- Full year (FY) 2023 orders1 of $22.8 billion; book-to-bill of 1.18x
- 4Q23 revenue of $5.3 billion and FY23 of $19.4 billion, up 17% and 14% respectively
- 4Q23 operating margin of 2.9% and FY23 of 7.3%, reflecting goodwill impairment for pending business sale
- 4Q23 segment operating margin1 of 15.1% and FY23 of 14.8%
- 4Q23 earnings per share (EPS) of $0.83 and FY23 of $6.44; 4Q23 non-GAAP EPS1 of $3.35 and FY23 of $12.36
- FY23 cash from operations of $2.1 billion, free cash flow1 of $2.0 billion
MELBOURNE, Fla. — (BUSINESS WIRE) — January 24, 2024 — L3Harris Technologies, Inc. (NYSE: LHX) reported fourth quarter and full-year 2023 results, and initiated 2024 financial guidance.
“We delivered on our 2023 financial commitments and reported record backlog of $33 billion, further demonstrating that our strategy to be the industry's Trusted Disruptor is working. Our agility and innovation continue to resonate with customers, enabling us to broaden our capabilities into high-growth markets,” said Christopher E. Kubasik, Chair and CEO. “Last year, we also closed, integrated, and are benefiting from two acquisitions and we announced the sale of a non-core business. These actions are strengthening and better aligning our portfolio with the Department of Defense and U.S. allied partner priorities.”
Kubasik continued, “We are confident on achieving the financial framework that we shared in early December at our investor day, while we execute on our 2024-2026 capital allocation priorities of reducing leverage and returning excess cash to shareholders. Entering 2024, we remain focused on driving towards the $1 billion cost savings target from our LHX NeXt program to enable operational improvements, margin expansion and free cash flow growth.”
SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE
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Fourth Quarter |
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Full Year |
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2024* |
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($ millions, except per share data) |
2023 |
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2022 |
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Change |
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2023 |
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2022 |
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Change |
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Guidance |
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Revenue |
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Space & Airborne Systems |
$ |
1,800 |
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$ |
1,702 |
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$ |
6,856 |
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$ |
6,384 |
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Integrated Mission Systems |
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1,627 |
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1,729 |
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6,630 |
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6,626 |
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Communication Systems |
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1,363 |
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1,193 |
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5,070 |
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4,217 |
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Aerojet Rocketdyne |
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597 |
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— |
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1,052 |
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— |
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Corporate eliminations |
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(47 |
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(46 |
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(189 |
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(165 |
) |
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Revenue |
$ |
5,340 |
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$ |
4,578 |
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17% |
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$ |
19,419 |
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$ |
17,062 |
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14% |
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$20.7B - $21.3B |
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Operating income (loss) |
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Space & Airborne Systems |
$ |
191 |
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$ |
193 |
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$ |
756 |
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$ |
665 |
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Integrated Mission Systems |
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(75 |
) |
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179 |
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459 |
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494 |
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Communication Systems |
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356 |
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297 |
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1,229 |
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667 |
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Aerojet Rocketdyne |
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66 |
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— |
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122 |
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— |
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Unallocated items |
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(384 |
) |
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(174 |
) |
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(1,140 |
) |
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(699 |
) |
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Operating income |
$ |
154 |
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$ |
495 |
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(69)% |
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$ |
1,426 |
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$ |
1,127 |
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27% |
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Operating margin |
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2.9 |
% |
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10.8 |
% |
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nm |
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7.3 |
% |
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6.6 |
% |
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70 bps |
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Segment operating income 1 |
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Space & Airborne Systems |
$ |
191 |
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$ |
193 |
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$ |
783 |
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$ |
745 |
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Integrated Mission Systems |
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194 |
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179 |
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740 |
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861 |
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Communication Systems |
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356 |
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297 |
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1,229 |
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1,022 |
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Aerojet Rocketdyne |
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66 |
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— |
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122 |
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— |
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Unallocated items |
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— |
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— |
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— |
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— |
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Segment operating income 1 |
$ |
807 |
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$ |
669 |
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21% |
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$ |
2,874 |
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$ |
2,628 |
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9% |
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Segment operating margin 1 |
15.1 |
% |
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14.6 |
% |
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50 bps |
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14.8 |
% |
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15.4 |
% |
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(60) bps |
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~15% |
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Non-service FAS pension income and other |
$ |
93 |
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$ |
112 |
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(17)% |
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$ |
338 |
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$ |
425 |
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(20)% |
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Interest expense, net |
$ |
(171 |
) |
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$ |
(74 |
) |
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131% |
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$ |
(543 |
) |
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$ |
(279 |
) |
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95% |
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Effective tax rate (GAAP) |
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(66.7 |
%) |
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21.8 |
% |
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nm |
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1.9 |
% |
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16.7 |
% |
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nm |
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Effective tax rate (non-GAAP 1 ) |
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12.4 |
% |
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13.6 |
% |
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(120) bps |
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13.0 |
% |
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13.9 |
% |
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(90) bps |
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EPS |
$ |
0.83 |
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$ |
2.17 |
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(62)% |
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$ |
6.44 |
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$ |
5.49 |
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17% |
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Non-GAAP EPS 1 |
$ |
3.35 |
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$ |
3.27 |
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2% |
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$ |
12.36 |
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$ |
12.90 |
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(4)% |
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$12.40 - $12.80 |
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Diluted shares outstanding |
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190.6 |
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192.1 |
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(1)% |
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190.6 |
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193.5 |
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(1)% |
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Cash from operations |
$ |
789 |
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$ |
782 |
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1% |
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$ |
2,096 |
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$ |
2,158 |
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(3)% |
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Free cash flow 1 |
$ |
747 |
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|
$ |
748 |
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—% |
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$ |
2,009 |
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$ |
2,029 |
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(1)% |
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~$2.2B |
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| nm = not meaningful |
| * When we provide our expectation for segment operating margin, effective tax rate on non-GAAP income, non-GAAP EPS and 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 6 for more information. |
