L3Harris Reports Growth for Space and Airborne Systems in 3Q
L3Harris corporate headquarters in Melbourne, Florida. Photo: L3Harris
L3Harris Technologies, Inc. segment Space and Airborne Systems saw 6.5% revenue growth in the Third Quarter (Q3) of 2020 compared to Q3 2019, the company reported Oct. 30. Space and Airborne Systems reported $1.25 billion in revenue, an increase of $76 million from Q3 2019. Overall, Space and Airborne Systems, Integrated Mission Systems, and Communication Systems grew revenue for the company, but those gains were partially offset by a decline in Aviation Systems due to COVID-19-related impacts.
L3Harris attributed the growth in its space segment to a ramp on the F-35 platform in Mission Avionics and classified growth in Intel and Cyber, partially offset by program timing in Space and Electronic Warfare. Third quarter operating income for the segment was flat at $231 million.
The company highlighted momentum in its Space segment with key awards including a $119 million contract for the Ground-Based Electro Optical Deep Space Surveillance (GEODSS) system upgrade from the U.S. Space and Missile Systems Center. The company also received a multi-million-dollar sole-source award for a classified imaging satellite, and a $194 million competitive contract from the Space Development Agency (SDA) to develop and integrate satellite systems for the tracking layer of the National Defense Space Architecture.
William Brown, chairman and CEO of L3Harris highlighted that the Space Development Agency’s missile tracking layer contract was achieved because of the creation of L3Harris, from the merger of L3 Technologies and Harris. This contract for the Wide Field of View (WFOV) program leverages Harris’ legacy capabilities in space payloads and integration and L3’s onboard space avionics solutions, he said in a Friday call with investors.
L3Harris is providing the satellite bus and mission payload for the WFOV program, “validating our strategy to become a mission-solutions prime” contractor, Chris Kubasik, the company’s vice chairman, president and chief operating officer said on the call. He said demand for the satellites could grow with the value of the program “well into the billions” of dollars, “leading to the next space-based franchise for our company.”
Overall, L3Harris reported Q3 revenue of $4.5 billion, up 0.7% versus prior year. Revenue growth of 3.3% in core U.S. and international businesses was offset by the divestiture of the airport security and automation business and COVID-19-related impacts, mainly for commercial-related sales. GAAP net income was $430 million, down 1.1% versus prior year.
In addition, L3Harris updated its 2020 guidance of about $18.4 billion in revenue, narrowed to the midpoint of the previous range of $18.2 billion to $18.6 billion.
Cal Biesecker from Defense Daily contributed to this story.