L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q3 2026 Earnings Presentation
35 slides from L3harris Technologies's earnings presentation, Oct 29, 2026
Slide 1: Third Quarter 2026 Earnings Presentation
THIRD QUARTER 2026 EARNINGS PRESENTATION October 29, 2026
Slide 2: Sam Mehta, President and CEO
SAM MEHTA President and CEO L3HARRIS 2026 Third Quarter Earnings Presentation 2
Slide 3: 3Q26 Financial Highlights
3Q26 FINANCIAL HIGHLIGHTS 25% INVESTMENT INCREASE2 IN INNOVATION & CAPACITY $179M $19.3B 3.2x $53.2B $6.1B Capital Expenditures 50% YoY Growth Orders Book-to-Bill Total Backlog Revenue $101M MSL Capital Expenditures 153% YoY Growth 9% 15.9% $3.28 $1.3B $143M Organic Growth1,2 Segment GAAP EPS Free R
Slide 4: Concentrated in Markets Critical to Future Mission Requirements
CONCENTRATED IN MARKETS CRITICAL TO FUTURE MISSION REQUIREMENTS FOUR ENDURING GROWTH VECTORS RESILIENT MISSILES & MISSILE MULTI-DOMAIN SPACE COMMUNICATIONS & PRODUCTS ELECTRONIC WARFARE SENSING Intelligence, Replenishment and Prime and payload Tactical radios and Surveillance and capacity expansion
Slide 5: Investing Philosophy
INVESTING PHILOSOPHY Where we have advantage to drive outsize growth Drive efficiency & modernizing capacity Delivering at speed and scale for the warfighter VAMPIRE COUNTER-UAS SYSTEM Drive international expansion to meet global demand Generate significant cash flow & invest to drive shareholder va
Slide 6: Capitalizing on Our Portfolio
CAPITALIZING ON OUR PORTFOLIO Focused investment creates a self-reinforcing engine for durable growth Focus on Key Capabilities Missiles & Missile Products, 1 Drive Backlog and Revenue Growth Space, Resilient Comms & Electronic Warfare and 2 Historic backlog supports sustained growth Multi-Domain Se
Slide 7: Ken Sharp, Chief Financial Officer
KEN SHARP Chief Financial Officer L3HARRIS 2026 Third Quarter Earnings Presentation 7
Slide 8: 3Q26 Financial Highlights
3Q26 FINANCIAL HIGHLIGHTS BACKLOG ($B) REVENUE ($B) SEGMENT OPERATING INCOME & MARGIN1 ($M) $53.2 $6.1 $967 +7% +7% $900 SEGMENT 15.9% OPERATING REVENUE 15.9% $36.3 INCOME +47% $5.7 +9% ORGANIC REVENUE1 Flat MARGIN % 3Q25 3Q26 3Q25 3Q26 3Q25 3Q26 OPERATING INCOME ($M) EPS ($) FREE CASH FLOW1 ($B) &
Slide 9: Space & Mission Systems
SPACE & MISSION SYSTEMS MISSILE WARNING / MISSILE TRACKING PROGRAMS Revenue ($B) Segment Total Backlog ($B) Operating Margin1 & Book to Bill 2.0x $3.1 1.1x 1.7x 1.5x 1.0x 10.9% 10.7% $2.8 $22.4 $22.3 $21.1 $19.2 $16.6 3Q25 3Q26 3Q25 3Q26 + 10% +20 REVENUE BPS 3Q25 4Q25 1Q26 2Q26 3Q26 3Q26 DRIVERS Re
Slide 10: Communications & Spectrum Dominance
COMMUNICATIONS & SPECTRUM DOMINANCE VAMPIRE COUNTER-UNMANNED SYSTEMS PROGRAMS Revenue ($B) Segment Total Backlog ($B) Operating Margin1 & Book to Bill $2.0 1.9x $1.9 25.2% 24.7% $10.9 $9.6 $9.4 $9.1 $9.0 3Q25 3Q26 3Q25 3Q26 1.1x 1.0x + 3% +50 0.9x 0.9x REVENUE BPS 3Q25 4Q25 1Q26 2Q26 3Q26 3Q26 DRIVE
Slide 11: Missile Solutions
MISSILE SOLUTIONS NEW ARSENAL OF FREEDOM SOLID ROCKET MOTOR PRODUCTION FACILITY OPENS IN CAMDEN, ARKANSAS Revenue ($B) Segment Total Backlog ($B) Operating Margin1 & Book to Bill 11.8x $1.0 $1.1 12.3% $0.9 12.0% $20.0 3Q25 3Q26 $10.1 $10.2 $10.5 $10.5 Organic Space Technology Disposal Group Divestit
Slide 12: Strong Free Cash Flow Conversion & Continued Deleveraging
STRONG FREE CASH FLOW CONVERSION & CONTINUED DELEVERAGING ($B) Free Cash Flow Conversion1 Net Debt Leverage Ratio1 >100% +167% $3.0 4.3 x +142% $2.7 +134% $2.2 3.3 x 2.7 x $1.6 $1.6 $1.5 $1.2 1.9 x 2 FY23 FY24 FY25 FY26 E FY23 FY24 FY25 TTM Sept 26 FCF Net Income 1Non-GAAP Financial Measure - refere
Slide 13: 2026 Guidance
2026 GUIDANCE CONSOLIDATED SEGMENT Segment Operating Revenue Operating Margin1 Revenue Margin1 SPACE & $23.5B - $23.7B MISSION ~$11.9B mid 10% (Prior: ~$11.7B) (Unchanged) (Prior: $23.2B - $23.7B) Low 16% SYSTEMS (Unchanged) Organic1 9% - 10% COMMUNICATIONS (Prior 8%-10%) & SPECTRUM ~$7.9B mid 25% (
Slide 14: 2026 Supplemental Information
2026 SUPPLEMENTAL INFORMATION 2026 2026 Guidance Prior FAS/CAS operating adjustment $20 million $20 million Pension income, non-service FAS $290 million $290 million Net FAS/CAS pension $310 million $310 million Net interest expense $515 million $560 million Effective tax rate on GAAP earnings 15% 1
Slide 15: Updated 2028 Financial Framework
UPDATED 2028 FINANCIAL FRAMEWORK ORGANIC REVENUE SEGMENT FREE CASH FLOW GROWTH OPERATING MARGIN 8% Organic CAGR ~16% $3 Billion + (Unchanged) (Prior: 16.3%) (Prior: $3.5 Billion) Compound annual growth rate (CAGR) calculated over the 3-year period commencing with fiscal year 2025 actual results, as
Slide 16: L3HARRIS 2026 Third Quarter Earnings Presentation
L3HARRIS 2026 Third Quarter Earnings Presentation 16
Slide 17: Earnings Appendix
EARNINGS APPENDIX This earnings appendix is being furnished pursuant to Item 2.02 Form 8-K and contains non-GAAP financial measures within the meaning of Regulation G. Non-GAAP financial measures are reconciled in slides 30 – 34 of this earnings appendix.
Slide 18: Space & Mission Systems
Space & Mission Systems Segment Information ($ 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 income1 238 289 299 229 1,055 313 290 338 Segment o
Slide 19: Communications & Spectrum Dominance
Communications & Spectrum Dominance 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 income1 443 458 477 546 1,924 465 522 502 Se
Slide 20: Missile Solutions
Missile Solutions 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 income1 96 116 124 28 364 124 130 127 Segment operating margin
Slide 21: L3Harris Total Segments
L3Harris Total Segments ($ millions) 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,
Slide 22: L3Harris Financial Results
L3Harris Financial Results ($ 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 income1 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% U
Slide 23: L3Harris Consolidated Statement of Cash Flows
L3Harris Consolidated Statement of Cash Flows ($ millions) 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
Slide 24: L3Harris Consolidated Statement of Cash Flows (continued)
L3Harris Consolidated Statement of Cash Flows (continued) ($ millions) 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 prop
Slide 25: L3Harris Consolidated Balance Sheet
L3Harris Consolidated Balance Sheet ($ millions) 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
Slide 26: L3Harris Consolidated Balance Sheet (continued)
L3Harris Consolidated Balance Sheet (continued) ($ millions) 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 1,81
Slide 27: L3Harris Research & Development
L3Harris Research & Development ($ millions) 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
Slide 28: Contractual Backlog
Contractual Backlog ($ billions) 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 Communications & Spectrum Dominance 1Q25 2Q25 3Q25
Slide 29: Work Weeks
Work Weeks 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 2026 Third Quarter Earnings Presentation 29
Slide 30: Non-GAAP Reconciliation - Free Cash Flow
Non-GAAP Reconciliation - Free Cash Flow ($ millions) 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) (10
Slide 31: Non-GAAP Reconciliation – Net Debt Leverage Ratio
Non-GAAP Reconciliation – Net Debt Leverage Ratio ($ millions) 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 Le
Slide 32: Reconciliation to Segment Revenue, Operating Income and Margin
Reconciliation of Revenue, Operating Income and Margin to Segment Revenue, Operating Income and Margin - Non-GAAP Financial Measures Reconciliation (Unaudited) ($ millions) 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 Other1 (146) - (1)
Slide 33: Non-GAAP Reconciliation – 2026 Organic Revenue Growth
Non-GAAP Reconciliation – 2026 Organic Revenue Growth ($ millions) Revenue Growth YoY Change Revenue 1Q25 2Q25 3Q25 1Q26 2Q26 3Q26 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% Mi
Slide 34: Non-GAAP Reconciliation – 2025 Organic Revenue Growth
Non-GAAP Reconciliation – 2025 Organic Revenue Growth ($ millions) Revenue Growth YoY Change 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 4Q25 FY25 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 divestitures 1 (51) (183) (16
Slide 35: Forward-Looking Statements
Forward-Looking Statements This presentation 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: statements about 2026 guida
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