L3Harris Technologies (NYSE:LHX) posted better-than-expected third-quarter results on Thursday, driven by solid organic revenue growth and margin improvement, prompting the defense contractor to raise its full-year 2025 guidance. Shares were up 0.7% in premarket trading following the announcement.
The company reported adjusted earnings of $2.70 per share, topping the analyst consensus of $2.59, while revenue climbed to $5.7 billion, above expectations of $5.53 billion. Sales rose 7% year-over-year, with organic growth reaching 10% thanks to higher volumes across all major business segments.
“We delivered another strong quarter, with robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution as drivers of profitable growth,” said Christopher Kubasik, Chair and CEO of L3Harris. “We are driving sustained performance, marking our eighth consecutive quarter of year-over-year adjusted segment operating margin expansion.”
Following the strong performance, L3Harris raised its full-year guidance, now forecasting revenue of about $22 billion, up from the previous outlook of $21.75 billion and exceeding analyst expectations of $21.8 billion. The company also lifted its EPS forecast to $10.50–$10.70, compared with prior guidance of $10.40–$10.60.
The company’s adjusted segment operating margin improved to 15.9%, an increase of 10 basis points from a year earlier, supported by better program execution and cost-efficiency initiatives. All four operating divisions reported growth — Aerojet Rocketdyne led with 13%, followed by Space & Airborne Systems at 7%, and both Communication Systems and Integrated Mission Systems advancing 6%.
Operating cash flow fell 30% to $546 million, reflecting temporary delays in customer payments, though L3Harris reaffirmed its expectation of generating around $2.65 billion in cash flow for the full year.
The company also reported $6.7 billion in new orders during the quarter, producing a book-to-bill ratio of 1.2x, signaling continued strong demand for its advanced defense and space technologies.