L3Harris Technologies presents medium-term financial framework through 2026

L3Harris Technologies hosted its 2023 Investor Day at which it provided an in depth review of the company’s financial objectives and value creation strategy. “Nearly five years ago, we combined two mid-sized aerospace and defense companies to create a new competitor in the industry. Since then, we have been shaping our portfolio into a national security and technology-focused company aligned with growing end markets across all domains. We intend to discontinue our M&A program for the foreseeable future to prioritize strengthening our balance sheet and returning all excess capital to shareholders,” said CEO Christopher Kubasik. “Today, L3Harris has industry-leading margins and is well positioned to grow as a result of our differentiated Trusted Disruptor strategy. We will focus on driving operational improvements to enhance productivity, reduce expenses, drive margin expansion and generate strong cash flow. Our solid financial foundation gives us confidence in our ability to meet our medium-term targets and deliver value for shareholders. We look forward to building on this baseline and identifying opportunities for further margin and cash flow improvement by working with the Board’s newly formed Business Review Committee during its comprehensive evaluation of the Company’s performance and operations.” L3Harris management presented its medium-term financial framework based on the Company’s current portfolio, through 2026, including: $23B in revenue; 16% segment operating margins; $2.8B of free cash flow. The company also provided its 2024 – 2026 capital deployment priorities, which include: Investing in the business, including research and development and capital expenditures; Paying down debt to achieve a leverage of 3.0x; Not pursuing any acquisitions and returning all excess cash to shareholders.