L3 Harris’ Government Space, Satellite Business Holds Steady in Q2 2021
L3 Harris‘ space and satellite communication business divisions reported modest revenue gains in is 2021 second fiscal quarter (Q2 2021).
Its Space and Airborne systems revenue increased 3% over the same period last year due to increased activity with missile defense, responsive space programs, and classified cybersecurity business. The business unit also benefited from a multi-million-dollar initial award it won during the quarter for the design of next-generation weather imagers in support of the U.S. National Oceanic and Atmospheric Administration‘s (NOAA) future Geostationary (GEO) and extended orbits satellite system.
L3 Harris’ Communications division, which also includes its tactical satellite technology portfolio, also benefited from increased government activity, resulting in a 1.3% increase compared to Q2 2020. However, those gains were offset by lower volume on its existing broadband and public safety communications platforms. The company said the COVID-19 pandemic remains the main source of a lag in broadband business.
The company’s Communications book-to-bill ratio stands at 1.28 and 1.10 for the quarter and first half, respectively.
L3 Harris’ company-wide revenues increased 5% over the same period last year. The company reported a net income margin of 8.8% and an adjusted Earnings Before Interest and Taxes (EBIT) margin of 18.6%.
The company expects to pull in between $18.1 billion and $18.5 billion in revenue by the end of the year — a downward adjustment from its previous guidance of $18.5 billion — $18.9 billion.
“We are now at the two-year mark for L3Harris and our second quarter results demonstrate the merger’s value creation and operating momentum. Our accomplishments to-date and a continued focus on execution give us confidence to raise guidance for the year,” said L3 Harris CEO Christopher Kubasik. “As we look forward, a commitment to our strategic priorities along with our differentiated capabilities position us for further value creation over the long term.”