L3harris Technologies, Inc 8-K, filed Oct 29, 2026
L3harris Technologies, Inc. (LHX)
8-K
2026-10-29
For: 2026-10-29
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October 29, 2026
About this 8-K
L3harris Technologies, Inc filed this 8-K on October 29, 2026.
L3Harris Technologies reported third-quarter revenue of $6.1 billion, diluted EPS of $3.28 and record backlog of $53.2 billion, and raised FY26 revenue guidance to $23.5 billion to $23.7 billion and GAAP EPS guidance to $12.25 to $12.35. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| Attn: Corporate Secretary | (Zip Code) | |||||||||||||
| (Address of principal executive offices) | ||||||||||||||
Registrant’s telephone number, including area code: (321 ) 727-9100
| No change | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | ☐ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | |||||
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026, L3Harris Technologies, Inc. released its third quarter financial results in an earnings release.
The earnings release announcing the third quarter financial results and the earnings appendix are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference. The information contained in this Current Report on Form 8-K that is furnished under Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such a filing, except as shall be expressly set forth by specific reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
EXHIBIT INDEX
The following exhibits are provided herewith:
| 99.1 | |||||||||||
| 99.2 | |||||||||||
| 104 | Cover Page Interactive Data File formatted in Inline XBRL | ||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| L3HARRIS TECHNOLOGIES, INC. | ||||||||||||||
| By: | /s/ Ken Sharp | |||||||||||||
| Name: | Ken Sharp | |||||||||||||
| Title: | Senior Vice President and Chief Financial Officer | |||||||||||||
Date: October 29, 2026
Exhibit 99.1
L3Harris Delivers Record Backlog and Strong Third-Quarter Results
Broad-based growth with robust earnings and cash flow; increases full-year guidance
•Orders of $19.3 billion drove record backlog of $53.2 billion; book-to-bill of 3.2x
•Revenue of $6.1 billion, up 7%, and up 9% on an organic1 basis
•Operating income margin of 13.0%, up 200 bps vs. prior year; segment operating margin2 of 15.9%
•Diluted EPS of $3.28, up 33% year-over-year
•Operating cash flow of $1.4 billion; free cash flow3 of $1.3 billion, up 195% compared to prior year
•Guidance Update: Increases bottom end of the revenue guidance range to $23.5 billion to $23.7 billion (prev. $23.2 billion to $23.7 billion), increases GAAP EPS range to $12.25 to $12.35 (prev. $11.80 to $12.00)
MELBOURNE, Fla., October 29, 2026 — L3Harris Technologies (NYSE: LHX) reported its third quarter 2026 results.
“Our team’s exceptional execution delivered solid financial performance in the third quarter. We grew backlog to record levels, underscoring the consistently strong demand for our mission-critical capabilities. Our priority now is to convert that demand into results. We will continue to invest in production capacity and differentiated capabilities across missiles and missile solutions, space, resilient communications and multi-domain sensing, which will enable us to deliver for the warfighter, our customers and our shareholders,” said Sam Mehta, President and CEO, L3Harris.
Third-Quarter Summary
Revenue of $6.1 billion increased $401 million compared to prior year, up 7%, and up 9% on an organic1 basis, driven by double-digit growth in the Space & Mission Systems and Missile Solutions segments. Operating income margin was 13.0%, up 200 bps compared to prior year, driven by higher revenues and continued management of corporate expenses. Segment operating margin2 was 15.9%, flat to prior year. Third quarter GAAP EPS increased 33% to $3.28 driven by higher volumes, a lower level of corporate expense, lower interest expense and a lower effective tax rate.
Third-Quarter Cash Generation
Net cash provided by operating activities in the quarter totaled $1.4 billion. Capital expenditures were $179 million. Free cash flow3 was $1.3 billion, up 195% over prior year. The Company ended the quarter with $11.0 billion in total debt, $2.5 billion in cash and equivalents and $550 million in short-term investments.
PAGE 1
Backlog and Orders
Orders received in the quarter totaled $19.3 billion, resulting in backlog of $53.2 billion. Book-to-bill ratio was 3.2x for the quarter. By segment, Space & Mission Systems book-to-bill was 1.0x, Communications & Spectrum Dominance was 1.9x and Missile Solutions was 11.8x.
FY26 Guidance
Management increases the bottom end of the revenue guidance range to $23.5 billion to $23.7 billion (prev. $23.2 billion to $23.7 billion), increases GAAP EPS range to $12.25 to $12.35 (prev. $11.80 to $12.00) and maintains FY26 Free Cash Flow guidance of $3 billion3.
Third Quarter & Recent Business Highlights
•Captured a $6.3 billion (excluding escalations), seven-year undefinitized contract to scale propulsion production for the Terminal High Altitude Area Defense (THAAD) system
•Captured a $4.7 billion (excluding escalations), seven-year undefinitized contract to scale propulsion production for the PAC-3 Missile Segment Enhancement (MSE) interceptor
•Announced a $250 million follow-on contract to manufacture standard-range Guided Multiple Launch Rocket System (GMLRS) propulsion units
•Secured more than $500 million in VAMPIRE C-UAS orders from the United States and allies. Delivered the first VAMPIRE units to the U.S. Army for hostile drone defense just two months after receiving their order
•Awarded an $876 million contract modification to advance the development and production preparation of the U.S. Navy Next Generation Jammer Low Band (NGJ-LB) tactical electronic warfare system
•Opened the ‘Arsenal of Freedom’ solid rocket motor production facility in Camden, Arkansas in October – one of approximately 60 new facilities being built to address rising demand for munitions
•Completed the launch of NASA's Nancy Grace Roman Space Telescope with L3Harris' 2.4-meter Optical Telescope Assembly (OTA), which serves as Roman’s eye, as well as L3Harris’ radiation-hardened electronics, which keep the telescope in operation approximately 1 million miles from Earth
1 Organic revenue is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 5.
2 Segment operating margin is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 4.
3 Free cash flow is a non-GAAP Financial Measure as defined by Regulation G and reconciled to GAAP in Table 6.
PAGE 2
SUMMARY FINANCIAL RESULTS
| Third Quarter | Year to Date | 2026 Guidance | |||||||||||||||||||||||||||||||||||||||||||||
| ($ millions, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
| Space & Mission Systems | $ | 3,093 | $ | 2,803 | $ | 9,049 | $ | 7,984 | ~$11.9B (Prior: ~$11.7B) | ||||||||||||||||||||||||||||||||||||||
| Communications & Spectrum Dominance | 1,995 | 1,935 | 5,793 | 5,605 | ~$7.9B (Prior: ~$8B) | ||||||||||||||||||||||||||||||||||||||||||
| Missile Solutions | 1,057 | 1,008 | 3,101 | 2,773 | ~$4.1B (unchanged) | ||||||||||||||||||||||||||||||||||||||||||
| Intersegment | (80) | (88) | (253) | (292) | |||||||||||||||||||||||||||||||||||||||||||
Segment revenue1 | 6,065 | 5,658 | 17,690 | 16,070 | |||||||||||||||||||||||||||||||||||||||||||
Other2 | (5) | 1 | (5) | 147 | |||||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 6,060 | $ | 5,659 | $ | 17,685 | $ | 16,217 | $23.5B - $23.7B (Prior: $23.2B - $23.7B) | ||||||||||||||||||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||||||||||||||||||||||||||
| Space & Mission Systems | $ | 338 | $ | 299 | $ | 941 | $ | 826 | mid 10% (unchanged) | ||||||||||||||||||||||||||||||||||||||
| Communications & Spectrum Dominance | 502 | 477 | 1,489 | 1,378 | mid 25% (unchanged) | ||||||||||||||||||||||||||||||||||||||||||
| Missile Solutions | 127 | 124 | 381 | 336 | low 12% (unchanged) | ||||||||||||||||||||||||||||||||||||||||||
Segment operating income1 | 967 | 900 | 2,811 | 2,540 | |||||||||||||||||||||||||||||||||||||||||||
Unallocated corporate items and other, net (see Table 4) | (181) | (279) | (719) | (823) | |||||||||||||||||||||||||||||||||||||||||||
| Operating income | $ | 786 | $ | 621 | $ | 2,092 | $ | 1,717 | |||||||||||||||||||||||||||||||||||||||
| Operating margin | 13.0 | % | 11.0 | % | 11.8 | % | 10.6 | % | |||||||||||||||||||||||||||||||||||||||
Segment operating margin1 | 15.9 | % | 15.9 | % | 15.9 | % | 15.8 | % | Low 16% (unchanged) | ||||||||||||||||||||||||||||||||||||||
| Tax rate | |||||||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 14.9 | % | 18.5 | % | 14.6 | % | 15.7 | % | |||||||||||||||||||||||||||||||||||||||
| GAAP EPS | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | 3.28 | $ | 2.46 | $ | 9.13 | $ | 6.92 | $12.25 - $12.35 (Prior: $11.80 - $12.00) | ||||||||||||||||||||||||||||||||||||||
| Diluted weighted-average common shares outstanding | 186.9 | 188.1 | 187.5 | 188.6 | |||||||||||||||||||||||||||||||||||||||||||
| Cash flow | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash from operations | $ | 1,439 | $ | 546 | $ | 2,223 | $ | 1,144 | $3.6B (unchanged) | ||||||||||||||||||||||||||||||||||||||
Free cash flow3 | $ | 1,260 | $ | 427 | $ | 1,837 | $ | 878 | $3.0B (unchanged) | ||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | $ | 73 | $ | 176 | $ | 598 | $ | 998 | |||||||||||||||||||||||||||||||||||||||
| Dividends paid | $ | 234 | $ | 225 | $ | 704 | $ | 678 | |||||||||||||||||||||||||||||||||||||||
1 Segment revenue, segment operating income and segment operating margin are non-GAAP Financial Measures as defined by Regulation G and reconciled to GAAP in Table 4. A reconciliation of segment operating margin on a forward-looking basis to GAAP 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.
2 Revenue attributable to our corporate headquarters, which includes amortization of program investment asset recognized in connection with DoW strategic investment in 2026. Year to date 2025 includes our divested Commercial Aviation Solutions business CAS disposal group.
3 Free cash flow is a non-GAAP Financial Measure defined and reconciled to GAAP in Table 6. Net cash provided by operating activities is anticipated to be approximately $3.6 billion and capital expenditures are anticipated to be approximately $600 million. As of third quarter 2026, we no longer include proceeds from disposal of property, plant and equipment, net. Prior periods have been recast for comparability.
PAGE 3
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of federal securities laws made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples include, but are not limited to: planned investments and capacity expansion; our pipeline and backlog expansion; 2026 guidance; the impact of recent and expected contract awards; the 2028 financial framework; the impact of the global security environment; projections of other financial items; and assumptions underlying any of the foregoing. Investors should not place undue reliance on forward-looking statements, which reflect management’s current expectations, estimates, projections, assumptions and information currently available to management, and are not guarantees of future performance or actual results. Important risks that could cause our results to differ materially from those expressed in or implied by these forward-looking statements or from our historical results include, but are not limited to, risks arising from: competitive markets; U.S. Government spending priorities; changes in contract mix; unilateral contract action by the U.S. Government or unexpected issues related to the DoW's investment in our subsidiary; uncertain economic conditions; future geo-political events; supply chain disruptions; indebtedness; interest rates and other market factors; and changes in effective tax rate or additional tax exposures. These and other important risks that could impact forward-looking statements are described more fully in the "Risk Factors" in our Form 10-K for fiscal 2025 and subsequent Form 10-Q filings. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified by the cautionary statements in this section, and we have no duty to and disclaim any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events or developments or otherwise.
Investor Relations Contact: John Sweeney, CFA, 321-724-3676 investorrelations@l3harris.com | Media Relations Contact: Sara Banda, 321-306-8927 media@l3harris.com | ||||
PAGE 4
Table 1 - Condensed Consolidated Statement of Operations (Unaudited)
| Third Quarter | Year to Date | |||||||||||||||||||||||||
| ($ millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenue | $ | 6,060 | $ | 5,659 | $ | 17,685 | $ | 16,217 | ||||||||||||||||||
| Cost of revenue | (4,448) | (4,165) | (13,169) | (12,038) | ||||||||||||||||||||||
| General and administrative expenses | (826) | (873) | (2,424) | (2,462) | ||||||||||||||||||||||
| Operating income | 786 | 621 | 2,092 | 1,717 | ||||||||||||||||||||||
Non-service FAS pension income1 | 74 | 73 | 224 | 236 | ||||||||||||||||||||||
| Other non-operating (expense) income, net | (1) | 25 | 107 | 51 | ||||||||||||||||||||||
| Interest expense, net | (116) | (152) | (381) | (454) | ||||||||||||||||||||||
| Income before income taxes | 743 | 567 | 2,042 | 1,550 | ||||||||||||||||||||||
| Income tax expense | (111) | (105) | (298) | (244) | ||||||||||||||||||||||
| Net income | $ | 632 | $ | 462 | $ | 1,744 | $ | 1,306 | ||||||||||||||||||
| Subsidiary preferred stock deemed dividends | (19) | — | (33) | — | ||||||||||||||||||||||
| Net income available to common shareholders | $ | 613 | $ | 462 | $ | 1,711 | $ | 1,306 | ||||||||||||||||||
| Earnings per share available to common shareholders | ||||||||||||||||||||||||||
| Basic | $ | 3.29 | $ | 2.47 | $ | 9.18 | $ | 6.96 | ||||||||||||||||||
| Diluted | $ | 3.28 | $ | 2.46 | $ | 9.13 | $ | 6.92 | ||||||||||||||||||
| Weighted-average common shares outstanding | ||||||||||||||||||||||||||
| Basic | 186.1 | 187.1 | 186.4 | 187.6 | ||||||||||||||||||||||
| Diluted | 186.9 | 188.1 | 187.5 | 188.6 | ||||||||||||||||||||||
1“FAS” is defined as Financial Accounting Standards.
PAGE 5
Table 2 - Condensed Consolidated Balance Sheet (Unaudited)
| ($ millions) | October 2, 2026 | January 2, 2026 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 2,471 | $ | 1,069 | |||||||
| Receivables, net | 1,640 | 1,371 | |||||||||
| Contract assets | 3,999 | 3,566 | |||||||||
| Inventories, net | 1,278 | 1,219 | |||||||||
| Short-term investments | 550 | — | |||||||||
| Other current assets | 635 | 484 | |||||||||
| Assets of business held for sale | — | 884 | |||||||||
| Total current assets | 10,573 | 8,593 | |||||||||
| Non-current assets | |||||||||||
| Property, plant and equipment, net | 2,833 | 2,665 | |||||||||
| Goodwill | 19,999 | 20,010 | |||||||||
| Intangible assets, net | 6,389 | 6,509 | |||||||||
| Deferred income taxes | 72 | 76 | |||||||||
| Other non-current assets | 3,940 | 3,342 | |||||||||
| Total assets | $ | 43,806 | $ | 41,195 | |||||||
| Liabilities, mezzanine equity, and equity | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 1,815 | $ | 673 | |||||||
| Accounts payable | 2,182 | 2,461 | |||||||||
| Contract liabilities | 3,107 | 2,262 | |||||||||
| Compensation and benefits | 500 | 482 | |||||||||
| Other current liabilities | 1,237 | 1,235 | |||||||||
| Liabilities of business held for sale | — | 113 | |||||||||
| Total current liabilities | 8,841 | 7,226 | |||||||||
| Non-current liabilities | |||||||||||
| Long-term debt, net | 9,181 | 10,443 | |||||||||
| Deferred income taxes | 1,436 | 1,114 | |||||||||
| Subsidiary Series A preferred stock conversion feature | 203 | — | |||||||||
| Subsidiary warrants | 163 | — | |||||||||
| Other non-current liabilities | 2,755 | 2,777 | |||||||||
| Total liabilities | 22,579 | 21,560 | |||||||||
| Mezzanine equity | |||||||||||
| Redeemable subsidiary Series A convertible preferred stock | 987 | — | |||||||||
| Total equity | 20,240 | 19,635 | |||||||||
| Total liabilities, mezzanine equity, and equity | $ | 43,806 | $ | 41,195 | |||||||
PAGE 6
Table 3 - Condensed Consolidated Statement of Cash Flows (Unaudited)
| Third Quarter | Year to Date | ||||||||||||||||||||||
| ($ millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Operating Activities | |||||||||||||||||||||||
| Net income | $ | 632 | $ | 462 | $ | 1,744 | $ | 1,306 | |||||||||||||||
| Adjustments to reconcile to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 267 | 309 | 837 | 913 | |||||||||||||||||||
| Share-based compensation | (1) | 35 | 48 | 83 | |||||||||||||||||||
| Net periodic benefit income | (70) | (66) | (209) | (216) | |||||||||||||||||||
| Share-based matching contributions under defined contribution plans | 51 | 64 | 158 | 200 | |||||||||||||||||||
| Net investment gains | (37) | (7) | (114) | (11) | |||||||||||||||||||
| Change in fair value of subsidiary preferred stock conversion feature and warrants | 50 | — | 50 | — | |||||||||||||||||||
| Deferred income taxes | 63 | 245 | 245 | 151 | |||||||||||||||||||
| (Increase) decrease in: | |||||||||||||||||||||||
| Receivables, net | 369 | (91) | (306) | (474) | |||||||||||||||||||
| Contract assets | (299) | 180 | (437) | (454) | |||||||||||||||||||
| Inventories, net | (6) | (33) | (61) | 53 | |||||||||||||||||||
| Other current assets | 26 | 4 | (153) | (18) | |||||||||||||||||||
| Increase (decrease) in: | |||||||||||||||||||||||
| Accounts payable | 106 | (131) | (263) | (93) | |||||||||||||||||||
| Contract liabilities | 169 | (86) | 825 | 91 | |||||||||||||||||||
| Compensation and benefits | 121 | 42 | 16 | 67 | |||||||||||||||||||
| Other current liabilities | 14 | (227) | (74) | (495) | |||||||||||||||||||
| Income taxes | 23 | (177) | 18 | 144 | |||||||||||||||||||
| Other operating activities | (39) | 23 | (101) | (103) | |||||||||||||||||||
| Net cash provided by operating activities | 1,439 | 546 | 2,223 | 1,144 | |||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||
| Capital expenditures | (179) | (119) | (386) | (266) | |||||||||||||||||||
| Proceeds from disposal of property, plant and equipment, net | 13 | — | 20 | 9 | |||||||||||||||||||
| Proceeds from sales of businesses, net of cash divested | 539 | — | 539 | 831 | |||||||||||||||||||
| Cash used for short-term investments | (550) | — | (550) | — | |||||||||||||||||||
| Other investing activities | (4) | (10) | (15) | (37) | |||||||||||||||||||
| Net cash (used in) provided by investing activities | (181) | (129) | (392) | 537 | |||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||
| Proceeds from issuance of subsidiary Series A preferred stock, net | — | — | 973 | — | |||||||||||||||||||
| Repayments of long-term debt | (3) | (3) | (115) | (614) | |||||||||||||||||||
| Change in commercial paper, net | — | (260) | — | 210 | |||||||||||||||||||
| Repurchases of common stock | (73) | (176) | (598) | (998) | |||||||||||||||||||
| Dividends paid | (234) | (225) | (704) | (678) | |||||||||||||||||||
| Other financing activities | 1 | 104 | 18 | 105 | |||||||||||||||||||
| Net cash used in financing activities | (309) | (560) | (426) | (1,975) | |||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1 | — | (3) | 18 | |||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 950 | (143) | 1,402 | (276) | |||||||||||||||||||
| Cash and cash equivalents, beginning of period | 1,521 | 482 | 1,069 | 615 | |||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 2,471 | $ | 339 | $ | 2,471 | $ | 339 | |||||||||||||||
PAGE 7
Table 4 - Reconciliation of Revenue, Operating Income and Margin to Segment Revenue, Operating Income and Margin - Non-GAAP Financial Measures Reconciliation (Unaudited)
| Third Quarter | Year to Date | ||||||||||||||||||||||||||||
| ($ millions) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Revenue (B) | $ | 6,060 | $ | 5,659 | $ | 17,685 | $ | 16,217 | |||||||||||||||||||||
Other1 | 5 | (1) | 5 | (147) | |||||||||||||||||||||||||
Segment revenue2 (D) | $ | 6,065 | $ | 5,658 | $ | 17,690 | $ | 16,070 | |||||||||||||||||||||
| Operating income (A) | $ | 786 | $ | 621 | $ | 2,092 | $ | 1,717 | |||||||||||||||||||||
| Unallocated corporate items: | |||||||||||||||||||||||||||||
| Amortization of acquisition-related intangibles | 147 | 192 | 497 | 579 | |||||||||||||||||||||||||
LHX NeXt implementation costs3 | — | 25 | — | 99 | |||||||||||||||||||||||||
Business divestiture-related losses3 | 17 | — | 27 | 17 | |||||||||||||||||||||||||
Acquisition, divestiture and transaction-related expenses3 | 9 | 10 | 49 | 40 | |||||||||||||||||||||||||
| Change in fair value of deferred compensation plan liabilities | (3) | 25 | 35 | 48 | |||||||||||||||||||||||||
Segment investment offset3 | — | — | 39 | — | |||||||||||||||||||||||||
Other items4 | 11 | 27 | 72 | 40 | |||||||||||||||||||||||||
| Unallocated corporate items and other, net | 181 | 279 | 719 | 823 | |||||||||||||||||||||||||
Segment operating income5 (C) | $ | 967 | $ | 900 | $ | 2,811 | $ | 2,540 | |||||||||||||||||||||
| Operating margin (A) / (B) | 13.0 | % | 11.0 | % | 11.8 | % | 10.6 | % | |||||||||||||||||||||
Segment operating margin5 (C) / (D) | 15.9 | % | 15.9 | % | 15.9 | % | 15.8 | % | |||||||||||||||||||||
1 Revenue attributable to our corporate headquarters, which includes amortization of program investment asset recognized in connection with DoW strategic investment in 2026. Year to date 2025 includes our divested CAS disposal group.
2 Segment revenue is a non-GAAP Financial Measure as defined by Regulation G. We use segment revenue because it reflects the aggregate results of our segments without the impact of corporate headquarters or divestitures. We believe this metric provide investors a more complete understanding of factors and trends affecting our business.
3 Refer to Key Terms on page 10.
4 Includes a portion of management and administration, legal, environmental, compensation, retiree benefits, corporate eliminations and other. Year to date 2025 also includes the divested CAS disposal group.
5 Segment operating income and margin are non-GAAP Financial Measures as defined by Regulation G. We use segment operating income and margin to evaluate our core operating performance because it reflects the aggregate performance results of our segments without the impact of unallocated corporate items and it includes income from investments that are operationally aligned with our business segments. We believe these metrics provide investors a more complete understanding of factors and trends affecting our business.
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Table 5 - Organic Revenue - Non-GAAP Financial Measures Reconciliation (Unaudited)
| 2025 | |||||||||||||||||||||||||||||||||||
| Third Quarter | Year to Date | ||||||||||||||||||||||||||||||||||
| ($ millions) | GAAP | Adjustments | Organic | GAAP | Adjustments | Organic | |||||||||||||||||||||||||||||
| Space & Mission Systems | $ | 2,803 | $ | — | $ | 2,803 | $ | 7,984 | $ | — | $ | 7,984 | |||||||||||||||||||||||
| Communications & Spectrum Dominance | 1,935 | — | 1,935 | 5,605 | — | 5,605 | |||||||||||||||||||||||||||||
Missile Solutions1 | 1,008 | (103) | 905 | 2,773 | (103) | 2,670 | |||||||||||||||||||||||||||||
| Intersegment | (88) | — | (88) | (292) | — | (292) | |||||||||||||||||||||||||||||
| Segment revenue | 5,658 | (103) | 5,555 | 16,070 | (103) | 15,967 | |||||||||||||||||||||||||||||
Other2 | 1 | — | 1 | 147 | (146) | 1 | |||||||||||||||||||||||||||||
| Total revenue | $ | 5,659 | $ | (103) | $ | 5,556 | $ | 16,217 | $ | (249) | $ | 15,968 | |||||||||||||||||||||||
2 Includes corporate headquarters and our divested CAS disposal group in prior periods.
Table 6 - Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow - Non-GAAP Financial Measures Reconciliation (Unaudited)
| Third Quarter | Year to Date | |||||||||||||||||||||||||||||||
| ($ millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,439 | $ | 546 | $ | 2,223 | $ | 1,144 | ||||||||||||||||||||||||
| Capital expenditures | (179) | (119) | (386) | (266) | ||||||||||||||||||||||||||||
Free cash flow1 | $ | 1,260 | $ | 427 | $ | 1,837 | $ | 878 | ||||||||||||||||||||||||
1 Free cash flow is a non-GAAP Financial Measure as defined by Regulation G. As of third quarter 2026, we no longer include proceeds from disposal of property, plant and equipment, net. Prior periods have been recast for comparability. We use free cash flow to evaluate business performance and overall liquidity, and it is a performance metric in our annual incentive plan. We believe free cash flow is useful because it represents the cash generated from operations after reinvesting in our business that may be available to return to stockholders and creditors through dividends, share repurchases, and debt repayments, or to fund acquisitions or other investments. However, the entire amount of the free cash flow is not available for discretionary expenditures because of certain mandatory expenditures, such as debt repayments.
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Key Terms
| Description | Definition | |||||||
Acquisition, divestiture and transaction-related expenses | Transaction and integration expenses associated with the Aerojet Rocketdyne acquisition in 2025; external costs related to pursuing acquisition and divestiture portfolio optimization; non-transaction costs related to divestitures; costs related to the carve-out and planned MSL public offering; salaries of employees in roles dedicated to planned strategic transaction activity; and resolution of a procurement contract matter. | |||||||
| Business divestiture-related losses | In 2026, includes a loss recognized in connection with the Space Technology disposal group divestiture, which consists of certain product lines of our Space Propulsion and Power Systems business and the space portion of our Space & Sensors division reported in our Mission Solutions segment through the date of divestiture. In 2025, includes a loss recognized in connection with the CAS disposal group divestiture. | |||||||
| LHX NeXt implementation costs | Includes costs related to workforce optimization costs, incremental IT expenses for implementation of new systems, third-party consulting expenses and other related costs, including costs related to personnel dedicated to this project. The implementation phase of LHX NeXt was completed in fiscal 2025. | |||||||
| Orders | Total value of funded and unfunded contract awards received from the U.S. Government and other customers excluding unexercised contract options and potential orders under ordering-type contracts, such as indefinite delivery, indefinite quantity (IDIQ) contracts. | |||||||
| Segment investment offset | Adjustment to eliminate the effect of net investment gains or losses on segment aligned investments included in segment operating income. | |||||||
PAGE 10
EARNINGS APPENDIX This earnings appendix is being furnished pursuant to Item 2.02 Form 8 -K and contains non -GAAP financial measures within the meaning of Regulation G. Non -GAAP financial measures are reconciled in slides 14 - 18 of this earnings appendix. Exhibit 99.2
L3HARRIS Earnings Appendix Space & Mission Systems Segment Information ($ millions) 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Revenue 2,411 2,770 2,803 2,727 10,711 2,990 2,966 3,093 YoY growth % * * * * * 24% 7% 10% YoY organic growth % 1 * * * * * 24% 7% 10% Segment operating income 1 238 289 299 229 1,055 313 290 338 Segment operating margin % 1 9.9% 10.4% 10.7% 8.4% 9.8% 10.5% 9.8% 10.9% Included in segment operating income Gain on sale of assets - 75 22 - 97 11 - 7 Investment gain - - - - - - 23 - Net EAC adjustments (43) (57) (15) 17 (98) 24 (23) 23 Individual EACs +/ - $15 million 2 (20) (57) (34) 6 (105) (20) (39) - Revenue by Customer Relationship % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Prime contractor 72% 74% 73% 72% 73% 77% 74% 76% Subcontractor 28% 26% 27% 28% 27% 23% 26% 24% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Contract Type % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Fixed -price 5 70% 71% 68% 75% 71% 64% 73% 66% Cost -type 30% 29% 32% 25% 29% 36% 27% 34% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Geographical Region % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 United States 85% 87% 87% 82% 85% 86% 85% 83% International 15% 13% 13% 18% 15% 14% 15% 17% Total segment 100% 100% 100% 100% 100% 100% 100% 100% 2 *2024 QTD segment data has not been recast. Accordingly, data is not available for this measure. 1 Non -GAAP Financial Measure defined and reconciled to GAAP on slides 14 - 18. 2 Included as a component of net estimate at completion (“EAC”) adjustments. Contractual Backlog Rollforward ($ billions) 3 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Beginning balance 15.1 14.6 16.3 16.6 15.1 19.2 21.1 22.4 Orders 1.9 4.6 3.2 5.5 15.2 4.9 4.3 3.0 Revenue (2.4) (2.8) (2.8) (2.7) (10.7) (3.0) (3.0) (3.1) Adjustments, incl. divestitures - (0.1) (0.1) (0.2) (0.4) - - - Ending contractual backlog 14.6 16.3 16.6 19.2 19.2 21.1 22.4 22.3 Book to bill 0.8 1.7 1.1 2.0 1.4 1.7 1.5 1.0 3 Certain amounts presented may not sum due to rounding. 4 Calculated as percentage of segment revenue, excluding intersegment revenue. 5 Includes revenue derived from time -and -materials contracts.
L3HARRIS Earnings Appendix Segment Information ($ millions) 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Revenue 1,809 1,861 1,935 1,961 7,566 1,855 1,943 1,995 YoY growth % * * * * * 3% 4% 3% YoY organic growth % 1 * * * * * 3% 4% 3% Segment operating income 1 443 458 477 546 1,924 465 522 502 Segment operating margin % 1 24.5% 24.6% 24.7% 27.8% 25.4% 25.1% 26.9% 25.2% Included in segment operating income Gain on sale of assets 5 17 4 61 87 - - 1 Investment gain - - - - - - 16 - Net EAC adjustments 25 14 12 25 76 21 25 39 Individual EACs +/ - $15 million 2 - - - - - - - - Revenue by Customer Relationship % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Prime contractor 66% 68% 71% 69% 69% 66% 69% 66% Subcontractor 34% 32% 29% 31% 31% 34% 31% 34% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Contract Type % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Fixed -price 5 84% 86% 84% 86% 85% 85% 84% 84% Cost -type 16% 14% 16% 14% 15% 15% 16% 16% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Geographical Region % 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 United States 61% 63% 61% 61% 61% 58% 57% 58% International 39% 37% 39% 39% 39% 42% 43% 42% Total segment 100% 100% 100% 100% 100% 100% 100% 100% 3 Contractual Backlog Rollforward ($ billions) 3 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Beginning balance 9.7 9.4 9.4 9.6 9.7 9.4 9.1 9.0 Orders 1.5 2.1 2.1 1.8 7.5 1.7 1.9 3.9 Revenue (1.8) (1.9) (1.9) (2.0) (7.6) (1.9) (1.9) (2.0) Adjustments, incl. divestitures - (0.2) - - (0.2) (0.1) (0.1) - Ending contractual backlog 9.4 9.4 9.6 9.4 9.4 9.1 9.0 10.9 Book to bill 0.8 1.1 1.1 0.9 1.0 0.9 1.0 1.9 *2024 QTD segment data has not been recast. Accordingly, data is not available for this measure. 1 Non -GAAP Financial Measure defined and reconciled to GAAP on slides 14 - 18. 2 Included as a component of Net EAC adjustments. 3 Certain amounts presented may not sum due to rounding. 4 Calculated as percentage of segment revenue, excluding intersegment revenue. 5 Includes revenue derived from time -and -materials contracts. Communications & Spectrum Dominance
L3HARRIS Earnings Appendix *2024 QTD segment data has not been recast. Accordingly, data is not available for this measure. 1 Non -GAAP Financial Measure defined and reconciled to GAAP on slides 14 - 18. 2 Included as a component of Net EAC adjustments. 3 Space Technology disposal group revenue and operating income is included in total Missile Solutions segment revenue and operating income reported above. Segment Information ($ millions) 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Revenue 840 925 1,008 1,024 3,797 990 1,054 1,057 YoY growth % * * * * * 18% 14% 5% YoY organic growth % 1 * * * * * 18% 14% 17% Segment operating income 1 96 116 124 28 364 124 130 127 Segment operating margin % 1 11.4% 12.5% 12.3% 2.7% 9.6% 12.5% 12.3% 12.0% Included in segment operating income Impairment of goodwill - - - (85) (85) - - - Gain on sale of assets - - - - - 39 - - Net EAC adjustments 7 23 20 19 69 (12) 21 27 Individual EACs +/ - $15 million 2 - - - - - (54) - - Space Technology disposal group 3 Revenue 122 147 160 141 571 157 155 38 Operating income 14 24 23 22 83 31 28 5 Revenue by Customer Relationship % 5 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Prime contractor 27% 27% 28% 25% 26% 26% 24% 27% Subcontractor 73% 73% 72% 75% 74% 74% 76% 73% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Contract Type % 5 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Fixed -price 6 61% 63% 64% 66% 64% 66% 68% 68% Cost -type 39% 37% 36% 34% 36% 34% 32% 32% Total segment 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Geographical Region % 5 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 United States 97% 88% 86% 95% 91% 89% 88% 89% International 3% 12% 14% 5% 9% 11% 12% 11% Total segment 100% 100% 100% 100% 100% 100% 100% 100% 4 Contractual Backlog Rollforward ($ billions) 4 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Beginning balance 9.1 9.2 9.7 10.1 9.1 10.1 10.5 10.5 Orders 0.9 1.8 1.4 1.1 5.2 1.3 1.2 12.5 Revenue (0.8) (0.9) (1.0) (1.0) (3.8) (1.0) (1.1) (1.1) Adjustments, incl. divestitures - (0.4) - (0.1) (0.4) 0.1 (0.1) (1.9) Ending contractual backlog 9.2 9.7 10.1 10.1 10.1 10.5 10.5 20.0 Book to bill 1.0 1.9 1.4 1.1 1.4 1.3 1.1 11.8 4 Certain amounts presented may not sum due to rounding. 5 Calculated as percentage of segment revenue, excluding intersegment revenue 6 Includes revenue derived from time -and -materials contracts. Missile Solutions
L3HARRIS Earnings Appendix L3Harris Total Segments 1 Non -GAAP Financial Measure defined and reconciled to GAAP on slides 14 - 18. 2 Revenue attributable to our corporate headquarters, which includes amortization of program investment asset recognized in con nec tion with DoW strategic investment in 2026. 2025 includes other non -reportable businesses, which is the divested Commercial Aviation Solution s business ("CAS disposal group"). CAS revenues included in 1Q25 and FY25 disaggregated revenue tables herein. 3 Included as a component of Net EAC adjustments. 4 Includes revenue derived from time -and -materials contracts. Total Segment Information 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Space & Mission Systems 2,411 2,770 2,803 2,727 10,711 2,990 2,966 3,093 Communications & Spectrum Dominance 1,809 1,861 1,935 1,961 7,566 1,855 1,943 1,995 Missile Solutions 840 925 1,008 1,024 3,797 990 1,054 1,057 Intersegment (74) (130) (88) (65) (357) (91) (82) (80) Segment revenue 1 4,986 5,426 5,658 5,647 21,717 5,744 5,881 6,065 Other 2 146 - 1 1 148 - - (5) Revenue 5,132 5,426 5,659 5,648 21,865 5,744 5,881 6,060 YoY growth % (2)% 2% 7% 2% 3% 15% 8% 7% YoY organic growth % 1 (1)% 6% 10% 6% 5% 15% 8% 9% Segment operating income 1 777 863 900 803 3,343 902 942 967 Segment operating margin % 1 15.6% 15.9% 15.9% 14.2% 15.4% 15.7% 16.0% 15.9% Included in segment operating income Impairment of goodwill - - - (85) (85) - - - Gain on sale of assets 5 92 26 61 184 50 - 8 Investment gains – Segment - - - - - - 39 - Net EAC adjustments (11) (20) 17 61 47 33 23 89 Individual EACs +/ - $15 million 3 (20) (57) (34) 6 (105) (74) (39) - Revenue by Customer Relationship % 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Prime contractor 62% 64% 64% 63% 63% 65% 63% 64% Subcontractor 38% 36% 36% 37% 37% 35% 37% 36% Total 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Contract Type % 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Fixed -price 4 74% 75% 73% 77% 75% 71% 75% 72% Cost -type 26% 25% 27% 23% 25% 29% 25% 28% Total 100% 100% 100% 100% 100% 100% 100% 100% Revenue by Geographical Region % 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 United States 77% 79% 78% 77% 78% 77% 77% 76% International 23% 21% 22% 23% 22% 23% 23% 24% Total 100% 100% 100% 100% 100% 100% 100% 100% 5 ($ millions)
L3HARRIS Earnings Appendix L3Harris Financial Results 6 ($ millions, except per share amounts) 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Revenue 5,132 5,426 5,659 5,648 21,865 5,744 5,881 6,060 Segment operating income 1 777 863 900 803 3,343 902 942 967 Segment operating margin % 1 15.6% 15.9% 15.9% 14.2% 15.4% 15.7% 16.0% 15.9% Unallocated corporate items and other, net Amortization of acquisition -related intangibles 194 193 192 190 769 173 177 147 LHX NeXt implementation costs 35 39 25 68 167 - - - Business divestiture -related losses 17 - - 65 82 10 - 17 Acquisition, divestiture & transaction -related exp. 17 13 10 17 57 30 10 9 Chg. in FV of deferred comp. plan liabilities (6) 29 25 9 57 (5) 43 (3) Segment investment offset - - - - - - 39 - Other items (5) 18 27 61 101 42 19 11 Total Unallocated corporate items and other, net 252 292 279 410 1,233 250 288 181 Operating income 525 571 621 393 2,110 652 654 786 Operating income % 10.2% 10.5% 11.0% 7.0% 9.7% 11.4% 11.1% 13.0% Non -service FAS pension income 90 73 73 120 356 75 75 74 Other non -operating (expense) income, net Investment gains – Segment - - - - - - 39 - Investment gains, net – Corporate (2) 6 7 4 15 4 34 37 Chg. in FV of deferred comp. plan assets (6) 23 20 7 44 (7) 37 1 Chg. in FV of subsidiary pref. stock conv. & warrants - - - - - - - (50) Other 2 3 (2) 1 4 1 - 11 Total other non - operating (expense) income, net (6) 32 25 12 63 (2) 110 (1) Interest expense, net 150 152 152 143 597 136 129 116 Income before taxes 459 524 567 382 1,932 589 710 743 Income tax expense 73 66 105 82 326 77 110 111 Net income 386 458 462 300 1,606 512 600 632 Subsidiary pref . stock deemed dividends - - - - - - (14) (19) Net income available to common shareholders 386 458 462 300 1,606 512 586 613 Basic EPS $ 2.05 $ 2.45 $ 2.47 $ 1.60 $ 8.57 $ 2.74 $ 3.15 $ 3.29 Diluted EPS $ 2.04 $ 2.44 $ 2.46 $ 1.59 $ 8.53 $ 2.72 $ 3.13 $ 3.28 YoY increase (decrease) % 38% 27% 17% (33)% 8% 33% 28% 33% Basic shares O/S 188.5 187.0 187.1 187.0 187.4 186.8 186.2 186.1 Diluted shares O/S 189.1 187.8 188.1 188.2 188.4 188.1 187.3 186.9 1 Non -GAAP Financial Measure defined and reconciled to GAAP on slides 14 - 18.
L3HARRIS Earnings Appendix L3Harris Consolidated Statement of Cash Flows Operating Activities FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Net income 1,198 1,512 386 458 462 300 1,606 512 600 632 Adjustments: Depreciation and amortization 1,166 1,289 301 303 309 311 1,224 282 288 267 Share -based compensation 89 97 19 29 35 30 113 21 28 (1) Net periodic benefit income (275) (286) (84) (66) (66) (114) (330) (70) (69) (70) Share -based matching under defined cont. plans 231 264 68 68 64 53 253 62 45 51 Asset group & divestiture -related losses 51 19 17 - - 65 82 10 - 17 Investment losses (gains), net - - 2 (6) (7) (5) (16) (4) (73) (37) Chg. in FV subsidiary pref. stock conv. & warrants - - - - - - - - - 50 Impairment of other assets 374 38 - - - 85 85 - - - Deferred income taxes (423) 174 (89) (5) 245 55 206 119 63 63 (Increase) decrease in: Receivables, net 124 128 (447) 64 (91) 131 (343) (623) (52) 369 Contract assets 62 (194) (420) (214) 180 17 (437) 72 (210) (299) Inventories, net (182) 96 92 (6) (33) 64 117 (17) (38) (6) Other current assets (55) (29) (19) (3) 4 35 17 (218) 39 26 Increase (decrease) in: Accounts payable 87 (90) 52 (14) (131) 568 475 (527) 158 106 Contract liabilities 195 126 (16) 193 (86) 90 181 461 195 169 Compensation and benefits 38 (128) (105) 130 42 3 70 (87) (18) 121 Other current liabilities (88) 155 11 (279) (227) 72 (423) (15) (73) 14 Income taxes (333) (383) 273 48 (177) 221 365 (7) 2 23 Other operating activities (163) (229) (83) (60) 23 (19) (139) (66) (6) (56) Net cash provided by (used in) operating activities 2,096 2,559 (42) 640 546 1,962 3,106 (95) 879 1,439 7 ($ millions)
L3HARRIS Earnings Appendix L3Harris Consolidated Statement of Cash Flows (continued) Investing Activities FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Net cash paid for acquired businesses (6,688) - - - - - - - - - Capital expenditures (449) (408) (59) (88) (119) (158) (424) (99) (108) (179) Disposal of property, plant and equipment, net 56 1 - 9 - 45 54 7 - 13 Sales of businesses, net of cash divested 71 273 831 - - (11) 820 - - 539 Cash used for short -term investments - - - - - - - - - (550) Other investing activities (11) (129) (28) 1 (10) (6) (43) (5) (6) (4) Cash (used in) provided by investing activities (7,021) (263) 744 (78) (129) (130) 407 (97) (114) (181) 8 Financing Activities FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Issuance of subsidiary Series A pref . stock, net - - - - - - - - 973 - Proceeds from issuances of long -term debt, net 7,568 2,827 - - - - - - - - Repayments of long -term debt (3,170) (2,620) (5) (606) (3) (4) (618) (106) (6) (3) Change in commercial paper, net 623 (567) 20 450 (260) (725) (515) 350 (350) - Commercial paper, maturities over 90 days 1,181 688 - - - - - - - - Repayments of commercial paper (205) (1,205) - - - - - - - - Repurchases of common stock (518) (554) (569) (253) (176) (156) (1,154) (296) (229) (73) Dividends paid (868) (886) (228) (225) (225) (225) (903) (238) (232) (234) Other financing activities (17) 93 (23) 24 104 3 108 6 11 1 Cash provided by (used in) financing activities 4,594 (2,224) (805) (610) (560) (1,107) (3,082) (284) 167 (309) Exchange rate changes on cash / cash equivalents 11 (17) 5 13 - 5 23 (3) (1) 1 Net (decrease) increase in cash / cash equivalents (320) 55 (98) (35) (143) 730 454 (479) 931 950 Cash and cash equivalents, beginning of period 880 560 615 517 482 339 615 1,069 590 1,521 Cash and cash equivalents, end of period 560 615 517 482 339 1,069 1,069 590 1,521 2,471 ($ millions)
L3HARRIS Earnings Appendix L3Harris Consolidated Balance Sheet 9 Assets FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Current assets Cash and cash equivalents 560 615 517 482 339 1,069 1,069 590 1,521 2,471 Receivables, net 1,230 1,072 1,501 1,437 1,528 1,371 1,371 1,912 1,950 1,640 Contract assets 3,196 3,230 3,643 3,857 3,677 3,566 3,566 3,530 3,674 3,999 Inventories, net 1,472 1,330 1,252 1,258 1,291 1,219 1,219 1,234 1,272 1,278 Short -term investments - - - - - - - - - 550 Income taxes receivable 61 379 205 93 281 53 53 52 43 41 Other current assets 430 461 478 481 477 431 431 650 613 594 Assets of business held for sale 1,106 1,131 - - - 884 884 926 1,010 - Total current assets 8,055 8,218 7,596 7,608 7,593 8,593 8,593 8,894 10,083 10,573 Non -current assets Property, plant and equipment, net 2,862 2,806 2,755 2,742 2,761 2,665 2,665 2,658 2,686 2,833 Goodwill 19,979 20,325 20,337 20,372 20,370 20,010 20,010 19,999 19,996 19,999 Intangible assets, net 8,540 7,639 7,448 7,261 7,072 6,509 6,509 6,331 6,540 6,389 Deferred income taxes 91 120 128 89 87 76 76 71 65 72 Other non -current assets 2,160 2,893 2,984 3,168 3,131 3,342 3,342 3,427 3,568 3,940 Total assets 41,687 42,001 41,248 41,240 41,014 41,195 41,195 41,380 42,938 43,806 ($ millions)
L3HARRIS Earnings Appendix L3Harris Consolidated Balance Sheet (continued) 10 Liabilities, Mezzanine Equity and Equity FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Current liabilities Short -term debt 1,602 515 535 985 725 - - 350 - - Current portion of long -term debt 363 640 740 141 120 673 673 1,816 1,815 1,815 Accounts payable 2,106 2,005 2,047 2,033 1,902 2,461 2,461 1,930 2,085 2,182 Contract liabilities 1,900 2,142 2,124 2,317 2,231 2,262 2,262 2,736 2,936 3,107 Compensation and benefits 544 419 314 444 486 482 482 391 376 500 Other current liabilities 1,129 1,648 1,654 1,375 1,148 1,201 1,201 1,184 1,114 1,128 Income taxes payable 88 29 35 27 26 34 34 83 78 109 Liabilities of business held for sale 272 235 - - - 113 113 111 113 - Total current liabilities 8,004 7,633 7,449 7,322 6,638 7,226 7,226 8,601 8,517 8,841 Non -current liabilities Long -term debt, net 11,160 11,081 10,977 10,976 10,997 10,443 10,443 9,191 9,184 9,181 Deferred income taxes 815 942 842 800 1,039 1,114 1,114 1,225 1,369 1,436 Sub sidiary Series A pref . stock conversion feature - - - - - - - - 130 203 Subsidiary warrants - - - - - - - - 186 163 Other non -current liabilities 2,879 2,766 2,850 2,864 2,808 2,777 2,777 2,683 2,702 2,755 Total liabilities 22,858 22,422 22,118 21,962 21,482 21,560 21,560 21,700 22,088 22,579 Mezzanine equity Redeemable subsidiary Series A conv . pref. stock - - - - - - - - 968 987 Total equity 18,829 19,579 19,130 19,278 19,532 19,635 19,635 19,680 19,882 20,240 Total liabilities, mezzanine equity, and equity 41,687 42,001 41,248 41,240 41,014 41,195 41,195 41,380 42,938 43,806 ($ millions)
L3HARRIS Earnings Appendix L3Harris Research & Development Research & Development Cost 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Space & Mission Systems 40 53 51 50 194 48 56 51 Communications & Spectrum Dominance 49 57 61 68 235 67 71 71 Missile Solutions 22 21 26 37 106 31 33 21 Total Company - funded R&D costs 111 131 138 155 535 146 160 143 Research & Development Costs (as a % of Segment Revenue) 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Space & Mission Systems 1.7% 1.9% 1.8% 1.8% 1.8% 1.6% 1.9% 1.6% Communications & Spectrum Dominance 2.7% 3.1% 3.2% 3.5% 3.1% 3.6% 3.7% 3.6% Missile Solutions 2.6% 2.3% 2.6% 3.6% 2.8% 3.1% 3.1% 2.0% Total company 2.2% 2.4% 2.4% 2.7% 2.5% 2.5% 2.7% 2.4% 11 ($ millions)
L3HARRIS Earnings Appendix Contractual Backlog Space & Mission Systems 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Funded 9.5 9.7 10.7 12.6 12.6 14.7 15.1 15.1 Unfunded 5.1 6.6 5.9 6.6 6.6 6.4 7.3 7.2 Ending contractual backlog 14.6 16.3 16.6 19.2 19.2 21.1 22.4 22.3 12 Communications & Spectrum Dominance 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Funded 7.9 7.8 8.0 7.8 7.8 7.6 7.8 8.4 Unfunded 1.5 1.6 1.6 1.6 1.6 1.5 1.2 2.5 Ending contractual backlog 9.4 9.4 9.6 9.4 9.4 9.1 9.0 10.9 Missile Solutions 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Funded 5.3 5.5 6.0 6.5 6.5 7.0 7.3 7.7 Unfunded 3.9 4.2 4.1 3.6 3.6 3.5 3.2 12.3 Ending contractual backlog 9.2 9.7 10.1 10.1 10.1 10.5 10.5 20.0 L3Harris Total Company Contractual Backlog 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Funded 22.7 23.0 24.7 26.9 26.9 29.3 30.2 31.2 Unfunded 10.5 12.4 11.6 11.8 11.8 11.4 11.7 22.0 Ending contractual backlog 33.2 35.4 36.3 38.7 38.7 40.7 41.9 53.2 Book to bill 0.8 1.5 1.2 1.5 1.3 1.4 1.2 3.2 Conversion to revenue in next twelve months 50% 45% 45% 45% 45% 40% 40% 35% L3Harris Total Company Contractual Backlog Rollforward 1 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Beginning balance 34.2 33.2 35.4 36.3 34.2 38.7 40.7 41.9 Orders 4.3 8.3 6.7 8.2 27.5 7.8 7.3 19.3 Revenue (5.1) (5.5) (5.6) (5.7) (21.9) (5.7) (5.9) (6.1) Adjustments, incl. divestitures (0.2) (0.6) (0.2) (0.1) (1.1) (0.1) (0.2) (1.9) Ending contractual backlog 33.2 35.4 36.3 38.7 38.7 40.7 41.9 53.2 ($ billions) 1Certain amounts presented may not sum due to rounding.
L3HARRIS Earnings Appendix Work Weeks 13 Work Weeks per Fiscal Period FY24 FY25 FY26 FY27 First quarter 13 12 13 13 Second quarter 13 13 13 13 Third quarter 13 14 13 13 Fourth quarter 14 13 13 13
L3HARRIS Earnings Appendix Non-GAAP Reconciliation - Free Cash Flow Free Cash Flow | Capex FY23 FY24 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Net cash provided by (used in) operating activities 2,096 2,559 (42) 640 546 1,962 3,106 (95) 879 1,439 Capital expenditures (449) (408) (59) (88) (119) (158) (424) (99) (108) (179) Free cash flow 1 [A] 1,647 2,151 (101) 552 427 1,804 2,682 (194) 771 1,260 Net income [B] 1,198 1,512 386 458 462 300 1,606 512 600 632 Free cash flow conversion 1 [A] / [B] 1.4x 1.4x 1.7x Additional items included in cash provided by (used in) operating activities: Share -based matching under defined cont. plans 231 264 68 68 64 53 253 62 45 51 Net periodic benefit income (275) (286) (84) (66) (66) (114) (330) (70) (69) (70) Income taxes (333) (383) 273 48 (177) 221 365 (7) 2 23 14 ($ millions) 1 Free cash flow and free cash flow conversion are non -GAAP Financial Measures as defined by Regulation G. As of third quarter 202 6, we no longer include proceeds from disposal of property, plant and equipment, net. Prior periods have been recast for comp ara bility. We use free cash flow to evaluate business performance and overall liquidity, and it is a performance metric in our annual incentive plan . We believe free cash flow is useful because it represents the cash generated from operations after reinvesting in our business that may be available to return to stockholders and creditors through dividends, share repurchases, and debt repayments, or to fund acquisitions or other inv est ments. We use free cash flow conversion to evaluate our ability to convert earnings into cash that may be available to suppor t operations, reduce debt, and return capital to shareholders. However, the entire amount of the free cash flow converted is not available for discretionary ex penditures because of certain mandatory expenditures, such as debt repayments.
L3HARRIS Earnings Appendix Non-GAAP Reconciliation – Net Debt Leverage Ratio 15 ($ millions) 1 EBITDA gross debt leverage and net debt leverage ratios are non -GAAP Financial Measures as defined by Regulation G. We use EBITD A to evaluate our operating performance and financial position. EBITDA is defined as net income before interest, taxes, depre cia tion and amortization. Gross leverage ratio calculated as total debt divided by EBITDA for trailing twelve months (“TTM”) and net leve rag e ratio is calculated as net debt divided by EBITDA for the trailing twelve months and is used to assess our leverage and abi lity to meet our debt obligations. We use debt leverage ratios as supplemental financial measures to monitor indebtedness, evaluate financial flexi bil ity and support capital allocation and financing decisions. Net debt leverage ratio FY23 FY24 4Q25 FY25 1Q26 2Q26 3Q26 TTM Short -term debt 1,602 515 - - Current portion of long -term debt 363 640 673 1,815 Long -term debt, net 11,160 11,081 10,443 9,181 Total debt [A] 13,125 12,236 11,116 10,996 Less: Cash 560 615 1,069 2,471 Short -term investments - - - 550 Net debt [B] 12,565 11,621 10,047 7,975 Earnings before interest, taxes, depreciation and amortization ("EBITDA") Net income 1,198 1,512 300 1,606 512 600 632 2,044 Income tax expense 23 85 82 326 77 110 111 380 Interest expense, net 543 675 143 597 136 129 116 524 Earnings before interest and taxes 1,764 2,272 525 2,529 725 839 859 2,948 Depreciation and amortization 1,166 1,289 311 1,224 282 288 267 1,148 EBITDA 1 [C] 2,930 3,561 836 3,753 1,007 1,127 1,126 4,096 Gross debt leverage ratio 1[A] / [C] 4.5x 3.4x 3.0x 2.7x Net debt leverage ratio 1[B] / [C] 4.3x 3.3x 2.7x 1.9x
L3HARRIS Earnings Appendix Reconciliation of Revenue, Operating Income and Margin to Segment Revenue, Operating Income and Margin - Non-GAAP Financial Measures Reconciliation (Unaudited) Revenue 1Q25 2Q25 3Q25 4Q25 FY25 1Q26 2Q26 3Q26 Revenue [B] 5,132 5,426 5,659 5,648 21,865 5,744 5,881 6,060 Other 1 (146) - (1) (1) (148) - - (5) Segment revenue 2 [D] 4,986 5,426 5,658 5,647 21,717 5,744 5,881 6,065 Operating Income [A] 525 571 621 393 2,110 652 654 786 Segment investment offset - - - - - - 39 - Unallocated corporate items and other, net 252 292 279 410 1,233 250 249 181 Segment operating income 3 [C] 777 863 900 803 3,343 902 942 967 Operating margin % [A] / [B] 10.2% 10.5% 11.0% 7.0% 9.7% 11.4% 11.1% 13.0% Segment operating margin % 3 [C] / [D] 15.6% 15.9% 15.9% 14.2% 15.4% 15.7% 16.0% 15.9% 16 ($ millions) 1 Revenue attributable to our corporate headquarters, which includes amortization of program investment asset recognized in con nec tion with DoW strategic investment in 2026. Year to date 2025 includes our divested CAS disposal group. 2 Segment revenue is a non -GAAP Financial Measure as defined by Regulation G. We use segment revenue because it reflects the aggre gate results of our segments without the impact of corporate headquarters or divestitures. We believe this metric provide inv est ors a more complete understanding of factors and trends affecting our business. 3 Segment operating income and margin are non -GAAP Financial Measures as defined by Regulation G. We use segment operating income and margin to evaluate our core operating performance because it reflects the aggregate performance results of our segments w ithout the impact of unallocated corporate items and it includes income from investments that are operationally aligned with our busines s s egments. We believe these metrics provide investors a more complete understanding of factors and trends affecting our busines s.
L3HARRIS Earnings Appendix Non-GAAP Reconciliation – 2026 Organic Revenue Growth 17 Revenue 1Q25 2Q25 3Q25 1Q26 2Q26 3Q26 Revenue Growth YoY Change 1Q26 2Q26 3Q26 Space & Mission Systems 2,411 2,770 2,803 2,990 2,966 3,093 24% 7% 10% Communications & Spectrum Dominance 1,809 1,861 1,935 1,855 1,943 1,995 3% 4% 3% Missile Solutions 840 925 1,008 990 1,054 1,057 18% 14% 5% Intersegment (74) (130) (88) (91) (82) (80) 23% (37)% (9)% Segment revenue 4,986 5,426 5,658 5,744 5,881 6,065 15% 8% 7% Other 1 146 - 1 - - (5) * - * Total revenue 5,132 5,426 5,659 5,744 5,881 6,060 12% 8% 7% Adjustments 2 Space & Mission Systems - - - Communications & Spectrum Dominance - - - Missile Solutions - - (103) Intersegment - - - Segment revenue - - (103) Other 1 (146) - - Total adjustments (146) - (103) Organic revenue 3 Space & Mission Systems 2,411 2,770 2,803 2,990 2,966 3,093 24% 7% 10% Communications & Spectrum Dominance 1,809 1,861 1,935 1,855 1,943 1,995 3% 4% 3% Missile Solutions 840 925 905 990 1,054 1,057 18% 14% 17% Intersegment (74) (130) (88) (91) (82) (80) 23% (37)% (9)% Segment revenue 4,986 5,426 5,555 5,744 5,881 6,065 15% 8% 9% Other 1 - - 1 - - (5) - - * Total organic revenue 4,986 5,426 5,556 5,744 5,881 6,060 15% 8% 9% ($ millions) * Not meaningful. 1 Revenue attributable to our corporate headquarters, which includes amortization of program investment asset recognized in con nec tion with DoW strategic investment in 2026. Year to date 2025 includes our divested CAS disposal group. 2 Adjustments to remove revenue associated with divestiture of CAS (included in “Other”) and Space Technology disposal group (i ncl uded in Missile Solutions segment). 3 Organic revenue is a non -GAAP Financial Measure as defined by Regulation G. We use organic revenue to exclude revenue attributab le to divested businesses.
L3HARRIS Earnings Appendix Non-GAAP Reconciliation – 2025 Organic Revenue Growth 18 ($ millions) 1 Adjustments to remove revenue associated with divestitures of CAS, Antenna disposal group and AOT disposal group. 2 Organic revenue is a non -GAAP Financial Measure as defined by Regulation G. We use organic revenue to exclude revenue attributab le to divested businesses. 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 4Q25 FY25 Revenue Growth YoY Change 1Q25 2Q25 3Q25 4Q25 FY25 Revenue 5,211 5,299 5,292 5,523 21,325 5,132 5,426 5,659 5,648 21,865 (2)% 2% 7% 2% 3% Adjustments for divestitur es 1 (51) (183) (169) (178) (581) Organic revenue 2 5,160 5,116 5,123 5,345 20,744 5,132 5,426 5,659 5,648 21,865 (1)% 6% 10% 6% 5%