L3Harris Technologies Reports $5.132 Billion Revenue, Net Income Rises 36.5% in Q1 Fiscal 2025

L3Harris Technologies, Inc. reported a revenue of $5.132 billion for the first quarter of fiscal 2025, a decrease of 1.5% from $5.211 billion in the same period last year. The company's net income rose to $386 million, or $2.04 per diluted share, compared to $283 million, or $1.48 per diluted share, in the prior year, reflecting a 36.5% increase in profitability. The increase in net income was attributed to lower general and administrative expenses, which fell to $825 million from $970 million, and a decrease in interest expenses, which dropped to $150 million from $176 million.

The company experienced notable changes in its business segments. The Communication Systems (CS) segment saw a revenue increase of 4% to $1.352 billion, driven by higher international sales. Conversely, the Integrated Mission Systems (IMS) segment's revenue decreased by 2% to $1.592 billion, primarily due to lower aircraft missionization volume. The Space & Airborne Systems (SAS) segment reported an 8% decline in revenue to $1.611 billion, impacted by program timing and negative adjustments from classified development programs. The Aerojet Rocketdyne (AR) segment, however, experienced an 8% increase in revenue to $629 million, attributed to higher production volumes in missile solutions.

Strategically, L3Harris completed the divestiture of its Commercial Aviation Solutions (CAS) disposal group on March 28, 2025, for cash proceeds of $831 million. This divestiture is expected to streamline operations and focus on core defense capabilities. Additionally, the company realigned its business segments, transferring its fuzing and ordnance business from IMS to AR to enhance operational efficiency. As of March 28, 2025, L3Harris reported a backlog of $33.2 billion, with approximately 50% expected to be recognized as revenue over the next twelve months.

Operationally, L3Harris maintained a workforce of 48,000 employees as of the end of the quarter. The company reported cash and cash equivalents of $517 million, down from $615 million at the beginning of the quarter. The decrease in cash was primarily due to cash used in financing activities, including $569 million spent on share repurchases. The company also announced a quarterly dividend increase to $1.20 per share, marking the 24th consecutive annual increase.

Looking ahead, L3Harris remains focused on navigating the evolving macroeconomic environment, including inflation and potential changes in U.S. government spending priorities. The company anticipates that its existing cash, operational cash flows, and available credit facilities will be sufficient to meet its working capital needs and support future growth initiatives.