📊 LHX Key Takeaways
Is L3Harris Technologies, Inc.. /DE/ (LHX) a Good Investment?
L3Harris demonstrates adequate profitability margins (8.9% net margin) typical of defense contractors, but faces critical cash generation issues with negative operating cash flow of -95M and negative free cash flow of -194M despite reporting positive accounting earnings. Poor capital efficiency (ROE 2.6%, ROA 1.2%) and deteriorating liquidity position (current ratio 1.03x, quick ratio 0.89x) signal structural financial stress that contradicts the stability expected from a mature defense/aerospace supplier.
L3Harris generates strong free cash flow (12.3% FCF margin) with excellent interest coverage (30.6x) and moderate leverage, underpinning durable fundamentals. Liquidity is adequate and EPS rose 8.4% YoY despite flat net income, indicating effective capital allocation. While margins and returns are mid-tier, the cash profile and balance sheet quality support a constructive outlook.
L3Harris Technologies, Inc.. /DE/ Key Strengths (LHX)
- Solid gross margin of 32.6% demonstrates pricing power and operational efficiency in core business
- Manageable leverage with debt-to-equity of 0.47x and strong interest coverage of 9.4x showing adequate debt servicing capacity
- Operating income of $652M and net income of $512M indicate profitable underlying operations
- Strong free cash flow generation and cash conversion
- Excellent interest coverage with moderate leverage
- EPS growth outpacing net income, signaling efficient capital allocation
LHX Stock Risks: L3Harris Technologies, Inc.. /DE/ Investment Risks
- Negative operating cash flow of -95M and negative free cash flow of -194M in mature business indicates potential working capital deterioration or structural cash generation issues
- Weak capital efficiency with ROE of 2.6% and ROA of 1.2% suggests $41.4B in assets is not being productively deployed
- Liquidity stress signals with current ratio barely above 1.0 (1.03x) and quick ratio below 1.0 (0.89x) despite $9.2B long-term debt obligations
- Flat net income growth (+0.0% YoY) with EPS growth driven by share buybacks rather than organic expansion
- Flat net income YoY suggests limited near-term growth
- Low margin profile could face cost/mix pressure
- Liquidity just above 1x and cash modest relative to long-term debt
Key Metrics to Watch
- Operating cash flow trend and cash conversion rate - critical for investment viability
- Working capital management and customer payment cycles - may explain negative OCF
- Return on invested capital (ROIC) - must improve from current 1-2% range to justify capital base
- Liquidity position and cash reserve adequacy relative to debt maturity schedule
- Operating margin trajectory
- Free cash flow margin consistency
L3Harris Technologies, Inc.. /DE/ (LHX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
L3Harris Technologies, Inc.. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LHX Profit Margin, ROE & Profitability Analysis
LHX vs Market Sector: How L3Harris Technologies, Inc.. /DE/ Compares
How L3Harris Technologies, Inc.. /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is L3Harris Technologies, Inc.. /DE/ Stock Overvalued? LHX Valuation Analysis 2026
Based on fundamental analysis, L3Harris Technologies, Inc.. /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
L3Harris Technologies, Inc.. /DE/ Balance Sheet: LHX Debt, Cash & Liquidity
LHX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: L3Harris Technologies, Inc.. /DE/'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.44 reflects profitable operations.
LHX Revenue Growth, EPS Growth & YoY Performance
LHX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.1B | $386.0M | $2.04 |
| Q3 2025 | $5.3B | $400.0M | $2.10 |
| Q2 2025 | $5.3B | $366.0M | $1.92 |
| Q1 2025 | $5.1B | $283.0M | $1.48 |
| Q3 2024 | $4.9B | $383.0M | $2.02 |
| Q2 2024 | $4.7B | $349.0M | $1.83 |
| Q1 2024 | $4.5B | $283.0M | $1.48 |
| Q3 2023 | $4.2B | -$300.0M | $-1.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
L3Harris Technologies, Inc.. /DE/ Dividends, Buybacks & Capital Allocation
LHX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for L3Harris Technologies, Inc.. /DE/ (CIK: 0000202058)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620928.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620916.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620898.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620878.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620865.xml | View → |
❓ Frequently Asked Questions about LHX
What is the AI rating for LHX?
L3Harris Technologies, Inc.. /DE/ (LHX) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LHX's key strengths?
Claude: Solid gross margin of 32.6% demonstrates pricing power and operational efficiency in core business. Manageable leverage with debt-to-equity of 0.47x and strong interest coverage of 9.4x showing adequate debt servicing capacity. ChatGPT: Strong free cash flow generation and cash conversion. Excellent interest coverage with moderate leverage.
What are the risks of investing in LHX?
Claude: Negative operating cash flow of -95M and negative free cash flow of -194M in mature business indicates potential working capital deterioration or structural cash generation issues. Weak capital efficiency with ROE of 2.6% and ROA of 1.2% suggests $41.4B in assets is not being productively deployed. ChatGPT: Flat net income YoY suggests limited near-term growth. Low margin profile could face cost/mix pressure.
What is LHX's revenue and growth?
L3Harris Technologies, Inc.. /DE/ reported revenue of $5.7B.
Does LHX pay dividends?
L3Harris Technologies, Inc.. /DE/ pays dividends, with $238.0M distributed to shareholders in the trailing twelve months.
Where can I find LHX SEC filings?
Official SEC filings for L3Harris Technologies, Inc.. /DE/ (CIK: 0000202058) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LHX's EPS?
L3Harris Technologies, Inc.. /DE/ has a diluted EPS of $2.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LHX's fundamental grade?
Based on our AI fundamental analysis in May 2026, L3Harris Technologies, Inc.. /DE/ has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LHX stock overvalued or undervalued?
Valuation metrics for LHX: ROE of 2.6% (sector avg: 15%), net margin of 8.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is LHX's AI grade for 2026?
Our dual AI analysis gives L3Harris Technologies, Inc.. /DE/ a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LHX's free cash flow?
L3Harris Technologies, Inc.. /DE/'s operating cash flow is $-95.0M, with capital expenditures of $99.0M. FCF margin is -3.4%.
How does LHX compare to other Market stocks?
Vs Default sector averages: Net margin 8.9% (avg: 12%), ROE 2.6% (avg: 15%), current ratio 1.03 (avg: 1.8).