L3Harris faces risks from dependence on U.S. government contracts, fluctuating contract mix, inflation, potential government contract actions, uncertain economic conditions, geopolitical events, supply chain disruptions, debt levels, defined benefit plan liabilities, interest rates, pending divestitures, and market factors. The company's substantial debt and reliance on government funding create vulnerability to budget uncertainties and potential economic instability. Uncertainties in legal proceedings and environmental matters also pose risks.
Financial Upside
L3Harris' revenue increased 8% in Q3 2024 and 12% year-to-date, driven by higher sales in segments like Aerojet Rocketdyne (AR) and growth in other segments. Gross margins remained relatively stable. The company has a $3.0 billion commercial paper program and $2.3 billion in available credit, providing funding flexibility. The company also repurchased 2.3 million shares of common stock.
