L3Harris Technologies net worth is a significant aspect of its market position in the aerospace and defense industry.
As of 2024, the company has shown strong financial growth, driven by strategic acquisitions and operational improvements.
In this analysis, I’ll break down its performance, revenue growth, and the elements that contribute to its financial strength.
Stay tuned for insights into its quarterly trends and segment breakdowns from Ando Money.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | L3Harris Technologies, Inc. |
| Full Name | L3Harris Technologies, Inc. |
| Website | https://www.l3harris.com/ |
| Industry | Defense, Aerospace, Communications |
| Traded as | NYSE: LHX |
| ISIN | US5024311095 |
| Founded | 2019 (Merger of L3 Technologies and Harris Corporation) |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Melbourne, Florida, USA |
| Chief Executive Officer | Christopher E. Kubasik |
| Number of Employees | 46,000 |
| Market Cap | $45.77 billion |
| Total Assets | $41,657 million |
| Total Equity | $18,904 million |
| Revenue | $21.0B – $21.3B (2024 Guidance) |
| Net Income | $366 million (Q2 2024) |
What is the Net Worth/Market Cap Of L3Harris Technologies in 2024?
As of October 2024, L3Harris Technologies’ market cap stands at $45.77 billion. This reflects its position as a major player in the defense and aerospace industry, especially after key acquisitions like Aerojet Rocketdyne.
When comparing this figure to other prominent entities in the same sector, it underscores its stability and growth trajectory.
If you’re curious about other top companies’ market caps, explore more about the largest firms in this sector on Ando Money’s analysis of the richest companies.
Related Competitors and Partners:
- Lockheed Martin
- Northrop Grumman
- Boeing
- Raytheon Technologies
- General Dynamics
- BAE Systems
- Airbus
- Leonardo S.p.A.
- Thales Group
- Honeywell
L3Harris Technologies Financial Performance Overview
Key Factors Driving Its Revenue Growth
L3Harris has experienced steady revenue growth, driven primarily by its strategic acquisitions, like Aerojet Rocketdyne.
This acquisition contributed significantly to its Q2 2024 revenue of $5.3 billion, which is a 13% increase from the same quarter in 2023.
Organic growth also played a role, with strong demand in the Space & Airborne Systems and Communication Systems segments.
These factors collectively have enabled the company to enhance its market position.
Analysis of Its Financial Performance in 2024
In 2024, the company’s financial outlook has been optimistic. The adjusted segment operating margin reached 15.6% in Q2 2024, showcasing improvements due to operational efficiencies.
The LHX NeXt initiative further helped streamline processes, impacting profit margins positively.
The overall GAAP operating margin for the quarter was 9.0%, an improvement over 8.5% from Q2 2023. Such margins indicate better cost management and higher efficiency in project execution.
Major Revenue Streams and Their Contributions
L3Harris generates revenue from several key segments:
- Space & Airborne Systems: With $1,707 million in Q2 2024, this segment has seen stable growth, thanks to continued demand in space systems.
- Integrated Mission Systems: Generating $1,729 million in the same quarter, it saw balanced demand in maritime programs, although some declines occurred in the aviation business.
- Communication Systems: Revenue increased by 4% to $1,346 million. The boost came from higher demand in tactical and broadband communication products.
- Aerojet Rocketdyne: Contributed $581 million in revenue for Q2 2024, showcasing the impact of acquisitions on overall growth.
Financial Strategies Boosting Profit Margins
One of the pivotal strategies for improving profit margins has been the LHX NeXt initiative, focusing on efficiency and cost reduction.
The initiative aims to save $1 billion over three years, leading to margin expansions and a more streamlined operational structure.
This aligns with the company’s goal to deliver better value to shareholders while maintaining a strong financial position.
Earnings and Cash Flow Management
In Q2 2024, L3Harris reported a net income of $366 million, up from $349 million in the previous year.
The adjusted free cash flow for this quarter reached $714 million, showing significant improvement due to better working capital performance.
Cash flow management has been a key area of focus, ensuring sufficient liquidity to fund acquisitions and shareholder returns.
Segment Performance and Profitability Analysis
Profit margins varied across different segments, with Communication Systems showing a 24.4% margin, while Space & Airborne Systems achieved 12.6%.
The acquisition of Aerojet Rocketdyne contributed to enhanced performance across missile solutions and space propulsion, leading to a 12.9% operating margin for this segment.
Long-Term Revenue Growth Projections
The updated guidance for 2024 is $21.0B – $21.3B in revenue. The management’s focus on strategic acquisitions and expanding capabilities in space and communication sectors underpins this forecast.
Long-term, the aim is to further integrate operations while keeping an eye on emerging market opportunities.
Risks and Challenges Impacting Revenue
Despite the positive outlook, the company faces challenges, such as competitive pressures and integration risks related to recent acquisitions.
Market dynamics, like changes in government spending and geopolitical conditions, could also affect demand in certain segments, creating potential headwinds.
FAQs About L3Harris Technologies
How has the Aerojet Rocketdyne acquisition affected its revenue?
The acquisition of Aerojet Rocketdyne significantly boosted revenue, adding $581 million in Q2 2024 alone. It enhanced capabilities in space and missile solutions, positioning the company for growth.
What are its key revenue-generating segments?
The primary segments include Space & Airborne Systems, Integrated Mission Systems, and Communication Systems, each contributing billions in quarterly revenue and playing vital roles in overall financial performance.
What is the impact of the LHX NeXt initiative?
The LHX NeXt initiative has aimed to save $1 billion through improved operational efficiency, directly contributing to expanded profit margins and reduced costs across the board.
How did its revenue change in Q2 2024 compared to Q2 2023?
It reported a 13% increase in revenue in Q2 2024, primarily driven by acquisitions and organic growth in key defense and communication sectors.
What is the company’s outlook for 2024?
The revenue guidance for 2024 has been updated to $21.0B – $21.3B, reflecting confidence in future growth due to operational improvements and strategic investments.
Conclusion
L3Harris Technologies has showcased solid financial performance in 2024, marked by strategic growth and efficiency.
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