Revenue Growth Drivers
Q: What are the biggest drivers to reach the $23B revenue target? "
A: CEO Christopher Kubasik highlighted a record backlog and a book-to-bill ratio of 1.14 after nine months. " He emphasized alignment with key areas of the U.S. budget. " Growth drivers include Communication Systems (CS) with a $10 billion international pipeline, especially NATO software-defined radios " ; in Space, despite near-term budget pressures, growth is expected by 2026 as missions move from air to space " ; Aerojet Rocketdyne's operations are improving, with investments in supply chain and capacity expansion that should accelerate growth in 2026, including opportunities with the Glide Phase Interceptor and next-gen interceptor. "

Margin Expansion Goals
Q: Are you on track for 16% margins by 2025-2026? " "
A: The company is tracking towards its $1 billion cost reduction target a year ahead of schedule. " CEO Kubasik emphasized efforts to eliminate non-value activities, expecting to achieve the $1 billion savings next year and more thereafter. " CFO Bedingfield stated they are "absolutely tracking" to the margin targets set, moving the 2026 margin target from approximately 16% to at least 16%. " " Margin improvements are expected across all segments. "

Aerojet Rocketdyne Growth
Q: How do you view growth prospects and competition in solid rocket motors? "
A: The company recognizes increased demand, with the Army indicating a need for 32,000 solid rocket motors a year. " Currently producing 8,000, L3Harris is investing to ramp up to 10,000–14,000. " CEO Kubasik welcomes competition but believes they have the best technology and infrastructure. " He is "more pleased with the acquisition of Aerojet today than...a couple of years ago" due to strong demand. "

Free Cash Flow and Share Repurchases
Q: Will you increase share repurchases as you approach target leverage? "
A: CFO Bedingfield confirmed plans to return to more value-creating share repurchase levels in 2025 and 2026 as leverage reaches the 3.0 target. " The company has already met its $500 million share repurchase target for 2024. " Growing free cash flow per share is a priority. "

Palantir Partnership
Q: What's the strategic rationale for partnering with Palantir? "
A: The partnership involves no upfront investment. " CEO Kubasik emphasized that combining capabilities provides a competitive edge, especially in AI. " They are collaborating on programs like TITAN, where Palantir is the prime and L3Harris provides resilient communications. " Internally, L3Harris is using Palantir products as part of LHX NeXt to make real-time, data-driven decisions, driving cost reductions and operational efficiencies. "

Supply Chain Improvements
Q: How is the supply chain impacting CS segment growth in 2025? "
A: CEO Kubasik stated that the supply chain is in better shape today than before the pandemic. " This resilience provides confidence in the CS sector, especially in the software-defined radio business. " They anticipate both domestic and international demand growth in 2025, with a more stable mix compared to 2024. "

F-35 Tech Refresh 3
Q: What's the status of F-35 TR-3 and its impact? "
A: L3Harris is under contract with Lockheed Martin through Lot 19 and is not experiencing financial headwinds from their negotiations. " The company is meeting commitments on TR-3 components like the core processor, memory system, and cockpit display. " CEO Kubasik mentioned that the customers and prime are satisfied with their performance. "

Night Vision Goggles Outlook
Q: What's the outlook for night vision goggles given funding uncertainties? "
A: CEO Kubasik is optimistic, noting that funding is actually included in the budget this time. " He believes both ENVG and IVAS systems will be used, with ENVG being a superior product for warfighters. " The company feels better about the night vision goggle business now than a year or two ago. "

Tactical Data Links and Link 16
Q: Can you update on TDL and Link 16 developments? "
A: The company is ahead of its TDL business case, successfully moving production to the Salt Lake City facility. " They've streamlined operations, reduced hours, and improved supply chain leverage. " Significant orders have been received, including for the BATS-D handheld Link 16. " Link 16 demonstrations in space are progressing well. "

Working Capital Management
Q: How are you approaching working capital and free cash flow growth? "
A: CFO Bedingfield stated they aim to be effective managers of capital while willing to invest in the business to drive growth. " The growth and increase in profit are the biggest contributors to growing free cash flow. " They are not short-termists and make decisions to invest for long-term benefits, enabled by LHX NeXt. "