Q1 2026 L3Harris Technologies Inc Earnings Call Transcript
Key Points
- L3Harris Technologies Inc (LHX) reported a strong first quarter with a 15% organic revenue growth, marking growth in 9 of the last 10 quarters.
- The company's backlog has nearly doubled to over $40 billion, providing increased revenue coverage and predictability.
- L3Harris Technologies Inc (LHX) achieved a 1.4x book-to-bill ratio, with significant orders in missionized aircraft, solid rocket motors, and software-defined communication products.
- The company is experiencing strong international demand, with a 2.2x book-to-bill ratio in international markets.
- L3Harris Technologies Inc (LHX) is strategically aligned with customer demand, focusing on high-growth areas such as space sensing, missile defense, and resilient communications.
- Free cash flow was an outflow of $187 million, attributed to working capital timing, which is typical for the first quarter.
- The company faces risks and uncertainties related to forward-looking statements, which could cause actual results to differ materially.
- There are concerns about the supply chain and the need for multiple suppliers to support the aggressive volume ramp in Missile Solutions.
- The company's growth is partly dependent on the successful execution of multiyear procurement frameworks, which are still under negotiation.
- L3Harris Technologies Inc (LHX) is investing heavily in R&D and capacity expansion, which could impact margins if not managed effectively.
Greetings. Welcome to the L3Harris Technologies first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.
It is now my pleasure to introduce your host, Tony Calderon, Vice President, Investor Relations and Corporate Development. Thank you. Tony, you may now begin.
Thank you, Tiffany, and good morning, everyone. Joining me today are Chairman and CEO, Chris Kubasik; and CFO, Ken Sharp. Earlier this morning, we published our first quarter earnings release detailing our financial results and updated 2026 guidance. We also filed our 10-Q and provided a supplemental earnings presentation on our website.
Before we begin, please note that today's discussion will include forward-looking statements subject to risks, assumptions and uncertainties that could cause actual results to differ materially. For more information, please refer to our earnings release and SEC filings. We will
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