L3Harris Technologies Reports Fourth Quarter and Full-Year 2023 Results; Initiates 2024 Guidance

  • Full year (FY) 2023 orders1 of $22.8 billion; book-to-bill of 1.18x
  • 4Q23 revenue of $5.3 billion and FY23 of $19.4 billion, up 17% and 14% respectively
  • 4Q23 operating margin of 2.9% and FY23 of 7.3%, reflecting goodwill impairment for pending business sale
  • 4Q23 segment operating margin1 of 15.1% and FY23 of 14.8%
  • 4Q23 earnings per share (EPS) of $0.83 and FY23 of $6.44; 4Q23 non-GAAP EPS1 of $3.35 and FY23 of $12.36
  • FY23 cash from operations of $2.1 billion, free cash flow1 of $2.0 billion

MELBOURNE, Fla. — (BUSINESS WIRE) — January 24, 2024 — L3Harris Technologies, Inc. (NYSE: LHX) reported fourth quarter and full-year 2023 results, and initiated 2024 financial guidance.

“We delivered on our 2023 financial commitments and reported record backlog of $33 billion, further demonstrating that our strategy to be the industry's Trusted Disruptor is working. Our agility and innovation continue to resonate with customers, enabling us to broaden our capabilities into high-growth markets,” said Christopher E. Kubasik, Chair and CEO. “Last year, we also closed, integrated, and are benefiting from two acquisitions and we announced the sale of a non-core business. These actions are strengthening and better aligning our portfolio with the Department of Defense and U.S. allied partner priorities.”

Kubasik continued, “We are confident on achieving the financial framework that we shared in early December at our investor day, while we execute on our 2024-2026 capital allocation priorities of reducing leverage and returning excess cash to shareholders. Entering 2024, we remain focused on driving towards the $1 billion cost savings target from our LHX NeXt program to enable operational improvements, margin expansion and free cash flow growth.”

SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Full Year

 

2024*

 

 

($ millions, except per share data)

2023

 

2022

 

Change

 

2023

 

2022

 

Change

 

Guidance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space & Airborne Systems

$

1,800

 

 

$

1,702

 

 

 

 

$

6,856

 

 

$

6,384

 

 

 

 

 

 

 

Integrated Mission Systems

 

1,627

 

 

 

1,729

 

 

 

 

 

6,630

 

 

 

6,626

 

 

 

 

 

 

 

Communication Systems

 

1,363

 

 

 

1,193

 

 

 

 

 

5,070

 

 

 

4,217

 

 

 

 

 

 

 

Aerojet Rocketdyne

 

597

 

 

 

 

 

 

 

 

1,052

 

 

 

 

 

 

 

 

 

 

Corporate eliminations

 

(47

)

 

 

(46

)

 

 

 

 

(189

)

 

 

(165

)

 

 

 

 

 

 

Revenue

$

5,340

 

 

$

4,578

 

 

17%

 

$

19,419

 

 

$

17,062

 

 

14%

 

$20.7B - $21.3B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space & Airborne Systems

$

191

 

 

$

193

 

 

 

 

$

756

 

 

$

665

 

 

 

 

 

 

 

Integrated Mission Systems

 

(75

)

 

 

179

 

 

 

 

 

459

 

 

 

494

 

 

 

 

 

 

 

Communication Systems

 

356

 

 

 

297

 

 

 

 

 

1,229

 

 

 

667

 

 

 

 

 

 

 

Aerojet Rocketdyne

 

66

 

 

 

 

 

 

 

 

122

 

 

 

 

 

 

 

 

 

 

Unallocated items

 

(384

)

 

 

(174

)

 

 

 

 

(1,140

)

 

 

(699

)

 

 

 

 

 

 

Operating income

$

154

 

 

$

495

 

 

(69)%

 

$

1,426

 

 

$

1,127

 

 

27%

 

 

 

 

Operating margin

 

2.9

%

 

 

10.8

%

 

nm

 

 

7.3

%

 

 

6.6

%

 

70 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space & Airborne Systems

$

191

 

 

$

193

 

 

 

 

$

783

 

 

$

745

 

 

 

 

 

 

 

Integrated Mission Systems

 

194

 

 

 

179

 

 

 

 

 

740

 

 

 

861

 

 

 

 

 

 

 

Communication Systems

 

356

 

 

 

297

 

 

 

 

 

1,229

 

 

 

1,022

 

 

 

 

 

 

 

Aerojet Rocketdyne

 

66

 

 

 

 

 

 

 

 

122

 

 

 

 

 

 

 

 

 

 

Unallocated items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating income 1

$

807

 

 

$

669

 

 

21%

 

$

2,874

 

 

$

2,628

 

 

9%

 

 

 

 

Segment operating margin 1

15.1

%

 

14.6

%

 

50 bps

 

14.8

%

 

 

15.4

%

 

(60) bps

 

~15%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-service FAS pension income and other

$

93

 

 

$

112

 

 

(17)%

 

$

338

 

 

$

425

 

 

(20)%

 

 

 

 

Interest expense, net

$

(171

)

 

$

(74

)

 

131%

 

$

(543

)

 

$

(279

)

 

95%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate (GAAP)

 

(66.7

%)

 

 

21.8

%

 

nm

 

 

1.9

%

 

 

16.7

%

 

nm

 

 

 

 

Effective tax rate (non-GAAP 1 )

 

12.4

%

 

 

13.6

%

 

(120) bps

 

 

13.0

%

 

 

13.9

%

 

(90) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

$

0.83

 

 

$

2.17

 

 

(62)%

 

$

6.44

 

 

$

5.49

 

 

17%

 

 

 

 

Non-GAAP EPS 1

$

3.35

 

 

$

3.27

 

 

2%

 

$

12.36

 

 

$

12.90

 

 

(4)%

 

$12.40 - $12.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

190.6

 

 

 

192.1

 

 

(1)%

 

 

190.6

 

 

 

193.5

 

 

(1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash from operations

$

789

 

 

$

782

 

 

1%

 

$

2,096

 

 

$

2,158

 

 

(3)%

 

 

 

 

Free cash flow 1

$

747

 

 

$

748

 

 

—%

 

$

2,009

 

 

$

2,029

 

 

(1)%

 

~$2.2B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

nm = not meaningful

* When we provide our expectation for segment operating margin, effective tax rate on non-GAAP income, non-GAAP EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results. See Non-GAAP Financial Measures on page 6 for more information.


1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »
Featured Video
Editorial
Jobs
Senior Principal Mechanical Engineer for General Dynamics Mission Systems at Canonsburg, Pennsylvania
Mechanical Test Engineer, Platforms Infrastructure for Google at Mountain View, California
Mechanical Engineer 2 for Lam Research at Fremont, California
Manufacturing Test Engineer for Google at Prague, Czechia, Czech Republic
Mechanical Engineer 3 for Lam Research at Fremont, California
Equipment Engineer, Raxium for Google at Fremont, California
Upcoming Events
Celebrate Manufacturing Excellence at Anaheim Convention Center Anaheim CA - Feb 4 - 6, 2025
3DEXPERIENCE World 2025 at George R. Brown Convention Center Houston TX - Feb 23 - 26, 2025
TIMTOS 2025 at Nangang Exhibition Center Hall 1 & 2 (TaiNEX 1 & 2) TWTC Hall Taipei Taiwan - Mar 3 - 8, 2025
Additive Manufacturing Forum 2025 at Estrel Convention Cente Berlin Germany - Mar 17 - 18, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise