L3Harris Charts a Course for Growth Through Strategic Portfolio Moves

L3Harris US5024311095

Following a robust performance in its 2025 fiscal year, L3Harris Technologies is now targeting an acceleration of its growth trajectory for 2026. The defense contractor is reshaping its business through a series of strategic portfolio actions, including a planned public offering for its missile division, while capitalizing on record deliveries in its armaments segment. The central question for investors is whether the company can sustain the momentum it has built over the past twelve months.

A significant factor behind the firm's recent success has been a dramatic ramp-up in production capacity. In 2025, the company delivered close to 500,000 fuzes, representing an increase of approximately 80% compared to the prior year. This scaling is a direct response to heightened global demand for advanced munitions and defense equipment.

The company's order book continues to strengthen with new program wins. In early February, L3Harris secured an $86.2 million contract with the U.S. Navy for the development of its "Red Wolf" vehicles. This system is designed to provide the Marine Corps with new long-range precision capabilities, reinforcing the corporation's role as a key technical partner for modern defense initiatives.

Financial Outlook and Strategic Reshaping

The company's fourth-quarter 2025 results, which featured earnings of $2.86 per share and exceeded expectations, have set a positive tone. Management has provided revenue guidance for 2026 in the range of $23.0 billion to $23.5 billion. Its target for approximately 7% organic growth underscores ambitions to expand its market position within the defense sector.

Concurrently, L3Harris is advancing a comprehensive strategic overhaul. A partial initial public offering (IPO) for its "Missile Solutions" business unit is scheduled for the second half of 2026. Furthermore, the company has already initiated the sale of a majority stake in its space technology division. These steps are intended to strengthen the balance sheet and sharpen the strategic focus on core operations.

• Q4 2025 EPS: $2.86
• 2026 Revenue Forecast: $23.0 - $23.5 billion
• 2026 Expected Free Cash Flow: $3.0 billion
• Missile Solutions IPO: Planned for H2 2026
• Red Wolf Contract Value: $86.2 million

Market Performance and Forward Calendar

Despite a modest pullback of 2.12% in Wednesday's trading session, L3Harris shares closed at $349.91. The stock remains within striking distance of its 52-week high and has recorded a gain of over 72% on a year-to-date basis.

Investors can expect further details on the long-term strategy during the Investor Day scheduled for February 25, 2026, in New York. Alongside the presentation of a three-year financial framework, updates on the execution of the planned partial IPO are likely to be a key focus. The company will subsequently release its next quarterly results on April 23, 2026.

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