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Investing.com -- L3Harris Technologies (NYSE: LHX) reported third-quarter results that exceeded analyst expectations, with strong organic revenue growth and improved margins driving a guidance increase for the full year. The company’s stock rose 0.7% premarket following the announcement.
The defense technology firm posted adjusted earnings of $2.70 per share, surpassing the analyst estimate of $2.59, while revenue reached $5.7 billion, exceeding the consensus estimate of $5.53 billion. Revenue grew 7% compared to the same quarter last year, with organic growth of 10% reflecting increased volumes across all segments.
L3Harris raised its full-year 2025 guidance, now projecting revenue of approximately $22 billion, up from its previous outlook of $21.75 billion and above analyst expectations of $21.8 billion. The company also increased its earnings per share forecast to a range of $10.50-$10.70, compared to its prior guidance of $10.40-$10.60.
"We delivered another strong quarter, with robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution as drivers of profitable growth," said Christopher Kubasik, Chair and CEO of L3Harris. "We are driving sustained performance, marking our eighth consecutive quarter of year-over-year adjusted segment operating margin expansion."
The company’s adjusted segment operating margin improved to 15.9%, up 10 basis points from the previous year, driven by improved program performance and cost savings initiatives. All four business segments reported revenue growth, with Aerojet Rocketdyne leading at 13% growth, followed by Space & Airborne Systems at 7%, and both Communication Systems and Integrated Mission Systems at 6%.
Cash flow from operations decreased 30% to $546 million, primarily due to temporary customer payment delays, though the company maintained confidence in achieving its full-year cash flow guidance of approximately $2.65 billion.
L3Harris reported orders of $6.7 billion for the quarter, resulting in a book-to-bill ratio of 1.2x, indicating continued strong demand for its defense technology solutions.