[10-Q] L3HARRIS TECHNOLOGIES, INC. /DE/ Quarterly Earnings Report

Rhea-AI Filing Summary

L3Harris Technologies reported third-quarter 2025 results with revenue of $5,659 million (up from $5,292 million) and diluted EPS of $2.46 (up from $2.10). Operating income rose to $621 million from $495 million as all segments contributed, led by Space & Airborne Systems at $1,809 million and Aerojet Rocketdyne at $755 million.

The effective tax rate increased to 18.5% from 6.0%, primarily reflecting the enacted OBBBA tax changes and the CAS divestiture. Year to date, cash from operations was $1,144 million. Capital returns included $998 million of share repurchases and $678 million in dividends. The CAS business sale provided $831 million in net proceeds and resulted in a $17 million pre-tax loss.

Backlog stood at $36.3 billion; the company expects to recognize about 45% over the next 12 months. As of October 3, cash was $339 million, long-term debt totaled $11,117 million, and commercial paper outstanding was $725 million. New credit lines include a $2.5 billion five-year and $500 million 364‑day facility, both undrawn.

Insights

Defense industry analyst

Solid revenue/EPS growth; higher tax rate offsets some upside.

Revenue rose to $5,659M with contributions across segments, and operating income improved to $621M. Diluted EPS increased to $2.46, aided by volume and mix. An EAC uplift added $45M to revenue and $0.10 to diluted EPS in the quarter.

The effective tax rate climbed to 18.5% due to OBBBA provisions and divestiture effects, tempering net income. Year-to-date cash from operations of $1,144M funded $998M in buybacks and $678M in dividends, while CAS sale proceeds of $831M strengthened liquidity.

Backlog is $36.3B with about 45% expected within 12 months, offering visibility. New undrawn facilities ($2.5B five‑year, $500M 364‑day) support flexibility. Actual performance will depend on contract timing, government funding processes, and the trajectory of tax impacts.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 3, 2025

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from _______________ to ______________

Commission File Number 1-3863

L3HARRIS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware									34-0276860
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

1025 West NASA Boulevard

Melbourne,

Florida

32919

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (321) 727-9100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

LHX

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.          þ   Yes   o  No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).          þ  Yes   o  No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

þ

Accelerated filer

☐

Non-accelerated filer

¨

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes þ No  

The number of shares outstanding of the registrant’s common stock as of October 24, 2025 was 187,052,847.

L3HARRIS TECHNOLOGIES, INC.

FORM 10-Q

For Third Quarter 2025

TABLE OF CONTENTS

			Page No.
Part I. Financial Information:
ITEM 1.     Financial Statements (Unaudited):
Condensed Consolidated Statement of Operations for Third Quarter and Year to Date 2025 and 2024			3
Condensed Consolidated Statement of Comprehensive Income for Third Quarter and Year to Date 2025 and 2024			4
Condensed Consolidated Balance Sheet as of October 3, 2025 and January 3, 2025			5
Condensed Consolidated Statement of Cash Flows for Year to Date 2025 and 2024			6
Condensed Consolidated Statement of Equity for Third Quarter and Year to Date 2025 and 2024			7
Notes to Condensed Consolidated Financial Statements			8
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)			22
ITEM 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations			23
ITEM 3.     Quantitative and Qualitative Disclosures About Market Risk			32
ITEM 4.     Controls and Procedures			33
Part II. Other Information:
ITEM 1.      Legal Proceedings			34
ITEM 1A.   Risk Factors			34
ITEM 2.      Unregistered Sales of Equity Securities and Use of Proceeds			34
ITEM 3.      Defaults Upon Senior Securities			35
ITEM 4.      Mine Safety Disclosures			35
ITEM 5.     Other Information			35
ITEM 6.      Exhibits			36
Signatures			37

This Quarterly Report on Form 10-Q (this “Report”) contains trademarks, service marks and registered marks of L3Harris Technologies, Inc. and its subsidiaries. All other trademarks are the property of their respective owners.

_____________________________________________________________________

1

Cautionary Statement Regarding Forward-Looking Statements

This Report contains forward-looking statements within the meaning of federal securities laws that involve risks, uncertainties and assumptions that could cause our results to differ materially from such forward-looking statements. Examples include, but are not limited to, statements concerning: our plans, strategies and objectives for future operations; new products, systems, technologies, services or developments; future economic conditions, performance or outlook, including expectations regarding trade policies; future political or budget conditions; the outcome of contingencies or litigation; expected contractual backlog recognition; effective tax rate forecast; the potential level of share repurchases, dividends or pension contributions; capital expenditures and capital structure; other financial items; and assumptions underlying any of the foregoing. Terminology, such as “believes,” “expects,” “may,” “could,” “should,” “would,” “will,” “intends,” “plans,” “estimates,” “anticipates,” “projects” and similar words or expressions may also identify forward-looking statements.

You should not place undue reliance on forward-looking statements, which reflect our management’s current expectations, estimates, projections and assumptions and information currently available to our management as of the date of filing of this Report and are not guarantees of future performance or actual results. Important risks that could cause our results to differ materially from those expressed in or implied by these forward-looking statements or from our historical results include, but are not limited to, risks arising from: our dependence on competitive markets from U.S. Government customers; changes in contract mix; inflation; unilateral contract action by the U.S. Government and the impacts of the government shutdown; uncertain economic conditions; future geopolitical events; supply chain disruptions; impact of LHX NeXt costs and savings; indebtedness; commercial paper balances; defined benefit plan liabilities and returns; interest rates; changes in trade policy, including tariffs; and other market factors. These important risks and other disclosures are described more fully in Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K and in Part II. Item 1A. Risk Factors of this Report.

Forward-looking statements are made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are qualified by the cautionary statements in this section, and we have no duty and disclaim 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 developments or otherwise, after the date of filing of this Report or, in the case of any document incorporated by reference, the date of that document.

_____________________________________________________________________

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

			Third Quarter												Year to Date
(In millions, except per share amounts)			2025						2024						2025						2024
Revenue			$	5,659					$	5,292					$	16,217					$	15,802
Cost of revenue			(4,165)						(3,873)						(12,038)						(11,675)
General and administrative expenses			(873)						(924)						(2,462)						(2,778)
Operating income			621						495						1,717						1,349
Non-service FAS pension income and other, net(1)			98						101						287						275
Interest expense, net			(152)						(166)						(454)						(514)
Income before income taxes			567						430						1,550						1,110
Income taxes			(105)						(26)						(244)						(54)
Net income			462						404						1,306						1,056
Noncontrolling interests, net of income taxes			—						(4)						—						(7)
Net income attributable to L3Harris			$	462					$	400					$	1,306					$	1,049
Earnings per share attributable to common shareholders
Basic			$	2.47					$	2.11					$	6.96					$	5.53
Diluted			$	2.46					$	2.10					$	6.92					$	5.50

_______________

(1)“FAS” is defined as Financial Accounting Standards.

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

_____________________________________________________________________

3

L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Net income			$	462					$	404					$	1,306					$	1,056
Other comprehensive (loss) income, net of income taxes:
Foreign currency translation and other, net			(1)						48						67						24
Pension and other postretirement benefits			—						—						(43)						3
Other comprehensive (loss) income recognized during the period			(1)						48						24						27
Reclassification adjustments for gains included in net income			(8)						(8)						(29)						(23)
Other comprehensive (loss) income			(9)						40						(5)						4
Other comprehensive income			453						444						1,301						1,060
Comprehensive income attributable to noncontrolling interest			—						(4)						—						(7)
Other comprehensive income attributable to L3Harris			$	453					$	440					$	1,301					$	1,053

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

_____________________________________________________________________

4

L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(In millions, except shares)			October 3, 2025						January 3, 2025
Assets
Current assets
Cash and cash equivalents			$	339					$	615
Receivables, net			1,528						1,072
Contract assets			3,677						3,230
Inventories, net			1,291						1,330
Income taxes receivable			281						379
Other current assets			477						461
Assets of business held for sale			—						1,131
Total current assets			7,593						8,218
Non-current assets
Property, plant and equipment, net			2,761						2,806
Goodwill			20,370						20,325
Intangible assets, net			7,072						7,639
Deferred income taxes			87						120
Other non-current assets			3,131						2,893
Total assets			$	41,014					$	42,001
Liabilities and equity
Current liabilities
Short-term debt			$	725					$	515
Accounts payable			1,902						2,005
Contract liabilities			2,231						2,142
Compensation and benefits			486						419
Other current liabilities			1,294						2,317
Liabilities of business held for sale			—						235
Total current liabilities			6,638						7,633
Non-current liabilities
Long-term debt, net of current portion of $120 and $640, respectively			10,997						11,081
Deferred income taxes			1,039						942
Other non-current liabilities			2,808						2,766
Total liabilities			21,482						22,422
Equity
Shareholders’ Equity:
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 187,166,752 and 189,794,911 shares at October 3, 2025 and January 3, 2025, respectively			187						190
Paid-in capital			15,152						15,558
Retained earnings			4,171						3,739
Accumulated other comprehensive income			22						27
Total shareholders’ equity			19,532						19,514
Noncontrolling interests			—						65
Total equity			19,532						19,579
Total liabilities and equity			$	41,014					$	42,001

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

_____________________________________________________________________

5

L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

			Year to Date
(In millions)			2025						2024
Operating Activities
Net income			$	1,306					$	1,056
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization			913						963
Share-based compensation			83						76
Net periodic benefit income			(216)						(215)
Share-based matching contributions under defined contribution plans			200						199
Deferred income taxes			151						220
(Increase) decrease in:
Receivables, net			(474)						163
Contract assets			(454)						(372)
Inventories, net			53						46
Other current assets			(18)						(32)
Increase (decrease) in:
Accounts payable			(93)						(45)
Contract liabilities			91						(150)
Compensation and benefits			67						(145)
Other current liabilities			(495)						59
Income taxes			144						(258)
Other operating activities			(114)						(135)
Net cash provided by operating activities			1,144						1,430
Investing Activities
Capital expenditures			(266)						(290)
Proceeds from sales of businesses, net of cash divested			831						158
Other investing activities			(28)						(19)
Net cash provided by (used in) investing activities			537						(151)
Financing Activities
Proceeds from issuances of long-term debt, net			—						2,826
Repayments of long-term debt			(614)						(2,609)
Change in commercial paper, maturities under 90 days, net			210						93
Proceeds from commercial paper, maturities over 90 days			—						688
Repayments of commercial paper, maturities over 90 days			—						(1,205)
Repurchases of common stock			(998)						(512)
Dividends paid			(678)						(665)
Other financing activities			105						75
Net cash used in financing activities			(1,975)						(1,309)
Effect of exchange rate changes on cash and cash equivalents			18						9
Net decrease in cash and cash equivalents			(276)						(21)
Cash and cash equivalents, beginning of period			615						560
Cash and cash equivalents, end of period			$	339					$	539

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

_____________________________________________________________________

6

L3HARRIS TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

			Third Quarter												Year to Date
(In millions, except per share amounts)			2025						2024						2025						2024
Common Stock
Beginning balance			$	187					$	190					$	190					$	190
Share-based compensation			1						—						2						2
Repurchases and retirement of common stock			(1)						—						(5)						(2)
Ending balance			187						190						187						190
Paid-in Capital
Beginning balance			15,090						15,516						15,558						15,553
Share-based compensation and other, net			201						127						391						355
Repurchases and retirement of common stock			(139)						(156)						(797)						(421)
Ending balance			15,152						15,487						15,152						15,487
Retained Earnings
Beginning balance			3,970						3,368						3,739						3,220
Net income and other			462						401						1,306						1,049
Repurchases and retirement of common stock			(36)						(34)						(196)						(89)
Cash dividends			(225)						(220)						(678)						(665)
Ending balance			4,171						3,515						4,171						3,515
Accumulated Other Comprehensive Income (Loss)
Beginning balance			31						(234)						27						(198)
Other comprehensive income, net of income taxes			(9)						40						(5)						4
Ending balance			22						(194)						22						(194)
Noncontrolling Interests
Beginning balance			—						64						65						64
Derecognized with divestiture			—						—						(63)						—
Net income and other			—						—						(2)						—
Ending balance			—						64						—						64
Total Equity			$	19,532					$	19,062					$	19,532					$	19,062
Cash dividends per share			$	1.20					$	1.16					$	3.60					$	3.48

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

_____________________________________________________________________

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE A: BASIS OF PRESENTATION

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements include the accounts of L3Harris Technologies, Inc. and its consolidated subsidiaries. As used in these notes to Condensed Consolidated Financial Statements (these “Notes”), the terms “L3Harris,” “Company,” “we,” “our” and “us” refer to L3Harris Technologies, Inc. and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated.

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, such interim financial statements do not include all information and footnotes necessary for a complete presentation of financial condition, results of operations, cash flows and equity in conformity with GAAP for annual financial statements and are not necessarily indicative of the results that may be expected for the full fiscal year or any subsequent period.

In the opinion of management, these interim financial statements reflect all adjustments (including normal recurring adjustments) considered necessary for a fair presentation of our financial condition, results of operations, cash flows and equity for the periods presented therein. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 3, 2025 (our “Fiscal 2024 Form 10-K”).

Our fiscal year is based on a 52- or 53-week period ending on the Friday nearest December 31. The fiscal quarters ended October 3, 2025 (“third quarter 2025”) and September 27, 2024 (“third quarter 2024”) include 14 and 13 weeks, respectively. The year-to-date periods ended October 3, 2025 (“year to date 2025”) and September 27, 2024 (“year to date 2024”) both include 39 weeks.

Description of Business Segments

We structure our operations primarily around the products, systems and services we sell and the markets we serve and report our financial results in the following four reportable segments:

Communication Systems (“CS”): Software defined communication products and waveforms for domestic and international customers; broadband communications; integrated vision solutions; and public safety radios, system applications and equipment; and

Integrated Mission Systems (“IMS”): Multi-mission intelligence, surveillance and reconnaissance (“ISR”) systems; passive sensing and targeting; electronic attack platforms; autonomy; power and communications; networks; and Commercial Aviation Solutions (“CAS disposal group”), which includes aviation products and pilot training operations and was divested on March 28, 2025; and

Space & Airborne Systems (“SAS”): Satellites and space payloads, sensors and full-mission solutions; classified intelligence and cyber; airborne combat systems; and mission networks for air traffic management operations; and

Aerojet Rocketdyne (“AR”): Missile solutions with propulsion technologies for strategic defense, missile defense, hypersonic and tactical systems and fuzing; and space propulsion and power systems for national security and space exploration missions.

Business realignment. Effective in first quarter 2025, we realigned our fuzing and ordnance (“FOS”) business from our IMS segment to our AR segment. Information on the reallocation of goodwill in connection with the realignment can be found under the “Reallocation of Goodwill in Business Realignment” heading in Note E: Goodwill and Intangible Assets in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference.

The historical results, discussion and presentation of our business segments as set forth in the accompanying Condensed Consolidated Financial Statements and these Notes reflect the impact of these changes for all periods presented in order to present segment information on a comparable basis. There is no impact on our previously reported consolidated statements of operations, balance sheets, statements of cash flows or statements of equity resulting from these changes.

Use of Estimates

The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and these Notes and related disclosures. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying Condensed Consolidated Financial Statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known.

_____________________________________________________________________

8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Reclassifications

The classification of certain prior year amounts have been adjusted in our Condensed Consolidated Financial Statements and these Notes to conform to current year classifications.

Supplemental Cash Flow Information

During year to date 2025, we recognized $150 million of operating lease right-of-use (“ROU”) assets and corresponding liabilities in connection with new or modified lease agreements in our SAS segment. These transactions did not involve cash and therefore are excluded from Investing and Financing Activities in our Condensed Consolidated Statement of Cash Flows. Operating lease ROU assets are included in the “Other non-current assets” line item and the corresponding liabilities are included in the “Other current liabilities” and “Other non-current liabilities” line items in our Condensed Consolidated Balance Sheet.

Recently Issued Accounting Pronouncements

Accounting pronouncements issued during third quarter 2025, but not yet adopted, are not expected to have a material impact on our operating results, financial position, or cash flows. For information on accounting pronouncements issued prior to third quarter 2025, see Note 1: Significant Accounting Policies in our Fiscal 2024 Form 10-K.

NOTE B: EARNINGS PER SHARE (“EPS”)

EPS is calculated as net income attributable to common shareholders divided by our weighted-average number of basic or diluted common shares outstanding. Potential dilutive common shares primarily consist of employee stock options, restricted stock units (“RSUs”) and performance share units (“PSUs”).

The weighted-average number of shares outstanding used to compute basic and diluted EPS are as follows:

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Basic weighted-average common shares outstanding			187.1						189.6						187.6						189.7
Impact of dilutive share-based awards			1.0						0.9						1.0						1.0
Diluted weighted-average common shares outstanding			188.1						190.5						188.6						190.7

Anti-dilutive share-based awards excluded from diluted EPS were 2.0 million for year to date 2025 and 1.0 million and 2.7 million for third quarter and year to date 2024, respectively. There were no anti-dilutive share-based awards excluded from diluted EPS for third quarter 2025.

_____________________________________________________________________

9

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE C: CONTRACT ASSETS AND CONTRACT LIABILITIES

Contract assets mainly represent unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the percentage of completion (“POC”) cost-to-cost revenue recognition method. Contract assets become receivables as we bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may defer payment of a portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of revenue recognized, including deferred revenue. Contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period.

Contract assets and contract liabilities are summarized below:

(In millions)			October 3, 2025						January 3, 2025
Contract assets			$	3,677					$	3,230
Contract liabilities, current			(2,231)						(2,142)
Contract liabilities, non-current(1)			(94)						(91)
Net contract assets			$	1,352					$	997

_______________

(1)Included as a component of the “Other non-current liabilities” line item in our Condensed Consolidated Balance Sheet.

During third quarter and year to date 2025, we recognized revenue of $270 million and $1,485 million, respectively, related to contract liabilities that were outstanding as of January 3, 2025. During third quarter and year to date 2024, we recognized revenue of $193 million and $1,241 million, respectively, related to contract liabilities that were outstanding as of December 29, 2023.

NOTE D: INVENTORIES, NET

Inventories, net are summarized below:

(In millions)			October 3, 2025						January 3, 2025
Finished products			$	268					$	211
Work in process			327						332
Materials and supplies			696						787
Inventories, net			$	1,291					$	1,330

NOTE E: GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by business segment, were as follows:

(In millions)			CS						IMS						SAS						AR						Total
Balance as of January 3, 2025(1)			$	4,938					$	6,422					$	5,999					$	2,966					$	20,325
Currency translation adjustments			—						19						26						—						45
Balance as of October 3, 2025			$	4,938					$	6,441					$	6,025					$	2,966					$	20,370

_______________

(1)Balances reflect impact of FOS business realignment from our IMS segment to our AR segment effective in first quarter 2025, as discussed under the “Reallocation of Goodwill in Business Realignment” heading in Note E: Goodwill and Intangible Assets in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference.

Accumulated goodwill impairment losses in our CS, SAS and AR segments were $355 million, $80 million and $172 million, respectively, as of both October 3, 2025 and January 3, 2025. Accumulated goodwill impairment losses in our IMS segment were $195 million and $954 million as of October 3, 2025 and January 3, 2025, respectively. IMS accumulated impairment losses decreased $759 million in first quarter 2025 in connection with the CAS disposal group divestiture.

_____________________________________________________________________

10

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Intangible Assets

Intangible assets, net are summarized below:

			October 3, 2025																		January 3, 2025
(In millions)			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Finite-lived
Customer relationships			$	8,833					$	(3,999)					$	4,834					$	8,817					$	(3,470)					$	5,347
Developed technologies			852						(533)						319						849						(482)						367
Trade names and other			192						(76)						116						188						(66)						122
Indefinite-lived
Trade name			1,803						—						1,803						1,803						—						1,803
Intangible assets, net			$	11,680					$	(4,608)					$	7,072					$	11,657					$	(4,018)					$	7,639

Amortization expense for intangible assets was $192 million and $579 million for third quarter and year to date 2025, respectively, and $210 million and $642 million for third quarter and year to date 2024, respectively.

The following table presents future estimated amortization expense for intangible assets:

			(In millions)
Next 12 months			$	718
Months 13-24			570
Months 25-36			518
Months 37-48			439
Months 49-60			421
Thereafter			2,603
Total			$	5,269

NOTE F: INCOME TAXES

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing amendments to the U.S. federal income tax code, including permanent reinstatement of immediate expensing for domestic research expenditures, a reduction in the benefit of the research and development (“R&D”) credit, restoration of full expensing for qualified machinery, equipment and other short-lived assets, and several modifications to existing international tax provisions. Certain provisions are effective for 2025, the effects of which have been recognized in third quarter 2025 and are reflected in the Condensed Consolidated Financial Statements and these Notes. Certain other provisions are effective in future fiscal years.

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Income tax expense			$	(105)					$	(26)					$	(244)					$	(54)
Effective tax rate (“ETR”)			18.5		%				6.0		%				15.7		%				4.9		%

ETR for all periods benefited from favorable impacts of R&D credits, tax deductions for foreign derived intangible income (“FDII”) and adjustments recognized upon finalization of our tax returns. Both year to date 2025 and 2024 ETR also benefited from favorable resolution of audit uncertainties.

The increase in ETR for third quarter 2025 compared with third quarter 2024 was primarily due to the enactment of OBBBA and the CAS disposal group divestiture, representing unfavorable impacts of 7.4% and 3.7%, respectively.

The increase in ETR for year to date 2025 compared with year to date 2024 was primarily due to the enactment of OBBBA, the CAS disposal group divestiture, and a state legislative change that required us to establish a valuation allowance on state R&D credit carryforwards, representing unfavorable impacts of 3.9%, 3.5% and 2.1%, respectively.

_____________________________________________________________________

11

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE G: DEBT AND CREDIT ARRANGEMENTS

Long-Term Debt

Long-term debt is summarized below:

(In millions)			October 3, 2025						January 3, 2025
Fixed-rate debt(1)			$	10,876					$	11,476
Finance lease obligations and other			284						288
Unamortized discounts and issuance costs, net of bond premium			(43)						(43)
Total long-term debt			11,117						11,721
Less: current portion(2)			120						640
Long-term debt, net of current portion			$	10,997					$	11,081

_______________

(1)See Note 8: Debt and Credit Arrangements in our Fiscal 2024 Form 10-K for information on our fixed-rate debt.

(2)Included in “Other current liabilities” line item in our Condensed Consolidated Balance Sheet.

Repayments. On April 27, 2025, we repaid the entire outstanding $600 million of our 3.832% notes, due April 27, 2025 (“3.832% 2025 Notes”) with proceeds from the issuance and sale of $600 million 5.50% notes, due August 15, 2054 (“5.50% 2054 Notes”) in fiscal 2024.

Fair Value. As of October 3, 2025 and January 3, 2025, the estimated fair value of long-term debt was $11.3 billion and $11.5 billion, respectively. These values were estimated using a market approach based on quoted market prices for our debt in the secondary market and would be classified as Level 2 in the fair value hierarchy. See Note K: Fair Value Measurements in these Notes for further information on fair value.

Commercial Paper Program

Under our commercial paper program (“CP Program”), we may issue unsecured commercial paper notes up to a maximum aggregate amount of $3.0 billion. The CP Program is supported by amounts available under our credit agreements, discussed below.

The commercial paper notes are sold at par less a discount representing an interest factor or, if interest bearing, at par, and the maturities vary but may not exceed 397 days from the date of issue. The commercial paper notes rank at least pari passu with all other unsecured and unsubordinated indebtedness.

As of October 3, 2025 and January 3, 2025, we had $725 million and $515 million in outstanding notes under our CP Program, respectively, which is included in the “Short-term debt” line item in our Condensed Consolidated Balance Sheet. The outstanding notes under our CP Program had a weighted-average interest rate of 4.35% and 4.70% as of October 3, 2025 and January 3, 2025, respectively.

Credit Agreements

Five-Year Credit Facility. On February 18, 2025, we established a new $2.5 billion, five-year senior unsecured revolving credit facility (the “2025 Five-Year Credit Facility”) by entering into a Revolving Credit Agreement (“2025 Five-Year Credit Agreement”) maturing on February 18, 2030 with a syndicate of lenders. The 2025 Five-Year Credit Facility replaced the prior $2.0 billion, five-year senior unsecured revolving credit facility established under the Revolving Credit Agreement, dated July 29, 2022 (“2022 Credit Agreement”), and provides for revolving loans, swingline loans and letters of credit, with a sub-limit of $200 million for swingline loans and a sub-limit of $350 million for letters of credit, with the option to request an increase of the maximum amount of commitments up to $3.5 billion.

At our election, borrowings in U.S. Dollars under the 2025 Five-Year Credit Agreement will bear interest at the sum of the secured overnight funding rate (“SOFR”) or the Base Rate (as defined in the 2025 Five-Year Credit Agreement), plus an applicable margin that varies based on the ratings of our senior unsecured long-term debt securities (“Senior Debt Ratings”). In addition to interest payable on the principal amount of indebtedness outstanding, we are required to pay a quarterly unused commitment fee and letter of credit fees based on our Senior Debt Ratings.

364-Day Credit Facility. On February 18, 2025, we established a new $500 million 364-day senior unsecured revolving credit facility (“2025 364-Day Credit Facility”) by entering into a 364-day Credit Agreement (“2025 364-Day Credit Agreement”) maturing no later than February 17, 2026 with a syndicate of lenders. The 2025 364-Day Credit Agreement replaced the prior $1.5 billion 364-day credit agreement (“2024 Credit Agreement”), which matured on January 24, 2025.

_____________________________________________________________________

12

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

At our election, borrowings in U.S. Dollars under the 2025 364-Day Credit Agreement, will bear interest at the sum of the applicable SOFR or the Base Rate (as defined in the 2025 364-Day Credit Agreement), plus an applicable margin that varies based on our Senior Debt Ratings. In addition to interest payable on the principal amount of indebtedness outstanding, we are required to pay a quarterly unused commitment fee that varies based on our Senior Debt Ratings.

Both the 2025 Five-Year Credit Agreement and the 2025 364-Day Credit Agreement contain customary representations, warranties, covenants and events of default for investment grade borrowers and financings of this type.

As of October 3, 2025, we had no outstanding borrowings under either the 2025 Five-Year Credit Agreement or the 2025 364-Day Credit Agreement, had available borrowing capacity of $2.3 billion, net of outstanding borrowings under our CP Program and were in compliance with all covenants under both aforementioned credit agreements.

NOTE H: RETIREMENT BENEFITS

The components of net periodic benefit income for our defined benefit pension plans and other postretirement benefit plans (“other benefits”) (collectively, “defined benefit plans”) were as follows:

			Third Quarter
			2025																		2024
(In millions)			Pension						Other Benefits						Total						Pension						Other Benefits						Total
Operating
Service cost(1)			$	7					$	—					$	7					$	8					$	—					$	8
Non-operating
Interest cost			77						3						80						99						3						102
Expected return on plan assets			(136)						(6)						(142)						(165)						(5)						(170)
Amortization of net actuarial gains			(1)						(3)						(4)						(1)						(4)						(5)
Amortization of prior service credits			(7)						—						(7)						(7)						—						(7)
Non-service cost net periodic benefit income(2)			(67)						(6)						(73)						(74)						(6)						(80)
Net periodic benefit income			$	(60)					$	(6)					$	(66)					$	(66)					$	(6)					$	(72)
			Year to Date
			2025																		2024
(In millions)			Pension						Other Benefits						Total						Pension						Other Benefits						Total
Operating
Service cost(1)			$	19					$	1					$	20					$	25					$	1					$	26
Non-operating
Interest cost			242						8						250						296						8						304
Expected return on plan assets			(423)						(16)						(439)						(495)						(15)						(510)
Amortization of net actuarial gains			(4)						(10)						(14)						(3)						(13)						(16)
Amortization of prior service (credits) costs			(20)						1						(19)						(20)						1						(19)
Effect of settlements			(14)						—						(14)						—						—						—
Non-service cost net periodic benefit income(2)			(219)						(17)						(236)						(222)						(19)						(241)
Net periodic benefit income			$	(200)					$	(16)					$	(216)					$	(197)					$	(18)					$	(215)

______________

(1)Included in the “Cost of revenue” and “General and administrative expenses” line items in our Condensed Consolidated Statement of Operations.

(2)Included in the “Non-service FAS pension income and other, net” line item in our Condensed Consolidated Statement of Operations.

_____________________________________________________________________

13

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Pension Group Annuity Purchase

In first quarter 2025, we executed nonparticipating single premium group annuity contracts to transfer $1.2 billion of our Consolidated Pension Plan benefit obligation to an insurance provider. For additional information, see the “Pension Group Annuity Purchase” heading in Note H: Retirement Benefits in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference.

NOTE I: SHARE-BASED COMPENSATION

As of October 3, 2025, we had stock options and other share-based compensation awards outstanding under our 2024 Equity Incentive Plan and predecessor plans (collectively, the “L3Harris SIPs”).

Awards granted to participants under the L3Harris SIPs and the weighted-average grant-date fair value per share or unit were as follows:

			Year to Date
			2025												2024
(In thousands, except per share/unit amounts)			Shares or Units						Weighted-Average Grant-Date Fair Value Per Share or Unit						Shares or Units						Weighted-Average Grant-Date Fair Value Per Share or Unit
Stock option shares granted(1)			388						$	49.20					415						$	50.99
RSUs granted(2)			237						214.88						151						214.00
PSUs granted(3)			185						217.67						172						230.09

_______________

(1)Other than certain stock options granted in connection with new hires, our stock options generally vest ratably in equal amounts over a three-year period.

(2)The majority of our RSUs, including those granted annually to executives under our long-term incentive plan, cliff vest after three years.

(3)Our PSUs are subject to performance criteria and generally vest after the three-year performance period.

The aggregate number of shares of our common stock issued under the L3Harris SIPs, net of shares withheld for tax purposes, was 0.7 million and 1.1 million for third quarter and year to date 2025, respectively, and 0.4 million and 1.2 million for third quarter and year to date 2024, respectively.

Share-based compensation expense was $35 million and $83 million for third quarter and year to date 2025, respectively, and $23 million and $76 million for third quarter and year to date 2024, respectively.

NOTE J: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in the components of accumulated other comprehensive income (loss), net of income taxes, were as follows:

(In millions)			Foreign currency translation and other, net(1)						Pension and other postretirement benefits(2)						Total accumulated other comprehensive income (loss)
Balance at January 3, 2025			$	(331)					$	358					$	27
Other comprehensive income (loss) before reclassifications			67						(43)						24
Losses (gains) reclassified to earnings			15						(44)						(29)
Other comprehensive income (loss)			82						(87)						(5)
Balance at October 3, 2025			$	(249)					$	271					$	22
Balance at December 29, 2023			$	(266)					$	68					$	(198)
Other comprehensive income before reclassifications			24						3						27
Losses (gains) reclassified to earnings			4						(27)						(23)
Other comprehensive income (loss)			28						(24)						4
Balance at September 27, 2024			$	(238)					$	44					$	(194)

_______________

(1)Other, net consists of hedging derivatives.

(2)For additional information see Note H: Retirement Benefits in these Notes.

_____________________________________________________________________

14

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE K: FAIR VALUE MEASUREMENTS

We measure certain assets and liabilities at fair value on a recurring basis utilizing a three-level fair value hierarchy that prioritizes inputs based on market observability:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs other than quoted prices included within Level 1, including: quoted prices for similar assets or liabilities in active or inactive markets; quoted prices for identical assets or liabilities in inactive markets; and inputs derived from or corroborated by observable market data.

•Level 3 — Unobservable inputs with little or no market activity that are significant to the fair value of the assets or liabilities and reflect our assumptions about market participants’ pricing, using the best available information.

We utilize observable inputs whenever available. In certain instances, fair value is estimated using quoted market prices from external pricing services. We assess the methodologies of these services to ensure valuations reflect fair value, including net asset value (“NAV”). The NAV reported by an asset manager may be adjusted when sufficient evidence indicates NAV is not representative of fair value.

Deferred Compensation Plans

We sponsor certain non-qualified deferred compensation plans which are measured at fair value on a recurring basis in our Condensed Consolidated Balance Sheet. Deferred compensation plan assets represent diversified assets held in rabbi trusts, which include marketable equity and fixed income securities (Level 1) and corporate-owned life insurance (”COLI”) contracts measured at NAV. Liabilities represent participant balances in marketable equity securities (Level 1) and common/collective trusts (“CCTs”) and guaranteed investment contracts (“GICs”) measured at NAV based on participant designed investment options.

The following table summarizes our deferred compensation plan assets and liabilities:

			October 3, 2025												January 3, 2025
(In millions)			Total						Level 1						Total						Level 1
Assets
Equity and fixed income securities			$	252					$	252					$	219					$	219
COLI, measured at NAV			37												41
Deferred compensation plan assets(1)			$	289											$	260
Liabilities
Equity securities			$	14					$	14					$	10					$	10
CCTs and GICs, measured at NAV			404												357
Deferred compensation plan liabilities(2)			$	418											$	367

_______________

(1)Included in the “Other current assets” and “Other non-current assets” line items in our Condensed Consolidated Balance Sheet.

(2)Included in the “Compensation and benefits” and “Other non-current liabilities” line items in our Condensed Consolidated Balance Sheet.

NOTE L: CHANGES IN ESTIMATES

Many of our contracts utilize the POC cost-to-cost method of revenue recognition. A single estimated profit margin is used to recognize profit for each performance obligation over its period of performance. At the outset of each contract, we gauge its complexity and perceived risks and establish an estimated total cost at completion in line with those expectations. Due to the long-term nature of many of these contracts, developing the estimated total cost at completion and total transaction price often requires judgment. After establishing the estimated total cost at completion, we follow a standard estimate at completion (“EAC”) process in which we review the progress and performance on our ongoing contracts. If we successfully retire risks associated with the technical, schedule and cost aspects of a contract, we may lower our estimated total cost at completion commensurate with the retirement of these risks. Conversely, there are many reasons estimated contract costs can increase, including: (i) supply chain disruptions, inflation and labor issues; (ii) design or other development challenges; and (iii) program execution challenges (including technical schedule or quality issues and other performance concerns). Additionally, as the contract progresses, our estimates of total transaction price may increase or decrease if, for example, we receive incentive or award fees that are higher or lower than expected.

_____________________________________________________________________

15

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

For additional discussion of our revenue recognition policies and our EAC process, see “Critical Accounting Estimates” in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Form 10-K.

The following table presents the effect of aggregate net EAC adjustments:

			Third Quarter												Year to Date
(In millions, except per share amounts)			2025						2024						2025						2024
Revenue			$	45					$	48					$	119					$	135
Operating income			27						—						(14)						19
Net income(1)			20						—						(11)						15
Diluted EPS			0.10						—						(0.06)						0.08

_______________

(1)Based on a 25 percent federal and state statutory tax rate.

NOTE M: CONTRACTUAL BACKLOG

Contractual backlog, which is the equivalent of our remaining performance obligations, represents the future revenue we expect to recognize as we perform on our current contracts. Contractual backlog comprises both funded backlog (i.e., firm orders for which funding is authorized and appropriated) and unfunded backlog (i.e., orders for which funds have not been appropriated and/or incrementally funded). Contractual backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as indefinite-delivery, indefinite-quantity contracts.

As of October 3, 2025, our contractual backlog was $36.3 billion. We expect to recognize approximately 45% of our contractual backlog as revenue over the next twelve months and 65% as revenue over the next twenty-four months, with the remainder to be recognized thereafter.

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16

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE N: DIVESTITURES

CAS Disposal Group

On March 28, 2025, we completed the sale of our CAS disposal group, for cash proceeds, net of cash divested, of $831 million. The CAS disposal group, which provided integrated aircraft avionics, pilot training and data analytics services for the commercial aviation industry, was reported in our IMS segment through the date of sale. Income before income taxes attributable to L3Harris was $21 million for year to date 2025 and $31 million and $87 million for third quarter and year to date 2024, respectively.

The carrying amounts of assets and liabilities included in the CAS disposal group divestiture were as follows:

(In millions)			March 28, 2025
Receivables, net			$	117
Contract assets			47
Inventories, net			139
Other current assets			22
Property, plant and equipment, net			46
Goodwill(1)			535
Intangible assets, net			263
Other non-current assets			60
Total assets			1,229
Accounts payable			95
Contract liabilities			49
Compensation and benefits			6
Other current liabilities			41
Long-term debt, net of current portion			2
Other non-current liabilities			59
Total liabilities			252
Net assets divested			$	977

_______________

(1)Includes $759 million of accumulated goodwill impairment losses reported in our IMS segment through the date of sale.

In connection with the divestiture, we derecognized noncontrolling interest and accumulated other comprehensive income of $63 million and $6 million, respectively, and recognized a $17 million pre-tax loss, inclusive of amounts attributable to noncontrolling interest. The pre-tax loss, which is included in the “General and administrative expenses” line item in our Condensed Consolidated Statement of Operations for year to date 2025, is incremental to the previously recorded CAS disposal group losses recognized in fiscal 2024 and 2023. The final cumulative loss on sale remains subject to certain purchase price adjustments, including final working capital settlement, as set forth in the agreement, and will be finalized in fiscal 2025.

For additional information on the CAS disposal group, including the cumulative pre-tax losses recognized and carrying amounts of assets and liabilities classified as held for sale as of January 3, 2025, see Note 13: Acquisitions and Divestitures in our Fiscal 2024 Form 10-K.

Antenna Disposal Group

On May 31, 2024, we completed the divestiture of our antenna and related businesses (“Antenna disposal group”) from our SAS segment. For additional information, see Note 13: Acquisitions and Divestitures in our Fiscal 2024 Form 10-K.

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17

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE O: BUSINESS SEGMENT INFORMATION

We structure our operations primarily around the products, systems and services we sell and the markets we serve and report our financial results in four reportable segments: CS, IMS, SAS and AR.

Business Segment Financial Results

The following table presents operating results by business segment and a reconciliation to total income before income taxes:

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Revenue
CS			$	1,462					$	1,382					$	4,190					$	4,022
IMS			1,700						1,608						4,914						4,906
SAS			1,809						1,683						5,207						5,141
AR			755						669						2,082						1,886
Other(1)			(67)						(50)						(176)						(153)
Total revenue			5,659						5,292						16,217						15,802
Cost of revenue
CS			$	(911)					$	(858)					$	(2,637)					$	(2,571)
IMS			(1,308)						(1,203)						(3,808)						(3,743)
SAS			(1,425)						(1,325)						(4,112)						(4,020)
AR			(589)						(535)						(1,627)						(1,466)
Other(1)			68						48						146						125
Total cost of revenue			(4,165)						(3,873)						(12,038)						(11,675)
Other segment costs(2)
CS			$	(169)					$	(165)					$	(490)					$	(453)
IMS			(188)						(201)						(485)						(574)
SAS			(166)						(163)						(481)						(495)
AR			(70)						(58)						(190)						(186)
Other(1)			(1)						2						30						28
Total other segment costs(3)			(594)						(585)						(1,616)						(1,680)
Operating income
CS			$	382					$	359					$	1,063					$	998
IMS			204						204						621						589
SAS			218						195						614						626
AR			96						76						265						234
Unallocated corporate items			(279)						(339)						(846)						(1,098)
Total operating income			621						495						1,717						1,349
Non-service FAS pension income and other, net			98						101						287						275
Interest expense, net			(152)						(166)						(454)						(514)
Income before income taxes			$	567					$	430					$	1,550					$	1,110

_____________

(1)     Includes corporate headquarters and intersegment eliminations.

(2)    Other segment costs consist of company-funded R&D costs, selling and marketing costs and other General and Administrative (“G&A”) expenses, which include a portion of depreciation and amortization expenses that are disclosed by segment under the “Other Financial Information” heading below in this Note.

(3)     Includes gains recognized in connection with the monetization of certain legacy end-of-life assets.

_____________________________________________________________________

18

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Unallocated Corporate Items. Total unallocated corporate items include expenses not included in management’s evaluation of segment operating performance, such as amortization of intangibles; merger, acquisition, and divestiture-related expenses; business divestiture-related losses and any related impairment of goodwill; and LHX NeXt implementation costs. Additionally, unallocated corporate items include a portion of management and administration, legal, environmental, compensation and retiree benefits, the FAS/Cost Accounting Standards (“CAS”) operating adjustment, eliminations and other.

LHX NeXt Initiative. LHX NeXt is our initiative to transform multiple functions, systems and processes to increase agility and competitiveness. The LHX NeXt effort is expected to continue into 2026 with non-recurring costs for workforce optimization, incremental information technology (“IT”) expenses for implementation of new systems, third party consulting and other costs.

Other Financial Information

The following table presents capital expenditures and depreciation and amortization by business segment:

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Capital Expenditures
CS			$	19					$	9					$	40					$	27
IMS			16						25						51						93
SAS			31						23						74						107
AR			33						11						62						26
Corporate			20						10						39						37
Total capital expenditures			$	119					$	78					$	266					$	290
Depreciation and Amortization
CS			$	13					$	14					$	39					$	42
IMS			20						15						52						46
SAS			40						35						106						92
AR			12						14						37						37
Corporate			224						246						679						746
Total depreciation and amortization			$	309					$	324					$	913					$	963

Assets

Total assets by business segment were as follows:

(In millions)			October 3, 2025						January 3, 2025
CS			$	7,186					$	7,060
IMS			9,741						10,389
SAS			9,117						8,705
AR			4,811						4,826
Corporate(1)			10,159						11,021
Total assets			$	41,014					$	42,001

_______________

(1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company of $7,072 million and $7,639 million as of October 3, 2025 and January 3, 2025, respectively.

_____________________________________________________________________

19

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Disaggregation of Revenue

We disaggregate revenue for all four business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

			Third Quarter
			2025																								2024
(In millions)			CS						IMS						SAS						AR						CS						IMS						SAS						AR
Revenue By Customer Relationship
Prime contractor			$	1,127					$	1,220					$	1,114					$	173					$	977					$	1,036					$	1,008					$	164
Subcontractor			317						459						675						574						388						557						663						499
Intersegment			18						21						20						8						17						15						12						6
Total segment			$	1,462					$	1,700					$	1,809					$	755					$	1,382					$	1,608					$	1,683					$	669
Revenue By Contract Type
Fixed-price			$	1,231					$	1,192					$	1,203					$	490					$	1,146					$	1,196					$	1,012					$	423
Cost-type			213						487						586						257						219						397						659						240
Intersegment			18						21						20						8						17						15						12						6
Total segment			$	1,462					$	1,700					$	1,809					$	755					$	1,382					$	1,608					$	1,683					$	669
Revenue By Geographical Region
United States			$	948					$	1,290					$	1,572					$	619					$	975					$	1,150					$	1,484					$	651
International			496						389						217						128						390						443						187						12
Intersegment			18						21						20						8						17						15						12						6
Total segment			$	1,462					$	1,700					$	1,809					$	755					$	1,382					$	1,608					$	1,683					$	669

			Year to Date
			2025																								2024
(In millions)			CS						IMS						SAS						AR						CS						IMS						SAS						AR
Revenue By Customer Relationship
Prime contractor			$	3,154					$	3,440					$	3,230					$	473					$	2,805					$	3,176					$	3,192					$	495
Subcontractor			989						1,418						1,927						1,586						1,164						1,691						1,909						1,370
Intersegment			47						56						50						23						53						39						40						21
Total segment			$	4,190					$	4,914					$	5,207					$	2,082					$	4,022					$	4,906					$	5,141					$	1,886
Revenue By Contract Type
Fixed-price			$	3,550					$	3,695					$	3,392					$	1,332					$	3,329					$	3,745					$	3,192					$	1,138
Cost-type			593						1,163						1,765						727						640						1,122						1,909						727
Intersegment			47						56						50						23						53						39						40						21
Total segment			$	4,190					$	4,914					$	5,207					$	2,082					$	4,022					$	4,906					$	5,141					$	1,886
Revenue By Geographical Region
United States			$	2,695					$	3,671					$	4,515					$	1,825					$	2,786					$	3,537					$	4,479					$	1,828
International			1,448						1,187						642						234						1,183						1,330						622						37
Intersegment			47						56						50						23						53						39						40						21
Total segment			$	4,190					$	4,914					$	5,207					$	2,082					$	4,022					$	4,906					$	5,141					$	1,886

_____________________________________________________________________

20

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE P: LEGAL PROCEEDINGS AND CONTINGENCIES

In the ordinary course of business, we are routinely defendants in, parties to or otherwise subject to many pending and threatened legal actions, claims, disputes, arbitration and other legal proceedings incident to our business, arising from or related to matters, including but not limited to: product liability; personal injury; patents, trademarks, trade secrets or other intellectual property; labor and employment disputes; commercial or contractual disputes; acquisitions or divestitures; the prior sale or use of former products allegedly containing asbestos or other restricted materials; breach of warranty; or environmental matters. Claimed amounts against us may be substantial, but may not bear any reasonable relationship to the merits of the claim or the extent of any real risk of court or arbitration awards. We record accruals for losses related to those matters against us that we consider to be probable and that can be reasonably estimated. Gain contingencies, if any, are recognized when they are realized and legal costs generally are expensed when incurred. As of October 3, 2025, our accrual for the potential resolution of lawsuits, claims or proceedings that we consider probable of being decided unfavorably to us was not material. We cannot at this time estimate the reasonably possible loss or range of loss in excess of our accrual due to the inherent uncertainties and speculative nature of contested proceedings. Although it is not feasible to predict the outcome of these matters with certainty, based on available information, in the opinion of management, settlements, arbitration awards and final judgments, if any, that are considered probable of being rendered against us in litigation or arbitration in existence as of October 3, 2025 were reserved against or would not have a material adverse effect on our financial condition, results of operations, cash flows or equity.

Environmental Matters

We are subject to numerous U.S. Federal, state, local and international environmental laws and regulatory requirements and are involved from time to time in investigations or litigation of various potential environmental issues. We or companies we have acquired are responsible, or alleged to be responsible, for environmental investigation and/or remediation of multiple sites, including sites owned by us and third-party sites. These sites are in various stages of investigation and/or remediation, and in some cases our liability is considered de minimis. Notices from the U.S. Environmental Protection Agency or equivalent state or international environmental agencies allege that several sites formerly or currently owned and/or operated by us or companies we have acquired, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances of us or companies we acquired being identified as a potentially responsible party (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the “Superfund Act”), the Resource Conservation Recovery Act and/or equivalent state and international laws, and in some instances, our liability and proportionate share of costs that may be shared among other PRPs have not been determined largely due to uncertainties as to the nature and extent of site conditions and our involvement.

Based on an assessment of relevant factors, we estimated that our liability under applicable environmental statutes and regulations for identified sites was $667 million and $637 million as of October 3, 2025 and January 3, 2025, respectively. The current and non-current portions of our estimated environmental liability are included in the “Other current liabilities” and “Other non-current liabilities” line items, respectively, in our Condensed Consolidated Balance Sheet.

Some of these environmental costs are recoverable from the U.S. Government. We consider the recovery probable based on U.S. Government contracting regulations and, accordingly, record an asset for the recoverable portion of these reserves which was $490 million and $462 million, as of October 3, 2025 and January 3, 2025, respectively. The current and non-current portions of the recoverable costs are included in the “Other current assets” and “Other non-current assets” line items, respectively, in our Condensed Consolidated Balance Sheet.

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21

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of L3Harris Technologies, Inc.

Results of Review of Interim Financial Statements

We have reviewed the accompanying condensed consolidated balance sheet of L3Harris Technologies, Inc. and subsidiaries (the Company) as of October 3, 2025, the related condensed consolidated statements of operations, comprehensive income and equity for the quarter and three quarters ended October 3, 2025 and September 27, 2024, the condensed consolidated statements of cash flows for the three quarters ended October 3, 2025 and September 27, 2024, and the related notes (collectively referred to as the “condensed consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of the Company as of January 3, 2025, the related consolidated statements of operations, comprehensive income, cash flows and equity for the year then ended, and the related notes (not presented herein); and in our report dated February 14, 2025, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of January 3, 2025, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP

Orlando, Florida

October 30, 2025

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22

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following Management’s Discussion and Analysis (“MD&A”) is intended to assist in an understanding of our financial condition and results of operations. This MD&A is provided as a supplement to, should be read in conjunction with, and is qualified in its entirety by reference to, our Condensed Consolidated Financial Statements and accompanying Notes in this Report (the “Notes”). In addition, reference should be made to our audited Consolidated Financial Statements and accompanying Notes to our Consolidated Financial Statements and Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Form 10-K. The discussions in this MD&A contain forward-looking statements.

OVERVIEW

We are the Trusted Disruptor in the defense industry. With customers’ mission-critical needs always in mind, we deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. We support government customers in more than 100 countries, with our largest customers being various departments and agencies of the U.S. Government, their prime contractors and international allies. Our products, systems and services have defense and civil government applications, as well as commercial applications. The percentage of our revenue that was derived from sales to U.S. Government customers, including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, was 75% for year to date 2025.

U.S. and International Budget Environment

The U.S. and international budget environments are evolving rapidly within a dynamic geopolitical context, influenced by the new administration and Congress, heightened geopolitical tensions, global security concerns, inflationary pressures, and overall macroeconomic conditions.

On March 15, 2025, the President signed into law a full-year Continuing Resolution (“CR”) for GFY 2025, funding the government through September 30, 2025, with $893 billion for defense funding, including $851 billion for the U.S. Department of War (“DoW”). This was in line with the 1% increase permitted by the caps under the Fiscal Responsibility Act of 2023 for GFY 2025. Notably, the CR provided funding at the account level, not the program level, allowing federal agencies more discretion with how they prioritized funding for programs.

On May 2, 2025, the White House released a preliminary GFY 2026 budget that included a flat national defense topline of $893 billion (including $849 billion for DoW) and included an additional $119 billion from reconciliation funding in 2026 for a total of approximately $1 trillion. The administration requested $557 billion for non-defense funding, down from $721 billion in GFY 2025, resulting in material funding declines for some agencies, including a $6 billion cut to NASA.

On July 4, 2025, the President signed Congress’ reconciliation package which included $155 billion for national defense spending to fund DoW priorities, including priorities closely aligned with L3Harris interests and opportunities, such as Golden Dome, munitions, and shipbuilding, $165 billion for Department of Homeland Security priorities, $12.5 billion for the Federal Aviation Administration (“FAA”) for air traffic control modernization efforts and $10 billion for NASA. The administration has stated that it expects departments and agencies will be able to access significant amounts of this additional funding in GFY 2026, specifically noting the expectation that the DoW will access $113 billion in GFY 2026. The reconciliation package also raises the debt ceiling by $5 trillion and enacts key changes to the federal tax code, further discussed under the “U.S. Federal Tax Reform” heading below.

The National Defense Authorization Act (“NDAA”) has passed both the House and Senate, but differences must be negotiated including a compromise on the DoW topline. The NDAA provides authorization of appropriations for the DoW, nuclear weapons programs of the Department of Energy, and other defense-related activities. In addition to serving as an authorization of appropriations, the NDAA establishes defense policies and restrictions, and addresses organizational administrative matters related to the DoW. In addition, the House passed the Defense Appropriations bill on July 18, 2025, but the Senate has yet to pass the measure. We look forward to Congress’ completion of both measures to ensure timely funding and ensure our programs and priorities are authorized and fully funded.

On October 1, 2025, after Congress failed to reach an agreement on a short-term spending deal or full-year appropriation, the federal government entered a shutdown. The defense industry, including our company, could be impacted if the shutdown becomes prolonged, stemming from slow downs in incremental funding on existing contracts or delays in government payments on invoices. With most civilian government employees furloughed, many critical operations will cease, including article acceptance and new contract awards – not just delaying awards

_____________________________________________________________________

23

that would have been accepted or issued, respectively, during this period, but causing a backlog upon the resumption of normal operations. In some cases, the government could also issue “stop work” orders to cease certain operations. In addition, certain federal administrative functions, such as processing tax returns and issuance of tax refunds, have been suspended, which may delay expected cash inflows. Finally, international business operations are not protected from a U.S. Government shutdown – export notifications and Foreign Military Sales processes will cease, delaying ongoing activities and also resulting in a backlog upon the government’s reopening. These factors could have significant near- and long-term consequences for our company, our employees, our suppliers and the defense industry, including delayed cash collections and could have a material adverse effect on results of operations and cash flows.

Internationally, almost all NATO allies have committed to spend 5% of GDP annually over the next decade, with 3.5% on core defense articles and another 1.5% on critical infrastructure, cyber and other key areas.

See our U.S. Government funding risks and the discussion of our international business risks within Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K.

U.S. Federal Tax Reform

In third quarter 2025, OBBBA was enacted, introducing amendments to the U.S. federal income tax code, including permanent reinstatement of immediate expensing for domestic research expenditures, a reduction in the benefit of the R&D credit, restoration of full expensing for qualified machinery, equipment and other short-lived assets, and several modifications to existing international tax provisions. Certain provisions are effective for 2025, the effects of which have been recognized in third quarter 2025 and are reflected in the Condensed Consolidated Financial Statements and these Notes. Certain other provisions are effective in future fiscal years.

Economic Environment

The ongoing uncertainty related to the impacts of inflation, as well as the interest rate environment and ongoing federal deficits could in the future impact U.S. Government spending priorities for our products and services. For a discussion of inflation-related risks, see Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K.

We continue to monitor and evaluate the potential impact of current and proposed changes in trade policies and in particular, tariffs. In response to enacted tariffs, we are seeking exemptions, evaluating alternative sources of materials and subcontracted components, as well as engaging in supplier negotiations to help manage cost impacts and are considering price adjustments and other strategies to support profitability. Based on current conditions, we do not expect a material impact on our 2025 results, but will continue to monitor developments and assess potential implications as trade policies evolve.

For a discussion of trade policy and macroeconomic related risks, see Part II. Item 1A. Risk Factors in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference, and Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K.

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RESULTS OF OPERATIONS

Third Quarter 2025 and 2024 include 14 and 13 weeks, respectively, while year to date 2025 and 2024 both include 39 weeks. Outcomes for specific periods, or year-over-year comparisons of results of operations and segment performance should be considered in this context.

Consolidated Results of Operations

			Third Quarter												Year to Date
(Dollars in millions, except per share amounts)			2025						2024												2025						2024
Revenue
Products			$	4,054					$	3,695											$	11,328					$	10,978
Services			1,605						1,597												4,889						4,824
Total revenue			5,659						5,292												16,217						15,802
Cost of revenue
Products			(2,939)						(2,739)												(8,251)						(7,993)
Services			(1,226)						(1,134)												(3,787)						(3,682)
Total cost of revenue			(4,165)						(3,873)												(12,038)						(11,675)
Gross margin			1,494						1,419												4,179						4,127
General and administrative expenses			(873)						(924)												(2,462)						(2,778)
Operating Income			621						495												1,717						1,349
Non-service FAS pension income and other, net			98						101												287						275
Interest expense, net			(152)						(166)												(454)						(514)
Income before income taxes			567						430												1,550						1,110
Income taxes			(105)						(26)												(244)						(54)
Effective Tax Rate			18.5		%				6.0		%										15.7		%				4.9		%
Net income			462						404												1,306						1,056
Noncontrolling interests, net of income taxes			—						(4)												—						(7)
Net income attributable to L3Harris			$	462					$	400											$	1,306					$	1,049
Diluted EPS			$	2.46					$	2.10											$	6.92					$	5.50

Revenue

Revenue increased $367 million, or 7%, and $415 million, or 3%, for third quarter and year to date, respectively, due to higher revenues across all our segments, primarily from higher volumes, including new program ramps, and increased international deliveries.

See the “Business Segment Results of Operations” discussion below in this MD&A for further information.

Gross Margin

Third Quarter Comparison. Gross margin increased $75 million, primarily due to a $27 million favorable change in net EAC adjustments and higher volumes, primarily in our AR and CS segments. Such increases were partially offset by a $67 million decrease reflecting the absence of the CAS disposal group as a result of the March 2025 divestiture.

Year to Date Comparison. Gross margin increased $52 million primarily due to higher volumes, primarily in our AR and CS segments, partially offset by a $134 million decrease reflecting the absence of the CAS disposal group as a result of the March 2025 divestiture and $33 million unfavorable change in net EAC adjustments.

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G&A Expenses

The following table presents the components of G&A expenses:

			Third Quarter												Year to Date
(In millions)			2025						2024						2025						2024
Amortization of intangibles			$	(177)					$	(194)					$	(531)					$	(585)
Company-funded R&D costs			(137)						(135)						(381)						(373)
Selling and marketing			(129)						(112)						(354)						(337)
LHX NeXt implementation costs(1)			(25)						(41)						(99)						(216)
Merger, acquisition, and divestiture-related expenses			(10)						(25)						(40)						(86)
Business divestiture-related losses			—						(29)						(17)						(53)
Other G&A expenses(2)			(395)						(388)						(1,040)						(1,128)
G&A expenses			$	(873)					$	(924)					$	(2,462)					$	(2,778)

_______________

(1)Includes costs associated with transforming multiple functions, systems and processes to increase agility and competitiveness, including third-party consulting, workforce optimization and incremental IT expenses for implementation of new systems. See Note O: Business Segment Information in the Notes and the “Operating Environment, Strategic Priorities and Key Performance Measures” section in the MD&A in our Fiscal 2024 Form 10-K for more detail on our LHX NeXt initiative and implementation costs.

(2)Includes other segment G&A expenses, primarily payroll and benefits, outside services, facilities, insurance, gains recognized from asset sales, and unallocated corporate items.

Third Quarter Comparison. G&A expenses decreased $51 million, or 6%, primarily due to the absence of a $29 million business divestiture-related loss associated with the then pending CAS disposal group divestiture in third quarter 2024, decreases in amortization of intangibles, LHX NeXt implementation costs, and merger, acquisition, and divestiture-related expenses, and an increase in gains recognized in connection with the monetization of certain legacy end-of-life assets, including recognition of a $19 million gain in our SAS segment in 2025. Such impacts were partially offset by a $17 million increase in selling and marketing expenses and an increase in other G&A expenses.

Year to Date Comparison. G&A expenses decreased $316 million, or 11%, primarily due to lower LHX NeXt implementation costs of $117 million, including lower third-party consulting and employee severance of $67 million and $29 million, respectively, decreases in amortization of intangibles and merger, acquisition and divestiture-related expenses, and an increase in gains recognized in connection with the monetization of certain legacy end-of-life assets, including recognition of a $75 million gain in our IMS segment in 2025, partially offset by an increase in other G&A expenses.

Non-service FAS Pension Income and Other, net

Non-service FAS pension income and other, net decreased $3 million and increased $12 million for third quarter and year to date, respectively, reflecting changes in the non-service cost components of net periodic benefit income under our defined benefit plans, as included in Note H: Retirement Benefits in the Notes, and changes in other non-operating income and expenses, primarily changes in the market value of our rabbi trust assets, as included in Note K: Fair Value Measurements in the Notes.

Interest Expense, net

Interest expense, net decreased $14 million and $60 million for third quarter and year to date, respectively, primarily due to lower average outstanding notes under our CP Program during 2025. See Note G: Debt and Credit Arrangements in the Notes and the “Liquidity and Capital Resources” section below in this MD&A for further information.

Income Taxes

During interim periods, we estimate our global annual ETR and apply that rate to year to date ordinary income in order to compute the year to date income tax provision. Although most items will be considered part of the annual ETR, there are a number of items that are instead required to be recorded in the interim period in which they occur; such as certain changes in uncertain tax positions, the accrual of interest and penalties, changes in tax laws or rates, and other items as prescribed by GAAP. As a result, there may be quarterly fluctuations in our ETR and the results for the interim periods are not necessarily indicative of the results to be expected for the full year or future periods.

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Third Quarter Comparison. Our ETR was 18.5% and 6.0% for third quarter 2025 and 2024, respectively. The increase in ETR for third quarter 2025 was primarily due to the enactment of OBBBA and the CAS disposal group divestiture, representing unfavorable impacts of 7.4% and 3.7%, respectively. Our ETR for both periods benefited from favorable impacts of R&D credits, tax deductions for FDII and adjustments recognized upon finalization of our tax returns.

Year to Date Comparison. Our ETR was 15.7% and 4.9% for year to date 2025 and 2024, respectively. The increase in ETR for year to date 2025 was primarily due to the enactment of OBBBA, the CAS disposal group divestiture, and a state legislative change that required us to establish a valuation allowance on state R&D credit carryforwards, representing unfavorable impacts of 3.9%, 3.5% and 2.1%, respectively. Our ETR for both periods benefited from favorable impacts of R&D credits, favorable resolution of audit uncertainties, tax deductions for FDII and adjustments recognized upon finalization of our tax returns.

Diluted EPS

Diluted EPS increased 17% and 26% for third quarter and year to date, respectively, primarily due to higher net income from the combined effects of reasons noted in the sections above.

Business Segment Results of Operations

CS Segment

As of October 3, 2025, CS contractual backlog was $7.1 billion.

			Third Quarter																		Year to Date
(Dollars in millions)			2025						2024						% Inc/(Dec)						2025						2024						% Inc/(Dec)
Revenue			$	1,462					$	1,382					6		%				$	4,190					$	4,022					4		%
Operating income			382						359						6		%				1,063						998						7		%
Operating margin			26.1		%				26.0		%										25.4		%				24.8		%

Third Quarter Comparison. CS revenue increased primarily due to higher revenues of $49 million in Broadband Communications, reflecting higher international volume and program ramp on Next Generation Jammer, our flagship Electronic Warfare tactical jamming pod, and $45 million in Tactical Communications associated with increased international deliveries for our software-defined resilient communications equipment, partially offset by lower DoW demand.

CS operating income increased primarily due to LHX NeXt driven cost savings, partially offset by unfavorable mix associated with a proprietary waveform license sale in 2024.

Year to Date Comparison. CS revenue increased primarily due to higher revenue of $152 million in Tactical Communications associated with increased international deliveries for our software-defined resilient communications equipment and $31 million in Broadband Communications from program ramps, including Next Generation Jammer, partially offset by lower revenue of $20 million in PSPC from lower volume.

CS operating income increased primarily due to LHX NeXt driven cost savings, partially offset by unfavorable mix associated with a proprietary waveform license sale in 2024, and the absence of a $15 million net favorable settlement of legal matters that occurred in 2024.

IMS Segment

As of October 3, 2025, IMS contractual backlog was $10.1 billion.

			Third Quarter																		Year to Date
(Dollars in millions)			2025						2024						% Inc/(Dec)						2025						2024						% Inc/(Dec)
Revenue			$	1,700					$	1,608					6		%				$	4,914					$	4,906					—		%
Operating income			204						204						—		%				621						589						5		%
Operating margin			12.0		%				12.7		%										12.6		%				12.0		%

Third Quarter Comparison. IMS revenue increased primarily due to higher revenues of $210 million in ISR from multiple classified programs ramping and $38 million in Maritime from new program ramp, partially offset by lower revenue of $158 million from the CAS disposal group divestiture in first quarter 2025.

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IMS operating income remained consistent and operating margin decreased, primarily due to a $35 million decrease from the CAS disposal group divestiture in first quarter 2025 partially offset by higher volumes and favorable performance.

Year to Date Comparison. IMS revenue was flat primarily due to higher revenues of $236 million in ISR from multiple classified programs ramping, $30 million in Maritime from new program ramp, and $27 million in Targeting and Sensor Systems from higher commercially priced revenue, offset by lower revenue of $296 million from the CAS disposal group divestiture in first quarter 2025.

IMS operating income increased primarily due to a $75 million gain recognized in second quarter 2025 in connection with monetization of legacy end-of-life assets, aligned with our transformation and value creation priorities, favorable mix impact from higher airborne electro-optical sensors volume and LHX NeXt driven cost savings. Such increases were partially offset by a $67 million decrease from the CAS disposal group divestiture in first quarter 2025 and a $25 million unfavorable EAC adjustment in second quarter 2025 from the resolution of a contract matter related to lower utilization on the Canadian Maritime Helicopter Program as it nears completion.

SAS Segment

As of October 3, 2025, SAS contractual backlog was $10.8 billion.

			Third Quarter																		Year to Date
(Dollars in millions)			2025						2024						% Inc/(Dec)						2025						2024						% Inc/(Dec)
Revenue			$	1,809					$	1,683					7		%				$	5,207					$	5,141					1		%
Operating income			218						195						12		%				614						626						(2)		%
Operating margin			12.1		%				11.6		%										11.8		%				12.2		%

Third Quarter Comparison. SAS revenue increased primarily due to higher revenues of $103 million in Mission Networks from higher FAA volume and $45 million in Airborne Combat Systems from higher volume, partially offset by lower revenues of $49 million in Intel & Cyber from lower classified program volume.

SAS operating income increased primarily due to a gain of $19 million recognized in connection with the monetization of legacy end-of-life assets aligned with our transformation and value creation priorities, lower net unfavorable EAC adjustments mainly associated with classified development programs in Space Systems and LHX NeXt driven cost savings, partially offset by unfavorable mix.

Year to Date Comparison. SAS revenue increased primarily due to higher revenue of $291 million in Mission Networks from higher FAA volume, partially offset by lower revenues of $154 million in Space Systems from lower volume associated with program timing and the impact of negative EAC adjustments from challenges on certain classified development programs, $70 million in Intel & Cyber from lower classified program volume and $69 million in Airborne Combat Systems, reflecting a $76 million decrease from the May 2024 Antenna disposal group divestiture.

SAS operating income decreased primarily due to $68 million of unfavorable EAC adjustments, from program execution challenges on certain classified development programs in Space Systems, and unfavorable mix, partially offset by gains of $38 million recognized in connection with the monetization of legacy end-of-life assets aligned with our transformation and value creation priorities, and LHX NeXt driven cost savings.

AR Segment

As of October 3, 2025, AR contractual backlog was $8.3 billion.

			Third Quarter																		Year to Date
(Dollars in millions)			2025						2024						% Inc/(Dec)						2025						2024						% Inc/(Dec)
Revenue			$	755					$	669					13		%				$	2,082					$	1,886					10		%
Operating income			96						76						26		%				265						234						13		%
Operating margin			12.7		%				11.4		%										12.7		%				12.4		%

Third Quarter Comparison. AR revenue increased primarily due to higher revenues of $43 million in Missile Solutions from increased production volume on key missile and munitions programs and new program ramp and $32 million in Space Propulsion & Power Solutions from higher volume.

AR operating income increased primarily due to higher volume, improved performance, and LHX NeXt driven cost savings.

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Year to Date Comparison. AR revenue increased primarily due to higher revenue of $162 million in Missile Solutions from increased production volume on key missile and munitions programs and new program ramp.

AR operating income increased primarily due to higher volume, improved performance, and LHX NeXt driven cost savings.

Product and Service Analysis

Revenue

The following table presents revenue from products and services by segment, net of intersegment eliminations:

			Third Quarter																								Year to Date
			2025												2024												2025												2024
(In millions)			Products						Services						Products						Services						Products						Services						Products						Services
CS			$	1,242					$	202					$	1,096					$	269					$	3,555					$	588					$	3,165					$	804
IMS			1,075						604						959						634						2,962						1,896						2,956						1,911
SAS			1,170						619						1,173						498						3,292						1,865						3,572						1,529
AR			567						180						467						196						1,519						540						1,285						580
Total			$	4,054					$	1,605					$	3,695					$	1,597					$	11,328					$	4,889					$	10,978					$	4,824

Third Quarter Comparison. Products revenue increased $359 million, or 10%, due to higher products revenues of $146 million, $116 million, and $100 million in our CS, IMS, and AR segments, respectively.

Services revenue increased $8 million, or 1%, due to higher services revenue of $121 million in our SAS segment, partially offset by lower services revenues of $67 million, $30 million, and $16 million in our CS, IMS, and AR segments, respectively.

Year to Date Comparison. Products revenue increased $350 million, or 3%, due to higher products revenues of $390 million and $234 million in our CS and AR segments, respectively, offset by lower products revenue of $280 million in our SAS segment.

Services revenue increased $65 million, or 1%, primarily due to higher services revenue of $336 million in our SAS segment, partially offset by lower services revenues of $216 million, $40 million, and $15 million in our CS, AR, and IMS segments, respectively.

Cost of Revenue

The following table presents cost of revenue from products and services by segment, net of intersegment eliminations:

			Third Quarter																								Year to Date
			2025												2024												2025												2024
(In millions)			Products						Services						Products						Services						Products						Services						Products						Services
CS			$	(746)					$	(147)					$	(697)					$	(144)					$	(2,141)					$	(449)					$	(1,911)					$	(607)
IMS			(834)						(453)						(731)						(457)						(2,292)						(1,460)						(2,287)						(1,417)
SAS			(919)						(486)						(928)						(385)						(2,599)						(1,463)						(2,765)						(1,215)
AR			(438)						(143)						(371)						(157)						(1,182)						(422)						(990)						(454)
Corporate			(2)						3						(12)						9						(37)						7						(40)						11
Total			$	(2,939)					$	(1,226)					$	(2,739)					$	(1,134)					$	(8,251)					$	(3,787)					$	(7,993)					$	(3,682)

Third Quarter Comparison. Cost of products revenue increased $200 million, or 7%, primarily due to higher cost of products revenues of $103 million, $67 million, and $49 million in our IMS, AR, and CS segments, respectively.

Cost of services revenue increased $92 million, or 8%, primarily due to higher cost of services revenue of $101 million in our SAS segment, partially offset by higher cost of services revenue of $14 million in our AR segment.

Year to Date Comparison. Cost of products revenue increased $258 million, or 3%, primarily due to higher cost of products revenues of $230 million and $192 million in our CS and AR segments, respectively, partially offset by lower cost of products revenue of $166 million in our SAS segment.

Cost of services revenue increased $105 million, or 3%, primarily due to higher cost of services revenues of $248 million and $43 million in our SAS and IMS segments, respectively, partially offset by lower cost of services revenues of $158 million and $32 million in our CS and AR segments, respectively.

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Unallocated Corporate Items

			Third Quarter															Year to Date
(In millions)			2025						2024												2025						2024
Amortization of intangibles			$	(192)					$	(210)											$	(579)					$	(642)
Merger, acquisition, and divestiture-related expenses			(10)						(25)												(40)						(86)
Business divestiture-related losses and impairment of goodwill			—						(29)												(17)						(67)
LHX NeXt implementation costs			(25)						(41)												(99)						(216)
Other unallocated corporate items			(52)						(34)												(111)						(87)
Unallocated corporate items			$	(279)					$	(339)											$	(846)					$	(1,098)

LIQUIDITY AND CAPITAL RESOURCES

Capital Resources

As of October 3, 2025, we had cash and cash equivalents of $339 million, of which $293 million was held by our foreign subsidiaries, a significant portion of which we believe can be repatriated to the U.S. with minimal tax cost.

CP Program. As of October 3, 2025, we had $725 million in outstanding notes under our CP Program. Our CP Program serves as a source of short-term financing under which we may issue unsecured commercial paper notes up to a maximum aggregate amount of $3.0 billion, supported by amounts available under our credit facilities, discussed below. From time to time, we use borrowings under the CP Program for general corporate purposes, including funding acquisitions, repaying debt, paying dividends, and repurchasing our common stock. See the “Financing Activities” discussion below in this MD&A for further information about our CP Program.

Credit Facilities. As of October 3, 2025, we had no outstanding borrowings under our credit facilities, had available borrowing capacity of $2.3 billion, net of outstanding notes under our CP Program, and were in compliance with all covenants.

2025 Five-Year Credit Facility. On February 18, 2025, we established a new $2.5 billion, five-year senior unsecured revolving credit facility by entering into the 2025 Five-Year Credit Agreement. The 2025 Five-Year Credit Agreement replaced the prior $2.0 billion 2022 Credit Agreement.

2025 364-Day Credit Facility. On February 18, 2025, we established a new $500 million 364-day senior unsecured revolving credit facility by entering into the 2025 364-Day Credit Agreement. The 2025 364-Day Credit Agreement replaced the prior $1.5 billion 2024 Credit Agreement, which matured on January 24, 2025.

See Note G: Debt and Credit Arrangements in the Notes for further information regarding our credit facilities.

Cash Flows

The following table provides a summary of our cash flow information:

			Year to Date
(In millions)			2025						2024
Cash and cash equivalents, beginning of period			$	615					$	560
Operating Activities:
Net income			1,306						1,056
Non-cash adjustments			1,131						1,243
Changes in working capital			(877)						(358)
Other, net			(416)						(511)
Net cash provided by operating activities			1,144						1,430
Net cash provided by (used in) investing activities			537						(151)
Net cash used in financing activities			(1,975)						(1,309)
Effect of exchange rate changes on cash and cash equivalents			18						9
Net decrease in cash and cash equivalents			(276)						(21)
Cash and cash equivalents, end of period			$	339					$	539

Operating Activities. The $286 million decrease in net cash provided by operating activities for year to date 2025 compared with year to date 2024 was primarily due to $519 million more cash used to fund working capital,

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largely driven by timing of billing and collection activity and cash used for settlement of a longstanding legal matter, partially offset by an increase in net income.

Investing Activities. The $688 million change in net cash provided by investing activities for year to date 2025 compared with net cash used in investing activities for year to date 2024 was primarily due to a $673 million increase in proceeds from sale of businesses, net of cash divested, and a $24 million decrease in capital expenditures. The increase in proceeds from sale of businesses, net of cash divested, reflects the March 2025 CAS disposal group divestiture, partially offset by the May 2024 Antenna disposal group divestiture.

Financing Activities. The $666 million increase in net cash used in financing activities for year to date 2025 compared with year to date 2024 was primarily due to increases in repayments of long-term debt, net of issuances, and cash used to repurchase common stock of $831 million and $486 million, respectively, partially offset by a $634 million decrease in net repayments of commercial paper. Our primary financing activities are further discussed below.

Common Stock Repurchases. On January 28, 2021 and October 21, 2022, we announced that our Board of Directors (“Board”) approved share repurchase authorizations under our repurchase program of $6.0 billion, which was fully utilized in first quarter 2025, and $3.0 billion, respectively. During year to date 2025, we used $998 million of cash to repurchase 4.5 million shares of our common stock under our share repurchase program. As of October 3, 2025, we had $2.4 billion of remaining unused authorization under our repurchase program.

During year to date 2024, we used $512 million of cash to repurchase 2.3 million shares of our common stock under our share repurchase program.

See “Liquidity and Capital Resources” in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Form 10-K and Part II. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of this Report for further information regarding common stock repurchases.

Long-term debt. During year to date 2025, we repaid the entire outstanding $600 million of our 3.832% 2025 Notes with proceeds from the issuance and sale of the $600 million 5.50% 2054 Notes in fiscal 2024.

During year to date 2024, we closed the issuance and sale of $2.25 billion aggregate principal amount of long-term fixed-rate debt consisting of 5.05% notes, due June 2029, 5.25% notes, due June 2031 and 5.35% notes, due June 2034 and used the proceeds to repay the entire outstanding $2.25 billion, variable rate-term loan facility utilized to finance the fiscal 2023 acquisition of Tactical Data Links. Additionally, we closed the issuance and sale of the $600 million 5.50% 2054 Notes and repaid the $350 million of our 3.950% notes, due May 28, 2024.

As of October 3, 2025, we had $11.0 billion of outstanding long-term debt, net of current portion of $120 million. The current portion primarily consists of the $100 million 7.00% debentures, due January 15, 2026.

CP Program. During year to date 2025, our CP Program had a maximum outstanding balance of $1.8 billion and a daily average outstanding balance of $1.3 billion. During year to date 2024, our CP Program had a maximum outstanding balance of $2.8 billion and daily average outstanding balance of $2.3 billion. While we continue to expect balances under the CP Program to remain elevated as compared to historical norms through fiscal 2025, we expect to utilize cash from operations to lower the outstanding balance by the end of fiscal 2025.

Dividends. On February 28, 2025, we announced that our Board increased the quarterly per share cash dividend rate on our common stock to $1.20 from $1.16, the 24th consecutive annual dividend increase. During year to date 2025 and 2024, we paid $678 million and $665 million in dividends, respectively. See Part II. Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in our Fiscal 2024 Form 10-K for further information regarding our dividends.

Cash Requirements

Except for the level of indebtedness under our CP Program and the establishment of the new 2025 Five-Year Credit Agreement and the new 2025 364-Day Credit Facility, there were no material changes to our cash requirements or commercial commitments as disclosed in our Fiscal 2024 Form 10-K. Further information about our credit facilities and CP Program can be found in “Capital Resources” in this MD&A and Note G: Debt and Credit Arrangements in the Notes.

Defined Benefit Plan Contributions. As of October 3, 2025, we had net defined benefit plan assets of $933 million, the majority of which pertain to our U.S. qualified defined benefit pension plans. We intend to contribute annually no less than the required minimum funding thresholds to these pension plans and do not expect to make material contributions in fiscal 2025. Future required contributions will depend primarily on the actual return on plan assets and the discount rate used to measure the benefit obligation at the end of each year.

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We expect to continue evaluating opportunities to strategically manage our pension obligations, including the potential for additional pension de-risking transactions in the future, subject to market conditions and plan funding levels. These actions align with our long-term strategy to reduce exposure to pension volatility while maintaining financial flexibility.

See Note 9: Retirement Benefits in our Fiscal 2024 Form 10-K and Note H: Retirement Benefits in the Notes for further information regarding our defined benefit plans.

Liquidity Assessment

Given our current cash position, outlook for funds generated from operations, credit ratings, available credit facilities, cash needs and debt structure, we have not experienced to date, and do not expect to experience, any material issues with liquidity for the next 12 months and in the longer term, although we can give no assurances concerning our future liquidity, particularly in light of our overall level of debt, U.S. Government budget uncertainties, including the ongoing government shutdown, and the state of global commerce and general political and global financial uncertainty. We continue to monitor the potential effects of the ongoing government shutdown, which, if prolonged, could adversely affect our cash flows. See the “U.S. and International Budget Environment” discussion above in this MD&A and Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K for more information on budget uncertainties.

Based on our current business plan and revenue prospects, we believe that our existing cash, funds generated from operations, availability under our senior unsecured credit facilities and our CP Program, and access to the public and private debt and equity markets will be sufficient to provide for our anticipated working capital requirements, capital expenditures, dividend payments, repurchases under our share repurchase program, and repayments of our debt securities at maturity for the next 12 months and the reasonably foreseeable future thereafter. Our capital expenditures for fiscal 2025 are expected to be approximately 2% of revenue. See “Cash Requirements” in this MD&A and “Capital Resources”, “Cash Requirements” and “Commercial Commitments” in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Form 10-K, for further information regarding our cash requirements.

CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to the critical accounting estimates disclosed in “Critical Accounting Estimates” in Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2024 Form 10-K, except for, as set forth below.

Goodwill

We test our goodwill for impairment annually as of the first day of our fourth fiscal quarter, or under certain circumstances, more frequently, such as when events or circumstances indicate there may be impairment or when we reorganize our reporting structure such that the composition of one or more of our reporting units is affected.

Fiscal 2025 Impairment Tests. Information on interim impairment tests can be found in “Critical Accounting Estimates– Fiscal 2025 Impairment Tests” in Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference. These assessments indicated no impairment existed.

Impact of Recently Issued Accounting Pronouncements

There have been no new accounting pronouncements that became effective during year to date 2025 that have had a material impact on our Condensed Consolidated Financial Statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Other than the repayment of long-term debt discussed in the Liquidity and Capital Resources section of Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations above, there were no material changes during year to date 2025, with respect to our exposure to market risk as discussed in Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Fiscal 2024 Form 10-K.

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ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15 under the Exchange Act, management, with the participation of our principal executive officer, our Chief Executive Officer (“CEO”), and our principal financial officer, our Chief Financial Officer (“CFO”), carried out an evaluation of the Company’s disclosure controls and procedures as of October 3, 2025. Based on this evaluation, the CEO and CFO concluded that as of October 3, 2025, our disclosure controls and procedures were designed at a reasonable assurance level and were effective to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control

There have been no changes in our internal control over financial reporting that occurred during third quarter 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

See Note P: Legal Proceedings and Contingencies in the Notes for discussion regarding material legal proceedings and contingencies. Except as set forth in such discussion, there have been no material developments in legal proceedings as reported in Part I. Item 3. Legal Proceedings in our Fiscal 2024 Form 10-K.

ITEM 1A. RISK FACTORS.

Investors should carefully review and consider the information regarding certain factors that could materially affect our business, results of operations, financial condition, cash flows and equity as set forth in Part I. Item 1A. Risk Factors in our Fiscal 2024 Form 10-K. Except for the additional risk factor included in Part II. Item 1A. Risk Factors in our Form 10-Q for first quarter 2025, which information is incorporated herein by reference, there have been no material changes to the risk factors disclosed in our Fiscal 2024 Form 10-K. We may disclose changes to our risk factors or disclose additional risk factors from time to time in our future filings with the SEC. Additional risks and uncertainties not presently known to us or that we currently believe not to be material also may adversely impact our business, financial condition, results of operations, cash flows and equity.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Issuer Purchases of Equity Securities

The following table sets forth information with respect to repurchases by us of our common stock during third quarter 2025:

Period*			Total number of shares purchased						Average price paid per share						Total number of shares purchased  as part of publicly announced plans or programs(1)						Maximum approximate dollar value of shares that may yet be purchased under the plans or programs(1) ($ in millions)
Month No. 1
(June 28, 2025 - August 01, 2025)
Repurchase program(1)			167,595						$	263.70					167,595						$	2,515
Employee transactions(2)			4,595						$	258.11					—						—
Month No. 2
(August 02, 2025 - August 29, 2025)
Repurchase program(1)			218,718						$	274.29					218,718						$	2,455
Employee transactions(2)			5,818						$	277.50					—						—
Month No. 3
(August 30, 2025 - October 03, 2025)
Repurchase program(1)			254,488						$	282.88					254,488						$	2,383
Employee transactions(2)			41,374						$	275.23					—						—
Total			692,588												640,801						$	2,383

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* Periods represent our fiscal months.

(1) On January 28, 2021 and October 21, 2022, we announced that our Board approved share repurchase authorizations under our repurchase program of $6.0 billion and $3.0 billion, respectively. The $6.0 billion program was fully utilized during first quarter 2025. Our repurchase program does not have an expiration date and authorizes us to repurchase shares of our common stock through open market purchases, private transactions, transactions structured through investment banking institutions or any combination thereof.

(2) Represents shares of our common stock delivered to us in satisfaction of the tax withholding obligation of holders of PSUs or RSUs that vested during the quarter. Our stock incentive plans provide that the value of shares delivered to us to cover tax withholding obligations shall be the closing price of our common stock on the date the relevant transaction occurs.

Sales of Unregistered Equity Securities

During third quarter 2025, we did not issue or sell any unregistered equity securities.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

None of our directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during third quarter 2025.

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ITEM 6. EXHIBITS.

(10.1)     Amendment Number Five to the L3Harris Retirement Savings Plan (Amended and Restated Effective January 1, 2025), dated August 14, 2025.

(10.2)     Amendment Number Six to the L3Harris Retirement Savings Plan (Amended and Restated Effective January 1, 2025), dated September 16, 2025.

(13)      The following portions of L3Harris Technologies, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2025, which portions are incorporated herein by reference: information under the “Reallocation of Goodwill in Business Realignment” heading in Note E: Goodwill and Intangible Assets; information under the “Pension Group Annuity Purchase” heading in Note H: Retirement Benefits, information under the section headed “Critical Accounting Estimates– Fiscal 2025 Impairment Tests” in Part I. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and the additional risk factor included in Part II. Item 1A. Risk Factors. (Commission File Number 1-3863).

(15)     Letter Regarding Unaudited Interim Financial Information.

(31.1)     Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.

(31.2)     Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.

(32)      Section 1350 Certification.

(101)     The financial information from L3Harris Technologies, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2025 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Statement of Operations, (ii) the Condensed Consolidated Statement of Comprehensive Income , (iii) the Condensed Consolidated Balance Sheet, (iv) the Condensed Consolidated Statement of Cash Flows, (v) the Condensed Consolidated Statement of Equity, and (vi) the Notes to Condensed Consolidated Financial Statements.

(104) Cover Page Interactive Data File formatted in Inline XBRL and contained in Exhibit 101.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

L3HARRIS TECHNOLOGIES, INC.

(Registrant)

Date: October 30, 2025

By:

/s/    KENNETH BEDINGFIELD

Kenneth Bedingfield

Senior Vice President, Chief Financial Officer and President, Aerojet Rocketdyne (Principal Financial Officer and Duly Authorized Officer)

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FAQ

How did LHX (L3Harris) perform in Q3 2025?

Revenue was $5,659 million and diluted EPS was $2.46, up from $5,292 million and $2.10 a year ago.

What is LHX’s current backlog and near-term visibility?

Backlog was $36.3 billion, with about 45% expected to be recognized as revenue over the next 12 months.

What drove the higher tax rate at LHX in Q3 2025?

The effective tax rate rose to 18.5%, primarily due to OBBBA tax changes and impacts from the CAS divestiture.

What were LHX’s cash flows and capital returns year to date 2025?

Net cash from operations was $1,144 million; share repurchases were $998 million and dividends paid were $678 million.

How much did LHX receive from the CAS divestiture?

Net cash proceeds were $831 million, and a $17 million pre-tax loss was recognized.

What is LHX’s debt and liquidity position?

As of October 3, long-term debt was $11,117 million, commercial paper outstanding was $725 million, and cash was $339 million.

What new credit facilities does LHX have?

A $2.5 billion five-year and a $500 million 364-day facility were established and were undrawn as of quarter-end.