Did L3Harris beat or miss consensus estimates last quarter?

What factors drove the changes in L3Harris's revenue and profit?

What is the revenue and EPS growth rate for L3Harris year over year?

What does L3Harris do and what are its main business segments?

What were the key takeaways from L3Harris's earnings call?

What were the key takeaways from L3Harris’s earnings call?

What is L3Harris's gross profit margin?

What guidance did L3Harris's management provide for the next earnings period?

- **Revenue Growth**: 10% organic Q3 growth, driven by missile defense, space, and international programs.
- **Profitability**: Segment margins expanded across all businesses; Aerojet Rocketdyne at 12.7%.
- **Key Wins**: $2.2B South Korea contract, Poland's Viper Shield, and Morocco's C-130 up award.
- **Guidance Update**: 2025 revenue $22B (6% organic), EPS $10.50-$10.70, free cash flow $2.65B.
- **Risks**: Government shutdown delaying payments and awards; resolution expected in November.
- **Long-Term Outlook**: 2026+ growth driven by missile defense, space-based interceptors, and international expansion.

**【CEO Summary Section】**
- Delivered 10% organic revenue growth, driven by missile defense, space-based interceptors, and international demand.
- Book-to-bill ratio of 1.2, with $6.6 billion in orders, reflecting strong execution across all segments.
- Highlighted key wins: $2.2 billion South Korea airborne early warning contract, Poland's Viper Shield EW system, and Morocco's C-130 up award.
- Emphasized strategic investments in AI, software-defined systems, and agile partnerships to maintain speed and relevance.

**【CFO Financial Commentary】**
- Q3 revenue: $5.7 billion (10% organic growth); Non-GAAP EPS: $2.70 (10% YoY); Free cash flow: $450 million (temporarily impacted by payment delays).
- Segment performance: 
  - Communications Systems (CS): $1.5B (+6%), 26.1% margin
  - Integrated Mission Systems (IMS): $1.7B (+17%), 12% margin
  - Space & Airborne Systems (SAS): $1.8B (+7%), 12.1% margin
  - Aerojet Rocketdyne: $1.1B (+5%), 12.7% margin
- Full-year guidance updated: Revenue $22B (6% organic growth), segment margin >15%, EPS $10.50-$10.70.

**【Q&A Highlights】**
- **ISR Growth**: IMS segment backlog doubled YoY, driven by classified programs and international demand. Canada's Strategic Tanker competition and Morocco's F-35 depot support highlight future opportunities.
- **Aerojet Rocketdyne Margin Outlook**: Mid-12% range for 2025, with potential for improvement as legacy programs mature and new contracts ramp.
- **Government Shutdown Impact**: Delays in payments, export licenses, and contract awards. Assuming resolution in November, expect Q4 catch-up activity.
- **International Expansion**: 22% of revenue now from international markets, targeting 25%. Success in Europe (8 countries selecting Viper Shield) and Asia-Pacific (South Korea, India) underscores global demand for EW and communication systems.
- **Space-Based Interceptors (SBI)**: On all major programs (HBTSS, Tranche 2 Tracking Layer), with new factory capacity ready for production ramp.
- **IRAD Spending**: Focused on high-impact areas like missile defense, AI, and space. Total R&D spend (including CRAD and acquisitions) remains significant, but not disclosed as a percentage of revenue.

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