The company's LHX NeXt transformation initiative exceeded its 2024 cost-savings target of $800 million and raised its goal to $1.2 billion by the end of 2025. The company maintains a strong backlog exceeding $38B with a book-to-bill ratio of 1.3. For 2026, L3Harris is guiding to revenue of $23.0B-$23.5B representing 7% organic growth with segment operating margin in the low 16% range and free cash flow guidance of $3.0B.
Cyborg Score Rationale
The company achieved a record-shattering delivery milestone in February 2026, shipping nearly 500,000 fuzes—an 80% increase over the previous year. Strong execution on cost transformation, expanding backlog, and double-digit organic growth drive confidence. Mixed near-term headwinds from government contract uncertainty partially offset strong fundamentals.
Top Insights
Record fuzing production milestone of 500,000 units in 2025 represents an 80% YoY increase, indicating manufacturing scale and demand momentum
LHX NeXt cost transformation ahead of schedule with $800M achieved in 2024 and $1.2B target by end of 2025
Massive $38B+ backlog with 1.3x book-to-bill ratio provides multi-year revenue visibility and reduces execution risk
Stock has surged 73% recently on defense spending tailwinds and geopolitical uncertainty driving munitions demand
Named Competitors
Missiles & Fire Control — Advanced missile and fire control systems
Space, Security & Transportation — Space and defense systems integration
Aeronautics Systems — Advanced aerospace and defense platforms
Combat Systems — Integrated combat systems and munitions
Recent Developments
(February 2026) Record fuzing delivery milestone of 500,000 units announced
(January 2026) 2025 full-year revenue of $21.9B reported; 2026 guidance raised to $23.0-23.5B
(April 2025) First quarter 2025 results reported with $5.1B revenue; maintained operational momentum
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