L3Harris (LHX) Stock Forecast & Price Target

L3Harris Technologies reported significant growth in its diverse product offerings, particularly within the Aerojet franchise, which experienced a 12% increase in organic sales alongside a robust 13.3% adjusted operating margin. The company's revenue guidance for 2025 has been increased by $100 million for both the IMS and SAS sectors, reflecting strong demand and strategic positioning in key markets. Additionally, L3Harris's free cash flow guidance for FY25 was raised by $200 million to $2.65 billion, exceeding consensus estimates by 9%, illustrating solid financial health and operational efficiency.

L3Harris Technologies has experienced a decline in operational margins, with the Systems segment reporting a 30 basis point year-over-year decrease due to a challenging mix and end-of-life asset sales. Additionally, the company faced a significant headwind from net EAC adjustments, which negatively impacted results in the second quarter of 2025, contrasting sharply with minimal effects in the prior year, indicating potential ongoing operational inefficiencies. Furthermore, the company's outlook for 2025 suggests budget timing risks and a downturn in its Space segment, compounded by lower utilization in key programs, which raises concerns about future revenue generation and profitability.