MELBOURNE, Fla., January 29, 2026 — L3Harris Technologies (NYSE: LHX) reports full year and fourth quarter 2025 results.

•Orders of $27.5 billion; book-to-bill of 1.3x

•Cash from operations of $3.1 billion, up 21%; Adjusted free cash flow of $2.8 billion, up 21%

•Revenue of $21.9 billion, up 3%, 5% organically

•Operating margin of 9.7%; Adjusted segment operating margin of 15.8%

•Diluted EPS of $8.53; Non-GAAP diluted EPS of $10.73

•Revenue of $5.6 billion, up 2% versus prior year, 6% organically

•Operating margin of 7.0%; Adjusted segment operating margin of 15.7%

•Diluted EPS of $1.59; Non-GAAP diluted EPS of $2.86

“2025 was a clear inflection point for L3Harris. Our portfolio is directly aligned with the most critical national and global defense priorities, which drove record orders and strong organic growth, margins and cash flow. Throughout the year, we saw customers move with greater urgency, and our investments and agility allowed us to deliver on their missions with speed and scale,” said Christopher Kubasik, Chairman and CEO, L3Harris.

Kubasik added, "As we look to 2026, our investments in technology and capacity along with a record backlog and strong demand signals give us confidence to deliver strong results. We remain disciplined in creating value for shareholders while continuing to invest in the business via capex and R&D."

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*Organic revenue, adjusted free cash flow, adjusted segment operating margin and non-GAAP diluted EPS are non-GAAP financial measures defined on page 19.

1 2024 segment financial results recast to reflect strategic realignment of the Fuzing and Ordnance Systems (FOS) business from Integrated Mission Systems to Aerojet Rocketdyne, effective in 2025. See Table 9 - 2024 Segment Recast in our EX-99.1 Earnings Release for first quarter 2025.

2 Refer to Key Terms and Non-GAAP Definitions on page 19.

Financial results are described on a full-year basis, with additional detail provided for notable fourth quarter activity.

Revenue: 2025 revenue increased 3%, 5% organically, reflecting organic growth across all segments, including new program ramps and increased international deliveries. The government shutdown resulted in delayed awards within the fourth quarter, impacting fourth quarter and 2025 revenue, primarily in SAS.

GAAP Operating Margin: 2025 increased 70 bps to 9.7%.

Adjusted Segment Operating Margin: 2025 increased 40 bps to 15.8%.

2025 GAAP operating margin increased driven primarily by higher monetization of legacy end-of-life assets aligned with our transformation and value creation priorities and lower unallocated corporate items, including lower LHX NeXt implementation costs, lower amortization of acquisition-related intangibles, and lower merger, acquisition, and divestiture-related expenses, partially offset by higher business divestiture-related losses in 2025.

Adjusted Segment Operating Margin for 2025 increased primarily due to higher monetization of legacy end-of-life assets aligned with our transformation and value creation priorities and LHX NeXt driven cost savings across all segments, partially offset by impacts from the higher margin Commercial Aviation Solutions (CAS) divestiture at the end of March 2025.

GAAP Diluted EPS: 2025 increased 8% to $8.53.

Non-GAAP Diluted EPS: 2025 increased 11% to $10.73.

GAAP Diluted EPS and Non-GAAP Diluted EPS for 2025 increased from higher operating income and adjusted segment operating income, respectively, lower interest expense from decreased average outstanding short-term debt balances during 2025 and higher FAS pension income, partially offset by a higher effective tax rate.

Cash From Operations: 2025 increased 21% to $3,106 million.

Adjusted Free Cash Flow: 2025 increased 21% to $2,814 million.

Cash from Operations and Adjusted Free Cash Flow for 2025 increased primarily due to the favorable impact of tax planning strategies and tax reform, less interest paid primarily due to lower average outstanding short-term debt balances and an increase in net income. Cash from operations was additionally impacted by less cash used for merger, acquisition and severance.

*Adjusted segment operating margin and adjusted free cash flow are non-GAAP financial measures defined on page 19.

Revenue: 2025 revenue increased 4%, primarily driven by increased international deliveries for software-defined resilient communications products, as well as the Next Generation Jammer Electronic Warfare program ramp, partially offset by lower volumes related to our civil communication products.

GAAP Operating Margin: Fourth quarter increased 220 bps to 24.9% and 2025 increased 90 bps to 25.2%.

Adjusted Segment Operating Margin: Fourth quarter increased 50 bps to 24.9% and 2025 increased 50 bps to 25.2%.

Fourth quarter and 2025 operating margin increased due to LHX NeXt driven cost savings and the absence of a prior year non-cash impairment of other assets related to the Tactical Data Links acquisition, partially offset by unfavorable mix associated with a higher proportion of domestic development volume. Adjusted segment operating margin increase excludes the impact of the prior year non-cash impairment of other assets.

Revenue: 2025 revenue remained flat. Excluding the impact of the divestiture of our CAS business, organic revenue increased 8%, primarily due to ramping activity in our ISR business on multiple classified programs and our Airborne Early Warning and Control aircrafts for the Republic of Korea Air Force.

Operating Margin: Fourth quarter operating margin decreased 270 bps to 11.1%, driven by the CAS divestiture and unfavorable Maritime program performance. 2025 operating margin decreased 30 bps to 12.2%, primarily due to the divestiture of our CAS business, unfavorable program performance in Maritime and the resolution of a legacy contract matter, partially offset by the monetization of legacy end-of-life assets aligned with our transformation and value creation priorities, favorable mix impact from higher airborne electro-optical sensors volume and LHX NeXt driven cost savings.

*Organic revenue and adjusted segment operating margin are non-GAAP financial measures defined on page 19.

Revenue: 2025 revenue increased 1%. Excluding the impact of the divestiture of our antenna business, organic revenue increased 2%, primarily from increased FAA volume in our Mission Networks business, partially offset by lower volume from program timing in our Space Systems business and lower classified volume in our Intel and Cyber business. The government shutdown resulted in later award timing that delayed expected fourth quarter and 2025 revenue.

Operating Margin: Fourth quarter operating margin increased 290 bps to 13.7% driven by stabilized program performance on classified space programs. 2025 operating margin increased 50 bps to 12.3%, primarily due to stabilized program performance, monetization of legacy end-of-life assets aligned with our transformation and value creation priorities and LHX NeXt driven cost savings, partially offset by unfavorable mix.

Revenue: 2025 revenue increased 10%. Excluding the impact of the divestiture of our AOT business, organic revenue increased 12% from increased production volumes across key missile, munitions, and space programs, as well as development program ramps.

GAAP Operating Margin: Fourth quarter decreased 980 bps to 0.7% and 2025 decreased 240 bps to 9.5%.

Adjusted Segment Operating Margin: Fourth quarter increased 130 bps to 11.8% and 2025 increased 60 bps to 12.5%.

Fourth quarter and 2025 operating margin decreased due to a non-cash impairment of goodwill related to the Space Technology disposal group1, partially offset by favorable mix and LHX NeXt driven cost savings. Adjusted segment operating margin benefits from higher volume and LHX NeXt driven cost savings.

*Organic revenue and adjusted segment operating margin are non-GAAP financial measures defined on page 19.

1Space Technology disposal group is defined on page 19.

2026 GUIDANCE1
Beginning in 1Q26 and reflected in our 2026 guidance, we reorganized our business structure to three business segments.

On January 5, 2026, we announced the sale of a majority stake in our Space Technology disposal group2; the financials of this business are included in our 2026 guidance. We expect the transaction to close in the second half of 2026 at which time our guidance will be updated.

We are also transitioning our diluted EPS presentation from a Non-GAAP basis to GAAP diluted EPS.

1 Supplemental information is provided in accompanying Earnings Presentation.

2 Space Technology disposal group is defined on page 19.

3 Net of intersegment eliminations

4 Free cash flow is a non-GAAP financial measure defined on page 19. Net cash provided by operating activities is anticipated to be approximately $3.6 billion and capital expenditures are anticipated to be approximately $600M.

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: share repurchases; divestiture and realignment impacts; 2026 guidance; divestiture or investment transaction timing; an investment from the Department of War (the “Investment”); projection 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; inflation; tariffs and potential trade disputes; unilateral contract action by the U.S. Government or unexpected issues related to the Investment; 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. 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.

Management believes the adjustments to non-GAAP Financial Measures (NGFMs) in the tables beginning on page 12 are useful to investors because the excluded costs do not reflect our ongoing operating performance. Such adjustments, considered together with the unadjusted GAAP financial measures, provide information that management believes is useful to investors to understand period-over-period operating results separate from items that management believes may disproportionately impact operating results in any particular period; however there is no guarantee that items excluded from NGFMs will not reoccur in future periods. Management also believes that NGFMs enhance the ability of investors to analyze business trends, understand performance and evaluate our initiatives to drive improved financial performance. Management utilizes NGFMs to guide forecasting and long-term planning and for compensation purposes. NGFMs should be considered in addition to, and not as a substitute for, financial measures presented in accordance with GAAP.

1“FAS” is defined as Financial Accounting Standards.

1 Refer to Key Terms and Non-GAAP Definitions on page 19.

2 Includes business divestiture-related losses (gains) and impairment of goodwill reported at corporate.

			Fourth Quarter																		Full Year
			2024
($ millions)			GAAP						Adjustments1						Organic						GAAP						Adjustments1						Organic
CS			$	1,437					$	—					$	1,437					$	5,459					$	—					$	5,459
IMS			1,712						(163)						1,549						6,618						(459)						6,159
SAS			1,728						—						1,728						6,869						(76)						6,793
AR			694						(15)						679						2,580						(45)						2,535
Corporate eliminations			(48)						—						(48)						(201)						—						(201)
Revenue			$	5,523					$	(178)					$	5,345					$	21,325					$	(580)					$	20,745

1 Adjustment to exclude amounts attributable to divested businesses.

1 Refer to Key Terms and Non-GAAP Definitions on page 19.

1 Refer to Key Terms and Non-GAAP Definitions on page 19.

2 Fourth quarter 2024 amount updated to exclude adjustment of $1.11 per share and $0.23 per share for amortization of acquisition-related intangible assets and related income tax expense, respectively. Year to date 2024 amount updated to exclude adjustment of $4.47 per share and $1.07 per share for amortization of acquistion-related intangible assets and related income tax expense, respectively.

3 Net of tax effect.

1 Refer to Key Terms and Non-GAAP Definitions on page 19.

Effective for fiscal 2026, our segments are re-aligned into three reportable segments with common capabilities and business models:

•Space & Mission Systems (SMS): will integrate satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs, which is comprised of the following sectors:

◦Intelligence, Surveillance and Reconnaissance (ISR): sector unchanged and previously reported in our Integrated Missions System (IMS) segment.

◦Space Systems: sector formerly reported in our Space and Airborne Systems (SAS) segment, excluding our Telemetry & Radio Frequency (T&RF) business.

◦Maritime: sector unchanged and previously reported in our IMS segment.

◦Mission Networks: sector unchanged and previously reported in our SAS segment.

◦Airborne Solutions: sector formerly named Airborne Combat Systems within our SAS segment excluding our Electronic Warfare, Agile Development Group (ADG), and Release Systems Antennas & Telemetry (RSAT) businesses.

◦Intel & Cyber: sector previously reported within our SAS segment excluding some international businesses.

•Communication & Spectrum Dominance (CSD): will combine all of the company’s capabilities in resilient communications and electronic warfare, which is comprised of the following sectors:

◦Mission Critical Communications: includes our Tactical Communications and Public Safety and Professional Communications sectors, both of which were formerly reported in our Communications Systems (CS) segment.

◦Spectrum Superiority: includes our Broadband Communications sector and the Electronic Warfare, T&RF, and related programs from our SAS segment.

◦Targeting and Sensor Systems: primarily includes our Targeting and Sensor Systems sector from our IMS segment.

◦Integrated Vision Solutions: sector unchanged and formerly reported in our CS segment.

•Missile Solutions (MSL): will unite propulsion, hypersonics and other advanced missile technologies, which is comprised of the following sectors:

◦Missile Propulsion: sector unchanged and formerly reported in our Aerojet Rocketdyne (AR) segment as Missile Solutions.

◦Advanced Effects: a newly created sector which combines our ADG air launched effects and advanced technology capabilities with the majority of our RSAT business, which includes weapons release systems. These businesses were formerly reported in our Airborne Combat Systems sector within our SAS segment. This new sector also incorporates our Space and Sensors business and other electronics capabilities, including precision navigation and timing solutions which were formerly reported in our Defense Electronics sector within our IMS segment.

◦Space Propulsion and Power Systems: sector unchanged and formerly reported in our AR segment.

The historical results through the date of divestiture of businesses divested prior to the end of fiscal 2025 will be classified within the “other non-reportable business” line item within the Company’s segment reporting.

The following business segment information reflects our results recast in our new segment structure for fiscal 2025 and and fiscal 2024 is presented as supplemental information.

1 The historical results through the date of divestiture of businesses divested prior to the end of fiscal 2025 will be classified within the “other non-reportable businesses” line item within the Company’s segment reporting.

2 Fourth quarter MSL operating income includes a goodwill adjustment for the Space Technology disposal group.

3 Refer to Key Terms and Non-GAAP Definitions on page 19.

			Supplemental Recast Information
			Full Year
			2025																		2024
(In millions)			Revenue						Operating Income						Operating Margin						Revenue						Operating Income						Operating Margin
SMS			$	10,711					$	1,055					9.8		%				$	10,186					$	1,046					10.3		%
CSD			7,566						1,924						25.4		%				7,272						1,670						23.0		%
MSL1			3,797						364						9.6		%				3,525						405						11.5		%
Other non-reportable businesses2			146						23						15.8		%				711						148						20.8		%
Segment operating income and margin									3,366						15.4		%										3,269						15.3		%
Segment impairment of goodwill and other assets3									85																		24
Adjusted segment operating income and margin									3,451						15.8		%										3,293						15.4		%
Corporate			(355)						(1,256)												(369)						(1,351)
Total			$	21,865					$	2,110					9.7		%				$	21,325					$	1,918					9.0		%

1 2025 MSL operating income includes a goodwill adjustment for the Space Technology disposal group.

2 The historical results through the date of divestiture of businesses divested prior to the end of fiscal 2025 will be classified within the “other non-reportable businesses” line item within the Company’s segment reporting.

3 Refer to Key Terms and Non-GAAP Definitions on page 19.

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*Refer to Non-GAAP Financial Measures on page 7 for more information.