Highlights*
- 2024 orders of $24.2 billion; book-to-bill of 1.14x
- 2024 revenue of $21.3 billion, up 10%, and 4% organically
- 2024 cash from operations of $2.6 billion, adjusted free cash flow of $2.3 billion
- 4Q24 revenue of $5.5 billion, up 3%, and 4% organically
- 4Q24 operating margin of 10.3% and 9.0% for 2024
- 4Q24 adjusted segment operating margin of 15.3% and 15.4% for 2024
- 4Q24 diluted earnings per share (EPS) of $2.37 and $7.87 for 2024
- 4Q24 non-GAAP diluted EPS of $3.47 and $13.101 for 2024
MELBOURNE, Fla. — (BUSINESS WIRE) — January 30, 2025 — L3Harris Technologies (NYSE: LHX) reported fourth quarter 2024 diluted EPS of $2.37 on fourth quarter 2024 revenue of $5.5 billion. Fourth quarter 2024 non-GAAP diluted EPS was $3.47. Fourth quarter results reflect growth in the business and continued operational efficiencies driving margin improvement. Reconciliations of non-GAAP results are detailed in tables beginning on page 13.
"2024 was a year of significant accomplishments as we delivered on our financial commitments, underscoring our agility and position as the defense industry’s Trusted Disruptor, and achieved a record backlog of $34 billion. These results reflect our alignment with customer priorities, driving strong demand across all domains. Through our LHX NeXt initiative, we exceeded our cost-savings target for 2024, achieving $800 million, and are raising our overall cost-savings goal to $1.2 billion by the end of 2025, a year ahead of schedule," said Christopher E. Kubasik, Chair and CEO.
Kubasik added, "As we move into 2025, our momentum remains strong, driven by strong bookings, a robust pipeline, expanding international opportunities, and continued transformation and operational improvements. We are on track to achieve our 2026 financial framework and remain committed to returning excess cash to shareholders. We are confident in our ability to sustain profitable growth and drive long-term value for our stakeholders. We are the agile defense player that is able to rapidly adapt to changing industry dynamics to deliver mission-critical capabilities for our customers."
_____
*Organic revenue, adjusted segment operating margin, non-GAAP diluted EPS and adjusted free cash flow are non-GAAP financial measures defined on page 19.
SUMMARY FINANCIAL RESULTS*
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Fourth Quarter |
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Full Year |
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($ 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 (see Table 4 for organic revenue) |
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Space & Airborne Systems |
$ |
1,728 |
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$ |
1,800 |
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$ |
6,869 |
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$ |
6,856 |
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Integrated Mission Systems |
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1,773 |
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1,627 |
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6,842 |
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6,630 |
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Communication Systems |
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1,437 |
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1,363 |
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5,459 |
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5,070 |
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Aerojet Rocketdyne |
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628 |
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597 |
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2,347 |
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1,052 |
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Corporate eliminations |
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(43 |
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(47 |
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(192 |
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(189 |
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Revenue |
$ |
5,523 |
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$ |
5,340 |
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3% |
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$ |
21,325 |
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$ |
19,419 |
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10% |
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Operating income |
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Space & Airborne Systems |
$ |
186 |
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$ |
191 |
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$ |
812 |
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$ |
756 |
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Integrated Mission Systems |
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238 |
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(75 |
) |
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838 |
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459 |
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Communication Systems |
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326 |
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356 |
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1,324 |
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1,229 |
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Aerojet Rocketdyne |
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72 |
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66 |
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294 |
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122 |
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Corporate unallocated items |
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(253 |
) |
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(384 |
) |
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(1,350 |
) |
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(1,140 |
) |
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Operating income |
$ |
569 |
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$ |
154 |
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$ |
1,918 |
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$ |
1,426 |
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Adjusted segment operating income (see Table 5) |
$ |
846 |
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$ |
807 |
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5% |
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$ |
3,292 |
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$ |
2,874 |
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15% |
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Margin |
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Operating margin |
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10.3 |
% |
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2.9 |
% |
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9.0 |
% |
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7.3 |
% |
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Adjusted segment operating margin |
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15.3 |
% |
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15.1 |
% |
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20 bps |
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15.4 |
% |
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14.8 |
% |
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60 bps |
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Tax rate |
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Effective tax rate (GAAP) |
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6.4 |
% |
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(65.8 |
%) |
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5.3 |
% |
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1.9 |
% |
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Effective tax rate (non-GAAP) |
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12.1 |
% |
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12.6 |
% |
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12.7 |
% |
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13.0 |
% |
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EPS |
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Diluted EPS |
$ |
2.37 |
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$ |
0.83 |
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$ |
7.87 |
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$ |
6.44 |
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Non-GAAP diluted EPS |
$ |
3.47 |
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$ |
3.35 |
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4% |
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$ |
13.10 |
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$ |
12.36 |
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6% |
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Pension adjusted non-GAAP diluted EPS |
$ |
3.06 |
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$ |
2.82 |
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9% |
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$ |
11.50 |
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$ |
10.44 |
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10% |
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Cash flow |
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Cash from operations |
$ |
1,129 |
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$ |
789 |
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43% |
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$ |
2,559 |
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$ |
2,096 |
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22% |
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Adjusted free cash flow |
$ |
1,033 |
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$ |
756 |
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37% |
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$ |
2,319 |
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$ |
2,029 |
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14% |
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* Adjusted segment operating income and margin, effective tax rate on non-GAAP income, non-GAAP diluted EPS, pension adjusted non-GAAP diluted EPS, organic revenue and adjusted free cash flow are non-GAAP financial measures defined on page 19. |