L3Harris

Overview Key strengths Key risks Robust federal defense budget drives revenue growth for the next few years. Highly competitive defense electronics market. Above-average EBITDA margins are relative to other rated aerospace and defense peers. Supply chain constraints pose challenges to meet demand and maintain margins. A broad range of capabilities across high-growth defense and intelligence markets. Aggressive financial policy of shareholder returns. L3Harris divested businesses in 2021, including ATM voice communication systems after, the military training business, and combat propulsion systems, representing 10% of total revenue. The divestitures improved the focus and overall margins of the remaining business. L3Harris? product offerings are situated in areas of priority for the U.S. government intelligence, surveillance, and reconnaissance (ISR), electronic warfare (EW), space,

...L3Harris' diversified portfolio is positioned for future growth completing post-merger divestitures. L3Harris divested businesses in 2021, including ATM voice communication systems after, the military training business, and combat propulsion systems, representing 10% of total revenue. The divestitures improved the focus and overall margins of the remaining business. L3Harris' product offerings are situated in areas of priority for the U.S. government intelligence, surveillance, and reconnaissance (ISR), electronic warfare (EW), space, joint force, and DoD modernization. With the elevated global threat environment and development of the Russia-Ukraine conflict, we expect domestic U.S. defense spending to be robust in several years. The enacted 2022 budget is 6% up from 2021, greater than the 2% increase requested by the Biden administration. The topline request of $773 billion for fiscal year (FY) 2023 represents a 4% increase over 2022, and we expect international defense spending by U.S....

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