L3Harris Technologies, a company that provides mission-critical solutions for government and commercial customers worldwide, has recently released its 10-Q report. The company operates through Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR) segments. The SAS segment provides satellite space payloads, sensors, and full-mission solutions, while the IMS segment offers intelligence, surveillance, and reconnaissance (ISR) systems. The CS segment provides tactical radios, software, waveforms, and satellite terminals, and the AR segment offers propulsion technologies and armament systems for strategic defense and missile defense.
In the 10-Q report, L3Harris Technologies discusses its management’s discussion and analysis of financial condition and results of operations. The report mentions that the U.S. Government fiscal year 2024 appropriations funding bills provided approximately $844 billion in funding for the U.S. Department of Defense, with a supplemental GFY 2024 appropriations package adding $67 billion. The report also highlights the U.S. Government's full-year Continuing Resolution for GFY 2025, which provides $893 billion for defense funding, including $851 billion for the DoD.
The report also discusses the company's revenue and expenses. In the first quarter of fiscal 2025, L3Harris Technologies reported total revenue of $5,132 million, with products revenue at $3,566 million and services revenue at $1,566 million. The company's gross margin remained flat at $1,350 million, and its general and administrative expenses decreased to $825 million from $970 million in the first quarter of fiscal 2024.
The report also details the results of operations for each segment. The CS segment's revenue increased by 4% to $1,352 million, with an operating income of $345 million. The IMS segment's revenue decreased by 2% to $1,592 million, with an operating income of $203 million. The SAS segment's revenue decreased by 8% to $1,611 million, with an operating income of $176 million.
Additionally, the report mentions key developments such as business realignment and divestiture. Effective in the first quarter of 2025, the company transferred its FOS business from the IMS segment to the AR segment. On March 28, 2025, L3Harris Technologies completed the sale of its CAS disposal group, which was reported in the IMS segment through the date of divestiture.
Today the company's shares have moved -0.3% to a price of $215.67. Check out the company's full 10-Q submission here.
