by higher operating income and lower interest expenses.
Repurchased $569 million in shares and increased dividend for the 24th consecutive year.
Revenue by Segment
Forward Guidance
L3Harris updated its 2025 guidance to reflect the divestiture of its commercial aviation business and continued operational momentum.
Positive Outlook
- Increased dividend for the 24th consecutive year.
- Higher expected revenue for Aerojet Rocketdyne (~$2.8B).
- Improved margin outlook for Communication Systems (~25%).
- Updated EPS guidance range: $10.30 - $10.50 (7% growth).
- Maintained $2.4B–$2.5B free cash flow outlook.
Challenges Ahead
- Lower revenue guidance due to CAS divestiture (~$525M impact).
- Reduced Integrated Mission Systems forecast (~$6.3B vs. prior $7.0B–$7.2B).
- Margins lowered slightly in IMS (high 11% vs. low 12%).
- Space & Airborne Systems expected to have low 12% margin.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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