L3Harris Technologies (NYSE:LHX) said it expects full-year revenue to come in a touch below market expectations, after outlining guidance for the current fiscal year of between $23.0 billion and $23.5 billion. The midpoint of that range trails analyst forecasts of around $23.34 billion.
For the fourth quarter, the defense group delivered mixed results. Adjusted earnings per share came in at $2.86, comfortably ahead of expectations of $2.73, while revenue totaled $5.65 billion, falling short of the $5.76 billion consensus estimate.
L3Harris noted that fourth-quarter revenue was held back by the impact of a prolonged U.S. government shutdown, which delayed the timing of several awarded contracts toward the end of 2025.
Shares of the company dropped more than 4% in premarket U.S. trading on Thursday following the outlook.
The results arrive shortly after the U.S. government announced plans to invest $1 billion in L3Harris’s rocket motor operations, part of a broader push by Washington to secure domestic supply chains for advanced missile systems. Earlier this month, L3Harris said it would raise new equity in the rocket motor business, forming a standalone company backed by a $1 billion government convertible security. Once the new entity lists publicly, those securities will automatically convert into common equity.
Separately, L3Harris has also agreed to sell roughly a 60% stake in its space propulsion and power systems unit to private equity firm AE Industrial Partners. Valued at $845 million including debt, the transaction highlights the company’s strategic shift toward its core defense activities and away from space, against a backdrop of heightened geopolitical risk and global uncertainty.