L3Harris Posts 16% Growth in Q3 With TDL and Aerojet Rocketdyne Acquisitions
The Space & Airborne Systems and Communication Systems segments at L3Harris delivered growth in the third quarter of 2023.
Company-wide revenue at L3Harris was up 16% in Q3 compared to the same period last year, due to acquisitions including Aerojet Rocketdyne (AR) and the Tactical Data Links business L3Harris acquired from Viasat. Organically, excluding the effects of acquisitions, revenue was up 3% compared to the same time last year.
This is the fifth consecutive quarter of revenue growth for L3Harris. Total backlog stands at $32 billion, up 49% year-over-year, driven by continued demand and national security-focused acquisitions.
The Communication Systems segment, which includes satellite terminals, delivered an 18% revenue increase year-over-year, primarily from the Tactical Data Links acquisition. L3Harris also reported higher domestic volume in tactical communications driven by increased demand and improved electronic component availability. Revenue was up 8% year-over-year on an organic basis.
Revenue in the Space & Airborne Systems segment was up 6% year-over-year, primarily from new program ramps in Space and Intelligence & Cyber businesses driven by continued high demand and record backlog.
L3Harris also reported that Aerojet Rocketdyne delivered $455 million in revenue from August to September. The acquisition closed on July 28.
The company has updated its 2023 guidance to incorporate Aerojet Rocketdyne’s revenue, without changing the underlying guidance excluding AR. The company now expects revenue of $19.2 billion to $19.4 billion, up from prior guidance of $18 billion to $18.3 billion.
CEO Christopher Kubasik said in a letter to investors that there is increasing demand for AR’s products, and the company is focused on stabilizing and enhancing performance on a few programs at AR that are behind schedule.
“We are leveraging L3Harris standard tools, processes and global operations resources, and we expect to drive continuous improvement throughout the AR portfolio. At the foundation of this effort is a modernization plan that utilizes Defense Production Act funding to increase capacity and efficiency to support long-term growth,” Kubasik commented.