L3Harris Technologies Reports Fourth Quarter and Full-Year 2023 Results; Initiates 2024 Guidance
L3Harris Technologies, Inc. (NYSE: LHX) reported a book-to-bill of 1.18x for FY 2023 with orders of $22.8 billion, 4Q23 revenue of $5.3 billion, and FY23 of $19.4 billion, reflecting a 17% and 14% increase, respectively. The 4Q23 operating margin was 2.9% and FY23 was 7.3%. The 4Q23 segment operating margin was 15.1% and FY23 was 14.8%. 4Q23 EPS was $0.83 and FY23 was $6.44. FY23 cash from operations was $2.1 billion, with free cash flow of $2.0 billion. The company reported a record backlog of $33 billion and initiated 2024 financial guidance.
Positive
FY23 orders of $22.8 billion with a book-to-bill of 1.18x.
17% increase in 4Q23 revenue and 14% increase in FY23 revenue.
4Q23 operating margin of 2.9% and FY23 of 7.3%.
Record backlog of $33 billion.
Initiated 2024 financial guidance.
Negative
4Q23 EPS decreased to $0.83.
FY23 non-GAAP EPS1 decreased 4% to $12.36.
Full year segment operating margin1 decreased 60 bps to 14.8%.
The reported financial results from L3Harris Technologies, Inc. provide a mixed picture characterized by robust revenue growth but accompanied by a decline in operating margin and an overall decrease in earnings per share (EPS). The 17% increase in fourth quarter revenue and 14% increase for the full year, including a significant contribution from acquisitions such as Aerojet Rocketdyne (AR) and Tactical Data Links (TDL), indicate successful expansion into high-growth markets. However, this expansion has come at a cost, with increased interest expenses due to funding these acquisitions and a notable goodwill impairment charge related to the pending sale of the Commercial Aviation Solutions (CAS) business.
The book-to-bill ratio of 1.18x suggests a healthy order intake relative to revenue, which is a positive indicator for future revenue sustainability. Furthermore, the reported record backlog of $33 billion provides a strong foundation for future earnings. The emphasis on aligning the portfolio with Department of Defense and U.S. allied partner priorities could enhance the company's strategic positioning. However, the increase in net interest expense by 131% year-over-year raises concerns about the cost of capital and its impact on net income. The reported operating margin contraction from 10.8% to 2.9% in the fourth quarter, primarily due to the CAS business impairment, underscores the importance of closely monitoring portfolio adjustments and divestitures.
Investors should note the company's focus on operational improvements and margin expansion through the LHX NeXt program, which targets $1 billion in cost savings. While the program's success could be a significant driver for future profitability, the upfront costs and execution risks associated with such initiatives warrant careful consideration.
L3Harris Technologies' strategic focus on becoming the industry's 'Trusted Disruptor' and its agility in innovation are reflected in its revenue growth. The company's entry into high-growth markets and emphasis on aligning with Department of Defense and allied partner priorities suggest a targeted approach to market expansion. This strategy has likely contributed to the company's reported organic growth, particularly in the Space & Airborne Systems (SAS) and Communication Systems (CS) segments.
Despite the positive revenue trends, the decrease in full year non-GAAP EPS by 4% to $12.36, driven by increased interest expenses and lower pension income, indicates potential pressure on profitability. The flat to slightly increasing average diluted shares implies a stable equity base, which could be favorable for EPS if net income trends improve. The guidance for 2024, with revenue projected between $20.7 billion and $21.3 billion, reflects anticipated growth but also sets expectations for stakeholders to monitor.
The segment analysis reveals that the acquisitions of AR and TDL have been accretive to revenue, particularly in the CS segment, which saw a full year revenue increase of 20%. However, the Integrated Mission Systems (IMS) segment experienced a decline in operating margin due to an impairment and unfavorable net changes in Estimates-at-Completion (EAC). These segment-specific trends highlight the importance of evaluating the company's performance on a granular level to understand the underlying drivers of financial results.
The financial results of L3Harris Technologies are indicative of broader trends in the defense industry, where companies are seeking to consolidate and expand their capabilities through strategic acquisitions. The integration of Aerojet Rocketdyne and Tactical Data Links into L3Harris' portfolio represents a significant expansion into missile and space programs, as well as communication systems, which are areas of growing importance in modern defense strategies.
The reported impairment associated with the pending sale of the CAS business within the IMS segment suggests a strategic repositioning away from commercial aviation solutions towards areas more closely aligned with national defense priorities. This realignment could be beneficial in the context of increased defense spending and a heightened focus on national security.
However, the increased net interest expense highlights the financial burden of such acquisitions and the importance of effective capital management in the defense sector. The emphasis on cost savings through the LHX NeXt program is a response to the need for operational efficiency and margin improvement in an industry characterized by high development costs and long procurement cycles. The program's success will be critical for maintaining competitiveness and shareholder value in a sector that is both capital-intensive and subject to geopolitical influences.
01/25/2024 - 04:10 PM
Full year (FY) 2023 orders1 of $22.8 billion
4Q23 revenue of $5.3 billion $19.4 billion 17% and 14% respectively
4Q23 operating margin of 2.9% and FY23 of 7.3% , reflecting goodwill impairment for pending business sale
4Q23 segment operating margin1 of 15.1% and FY23 of 14.8%
4Q23 earnings per share (EPS) of $0.83 $6.44 1 of $3.35 $12.36
FY23 cash from operations of $2.1 billion 1 of $2.0 billion
MELBOURNE, Fla. --(BUSINESS WIRE)--
L3Harris Technologies, Inc. (NYSE: LHX) reported fourth quarter and full-year 2023 results, and initiated 2024 financial guidance.
“We delivered on our 2023 financial commitments and reported record backlog of $33 billion U.S. allied partner priorities.”
Kubasik continued, “We are confident on achieving the financial framework that we shared in early December at our investor day, while we execute on our 2024-2026 capital allocation priorities of reducing leverage and returning excess cash to shareholders. Entering 2024, we remain focused on driving towards the $1 billion
SUMMARY FINANCIAL RESULTS AND 2024 GUIDANCE
Fourth Quarter
Full Year
2024*
($ millions, except per share data)
2023
2022
Change
2023
2022
Change
Guidance
Revenue
Space & Airborne Systems
$
1,800
$
1,702
$
6,856
$
6,384
Integrated Mission Systems
1,627
1,729
6,630
6,626
Communication Systems
1,363
1,193
5,070
4,217
Aerojet Rocketdyne
597
—
1,052
—
Corporate eliminations
(47
)
(46
)
(189
)
(165
)
Revenue
$
5,340
$
4,578
17%
$
19,419
$
17,062
14%
$20.7B $21.3B
Operating income (loss)
Space & Airborne Systems
$
191
$
193
$
756
$
665
Integrated Mission Systems
(75
)
179
459
494
Communication Systems
356
297
1,229
667
Aerojet Rocketdyne
66
—
122
—
Unallocated items
(384
)
(174
)
(1,140
)
(699
)
Operating income
$
154
$
495
(69)%
$
1,426
$
1,127
27%
Operating margin
2.9
%
10.8
%
nm
7.3
%
6.6
%
70 bps
Segment operating income1
Space & Airborne Systems
$
191
$
193
$
783
$
745
Integrated Mission Systems
194
179
740
861
Communication Systems
356
297
1,229
1,022
Aerojet Rocketdyne
66
—
122
—
Unallocated items
—
—
—
—
Segment operating income1
$
807
$
669
21%
$
2,874
$
2,628
9%
Segment operating margin1
15.1
%
14.6
%
50 bps
14.8
%
15.4
%
(60) bps
~15%
Non-service FAS pension income and other
$
93
$
112
(17)%
$
338
$
425
(20)%
Interest expense, net
$
(171
)
$
(74
)
131%
$
(543
)
$
(279
)
95%
Effective tax rate (GAAP)
(66.7
%)
21.8
%
nm
1.9
%
16.7
%
nm
Effective tax rate (non-GAAP1 )
12.4
%
13.6
%
(120) bps
13.0
%
13.9
%
(90) bps
EPS
$
0.83
$
2.17
(62)%
$
6.44
$
5.49
17%
Non-GAAP EPS1
$
3.35
$
3.27
2%
$
12.36
$
12.90
(4)%
$12.40 $12.80
Diluted shares outstanding
190.6
192.1
(1)%
190.6
193.5
(1)%
Cash from operations
$
789
$
782
1%
$
2,096
$
2,158
(3)%
Free cash flow1
$
747
$
748
—%
$
2,009
$
2,029
(1)%
~$2.2B
nm = not meaningful
* When we provide our expectation for segment operating margin, effective tax rate on non-GAAP income, non-GAAP EPS and free cash flow on a forward-looking basis, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort due to the unavailability of items for exclusion from the GAAP measure. We are unable to address the probable significance of this information, the variability of which may have a significant impact on future GAAP results. See Non-GAAP Financial Measures on page 6 for more information.
Revenue: Fourth quarter revenue increased 17% , primarily from the acquisitions of Aerojet Rocketdyne (AR), its own reporting segment, and Tactical Data Links (TDL), reported in the Communication Systems (CS) segment. Fourth quarter revenue increases were also driven by 2% organic growth from the Space & Airborne Systems (SAS) and CS segments. Full year revenue increased 14% , primarily from the acquisitions of AR and TDL, and increased 6% on an organic1 basis primarily from growth in the SAS and CS segments.
Operating Margin: Fourth quarter operating margin decreased, primarily from the impairment associated with the pending sale of the Commercial Aviation Solutions (CAS) business within the Integrated Mission Systems (IMS) segment. Segment operating margin1 expanded 50 bps to 15.1% due to efficiencies realized by increased revenue and favorable product mix. Full year operating margin increased 70 bps. 2022 had a higher level of impairments than 2023. This improvement was partially offset by unfavorable net changes in Estimates-at-Completion (EAC). Full year segment operating margin1 decreased 60 bps to 14.8% primarily due to the factors noted above excluding the impact of impairments and other non-recurring items detailed in table 5.
Earnings Per Share (EPS): Fourth quarter EPS decreased to $0.83 1 increased 2% to $3.35 1 and a lower effective tax rate on non-GAAP income, partially offset by lower pension income and the higher interest expense. Full year EPS increased 17% to $6.44 1 decreased 4% to $12.36 1 , lower share count and a lower effective tax rate on non-GAAP income1 .
Cash Flows: Fourth quarter cash from operations increased 1% primarily from less cash used to fund net working capital. Fourth quarter free cash flow1 was comparable. Full year cash from operations decreased 3% due to acquisition-related expenses, higher tax payments and higher interest, partially offset by less cash used to fund net working capital. Full year free cash flow1 was down 1% .
SEGMENT RESULTS AND GUIDANCE:
This section contains reporting segment drivers of fourth quarter and full year for revenue, operating margin, a GAAP measure, and segment operating margin1 , a non-GAAP measure, which excludes unallocated items, impairments to goodwill or other assets and the gain on the sale of plant, property and equipment.
Space & Airborne Systems (SAS)
Fourth Quarter
Full Year
Guidance
($ millions)
2023
2022
Change
2023
2022
Change
2024
Revenue
$
1,800
$
1,702
6%
$
6,856
$
6,384
7%
$6,900 $7,100
Operating margin
10.6
%
11.3
%
(70) bps
11.0
%
10.4
%
60 bps
Segment operating margin1
10.6
%
11.3
%
(70) bps
11.4
%
11.7
%
(30) bps
mid-high 11% *
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Revenue: Fourth quarter revenue increased 6% , primarily from growth in Space, Mission Networks and Intel and Cyber, partially offset by a decline in legacy airborne platform volume. Full year revenue increased 7% primarily from growth in Space Systems, Mission Networks and Intel and Cyber.
Operating Margin: Fourth quarter operating margin and segment operating margin1 decreased 70 bps largely due to an increase in lower margin space revenue. Full year operating margin increased 60 bps. 2022 had a higher level of impairments. 2023 was negatively impacted by mix and net unfavorable EAC. Full year segment operating margin1 decreased 30 bps from the factors noted above, excluding impairments.
Integrated Mission Systems (IMS)
Fourth Quarter
Full Year
Guidance
($ millions)
2023
2022
Change
2023
2022
Change
2024
Revenue
$
1,627
$
1,729
(6)%
$
6,630
$
6,626
—%
$6,400 $6,600
Operating margin
(4.6
%)
10.4
%
nm
6.9
%
7.5
%
(60) bps
Segment operating margin1
11.9
%
10.4
%
150 bps
11.2
%
13.0
%
(180) bps
low-mid 11% *
nm = not meaningful
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Revenue: Fourth quarter revenue decreased 6% , primarily from lower Intelligence, Surveillance and Reconnaissance (ISR) aircraft missionization efforts, partially offset by increases in CAS and Maritime. Full year revenue was flat primarily from lower ISR aircraft missionization volume, offset by higher revenue in Electro Optical, Maritime and CAS.
Operating Margin: Fourth quarter operating margin was down primarily from the impairment associated with the pending sale of the CAS business. Fourth quarter segment operating margin1 increased 150 bps from improved program performance. Full year operating margin declined 60 bps primarily due to an unfavorable net change in EACs, the sale of end-of-life inventory in the prior year and higher volume of lower-margin domestic ISR aircraft revenue, partially offset by lower impairments and research and development expenses. Full year segment operating margin1 decreased 180 bps from the factors noted above excluding impairments.
Communication Systems (CS)
Fourth Quarter
Full Year
Guidance
($ millions)
2023
2022
Change
2023
2022
Change
2024
Revenue
$
1,363
$
1,193
14%
$
5,070
$
4,217
20%
$5,300
Operating margin
26.1
%
24.9
%
120 bps
24.2
%
15.8
%
840 bps
Segment operating margin1
26.1
%
24.9
%
120 bps
24.2
%
24.2
%
— bps
low-mid 24% *
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Revenue: Fourth quarter revenue increased 14% , primarily from the TDL acquisition and higher volume of night-vision products. Full year revenue increased 20% , primarily from the TDL acquisition and higher volumes of legacy Broadband Communications programs, Tactical Communications and Public Safety products.
Operating Margin: Fourth quarter operating margin and segment operating margin1 increased 120 bps primarily from the acquisition of TDL and efficiencies realized from higher volume. Full year segment operating margin increased 840 bps primarily from an impairment in the prior year. Full year segment operating margin1 was comparable.
Aerojet Rocketdyne (AR)
Fourth Quarter
Full Year
Guidance
($ millions)
2023
2022
Change
2023
2022
Change
2024
Revenue
$
597
$
1,052
$2,400 $2,500
Operating margin
11.1
%
11.6
%
high 11% *
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Revenue and Operating Margin: Fourth quarter and full year (5-month post acquisition period) results are attributed to program execution across missile and space programs.
SUPPLEMENTAL INFORMATION:
Other Information
2024
2023
FAS/CAS operating adjustment
~$40 million
$110 million
Non-service FAS pension income
~$260 million
$310 million
Net interest expense*
~$650 million
$544 million
Effective tax rate on GAAP income
1.9%
Effective tax rate on non-GAAP income1*
13.0% - 13.5%
13.0%
Average diluted shares
Flat - up slightly
190.6
Capital expenditures
~2% sales
2% sales
* A reconciliation is not available. See the note on page 2 and Non-GAAP Financial Measures on page 6 for more information.
Non-GAAP Financial Measures
This press release contains Non-GAAP Financial Measures ("NGFMs") (as listed on page 16) within the meaning of Regulation G promulgated by the Securities and Exchange Commission (SEC). Management believes excluding the adjustments listed on page 16 for the purposes of calculating certain non-GAAP measures is useful to investors because these costs do not reflect our ongoing operating performance; however there is no guarantee that items excluded from non-GAAP financial measures will not reoccur in future periods. These adjustments, when considered together with the unadjusted GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these adjustments to our NGFMs enhance the ability of investors to analyze L3Harris business trends, to understand L3Harris performance and to evaluate our initiatives to drive improved financial performance. We utilize NGFMs as guides in forecasting, budgeting and long-term planning processes and to measure operating performance for compensation purposes. NGFMs should be considered in addition to, and not as a substitute for, financial measures presented in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” beginning on page 11 for detail on the adjustments to our NGFMs. We also provide our expectation of forward-looking NGFMs. A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort because of inherent difficulty in forecasting and quantifying the comparable GAAP measures and the applicable adjustments and other amounts that would be necessary for such a reconciliation, including due to potentially high variability, complexity and low visibility as to the applicable adjustments and other amounts, which may, or could, have a disproportionate impact on future GAAP results, such as the impact of Aerojet Rocketdyne and costs associated with LHX NeXt on our results and other potential business divestiture-related gains and losses, other unusual gains and losses, or their probable significance and extent of tax deductibility. The variability of adjustments and other amounts may have a significant, unpredictable impact on future GAAP results.
Conference Call and Webcast
L3Harris Technologies will host a call tomorrow, January 26, 2024, at 8:30 a.m. Eastern Time (ET).
The dial-in numbers for the teleconference are (U.S. ) 877-407-6184 and (International) 201-389-0877, and participants will be directed to an operator. Participants are encouraged to listen via webcast, which will be broadcast live at L3Harris.com/investors . A recording of the call will be available on the L3Harris website, beginning at approximately 12 p.m. ET on January 26, 2024.
About L3Harris Technologies
L3Harris Technologies is the Trusted Disruptor in the defense industry. With customers’ mission-critical needs always in mind, our 50,000 employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this press release include but are not limited to: 2024 guidance; 2024-2026 capital deployment priorities; the LHX NeXt program costs and savings targets and their impacts on operational performance, margin expansion and accelerating free cash flow growth; supplemental financial information for 2024; and other statements regarding the business outlook and financial performance guidance that are not historical facts. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The company's consolidated results, future trends and forward-looking statements could be affected by many factors, risks and uncertainties, including but not limited to: competitive markets and U.S. Government spending priorities; changes in the mix of fixed-price, cost-plus and time-and-material type contracts and the impact of a significant increase in or sustained period of increased inflation; the termination, failure to fund, or negative audit findings for U.S. Government contracts; the U.S. Government’s budget deficit and the national debt; uncertain economic conditions; the consequences of future geo-political events; the impact of government investigations; the risks of doing business internationally; disruptions to our supply chain; the attraction and retention of key employees; the ability to develop new products and services and technologies that achieve market acceptance; natural disasters or other significant business disruptions; inability to achieve the expected results of LHX NeXt; indebtedness and ability to make payments on, repay or service indebtedness; unfunded defined benefit plans liability; any downgrade in credit ratings; the level of returns on defined benefit plan assets, changes in interest rates and other market factors; changes in effective tax rate or additional tax exposures; the ability to obtain export licenses or make sales to foreign governments; unforeseen environmental issues, including regulations related to GHG emissions or change in customer sentiment related to environmental sustainability, the impact of any improper conduct of employees, agents or business partners; the outcome of litigation or arbitration; potential claims related to infringement of intellectual property rights or environmental remediation or other contingencies; expanded operations from the acquisitions of TDL and Aerojet Rocketdyne, including related to dangerous materials and real estate assets; risks related to other strategic transactions, including pending and contemplated divestitures. Further information relating to these and other factors that may impact the company's results, future trends and forward-looking statements are disclosed in the company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward-looking statements.
Financial Tables
To see the entire earnings tables, please see: www.l3harris.com/resources/fourth-quarter-and-full-year-2023-results
1 Key terms and Non-GAAP measures - see definitions at the end of this earnings release
Non-GAAP Terms and Definitions
Description
Definition
Amortization of acquisition-related intangibles
Consists of amortization of identifiable intangible assets acquired in connection with business combinations. Amortization charges are recorded over the estimated useful life of the related acquired intangible asset, and thus are generally recorded over multiple years.
Additional cost of revenue related to the fair value step-up in inventory sold
Difference between the balance sheet value of inventory from the acquiree and the acquisition date fair value.
Merger, acquisition, and divestiture-related expenses
In 2023, transaction and integration expenses associated with TDL and AR acquisitions. In 2022, transaction and integration expenses associated with the L3Harris merger. Also, includes external costs related to pursuing acquisition and divestiture portfolio optimization, non-transaction costs related to divestitures and salaries of employees in roles established for and dedicated to planned divestiture and acquisition activity.
Sale of asset group and business divestiture-related gains, net
In 2023, related to gains or losses associated with business divestitures. In 2022, related to an asset sale in our IMS segment.
Impairment of goodwill and other assets
In 2023, charges for goodwill impairment recorded at our IMS segment related to the pending divestiture of our CAS business and charges at our IMS and SAS segment related to restructuring of a customer contract impacting both segments and facility closures in IMS.
In 2022, charges for goodwill impairment recorded at our IMS and SAS segments related to a weakened outlook for precision weapons and other solutions and higher interest rates, and charges recorded at our CS segment related to a lower outlook on legacy platforms and higher interest rates.
Gain on sale of property, plant and equipment
In 2023, related to the sale of a building in our IMS segment.
LHX NeXt implementation costs
Costs associated with transforming multiple functions, systems and processes to increase agility and competitiveness. Costs related to the LHX NeXt effort are expected to continue through 2025, and are expected to include workforce optimization costs, incremental IT expenses for implementation of new systems, third party consulting expenses and other related costs totaling $400M $1B
Non-operating income adjustments
2022 includes an $8 million
Other
Other includes charges associated with a formal restructuring plan and primarily related to employee severance and benefit arrangements. In 2022 we incurred charges associated with severance and other benefits related to employees that accepted a voluntary retirement plan with an effective retirement date of September 30, 2022. Other also includes an accrual associated with an ongoing legal matter that is disproportionately large related to our routine legal expenses or accruals.
Orders
Represents the total value of funded and unfunded contract awards received from the U.S. Government, plus the total value of funded and unfunded contract awards received from customers other than the U.S. Government. This includes incremental funding and adjustments to previous awards, and excludes unexercised contract options and potential orders under ordering-type contracts, such as indefinite delivery, indefinite quantity (IDIQ) contracts.
Organic revenue
Organic revenue excludes the impact of completed divestitures and first year revenue associated with acquisitions; refer to non-GAAP financial measure (NGFM) reconciliations in the tables accompanying this press release and to the disclosures in the non-GAAP section of this press release for more information. Organic revenue is reconciled in table 4.
Segment operating income and margin
Segment operating income and margin for each segment represents each such segment's operating income and margin (GAAP measures), excluding impairment of goodwill and other assets and gain on sale of property, plant and equipment, as reconciled in table 5.
Segment operating income and margin on a consolidated basis represents operating income and margin (GAAP measures) excluding the FAS/CAS operating adjustment, corporate expenses and other unallocated items, impairment of goodwill and other assets, and a gain on sale of property, plant and equipment, and eliminations, as reconciled in table 6.
Non-GAAP EPS
Non-GAAP EPS represents EPS (net income per common share attributable to L3Harris Technologies, Inc. common shareholders, a GAAP measure) adjusted for amortization of acquisition-related intangibles; additional cost of revenue related to the fair value step-up in inventory sold; merger, acquisition, and divestiture-related expenses; asset group and business divestiture-related (losses) gains, net; impairment of goodwill and other assets; gain on sale of property, plant and equipment; LHX NeXt implementation costs; other (charges for severance and other termination costs and charges related to an additional pre-merger legal contingency); and non-operating income adjustments. Refer to the disclosures in the non-GAAP financial measures section of this press release for more information. Non-GAAP EPS is reconciled in table 8.
Free Cash Flow (FCF)
FCF represents net cash provided by operating activities (a GAAP measure) less capital expenditures (additions to property, plant and equipment less proceeds from sale of property, plant and equipment, net) and cash used for merger, acquisition, and divestiture-related expenses. FCF is reconciled in table 9.
Effective tax rate on non-GAAP income
Effective tax rate on non-GAAP earnings represents the effective tax rate (tax expense as a percentage of income before income taxes, a GAAP measure) adjusted for the tax effect associated with amortization of acquisition-related intangibles; additional cost of revenue related to the fair value step-up in inventory sold; merger, acquisition, and divestiture-related expenses; asset group and business divestiture-related (losses) gains, net; impairment of goodwill and other assets; gain on sale of property, plant and equipment; LHX NeXt implementation costs; other (charges for severance and other termination costs and charges related to an additional pre-merger legal contingency); and non-operating income adjustments. Refer to the disclosures in the non-GAAP financial measures section of this press release for more information. Non-GAAP effective tax rate is reconciled in table 7.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124826434/en/
Investor Relations Contact:
investorrelations@l3harris.com
Media Relations Contact:
sara.banda@l3harris.com
Source: L3Harris Technologies
What were L3Harris Technologies, Inc.'s FY23 orders?
L3Harris Technologies, Inc.'s FY23 orders were $22.8 billion.
What was the 4Q23 revenue for L3Harris Technologies, Inc.?
L3Harris Technologies, Inc.'s 4Q23 revenue was $5.3 billion.
What was L3Harris Technologies, Inc.'s 4Q23 operating margin?
L3Harris Technologies, Inc.'s 4Q23 operating margin was 2.9%.
What was L3Harris Technologies, Inc.'s 4Q23 segment operating margin?
L3Harris Technologies, Inc.'s 4Q23 segment operating margin was 15.1%.
What was L3Harris Technologies, Inc.'s 4Q23 EPS?
L3Harris Technologies, Inc.'s 4Q23 EPS was $0.83.
What was L3Harris Technologies, Inc.'s FY23 cash from operations?
L3Harris Technologies, Inc.'s FY23 cash from operations was $2.1 billion.
What was L3Harris Technologies, Inc.'s free cash flow for FY23?
L3Harris Technologies, Inc.'s free cash flow for FY23 was $2.0 billion.
What was L3Harris Technologies, Inc.'s record backlog?
L3Harris Technologies, Inc. reported a record backlog of $33 billion.
What was L3Harris Technologies, Inc.'s 2024 financial guidance?
L3Harris Technologies, Inc. initiated 2024 financial guidance.
