L3Harris Technologies Inc. raised its full-year guidance on Wednesday, pointing to rising demand across its missiles and space segments, even as its stock continued to trade near a five-month low.
Shares of L3Harris (LHX) were quoted at $250.41 at the time of the Jefferies Global Industrials Conference, hovering just above a 52-week low of $253.30. The stock has fallen more than 30% over the past six months, well below analyst price targets that range from $269 to $405.
At the conference, CEO Sam Mehta and newly appointed Chief Financial Officer Ken Sharp, who assumed the role in March, presented an updated strategic roadmap emphasizing accelerated production and targeted divestitures following the $4.7 billion acquisition of Aerojet Rocketdyne.
The company disclosed it is pursuing approximately $20 billion in new contract opportunities across its portfolio. Among the largest is a $4.6 billion award for PAC-3 missile systems, covering roughly 80% of PAC-3 demand without escalators and 100% of the Defensive Area System component. Separately, an AMDT-3 contract for 18 satellites — the fifth award under the program — totaled $955 million.
Space and Mission Systems, which generated $11.5 billion in revenue in 2026, is now projected to exceed $13 billion. Organic growth in the segment reached 15% in the first half of the year, though the company recorded a $55 million charge against the space program last quarter.
In the missiles business, volume increases are expected to scale threefold to tenfold across different programs. L3Harris is investing $2.2 billion ahead of formal awards to expand supply chain and manufacturing capacity, building out operations across roughly 100 facilities, including sites in Camden and a new Huntsville complex on a former Remington site. Fuses, seekers and electronics are estimated to represent 30% to 40% of the missiles segment post-divestiture. A separate $1 billion capacity-expansion initiative is underway for the Department of War.
On the communications side, the company’s Falcon V platform — a successor to the Falcon IV domestic radio system expected to roll out within about 18 months — will be roughly half the size of its predecessor. U.S. modernization spending is more than 40% complete, according to management.
Internationally, L3Harris secured over $1 billion in European resilient communications orders from Germany, Poland and the Netherlands. Counter-UAS demand is also accelerating, with an unexpected pipeline of approximately $1 billion noted by the company.
L3Harris is targeting a clean operating margin of 16%, up from space-segment margins of about 10% at quarter-end. The firm is also proceeding with roughly 13 asset sales, including 10 to 12 planned divestitures, as part of its NeXt restructuring program, which has already surpassed its initial $1.2 billion savings target.
Looking further ahead, management suggested an initial public offering for Aerojet Rocketdyne could be revisited around mid-2027.
