L3harris Technologies, Inc. (LHX) September 2026 Conference Transcript

But good afternoon, everyone. My name is Sheila Kayalu. I'm with the Jefferies Airspace Defense and Airlines Equity Research Team for those on the webcast. And we have the LHX team here, Ken Sharp, who's graciously stepped in as who's the CFO since March of 2026. So, Ken, thank you for being here. and lots of action going around what's happened. And I know you've taken care of all the investor engagements and Sam Mehta's appointment to CEO. And I really appreciated Chris because he was a great professional mentor to me. And he came to this conference when no other companies would come. So he's been a supporter of mine and a great professional mentor. So I really appreciated what Chris brought to the table to LHX and all the growth that's ahead. So with that said, how do you think about just the continuation of the strategy here and what Sam's background brings to the table as well.

So, look, I love Chris, and I've known him for a long time as well, Sheila. I think we both worked at the same firm eons ago, and I enjoyed my time with him. It was great joining L3 Harris, and so I look forward to building on what he did candidly. I think we have a great portfolio. Sam would recognize that. I think we've gone through a lot of M&A, right, putting L3 Harris, L3 together with Harris, than putting on two other acquisitions, including Aerojet, Rocketdyne, and about 10 or 12 divestitures in the process, probably 13. I should count the latest one. I think all that's been dizzying for investors a little bit. And we've also reorganized the business. So I think where we're at right now today is let's build on the great stuff Chris has done and the great portfolio we have, because I think we do have a spectacular portfolio, very well positioned. And Sam would say, hey, look, I like the business. I like what we did when we reorganized it. You know, we kind of lined ourselves up with multi-domain sensing, spectrum dominance, and then the missiles business. I think it's good. We did, by the way, the last earnings call, we talked a lot about the missiles portfolio because I think people viewed that as maybe we paid too much for a transaction. I think if people could pay $4.7 billion for the business today, they would think that was a steal today. So I think there's a lot of goodness in the business, and I think Sam's going to drive it and build off of it. He would say, hey, look, when we're focused on driving the business, we get great results. Shareholders like it. And when we get distracted and start chasing some things around, people don't like it as much. So our job is to get kind of normal and boring and drive the business.

So since you called it out, maybe ask that as well. You know, you paid $4.7 billion for Eurojet. But how do you, you know, is there a different change of how Sam and yourself view the value of the business to the core LHX portfolio today?

And I don't know if it's a lot different than Chris. And maybe if Ken Benningfield was here, he'd probably have similar comments. It is a highly valuable asset, whether it's inside L3 Harris or outside L3 Harris. I think there's benefits of being inside L3 Harris. And, you know, just given the fact that you have the ability to make the investments, you don't duplicate a lot of pieces, and you can focus on driving the business, meaning build the missile capacitization while we're actually, L3Harris is picking up some of the more administrative pieces. So I think that makes sense. It's why when we talked about the IPO, we said we'd revisited in mid-2027. We also have, I think everybody realizes, there's some contractual requirements around the timing with that. So we're not required to do an IPO, but certainly kind of like take business efforts to do one part of our Department of War investment. So not required to do an IPO, but certainly something we need to work through the process, which is what we're doing. And by the way, this is something we put criteria together with Chris and Ken and Sam and briefed it to the board. The board thought it was really thoughtful. We said we weren't going to go chase multiples. So everybody asked why we positioned this for mid-next year. I just think it makes sense. at the end of the day we'll have six good quarters of performance um we'll get through some of this government hey um crs and you know blue wave and 833 language which was highly unhelpful right because i think our stock was down seven percent that day and we don't seem like we need any more bad news so we get enough news and you know we need to go fight through those things but um so get through the government piece get stuff under contract i mean we're talking about 20 billion dollars of new contracts and it's kind of mind-numbing right so how do we get them under we had the first yuca uh yesterday it went out 4.7 billion and it by the way every time we have a press release there's always more questions so i'll call tony and ask yeah yeah i'll get better at press releases i think because i thought it was clear but we're never clear i guess um well not by the way it wasn't aimed at your questions i got more this morning so i just think we have a great business and a great position. So let's go run it and drive value for the LHX shareholders.

I'll go back to missiles, but just sticking on high level for a minute, how do you think about just the, we mentioned some of the enduring elements of the strategy. Where do you think Sam will focus in on the most to start as you think about just everything going on, whether it's the defense backdrop, the positive Golden Dome, missile defense spending, Europe, NATO? How do you think about how you'll conquer the growth ahead of you?

Well, you're giving me lots of options. So, you know, it's funny because I think supply chain right now is something that's kind of going bump in the night for a lot of companies. You know, we have our CST business. We've talked about a second half ramp up pretty significantly in the second half. And then you wake up and the people that are buying all the stuff for AI are now impacting your radio capability as far as manufacturing it. so you're kind of scratching your head I think Sam's right now his big focus is on making sure we're executing at the business level and then I would say also making sure he spends the time with the customers it's no surprise right everybody Chris had access to pretty much everybody in the Pentagon and I think Sam's working to go make sure we have that same access I don't think it's a problem I think he's doing a really good job at it he was in with Feinberg last week and you know he was out at camden making sure we deliver on the missile side um i i think maybe just taking a step back just maybe more operational i'm a big radios fan just because the capability with you know the software side chris maybe was a little less excitable about radios you know you can debate why um you know i think i was i kid around i say i put the race shield in his script three times last time he took it out twice and i said well if you take it out again I'm just gonna put it in the CFO script which really isn't a good place for it so then he relented right but I think it's so important to talk about because we say software-defined radios I don't think people really know what that means and it really means about putting technology on a radio to help the war fighter and I think you'll see Sam spent a lot of time with the comms business so I'd like to see us talk more about the strategy on comms what we can do to win the battlefield for our war fighters and protect them so I think that's really important. I think Wraith Shield is great if you guys haven't watched the video. I think it is very important as far as the capability.

Okay, we'll go back to comms more because I think it was maybe animosity towards Rochester or something like that in its preference for Florida.

I'm not sure. We can hit on that, sure.

How do you think about just on the missiles business, the Department of War's billion-dollar investment, how much of that is flowing through? What are you setting up in terms of just buildings, infrastructure, automation, and pursuing supplier agreements Yeah, I would say we're setting up too much.

That's the challenge for everybody. So I think Ken Benningfield is doing an amazing job. He's out working routinely. Sam was in Camden last week, and he said, you know, he calls me up, and he said, it's like the Manhattan Project. There's more bulldozers and things getting moved to build. It's 100 different buildings, ultimately. not just in Camden, but everywhere. We're also working, as you think about the supply chain, up and down the supply chain to make sure that we can meet our commitments. And we've been, and maybe wrong or right, and I'm waiting for, hopefully not to get a bad report on this, but we've been out driving commitments to our supply chain way ahead of contract with the Department of War. Ken said this, I think it's right, we've been focused on winning the race, which means get the capacity in place, get the vendors lined up so when other competitors come in, they're behind us. And we'll be delivering all the capacity to the Department of War that they need, that the country deserves with Protect the Homeland. We're very proud of this, and we're going to go drive the business. So now we've done that ahead of contract. I don't think there's a lot of contractors doing that.

That's great.

Can you give us any insights on that capacity expansion roadmap as we think about solid rocket motors sure it feels like it changes routinely a little bit as far as the demand signal just keeps getting bigger the different missiles that we provide components to and we're on pretty much all the major programs we're generally sole sourced on I would say most if not all of them that's probably what creates some of the the general energy around new entrance and all of that which I think is important and we love competition we just hope they open up the whole missile architecture and leave things like seekers to folks like us who have great products that actually built in the old L3 business. I think we have a seeker that can go on pack three today and we want to prove it out because we think it's a pretty important part. So things like that we think are really important.

And I guess what are the biggest constraints that you're seeing today in terms of doubling the capacity over the next few years?

So I would I would say and I probably say this too much we don't have contracts so I would like contracts first second and third because I'm the guy that keeps signing off on stuff for Ken to say go build and spend more I mean like I said we got on the last earnings call and we said we had 2.2 billion dollars out in either supply chain or building commitments and at some point I need a customer and product to build to build them and if I don't have a contract in theory I can't right I mean, we know it'll get resolved, but I would sleep a lot better if I had multiple contracts. And I think everybody saw the PAC-3 award, right, $4.6 billion. We didn't put any of the escalators or anything in that. That's 80% of the PAC-3 demand. You guys can bounce that off of the 833 language, but that's 100% of all the DACs as well. So I think we're in a good position. We just want to go get busy and build them. You know, look, Ken's working up and down the supply chain, moving dirt. I mean, you'd be amazed. I mean, one day we're out working in Orange, and then the construction workers are like, hey, we have to go work someplace else because it's a data center, and they actually have preference over you. And then we go back to the Department of War, and they come back the next day and say, nope, you have preference over them. So it is, Ken's got a full-time job at the end of the day working through this, but I think it's really important. I think he's doing a great job.

How do you think about the competitive positioning of solid rocket motors and propulsion? We hear a lot about it from the new entrants, but also your market share. Is there an opportunity for you to become second source on some programs where you might not be a provider?

So, I mean, for one, there's just so much demand out there. We're happy to see people come in and compete. If it puts a better product in for the warfighter, we're all for it. We think it actually is causing us to drive harder for the business. So, one, I want to be open around competition. If it's there, great. We think we're going to outrun everybody. That's been Ken's mantra. That's been Chris's mantra. Sam will carry that mantra on. I certainly have it. I think it's important. So the solid fuel rocket motor place, we feel pretty good. We've been working on some other pieces around, you know, affordable mass, cruise missiles, those kind of things, I think are definitely opportunities. The electronic side, this goes back to the thesis of putting L3 Harris together with Aerojet. You know, 30 percent of what's the missiles business today is stuff that we put in. It's probably 40, 35, 40 percent with the divestiture we just made. I think it's pretty important that we go and do different things on missiles. And we do a lot of stuff with electronics and fuses and so forth. So, Seekers, whatever else, I think is a good place for us to play. I think the team just needs the drive and the opportunities are there.

Maybe moving on to the space and mission systems business, you know, how do we think about how what needs to happen for space and mission systems to consistently outperform defense budgets? And just give us an update on what's going on with some programs, whether it's SDA or missile warning and tracking.

Sure. So we just received the latest Golden Dome award. I think that was last quarter. So we were the only we're really the only awardee on the kind of missile tracking, missile warning layer that has been the prime on all five kind of awards. And I would say five tranches. But then we get confused on the nomenclature of what each award is called. So AMDT-3, the three stands for third tranche, but it's the fifth award on a set of satellites. So you guys can figure that out later. I can. But I would say I think we're well positioned. I think the clear Golden Dome gets, I think we're well positioned for it. If we won all five, clearly we have some secret sauce around that. We believe our payloads are very important into that. I think it's why we win. We've been trying to work through the mechanics of, you know, we weren't a space prime, right? We weren't building satellites as a prime. We're now doing that. There's a lot of lessons learned we've been taking in in the last four or five years. I would say some of this we did through our own P&L that probably maybe surprised a few people here or there. Certainly the charge we took last quarter, the $55 million, was on a program we signed a relatively long time ago, but that's what happens when you're kind of breaking in pioneering space. We look to get that behind us and drive better returns in that business it's great to hear i guess what when we think about the business today 11.5 billion of revenues in 26 what gets it to the 13 billion plus what where does the billion dollars of revenue come from yeah it'll be interesting we have a fair amount and this business has been exceeding our our expectations right the organic growth in the first half's 15 so um it's been a very strong grower we've had some episodic things with aircraft and so forth. And this business is split kind of a third, a third, a third. But I would say a third on the space side, a third on the ISR. In fact, you went to the Greenville location with Tony. Pretty cool stuff, right?

Best facility visit I've ever been to. I can't stop Tony.

See, that got Tony a promotion to go back to do real engineering instead of financial stuff. So he's, I mean, as you know, he's a classically trained engineer. So I think it's great that he's running a P&L now. So a third is that ISR kind of aircraft capability, and then a mixture on the other third around cyber and some other pieces. You know, we've had a great period of time, right? We'll do better probably this year than we expected in that business. So let's see where it goes. I think we feel pretty good about it. Certainly the backlog we've built up there will help, you know, whether there's a CR or not, whether, you know, there's other rewards, how quick Golden Dome comes out. I mean, we need to just focus on driving down and delivering the satellites, getting the – I think there's 72 left that we've got to get up in space, so getting those completed and ready to go.

Maybe can we talk about the 955 million AMDT-3 contract for 18 satellites? It now means that you have 70 satellites on order. How do you transition from prototype demonstration to mass production and what it means for your margins as they sit around 10% at the end of the quarter?

Yeah, so if you had to dissect the segment and look at the sector, the space business is lower than the average margin in the segment. So certainly getting that to perform better is important. And as you can imagine, like Tranche 5, AMDT 3 is Tranche 5. So as you get into that next level, certainly we've learned a lot, you know, as far as what buses we're using, what other components are on a spacecraft. and just getting kind of better on the supply chain side. The engineering, I think, has been where the team has been after. I think they've been doing a nice job. How we bid the programs has shifted, and I think we've been trying to be more thoughtful around or disciplined around the economics, so I think that part's good. And, you know, the truth is we've been kind of being somewhat conservative on our booking rates on the margins to make sure we deliver, and then as we de-risk the programs, you'll see better and better margins. So in the past, we probably didn't run with a level of management reserve on the programs that we've kind of built into the programs now.

Maybe I just want to close the loop on the segment margins as we think about space only representing a third. How do we think about, you know, the ISR business? It's gone through a transformation here, and it's on a positive trajectory where margins sit there and the remaining third of the business.

Yeah, and I think the ISR piece is closer to the average margin in the business. So I think it is to your point, and Tony was there, they did a great job of getting that business where it needed to be. We've got a couple very large newer wins as far as new aircraft types. So just kind of getting those kind of laid flat, getting the – I mean, these are real hard until you go on one. You don't realize what the team is doing. I mean, they're cutting new holes. They're filling them full of – cutting new holes in the fuselage, sorry, and redesigning kind of the airplanes and what they can, the loads they can carry, how to carry them, how to also do the ISR work that the payload's doing inside. So I think the team's done a nice job. They'll get to a level that it's repeatable, right? They've done that on the domestic side and these new international variants. That's what they're working through now. I think there's a lot of, you know, you asked about growth. I think both on the space side specifically and the ISR side for the aircraft. I think there's a lot of opportunity.

It's great to hear. Maybe just on CSD, let's go to communications. We could finally touch on it. You know, you talked about resilient communication orders of over a billion dollars from European allies like Germany, Poland and Netherlands. I guess how do you first maybe let's size the total communications business and how you think about demands both US and internationally?

Sure. And it's it moves around a lot because And maybe for folks, if they don't fully get our radios business, it's generally kind of the military radios. They're highly effective. So if, you know, we have them deployed in Ukraine today, the Russians are very good at jamming communications. So our radios are the best. So we're very good about uploading new capabilities into the radios to get them on different spectrum and so forth. So our waveforms so people can communicate. they don't get jammed so at the end of the day it's a great business where we get into the kind of have a revenue ebbs and flows we go through upgrades like your iPhone or whatever device you use we're you know right now we're we're on Falcon 4 domestically Falcon 4 will go to Falcon 5 in the next probably year and a half that drives a little bit of demand signal as well because you get better capabilities and maybe different than i found if you guys ever look at a warfighter but they have a screen in front of them a radio and a battery over here it's still pretty big right it has to have a lot of capability survive in combat um so you know the form factor is important to work down the compute power the communication power of the radios are all still unlike your phone and i'm not a kid so i have to ask my kids but they do different things when you get the newer phone but they all kind of seem to be the same to me um i think our radios aren't all the same so and and maybe chris's frustration with rochester was they're too hot and um and we weren't working the form factor fast enough and i think we've worked the form factor well and the falcon 5 will be that in the in the international space we tend to be on falcon 3 move to falcon 4 when we talk about software products going out on these radios you know you need the newer variants for the software products and if you think about race shield being this kind of fence that goes around with every radio that you can detect drones coming in and literally it'll detect it sense it and then jam it and drop these drones down if there are a foot drones it's pretty important so um and for me i mean it's like a personal thing because i used to be a war fighter and i got a young kid that comes to my house who's uh you know he's an army ranger and at the end of the day i said hey watch this video tell me what you think and he's like one of the in the ranger battalion so these are the guys that get deployed all the time he's like hey that i mean he has a lot of choice words there's too many people here it's probably recorded so i won't use his words but he would say it's very important um and how do we get it and you know we're working with socom on something like that and he's very big too by the way so i try to be really nice to him um but he dates my daughter i should probably giving you guys too much so i get a little worried about that too um but but anyway that's the importance of the radios that's why i think getting these software products out getting capability in the warfighter i mean if you think about it if a swarm of drones comes in you can't take it out with munitions and firing and kinetics it has to be kind of jamming and whatever else it's just a really cool capability that's what our radios do without any additional kind of weight it's just software so i think it's a great business tony's now in the business that does the turrets with west cam and also the counter uas i think that's also a really good business we've talked about a billion dollars and pipeline that showed up out of nowhere because everybody now feels like they need counter uas systems you know our first round of that is really kind of firing 30 000 missiles at drones um you know the kill rate on it's about 80 it's probably better now but we've been working through all the algorithms and so forth it's been fielded in ukraine so it's had live fire activity so i think tony's like to buy the best salesman for it is that right tony yeah i'll check some out at ausa next month so i might get to see tony one more fabulous you'll see him a bunch here because that's going to be his hot spot right so i mean but like with all things like this we're we have a huge ramp in front of us trying to get um all the electronics like literally i think two weeks ago we're walking working through how do you get um the department of war certifications behind you internationally because the ai demand is huge so i think you know we've talked about a huge ramp second half and i've said hey revenue ramp second half we still firmly believe it'll ramp second half but it's probably more fourth quarter weighted second third quarter is probably flatter at the end of the day um but that's a little frustrating because it's such a great business we want to see the product out. But I will tell you, Sam is working that with the team night and day because we've got to drive to get the supply chain laid flat. It's really two vendors and it's like fourth tier materials and that kind of stuff. So just shows the world we live in today, right?

I have two follow-up questions for that. As we think about the U.S. market Falcon 4 to Falcon 5 over the next year and a half, what does that mean? Is it a software upgrade? What does that I mean, in terms of investment ahead and how do we think about the U.S. modernization cycle in terms of what's completed and what's ahead?

Sure. So it's a whole new radio. So it's all hardware. So think of something that this is like big going to something maybe half the size and hopefully has better battery life, heat, more capacity for communication. So more ability to put software on it. So that new radio will probably effectively roll out the end of next year. so we don't want to get ahead of ourselves because you know we also want to keep selling falcon 4s because they're very important and we have to keep everything moving so um i think this will just be the next iteration like your iphone like i said it's kind of like going from an iphone 5 to a 14 which then i'm not really sure which one they're at today but um maybe a 17 because my kids told me we need a new one so um but anyway i think it's kind of a pretty big evolution so we're very excited about it so and what's the percentage in terms of the modernization that you think how do you think about the modernization cadence as we progress every year yeah i think somewhere around we've been at like 40 plus percent um in the u.s and then internationally it's a lot harder right because every country not they don't all use our radios but let's be if you're trying to communicate you want to you want this commonality between systems so you can communicate and then if you're putting your kids on the battlefield you want to give them the best odds of survivability. That's L3 Harris Radio. So that's why we've been doing a really bang up job internationally. And that's where you're seeing a lot of demand come in.

One more follow up question. You mentioned it's a very Q4 weighted business. How do we think about, you know, some of the, I guess, supply chain areas that you're keenly focused on to get that, you know, insured you ship?

Yeah, I would say it's predominantly kind of pieces that go into electronic boards. I mean, we make these radios all ourselves so it's it's always putting resistors and stuff like that on boards so I would say there's some materials in the boards that have gotten to be a little bit harder we've had to go dual source different vendors also you know work with countries that some of these suppliers are not in the US so trying to go explain to them hey it's important for the Department of War engage the Department of War with them which Sam has done. And vendors, it's a little bit of a positive surprise, candidly, that vendors have said, okay, we're prioritizing you. Our demands aren't as high as like somebody building a bunch of boxes for a data center. So maybe that's why it's been a little bit easier. But we hit a little bit of a bump and I think we'll work our way through it. But we'll certainly talk about it on the next call for sure.

That's helpful. Maybe if you could talk about last year, the team had mentioned Lynx 16. You've kind of highlighted success of getting Link16 into space. Can you talk about what that means and how you think about NextGen, Jammer, low-band pods, and how does the integration of Palantir's AI platform help with your sensor business?

Yeah, so I would say you've got a big universe there, so let me try. So Link16 into space, I think it's just kind of important from a comms perspective. We're a big comms company, so owning kind of the framework, how things work, I think is really important. So and that was also part of why we bought the business. So I think that's a positive all the way around. Let's see. You then mentioned NextGen Jammer. The team would say they're absolutely on schedule, on price. We're kind of in the first phase of the contract. There'll hopefully be another booking somewhere in the distant future, not too distant future, excuse me, on NextGen Jammer. I think Sam would say it's working really well. I checked him out on the NextGen Jammer recently. But, you know, we're in a development phase on the program, so it's cost type, lower margins. You know, so, look, we just need to work through the program. It's a great program to have, right, and we like the position we have with it. And you asked about pods, electronic warfare in general.

We got a lot in that because you've segmented into two segments now. So we need you to break out again and give more color so I'm not jamming all these questions into them.

Oh, it's all good. So, and then just kind of electronic warfare in general, I think we, you know, we, you know, like everybody, right? I think it's a very important part of the business, even putting, you know, I was spending some time the other day just even getting EW platforms on relatively small drones, just so you can fly in contested environments and be able to make deliveries, even believe it or not, on ships, for example. That's been one of the mission sets of late. So, I think there's a whole lot going on. I think it's an important space.

Um, moving on to some financials, the CFO stuff now we need to get to talk about. So, you know, LHX Next, uh, that, that seems long ago now. How do you think about, uh, you know, the next steps of implementation? You've exceeded your targets of $1.2 billion of savings. How do we think about next steps in terms of residual, or sorry, uh, margins from here?

Yeah. So, I mean, one, I think it's very important. I just always look at margins and I've had enough kind of time at L3 Harris now where people talk about noise in our financials and stuff like that and how to have cleaner quarters. So I'll be honest, I'm kind of a cleaner quarter guy, so we pulled all the one-timers out of our numbers or non-recurring items and look at it and say, okay, we're not at our 16% margin, so what do we need to do to make sure we get to our 16% in a clean way, right? When I say clean, it's not asset sale gains or non-operational things. So, you know, I think a big part of the focus is how do we go drive the business to get there and be able to, you know, any of these one-timers that come up are kind of, you know, on top of the numbers at the end of the day. So the LHX Next program was important. I think, you know, this going in and looking at the business differently and spending a little bit more time operationally I think was good. But I think Sam will candidly, I think Sam will take it to the next level. And, you know, he's already asking for tons of data on spend and consultant spend and different pieces that I think are really important.

So I guess how do we think about the next level deep? You know, is it you know, what do you think is required, whether it's focused on supply chain? Is it just delivering on operating leverage? Is it mixed transitioning from development to production? That's a broad scope for such a large company, but how do we think about some of the three, maybe a few buckets as you think about margin expansion?

Yeah, I think one, getting out of the EAC charges we've had specifically, I know we had some ISR ones. We had some space ones. I think Ken Bedingfield did a nice job of, and we've talked about this, right, making sure we put more management reserve on programs, starting off with lower margins. And then as we have the right to book larger margins, we book them up. I mean, we're bidding them at higher margins but we are recording and recognizing it's all appropriate from accounting we're recognizing lower margins in the earlier stages because we have more risk so i think maybe under you know or maybe previously things got ahead of the company and we're trying to make sure that we take a pretty conservative stance to new business and and programs that are earlier stage so i think that's uh kind of first piece and then you know if i had to think about margins it's you know act like i'll use missiles as a great example um we're gonna 3x 4x 5x 10x volumes on different programs and some of and some of it you just kind of scratch your head a little bit if you can't drive higher margin and that you're doing something wrong right and i think some people probably here have even been to ken's new building and or facility in huntsville it we took the remington facility i don't remember how many square feet it's huge and part of that is how How do we dual source stuff that's either creating issues in the supply chain or stuff where we think that the vendors aren't treating us fairly and make sure that we're getting the benefit of the cost reductions for all three Harris shareholders? So we've got the capacity, so we'll be working through that. So I would like to believe you'll see missiles have kind of supplier margins than where they We're not trying to do it on the back of the customer. We're trying to do it by running a better manufacturing, a better operation. And I think Ken will do a nice job with that because that's what he set out to do. And he was already doing that. So I think that's a piece. And just, hey, look, we got to stay focused and vigilant on the business and look at cost. And I think LHX Next was nice because I'm not sure we had taken a fresh look at cost. I think we need to keep doing that.

That's helpful. Well, and maybe, you know, now that you guys have had some time to sit, not really a lot of time, but how do you think about the business, whether it's from a segment structure? I know you've realigned a few times or from a portfolio standpoint, how do you think about just, you know, are there better fits elsewhere? Or do you think like, you know, maybe breaking down the segments a little bit more, what you'd like to see from here?

Yeah, sure. So I'd like to see no changes. So, and I think our investors would like to see no changes. when we look at all the investor perception studies and everything um in fact when sam was um getting announced i've sat down with him went through q a and you know as every good cfo right you want to make sure you're attached to the ceo and you're not saying something different and if you don't like what the ceo is going to tell you you need to change it so i literally like question one was org structure are you going to change it and i was all ready for hey uh pump the brakes we're not doing that but i let him give his answer was that was the last thing we need to do again and i went chick okay good um i think we have and sam was a big part of the portfolio and structuring it the way he did and i think it actually makes sense right now we could argue could you split space and isr okay if you're we run it that way today it's a construct of the businesses are together that way but we run them in different sectors underneath so okay but i don't think there's a wholesale we're going to go shuffle the deck chairs if we did that i would probably lose my mind and i don't think we want to do that so and by the way i think sam would too sam's exact quote was the last thing ken we need to do is do that i went yes that makes perfect sense is what i was thinking and he said and our stock was working really well when we weren't confusing investors and we were driving the business he actually said driving the business I added confusing investors. And I think it's important because we did all this really fast. That is an L3 Harris way. The problem is when you do things really fast, it's really hard to give investors all the data broken down by quarter, by different segments and the underlying data, not the segments themselves, because we don't have it, right? So how can we give it to you? If you won a bookings by segment three years ago, it would be hard for me to create that when you do it fast. When you do it in a slower fashion, we have more of that data. So I would say we're very happy with the structure we have, and we want to continue providing transparency to the investors so they can understand what we know is the great company we have and why you should be investing in it.

Well, thank you for a lot of that clarity. So appreciate you being here, Ken. Thank you very much, everyone, for listening in.

Thank you.