L3Harris Achieves 12% Revenue Growth, Record $40.7B Backlog in Q1
LHX•L3Harris reported Q1 orders of $7.8B and a record backlog of $40.7B on a 1.4x book-to-bill ratio. Revenue rose 12% to $5.7B (15% organically) with operating margin up 120 bps to 11.4% and GAAP EPS climbed 33% to $2.72.
1. Q1 Orders and Backlog
L3Harris secured $7.8B in new orders during the first quarter, lifting its book-to-bill ratio to 1.4x and expanding its backlog to a record $40.7B. This strong order intake underscores accelerated demand across defense and space programs, with major contributions from classified aircraft and international mission contracts.
2. Revenue and Earnings Growth
Total revenue increased 12% to $5.7B, driven by new program ramps and higher international volume, translating into 15% organic growth. The company’s operating margin improved by 120 basis points to 11.4%, while GAAP diluted EPS rose 33% to $2.72 due to higher operating income and a lower effective tax rate.
3. Segment Performance Highlights
Space & Mission Systems revenue jumped 24% to $2.99B with a 10.5% margin, Communication & Spectrum Dominance grew 3% to $1.86B with a 25.1% margin, and Missile Solutions revenue climbed 18% to $990M with a 12.5% margin. Each segment benefited from program ramp-ups, favorable product mix, and legacy asset monetization.
4. Updated Guidance and Outlook
L3Harris raised its full-year GAAP EPS guidance to a range of $11.40–$11.60, up from $11.30–$11.50, and forecasts net cash from operations of approximately $3.6B with capital expenditures near $600M. Management reiterated confidence in meeting the 2026 targets and advancing toward its 2028 financial framework.
