Robust federal defense budget drives revenue growth for the next few years. Above-average EBITDA margins relative to other rated aerospace and defense peers. Broad range of capabilities across high-growth defense and intelligence markets. Highly competitive defense electronics market. Potential long-term pressure on defense spending. Aggressive financial policy of shareholder returns. Strong defense spending through 2021 positions L3Harris Technologies Inc. for continued organic revenue growth. The most recent budget proposal suggests defense spending will remain strong through 2022, which should support solid demand for L3Harris' products and services. Although spending is likely to remain flat thereafter, an increased focus by the military on electronic warfare (EW); intelligence, surveillance, and reconnaissance (ISR); and space creates an opportunity for L3Harris' organic revenue growth
