L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q3 2021 Earnings Presentation
12 slides from L3harris Technologies's earnings presentation, Oct 29, 2021
Slide 1: L3Harris 2021 Third Quarter Earnings Call Presentation
October 29, 2021 Use of U.S. DoD visual information does not imply or constitute DoD endorsement. L3HARRIS 2021 THIRD QUARTER EARNINGS CALL PRESENTATION
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: L3Harris strategic priorities update
L3Harris strategic priorities update • 3Q organic1 revenue down 1%...reflects ~5 points of supply chain delays and award timing Grow revenue...well-aligned portfolio • Funded B:B of 1.07 with growing backlog...notable award activity across domains with investment in innovation • 2021 organic revenue
Slide 4: L3Harris 3Q21 financials
L3Harris 3Q21 financials ($ million, except per share amounts) Revenue EBIT and Margin GAAP 4,463 4,229 13,534 13,464 13,163 13,464 2,561 2,416 +6% +2% 19.0% 2 17.9% Organic1 4,282 4,229 EBIT 798 830 +4% (1)% EBIT 17.9% 19.6% margin2 3Q20 3Q21 YTD20 YTD21 3Q20 3Q21 YTD20 YTD21 EPS Cash Flow Operatin
Slide 5: Non-GAAP 3Q21 EPS bridge
Non-GAAP 3Q21 EPS1 bridge $0.08 $3.21 $0.20 +13% + Pension $0.05 $0.34 + Tax - $2.84 Interest $(0.14) $(0.16) + e3 Performance + Cost Management 2 3Q20 Actual Completed Supply Chain Operations Synergies Share count Other 3Q21 Actual Divestitures Impact 1 Non-GAAP EPS, adjusted EBIT, adjusted EBIT ma
Slide 6: Integrated Mission Systems 3Q21 Results
Integrated Mission Systems ($ million) Revenue 3Q21 Results 4,073 4,281 +5% • Revenue down 3% – Decline due to follow-on aircraft award timing in ISR and product delivery timing in Electro Optical 1,372 1,336 (3)% – Growth in Maritime from a ramp on key platforms 3Q20 3Q21 YTD20 YTD21 • Operating in
Slide 7: Space & Airborne Systems 3Q21 Results
Space & Airborne Systems ($ million) Revenue 3Q21 Results GAAP 1,249 1,284 3,690 3,807 3,683 3,807 +3% • Revenue up 3% – Double-digit growth in Space from ramping missile defense and other responsive programs Organic1 1,249 1,284 +3% – Decline from transition towards F-35 TR3 production in Mission A
Slide 8: Communication Systems 3Q21 Results
Communication Systems ($ million) Revenue 3Q21 Results GAAP 1,094 1,030 3,300 3,269 • Organic1 revenue down 5% 3,259 3,269 flat – Decline in Tactical Communications due to product delivery delays from supply chain-related constraints Organic1 – Lower volume on legacy unmanned platforms in 1,086 1,03
Slide 9: Aviation Systems 3Q21 Results
Aviation Systems ($ million) 3Q21 Results Revenue GAAP 792 625 2,603 2,248 2,280 2,248 • Organic1 revenue up 1% (1)% – Double-digit growth in commercial aerospace from recovering training and avionics product sales Organic1 619 625 – Flat sales in Mission Networks and lower Fuzing and 1% Ordnance Sy
Slide 10: Updated 2021 full-year guidance
Updated 2021 full-year guidance Total L3Harris By Segment Organic revenue1 Margin Organic revenue 1 Margin 2 15.75%+ IMS up 4.0 - 6.0% (vs. 15.25 - 15.75%) upper-end up ~2.0% ~18.75% (vs. up 3.0 - 5.0%) (vs. ~18.50%) 18.75%+ SAS up 4.0 - 6.0% (vs. 18.25 - 18.75%) upper-end EPS2 FCF2 CS down 2.5 - 4.
Slide 11: Non-GAAP 2021 guidance EPS bridge
Non-GAAP 2021 guidance EPS1 bridge $12.93 $0.39 +11% + Pension $0.76 + Tax $11.60 + Contingency $0.31 $(0.41) $0.77 $(0.49) + Volume / e3 Performance - Internal Investments 2020 Completed 2 Supply Chain Operations Synergies Share count Other 2021 guidance divestitures Impact mid-point Variance to Pr
Slide 12: Other financial information
Other financial information ($ million except noted) CY21 3Q20 3Q21 Guide Incremental cost synergies (net) $50 $15 ~$80 Net interest expense $62 $67 ~$255 Integration expenses1 $21 $26 $75 - $100 (upper end) Effective tax rate (non-GAAP) 17.0% 15.2% ~16% Average diluted shares outstanding2 (million
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