Fri, Jul 26, 1:19 PM (43 days ago)
L3Harris Technologies, Inc. reported a solid financial performance for the quarter ended June 28, 2024, with revenue increasing by 13% year-over-year to $5.3 billion, driven by the acquisition of Aerojet Rocketdyne (AR) and growth in the Communications Systems (CS) segment. Gross margin improved slightly to 25.7%, reflecting higher revenue volume. However, general and administrative expenses rose to $884 million, impacted by amortization of acquisition-related intangibles and restructuring costs. Net income attributable to L3Harris was $366 million, up from $349 million in the prior-year quarter, resulting in diluted EPS of $1.92. Operating cash flow was $650 million, down from $764 million, primarily due to increased working capital needs. The company repaid $2.25 billion in debt and issued $2.25 billion in new long-term fixed-rate debt. L3Harris maintains a strong liquidity position with $547 million in cash and available borrowing capacity. Looking ahead, the company expects continued revenue growth and operational efficiencies from recent acquisitions and restructuring initiatives. However, uncertainties in government spending and geopolitical risks remain key considerations.