This report does not constitute a rating action. Overview Key strengths Key risks Well-funded defense spending drives revenue growth. Highly competitive defense electronics market. Above-average EBITDA margins relative to aerospace and defense peers. Supply chain constraints pose challenges to meet demand and maintain margins. Broad range of capabilities across high-growth defense and intelligence segments. Significant shareholder returns through dividends and share repurchases. We expect elevated global security risks and active conflicts will translate into broad support for defense budgets. The $1 trillion presidential budget request for fiscal 2026 offers substantial growth opportunities for L3Harris Technologies Inc. (LHX). We view the company?s capabilities as well-aligned with the budget?s priorities, including developing integrated, layered missile defense. LXH is also working to enhance
