L3Harris Technologies, Inc. (LHX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: L3Harris Technologies, Inc.

Updated on October 30, 2026 · accounts published on October 29, 2026

Reading of October 29, 2026: A steadily growing industrial with strong cash conversion and modest returns on capital

L3Harris Technologies trades at a P/E of 28.1 over the last 12 months, 17 % below its ten-year median of 33.8 and 9 % above its sector median.

• Is L3Harris Technologies expensive or cheap? Its P/E of 28.1 is 17 % below its ten-year median of 33.8, yet 9 % above the sector median of 25.8.
• How is the business doing? EPS grew 8.4 % over the last 12 months, more than three times the 2.5 % rise in revenue.
• How strong is the balance sheet? Net debt is 2.7× EBITDA in fiscal 2025, just under the 3.0× ceiling considered healthy for industrials.
• What to expect from the next earnings? Analysts expect EPS of $3.11 for the quarter due on January 28, 2027, after 8 straight beats.
• Does it turn its margin into cash, and at what cycle multiple does it trade? Free cash flow was 167 % of net income in fiscal 2025, about double the 85 % healthy threshold for industrials.

Is L3Harris Technologies expensive or cheap?

Over the last 12 months L3Harris Technologies trades at a P/E of 28.1, 17 % below its ten-year median of 33.8. Across the past decade the multiple ranged from 21.0 to 51.0, and it has been lower than today only 26 % of the time, so by its own history the stock sits in the cheaper part of its range. Against peers the picture is less generous: the median P/E of 297 companies in its sector is 25.8, a 9 % premium. The share price is 26 % below its 52-week high and 2 % lower than a year ago.

How is the business doing?

Over the last 12 months revenue rose 2.5 % while EPS climbed 8.4 %, so profits are growing faster than sales. The operating margin of 10.5 % is slightly below the 11.2 % average of fiscal 2014-2025 but up from 9.8 % in fiscal 2025, which points to a recovery still under way. Returns on capital are the weak spot: ROIC of 6.2 % over the last 12 months sits 2.8 points below the sector median of 9.1 %, and it topped 10 % in only 2 of the last 10 fiscal years. A Piotroski score of 8 of 9 shows recent fundamentals improving.

How strong is the balance sheet?

Net debt stood at $57.50 per share in fiscal 2025, equal to 21 % of the current price. At 2.7× EBITDA it stays under the 3.0× level treated as healthy for industrials, with little room to spare. The Altman Z of 2.5 over the last 12 months places the company in the grey zone, between 1.81 and 2.99, while a current ratio of 1.20 covers short-term obligations. The dividend yields 1.8 % over the last 12 months; the dividend per share has risen for 6 consecutive fiscal years through 2025 and absorbed 56 % of fiscal 2025 earnings.

What to expect from the next earnings?

On October 29, 2026 L3Harris Technologies reported EPS of $3.28 against $2.95 expected, an 11 % beat, and it has topped estimates in 8 of the last 8 quarters. For the next report, due January 28, 2027, the consensus is $3.11 per share. Expectations for fiscal 2027 have barely moved over the last 30 days: the EPS estimate went from $11.98 to $11.96 among 12 analysts, and the revenue estimate is stable. Of the 33 analysts covering the company, 24 recommend buying, 7 holding and 2 selling, so the bar for another beat is already well known.

Does it turn its margin into cash, and at what cycle multiple does it trade?

Industrials are semi-cyclical, so a single year's earnings can flatter or understate the business; that is why the sector is judged on operating margin, cash conversion and multiples measured across the cycle. On cash, L3Harris Technologies stands out: free cash flow equalled 167 % of net income in fiscal 2025, and the free cash flow yield is 6.0 % over the last 12 months. Capex took just 1.9 % of revenue in fiscal 2025, below the 4 % to 8 % range seen as healthy. The cycle-adjusted EV/EBITDA of 13.6× compares with a seven-year average of 22.7×, while the 9.8 % fiscal 2025 operating margin misses the 12 % healthy mark.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.