Douglas Harned's questions to L3Harris Technologies Inc (LHX) leadership • Q4 2024
Question
Douglas Harned questioned the Communications Systems (CS) segment's 2025 margin guidance of below 25%, given positive drivers like software sales, exports, and LHX NeXt savings.
Answer
CFO Kenneth Bedingfield stated the guidance reflects a risk-adjusted view early in the year and the fluctuating mix between U.S. DoD and international sales, which impacted Q4 margins. CEO Christopher Kubasik added that while the segment is seeing more system-level opportunities, it also faces the highest supply chain inflation pressure, which must be offset.