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Mar 28
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.
L3Harris
L3Harris
L3Harris Revenue by Segment
Revenue by Segment
Communication Systems Revenue
CapyFin.comIntegrated Mission Systems Revenue
CapyFin.comSpace & Airborne Systems Revenue
CapyFin.comAerojet Rocketdyne Revenue
CapyFin.com 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.
- Portfolio realignment to impact segment comparisons.
Revenue & Expenses
Visualization of income flow from segment revenue to net income