LHX Filings — L3harris Technologies, Inc. - FilingSpy
LHX
L3harris Technologies, Inc.
A maker of defense and aerospace technology for the U.S. military and allied governments, L3Harris builds communications gear, satellites, and rocket engines across space, air, land, sea, and cyber. It was created in 2019 when Harris Corporation, whose roots go back to 1895, merged with L3 Technologies. The "L3" in its name honors the three partners who founded that company in 1997—Lanza, LaPenta, and Lehman—with the "3" standing for their trio.
Net income rose 31% to $600M as favorable EAC adjustments and higher pension income lifted results.
turned a corner, rising for the first time in a year. rose 8% to $5.9 billion and climbed 31% to $600 million, driven by a $43 million favorable swing in net and an $80 million increase in non-service pension income. The company is growing profitably again, but the margin recovery rests on program execution that has been uneven.
Key takeaways
rose 31% to $600 million, and rose 28% to $3.13, aided by an $80 million increase in and a $23 million reduction in net .
improved 0.9 points to 25.5%, as a $43 million favorable change in net and higher volumes more than offset cost pressures.
rose 8% to $5.9 billion, with management citing higher volumes, new program ramps, and strong execution across all segments.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 8% to $5.9B on broad volume growth; net income up 31% to $600M, aided by higher pension income and lower interest.
⌄
Consolidated Q2 grew 8% ($455M) to $5,881M, driven by higher volumes, new program ramps, and strong execution across all segments.
increased $167M to $1,502M, reflecting higher volumes and a $43M favorable change in net .
increased 15% to $654 million, though the gain was partly constrained by an 11% rise in G&A expenses to $848 million, which reflected the absence of prior-year product-line sale gains and higher company-funded R&D.
Year-to-date improved by $186 million to $784 million, driven by higher and lower usage.
The company repurchased $525 million in shares year-to-date and repaid $100 million in maturing debt, while raising the quarterly to $1.25 per share.
What changed
The Q2 FY2025 flag on whether would recover above 26% once the CAS divestiture impact was lapped is partially resolved: gross margin rose 0.9 points to 25.5%, but remains below the 26% threshold, with the improvement tied to a $43 million favorable EAC swing rather than underlying mix.
The $20 million in unfavorable flagged in Q2 FY2025 reversed: net EAC adjustments swung favorable by $43 million this quarter, suggesting the prior period's charge was a reset rather than the start of a trend.
The Q1 FY2026 concern about whether the $39 million favorable EAC adjustment was one-time appears partly answered: a further $43 million favorable change this quarter indicates sustained program execution improvement, though remain inherently variable.
Share repurchases continued at an elevated pace, with $525 million spent year-to-date, putting the company on track to approach or exceed the $1.2 billion repurchased in FY2025.
What to watch
Whether can build on the 25.5% level and break above 26% in the second half, or whether the improvement remains dependent on favorable that can reverse.
The pace of share repurchases in Q3, with $525 million already spent year-to-date, to gauge whether capital allocation continues to prioritize buybacks over faster debt reduction.
Whether the $80 million increase in is a recurring benefit or reflects mark-to-market or actuarial gains that may not repeat.
The trajectory of G&A expenses after the 11% rise this quarter, and whether higher company-funded R&D signals investment for future growth or a structural cost increase.
G&A expenses rose 11% ($84M) to $848M, primarily due to the absence of prior-year product-line sale gains and higher company-funded R&D, partially offset by the end of LHX NeXt implementation costs.
increased 15% to $654M, while rose 28% to $3.13, supported by a $23M reduction in net and an $80M increase in non-service and other.
Year-to-date improved $186M to $784M, driven by higher and lower usage; the company repurchased $525M in shares and repaid $100M in maturing debt.
Quantitative and Qualitative Disclosures About Market Risk
Other than the repayment of long-term debt discussed in the Liquidity and Capital Resources section of Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations above, there were no material changes during second quarter 2026, with res…
⌄
Other than the repayment of long-term debt discussed in the Liquidity and Capital Resources section of Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations above, there were no material changes during second quarter 2026, with respect to our exposure to market risk as discussed in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Fiscal 2025 Form 10-K.
See Note R: Legal Proceedings and Contingencies in the Notes for discussion regarding material legal proceedings and contingencies. Except as set forth in such discussion, there have been no material developments in legal proceedings as reported in Part I. Item 3. Legal Proceedi…
⌄
See Note R: Legal Proceedings and Contingencies in the Notes for discussion regarding material legal proceedings and contingencies. Except as set forth in such discussion, there have been no material developments in legal proceedings as reported in Part I. Item 3. Legal Proceedings in our Fiscal 2025 Form 10-K.
Investors should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, financial condition, cash flows and equity as set forth in Part I. Item 1A. Risk Factors in our Fiscal 2025 Form 10-K. We ma…
⌄
Investors should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, financial condition, cash flows and equity as set forth in Part I. Item 1A. Risk Factors in our Fiscal 2025 Form 10-K. We may disclose changes to our risk factors or disclose additional risk factors from time to time in our future filings with the SEC. Additional risks and uncertainties not presently known to us or that we currently believe not to be material also may adversely impact our business, financial condition, results of operations, cash flows and equity.