L3Harris Technologies (LHX) 10-K Summary — Year Ended Jan 3, 2025
L3Harris Technologies filed its annual report for the period ended January 3, 2025. The filing covers the company's business, financial results, risk factors, and liquidity position.
Key takeaway
Year ended Jan 3, 2025 · FY2025 10-K
L3Harris Technologies filed its annual report for the period ended January 3, 2025. The filing covers the company's business, financial results, risk factors, and liquidity position.
Financial snapshot
Selected annual figures reported with the filing, shown separately from the narrative summary.
Annual revenue
$21.3B
Revenue reported for the fiscal year.
Operating income
$1.9B
Income from operations reported for the year.
Net income
$1.5B
Net income reported for the year.
Operating cash flow
$2.6B
Cash generated by operating activities.
Annual revenue trend
Reported annual revenue and its change from the preceding fiscal year.
| Period ended | Revenue | Year-over-year change |
|---|---|---|
| Dec 31, 2021 | $17.8B | n/a |
| Dec 30, 2022 | $17.1B | -4.2% |
| Dec 29, 2023 | $19.4B | +13.8% |
| Jan 3, 2025 | $21.3B | +9.8% |
Business overview
L3Harris Technologies operates in the defense and aerospace industry, providing products and services to government and commercial customers. The company holds a large portfolio of patents and intellectual property, and it licenses technology to and from third parties. A significant portion of its backlog is expected to convert to revenue over the next two fiscal years.
Financial performance
Total revenue increased compared to the prior period, driven by growth in both product and service revenue. Operating income rose, while net income attributable to the company also increased. The company reported a higher effective tax rate for the period.
Material risks
The filing identifies risks related to the company's reliance on U.S. government contracts, including the government's royalty-free license to certain patents. Impairment of goodwill and other assets was recognized in the current and prior periods. The company also faces risks from its intellectual property licensing arrangements.
Liquidity and capital
The company uses operating cash flow, revenue, and operating income as key measures to assess business success and shareholder value creation. Net cash provided by operating activities is highlighted as a liquidity measure.
What to watch
Monitor the conversion rate of the company's total backlog into revenue in the next fiscal year.