L3Harris Technologies Reports 9.3% Revenue Growth to $21.3 Billion for Fiscal Year 2024

L3Harris Technologies, Inc. reported a significant increase in its financial performance for the fiscal year ended January 3, 2025, with total revenue reaching $21.3 billion, up from $19.4 billion in the previous fiscal year, marking an increase of 9.3%. The company's net income also rose to $1.5 billion, compared to $1.2 billion in fiscal 2023, resulting in a diluted earnings per share (EPS) of $7.87, a 22% increase from $6.44 in the prior year. This growth was driven by a full year of revenue from the recently acquired Aerojet Rocketdyne Holdings, Inc. (AJRD), which contributed significantly to both product and service revenues.

The company experienced notable changes in its revenue streams, with product revenue increasing to $15.1 billion from $13.7 billion, and service revenue rising to $6.2 billion from $5.7 billion. The acquisition of AJRD, completed in July 2023, was a key factor in this growth, as it provided enhanced capabilities in missile solutions and space propulsion. Additionally, L3Harris reported a backlog of $34.2 billion, a 5% increase from the previous year, indicating strong future revenue potential.

Strategically, L3Harris has focused on enhancing operational efficiency through its LHX NeXt initiative, which aims to improve agility and performance across its segments. The company invested $515 million in research and development (R&D) during fiscal 2024, representing 2% of total revenue, to drive innovation and maintain competitiveness in the defense sector. The workforce also expanded, with approximately 47,000 employees, including 18,000 engineers and scientists, reflecting the company's commitment to attracting and retaining skilled talent.

Geographically, L3Harris generated 76% of its revenue from U.S. Government customers, with international sales accounting for $4.4 billion, or 21% of total revenue. The company continues to navigate a competitive landscape, facing challenges such as supply chain disruptions and inflation, which could impact future profitability. However, L3Harris remains optimistic about its growth trajectory, supported by a robust backlog and ongoing investments in technology and innovation.

Looking ahead, L3Harris anticipates continued growth driven by defense spending and strategic initiatives. The company expects to recognize approximately 45% of its backlog revenue by the end of fiscal 2025 and 75% by the end of fiscal 2026. Management remains focused on executing its strategic priorities of performance, growth, and innovation, while adapting to evolving market conditions and customer needs.