- Orders1 of $5.2 billion; book-to-bill of 1.0x
- Revenue of $5.3 billion, up 13%
- Operating margin of 9.0%; adjusted segment operating margin1 of 15.6%
- Diluted earnings per share (EPS) of $1.92; non-GAAP EPS1 of $3.24
- 2024 revenue guidance range increases from $20.8B - $21.3B to $21.0B - $21.3B
- 2024 adjusted segment operating margin1 guidance increases from >15% to 15.2% - 15.4%*
- 2024 Non-GAAP EPS guidance range increases from $12.70 - $13.05 to $12.85 - $13.15*
MELBOURNE, Fla. — (BUSINESS WIRE) — July 25, 2024 — L3Harris Technologies (NYSE: LHX) reported second quarter 2024 diluted EPS of $1.92, on second quarter revenue of $5.3 billion. Second quarter 2024 non-GAAP diluted EPS1 was $3.24, as compared to non-GAAP diluted EPS1 of $2.97 for the second quarter of 2023, a 9% increase. A reconciliation of non-GAAP results are detailed in tables beginning on page 11.
"We delivered another strong quarter of financial results with improved margins, reflecting our commitment to operational excellence and a relentless focus on execution that delivers value to our customers and shareholders," said Christopher E. Kubasik, Chair and CEO.
Kubasik added, "As we celebrate the five year anniversary of the L3 and Harris merger, I'm proud of the progress we've made as the industry's Trusted Disruptor. Our first half results reflect progress toward achieving our 2026 financial framework. We are raising our revenue, margin and EPS guidance for the year, underscoring the tangible results of our LHX NeXt initiative, which is focused on streamlining our operations and enhancing our efficiency while transforming the company."
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE
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Second Quarter |
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Year to Date |
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2024 Guidance* |
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($ millions, except per share data) |
2024 |
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2023 |
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Change |
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2024 |
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2023 |
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Change |
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Revenue |
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Space & Airborne Systems |
$ |
1,707 |
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$ |
1,715 |
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$ |
3,458 |
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$ |
3,370 |
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Integrated Mission Systems |
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1,729 |
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1,735 |
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3,398 |
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3,435 |
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Communication Systems |
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1,346 |
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1,289 |
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2,640 |
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2,452 |
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Aerojet Rocketdyne |
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581 |
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— |
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1,123 |
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— |
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Corporate eliminations |
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(64 |
) |
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(46 |
) |
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(109 |
) |
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(93 |
) |
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Revenue |
$ |
5,299 |
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$ |
4,693 |
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13 |
% |
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$ |
10,510 |
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$ |
9,164 |
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15 |
% |
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$21.0B - $21.3B (Prior: $20.8B - 21.3B) |
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Operating income |
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Space & Airborne Systems |
$ |
215 |
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$ |
168 |
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28 |
% |
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$ |
431 |
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$ |
355 |
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21 |
% |
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Integrated Mission Systems |
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206 |
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|
162 |
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27 |
% |
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396 |
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347 |
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14 |
% |
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Communication Systems |
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329 |
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325 |
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1 |
% |
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639 |
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591 |
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8 |
% |
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Aerojet Rocketdyne |
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75 |
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— |
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n/a |
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147 |
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— |
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n/a |
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Unallocated items |
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(349 |
) |
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(255 |
) |
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(759 |
) |
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(500 |
) |
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Operating income |
$ |
476 |
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|
$ |
400 |
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19 |
% |
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$ |
854 |
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$ |
793 |
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8 |
% |
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Operating margin |
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9.0 |
% |
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|
8.5 |
% |
|
50 bps |
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|
8.1 |
% |
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8.7 |
% |
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(60) bps |
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Adjusted segment operating income 1 |
$ |
825 |
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$ |
694 |
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19 |
% |
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$ |
1,613 |
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$ |
1,332 |
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21 |
% |
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Adjusted segment operating margin 1 |
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15.6 |
% |
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|
14.8 |
% |
|
80 bps |
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|
15.3 |
% |
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14.5 |
% |
|
80 bps |
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15.2% - 15.4% (Prior: > 15%) |
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Effective tax rate (GAAP) |
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5.9 |
% |
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5.6 |
% |
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30 bps |
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4.1 |
% |
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7.4 |
% |
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(330) bps |
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Effective tax rate (non-GAAP 1 ) |
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12.9 |
% |
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13.3 |
% |
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(40) bps |
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13.0 |
% |
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13.4 |
% |
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(40) bps |
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EPS |
$ |
1.92 |
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$ |
1.83 |
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|
5 |
% |
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$ |
3.40 |
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$ |
3.60 |
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(6 |
%) |
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|
Non-GAAP EPS 1 |
$ |
3.24 |
$ |
2.97 |
9 |
% |
$ |
6.30 |
$ |
5.82 |
8 |
% |
$12.85 - $13.15 (Prior: $12.70 - $13.05) |
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Cash from operations |
$ |
754 |
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$ |
414 |
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|
82 |
% |
|
$ |
650 |
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|
$ |
764 |
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(15 |
%) |
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Adjusted free cash flow 1 |
$ |
714 |
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|
$ |
342 |
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|
109 |
% |
|
$ |
558 |
|
|
$ |
657 |
|
|
(15 |
%) |
|
~2.2B |
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| *When we provide our expectation for adjusted segment operating margin, effective tax rate on non-GAAP income, non-GAAP EPS and adjusted free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results. See Non-GAAP Financial Measures on page 7 for more information. |
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