Detailed financial statements for L3Harris Technologies, Inc. (LHX): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies.
Analysis Summary
L3Harris Technologies, Inc. reported revenue of $21.86B in the most recent fiscal year, growing at a 5-year CAGR of 3.7%. Net income reached $1.61B, with a 7.5% 5-year CAGR.
Trailing-twelve-month margins: gross margin 25.6%, operating margin 10.5%, net margin 8.8%. Free cash flow grew at 2.1% CAGR over 5 years.
At $278.96 (closing price, November 2, 2026), LHX trades at a P/E of 26.02 and an ROE of 10.17%. Market capitalisation stands at $51.9B, placing it among large-cap names.
Balance sheet quality for LHX: debt-to-equity ratio of 0.54, current ratio of 1.20 over the last 12 months, net debt of $10.18B at the end of the last fiscal year. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $2.68B represents 167% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.90B | $6.17B | $6.80B | 0 | $18.19B | $17.81B | $17.06B | $19.42B | $21.32B | $21.86B |
| Cost of Revenue | $3.85B | $4.07B | $4.47B | 0 | $12.89B | $12.44B | $12.13B | $14.31B | $15.80B | $16.24B |
| Gross Profit | $2.04B | $2.10B | $2.33B | 0 | $5.31B | $5.38B | $4.93B | $5.11B | $5.52B | $5.62B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | $603.0M | $480.0M | $515.0M | $536.0M |
| Selling, General & Admin | $1.15B | $1.18B | $1.24B | 0 | $3.31B | $3.28B | $3.00B | $3.31B | $2.21B | $2.23B |
| Operating Expenses | $2.04B | $980.0M | $2.33B | 0 | $5.31B | $3.27B | $3.00B | $3.31B | $3.51B | $3.48B |
| Operating Income | $893.0M | $1.12B | $1.09B | 0 | 0 | $2.11B | $1.93B | $1.80B | $2.02B | $2.15B |
| EBITDA | $1.37B | $1.34B | $1.54B | $894.0M | $2.61B | $3.52B | $2.49B | $2.93B | $3.56B | $3.75B |
| Interest Expense | $172.0M | $170.0M | $167.0M | 0 | $270.0M | $265.0M | $279.0M | $543.0M | $675.0M | $597.0M |
| Pre-tax Income | $889.0M | $908.0M | $1.11B | 0 | $1.32B | $2.28B | $1.27B | $1.22B | $1.60B | $1.93B |
| Income Tax | $261.0M | $206.0M | $160.0M | 0 | $234.0M | $440.0M | $212.0M | $23.0M | $85.0M | $326.0M |
| Net Income | $543.0M | $699.0M | $949.0M | 0 | $1.12B | $1.85B | $1.06B | $1.23B | $1.50B | $1.61B |
| EPS | $4.50 | $5.89 | $8.04 | $7.43 | $5.23 | $9.17 | $5.54 | $6.47 | $7.91 | $8.57 |
| EPS (Diluted) | $4.44 | $5.77 | $7.88 | $7.35 | $5.18 | $9.08 | $5.49 | $6.44 | $7.87 | $8.53 |
| Shares Outstanding (Diluted) | 124.3 M | 121.1 M | 120.5 M | 223.7 M | 215.9 M | 203.2 M | 193.5 M | 190.6 M | 190.7 M | 188.4 M |
Income Statement (Quarterly)
| Year | 2026-Q1 | 2026-Q2 | 2026-Q3 | 2026-Q4 |
|---|---|---|---|---|
| Revenue | $5.65B | $5.74B | $5.88B | $6.06B |
| Gross Profit | $1.45B | $1.40B | $1.50B | $1.61B |
| Operating Income | $376.0M | $642.0M | $654.0M | $786.0M |
| EBITDA | $836.0M | $1.01B | $1.13B | $1.13B |
| Net Income | $300.0M | $512.0M | $600.0M | $632.0M |
| EPS | $1.60 | $2.74 | $3.15 | $3.29 |
| EPS (Diluted) | $1.59 | $2.72 | $3.13 | $3.28 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $484.0M | $422.0M | $530.0M | $824.0M | $1.28B | $941.0M | $880.0M | $560.0M | $615.0M | $1.07B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $647.0M | $666.0M | $1.46B | $3.88B | $4.08B | $4.16B | $4.28B | $4.43B | $4.68B | $4.99B |
| Inventory | $841.0M | $942.0M | $360.0M | $1.22B | $973.0M | $982.0M | $1.29B | $1.47B | $1.33B | $1.22B |
| Total Current Assets | $2.07B | $2.13B | $2.58B | $6.31B | $6.67B | $6.36B | $6.75B | $7.91B | $8.22B | $8.59B |
| Property, Plant & Equipment | $904.0M | $878.0M | $894.0M | $2.95B | $2.87B | $2.87B | $2.86B | $3.60B | $2.81B | $2.67B |
| Goodwill | $5.37B | $5.37B | $5.34B | $20.00B | $18.88B | $18.19B | $17.28B | $19.98B | $20.32B | $20.01B |
| Intangible Assets | $1.10B | $1.05B | $870.0M | $8.46B | $7.91B | $6.64B | $6.00B | $8.54B | $7.64B | $6.51B |
| Total Assets | $10.09B | $9.86B | $10.12B | $38.34B | $36.96B | $34.71B | $33.52B | $41.69B | $42.00B | $41.20B |
| Accounts Payable | $540.0M | $462.0M | $525.0M | $1.26B | $1.41B | $1.77B | $1.95B | $2.11B | $2.00B | $2.46B |
| Short-term Debt | $634.0M | $528.0M | $759.0M | $260.0M | $10.0M | $13.0M | $820.0M | $2.08B | $1.30B | $805.0M |
| Total Current Liabilities | $1.93B | $1.74B | $2.27B | $4.01B | $4.24B | $4.55B | $5.78B | $8.00B | $7.63B | $7.23B |
| Long-term Debt | $3.40B | $3.39B | $2.76B | $6.69B | $6.94B | $7.05B | $6.22B | $10.92B | $10.88B | $10.44B |
| Total Liabilities | $7.16B | $6.86B | $6.75B | $15.59B | $16.12B | $15.39B | $14.90B | $22.86B | $22.42B | $21.56B |
| Retained Earnings | $1.34B | $1.42B | $2.17B | $2.18B | $2.35B | $2.92B | $2.94B | $3.22B | $3.74B | $4.21B |
| Total Equity | $2.93B | $2.99B | $3.36B | $22.59B | $20.72B | $19.21B | $18.52B | $18.77B | $19.51B | $19.64B |
| Total Debt | $4.03B | $3.92B | $3.52B | $7.86B | $7.69B | $7.83B | $7.79B | $13.95B | $12.98B | $11.25B |
| Net Debt | $3.55B | $3.50B | $2.99B | $7.04B | $6.41B | $6.89B | $6.91B | $13.39B | $12.37B | $10.18B |
| Working Capital | $147.0M | $391.0M | $310.0M | $2.30B | $2.43B | $1.81B | $978.0M | -$92.0M | $585.0M | $1.37B |
Balance Sheet (Quarterly)
| Year | 2026-Q1 | 2026-Q2 | 2026-Q3 | 2026-Q4 |
|---|---|---|---|---|
| Cash & Equivalents | $1.07B | $590.0M | $1.52B | $2.47B |
| Total Assets | $41.20B | $41.38B | $42.94B | $43.81B |
| Total Liabilities | $21.56B | $21.70B | $22.09B | $22.58B |
| Total Equity | $19.64B | $19.68B | $20.85B | $20.24B |
| Total Debt | $11.25B | $11.36B | $11.00B | $11.00B |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $543.0M | $699.0M | $949.0M | $1.65B | $1.09B | $1.84B | $1.06B | $1.23B | $1.51B | $1.61B |
| Depreciation & Amortization | $311.0M | $259.0M | $258.0M | $894.0M | $1.03B | $967.0M | $938.0M | $1.17B | $1.29B | $1.22B |
| Stock-based Compensation | $42.0M | $82.0M | $141.0M | $454.0M | $310.0M | $348.0M | $325.0M | $320.0M | $97.0M | $366.0M |
| Change in Working Capital | $48.0M | -$186.0M | -$92.0M | $109.0M | $83.0M | $126.0M | $90.0M | -$315.0M | -$529.0M | $22.0M |
| Operating Cash Flow | $569.0M | $751.0M | $1.19B | $939.0M | $2.79B | $2.69B | $2.16B | $2.10B | $2.56B | $3.11B |
| Capital Expenditure | -$119.0M | -$136.0M | -$161.0M | -$173.0M | -$368.0M | -$342.0M | -$252.0M | -$449.0M | -$408.0M | -$424.0M |
| Acquisitions | $989.0M | -$2.0M | 0 | $1.49B | $1.03B | $1.72B | -$42.0M | -$6.56B | 0 | $820.0M |
| Stock Repurchased | -$710.0M | -$272.0M | -$200.0M | -$1.50B | -$2.29B | -$3.67B | -$1.08B | -$518.0M | -$554.0M | -$1.15B |
| Dividends Paid | -$262.0M | -$272.0M | -$325.0M | -$337.0M | -$725.0M | -$817.0M | -$864.0M | -$868.0M | -$886.0M | -$903.0M |
| Free Cash Flow | $450.0M | $615.0M | $1.02B | $766.0M | $2.42B | $2.35B | $1.91B | $1.65B | $2.15B | $2.68B |
Cash Flow (Quarterly)
| Year | 2026-Q1 | 2026-Q2 | 2026-Q3 | 2026-Q4 |
|---|---|---|---|---|
| Operating Cash Flow | $1.96B | -$95.0M | $879.0M | $1.44B |
| Capital Expenditure | -$158.0M | -$99.0M | -$108.0M | -$179.0M |
| Free Cash Flow | $1.80B | -$194.0M | $771.0M | $1.26B |
| Dividends Paid | -$225.0M | -$238.0M | -$232.0M | -$234.0M |
| Stock-based Compensation | $30.0M | $21.0M | $73.0M | -$1.0M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +4.6% | +10.3% | -100.0% | -2.1% | -4.2% | +13.8% | +9.8% | +2.5% | ||
| Net Income Growth (YoY) | +28.7% | +35.8% | -100.0% | +65.0% | -42.5% | +15.5% | +22.4% | +6.9% | ||
| EPS Growth (YoY) | +30.9% | +36.5% | -7.6% | -29.6% | +75.3% | -39.6% | +16.8% | +22.3% | +8.3% | |
| Shares Change (YoY) | -2.6% | -0.5% | +85.6% | -3.5% | -5.9% | -4.8% | -1.5% | +0.1% | -1.2% | |
| FCF Growth (YoY) | +36.7% | +66.5% | -25.2% | +216.2% | -3.2% | -18.7% | -13.6% | +30.6% | +24.7% | |
| Gross Margin | 34.6% | 34.1% | 34.3% | 29.2% | 30.2% | 28.9% | 26.3% | 25.9% | 25.7% | |
| Operating Margin | 15.1% | 18.2% | 16.1% | 0.0% | 11.8% | 11.3% | 9.3% | 9.4% | 9.8% | |
| EBITDA Margin | 23.3% | 21.7% | 22.6% | 14.3% | 19.7% | 14.6% | 15.1% | 16.7% | 17.2% | |
| Net Margin | 9.2% | 11.3% | 14.0% | 6.2% | 10.4% | 6.2% | 6.3% | 7.0% | 7.3% | |
| FCF Margin | 7.6% | 10.0% | 15.1% | 13.3% | 13.2% | 11.2% | 8.5% | 10.1% | 12.3% | |
| Effective Tax Rate | 29.4% | 22.7% | 14.4% | 17.7% | 19.3% | 16.7% | 1.9% | 5.3% | 16.9% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.62 | $5.08 | $8.50 | $3.42 | $11.22 | $11.54 | $9.85 | $8.64 | $11.28 | $14.24 |
| Dividends Per Share | $2.11 | $2.25 | $2.70 | $1.51 | $3.36 | $4.02 | $4.47 | $4.55 | $4.65 | $4.79 |
| Shares Outstanding (Basic) | 122.6 M | 118.6 M | 118.0 M | 221.2 M | 214.0 M | 201.3 M | 191.8 M | 189.6 M | 189.8 M | 187.4 M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 10.17% |
| Return on Invested Capital | 5.64% |
| Return on Assets | 4.67% |
| Gross Margin | 25.55% |
| Operating Margin | 10.53% |
| Net Margin | 8.76% |
Financial Health
| Debt / Equity | 0.54 |
| Current Ratio | 1.20 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 2.47 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2019 | 2021 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 24.24 | 24.54 | 23.52 | 26.63 | 36.14 | 23.25 | 37.58 | 32.55 | 26.52 | 35.53 |
| P/B | 4.57 | 5.73 | 6.64 | 1.94 | 1.95 | 2.23 | 2.16 | 2.13 | 2.04 | 2.91 |
| P/S | 2.27 | 2.78 | 3.28 | 0.00 | 2.22 | 2.41 | 2.34 | 2.06 | 1.87 | 2.61 |
| Gross Margin | 34.6% | 34.1% | 34.3% | 0.0% | 29.2% | 30.2% | 28.9% | 26.3% | 25.9% | 25.7% |
| Operating Margin | 15.1% | 18.2% | 16.1% | 0.0% | 0.0% | 11.8% | 11.3% | 9.3% | 9.4% | 9.8% |
| Net Margin | 9.2% | 11.3% | 14.0% | 0.0% | 6.2% | 10.4% | 6.2% | 6.3% | 7.0% | 7.3% |
Related companies: KTOS · DRS · RTX · LMT · NOC · GD · LDOS
Explore sector: Industrials · Aerospace & Defense
More sections of LHX: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks