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Jun 27, 2025
L3Harris Q2 2025 Earnings Report
L3Harris reported strong Q2 2025 results, achieving record book-to-bill and raising 2025 guidance.
Key Takeaways
L3Harris delivered solid Q2 2025 performance with revenue growth, higher EPS, and a record book-to-bill ratio, driven by strong defense demand and operational efficiency gains.
Record book-to-bill of 1.5x with $8.3B in orders
Revenue grew to $5.4B, up 2% reported and 6% organically
Adjusted segment operating margin expanded to 15.9%
2025 guidance raised on strong performance and increased demand
Revenue by Segment
Forward Guidance
L3Harris raised its full-year 2025 guidance driven by strong first-half performance and robust defense demand, despite higher tax rate impacts.
Positive Outlook
- 2025 revenue guidance increased to ~$21.75B
- Non-GAAP EPS raised to $10.40-$10.60
- Adjusted free cash flow guidance raised to ~$2.65B
- Strong demand in space, missiles, and resilient communications
- Competitive momentum from LHX NeXt cost savings initiatives
Challenges Ahead
- Higher effective tax rate creating ~$0.30 EPS headwind
- Lower cash from operations due to legal settlement
- Free cash flow down 20% YoY due to working capital timing
- Integrated Mission Systems revenue down due to CAS divestiture
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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