Vertically integrated U.S. defense prime in comms, space and propulsion
L3Harris
L3Harris is a U.S. defense prime spanning communications, sensing, space and missile propulsion. FY2025 revenue (fiscal year ended January 2, 2026) was $21.865 billion, up about 2.5% year over year, with U.S. Government customers accounting for 75% of revenue, an extremely concentrated customer base. It reports in four segments: Space & Airborne Systems, Integrated Mission Systems, Communication Systems and Aerojet Rocketdyne. The 2023 Aerojet Rocketdyne acquisition brought solid and liquid rocket motors and missile propulsion in-house. Contractual backlog at fiscal year-end was $38.7 billion, up 13% year over year, of which $26.9 billion was funded. Its space footprint is broad: it supplies Space Development Agency Tracking Layer satellites across Tranches 0 through 3, produces RS-25 engines for NASA's SLS/Artemis program, launches its own satellites on Firefly's Alpha rocket, and through subsidiary ARDÉ supplies pressure vessels for Intuitive Machines' lunar landers. During FY2025 it divested its Commercial Aviation Solutions business and agreed to transfer a Space Technology disposal group (excluding the RS-25 business) to AE Industrial, retaining a 40% noncontrolling interest.
LHX Updated Jul 12, 2026 3 AI consumers· 2 recurring
Per the valuechain.wiki graph, L3Harris is directly linked to 4 companies (1 supply, 3 revenue relationships) and reaches 9 companies within two hops; the links are backed by 12 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · FY2025 total revenue $21,865M (vs $21,325M prior year, +2.5%)
- Customer concentration · U.S. Government 75%; international (incl. FMS) $4.8B (22%); fixed-price contracts 75%; no single customer above 5%
- Segments · Space & Airborne Systems (SAS) — revenue $6,946M · Integrated Mission Systems (IMS) — revenue $6,630M · Communication Systems (CS) — revenue $5,673M · Aerojet Rocketdyne (AR) — revenue $2,845M
Revenue from
- Space Development Agency High confidence· Contract value $843M · 2025-12 · SDA Tranche 3 Tracking Layer, 18 satellites, up to $843M award
L3Harris supplies the Space Development Agency's Proliferated Warfighter Space Architecture Tracking Layer across generations. In December 2025 it won up to $843 million for 18 infrared satellites in Tranche 3; it has four Tranche 0 satellites on orbit and 34 in development across Tranches 1 and 2. This is a core space relationship for hypersonic and ballistic missile tracking. - U.S. Government High confidence· Revenue share 75% · FY2025 · 10-K: U.S. Government revenue share 75% (76% FY2024, 76% FY2023)
The U.S. Government (Department of War/DoW and federal agencies), directly or through prime subcontracts and foreign military sales, accounted for 75% of FY2025 revenue. No other single customer exceeded 5%, making government dependence structural. - Intuitive Machines High confidence· units per unit 2 탱크/착륙선 · 2025 · Two ARDÉ pressure vessels per Nova-C lander
L3Harris subsidiary ARDÉ supplies lightweight composite-overwrapped pressure vessels (COPV/helium tanks) for Intuitive Machines' Nova-C lunar lander. Each lander uses two identical tanks to pressurize the propulsion system; they flew on IM-1 (Odysseus) and IM-2. (Mirror of the existing intuitive-machines node cost edge.)Confirms EN L3Harris Published Feb 12, 2025: L3Harris Delivers for Intuitive Machines IM-2 Nova-C Lunar Lander - NASA High confidence
Aerojet Rocketdyne (now L3Harris) produces and supplies RS-25 core-stage engines for NASA's Space Launch System (SLS)/Artemis program. Since a 2015 production-restart contract it has been building new engines; four RS-25s power each SLS core stage. The RS-25 business was explicitly excluded from the Space Technology divestiture and retained by L3Harris. - Foreign governments (including FMS) Medium confidence· Revenue share 22% · FY2025 · 10-K: international end-consumer revenue $4.8B (22%)
Revenue where the end consumer is outside the U.S. was $4.8 billion in FY2025, 22% of total, spread across more than 100 countries with no single foreign country above 5%. A significant portion flows through foreign military sales funded by the U.S. Government. - Republic of Korea Defense Acquisition Program Administration (DAPA) Medium confidence· Contract value 3.098조원(KRW) · 2025-2032 · DAPA second AEW&C program, KRW 3.0975tn total, four aircraft
In South Korea's second AEW&C (airborne early warning and control) program, a Korean Air-L3Harris consortium was selected. The roughly KRW 3.0975 trillion program will deliver four aircraft by 2032, with L3Harris responsible for network communications, cybersecurity and special-mission systems R&D. A major revenue relationship with the Korean military.Confirms KO Business Post Published Oct 20, 2025: Korean Air-L3Harris consortium wins KRW 3.1tn DAPA second AEW&C program - Lockheed Martin Medium confidence
The Aerojet Rocketdyne segment supplies solid rocket motors and propulsion systems to missile programs where Lockheed Martin is prime, including the PAC-3 MSE interceptor, THAAD and GMLRS. L3Harris is expanding solid rocket motor capacity (Huntsville, Camden) to meet surging demand.Confirms EN L3Harris Published Sep 15, 2025: L3Harris Receives Multi-Year Javelin Solid Rocket Motor ContractMentions EN L3Harris Published Aug 1, 2025: L3Harris Expanding Huntsville Solid Rocket Motor FacilityMentions EN Army Technology Published May 20, 2024: Aerojet Rocketdyne to accelerate solid rocket motors in missiles - RTX Medium confidence
The Aerojet Rocketdyne segment supplies propulsion and solid rocket motors to missile programs where RTX (Raytheon) is prime, including the Standard Missile family, Stinger, and Javelin (a Lockheed-Raytheon joint venture). RTX is cited as a major buyer seeking to secure solid rocket motor supply.Confirms EN L3Harris Published Sep 15, 2025: L3Harris Receives Multi-Year Javelin Solid Rocket Motor ContractMentions EN Army Technology Published May 20, 2024: Aerojet Rocketdyne to accelerate solid rocket motors in missiles
Pays to
- Firefly Aerospace High confidence· contracted units 20발사(최대) · 2027-2031 · Up to 20 Alpha launches (2-4/yr) plus existing 3 in 2026
L3Harris is a launch-services customer of Firefly, launching its own satellites to low-Earth orbit on the Alpha rocket. An August 2024 second multi-launch agreement added up to 20 launches at two to four per year from 2027 to 2031, on top of an existing agreement for three Alpha missions in 2026. (Mirror of the existing firefly node revenue edge.)Confirms EN Firefly Aerospace Published Aug 7, 2024: Firefly Aerospace Announces Second Multi-Launch Agreement with L3Harris for up to 20 Alpha LaunchesMentions EN Spaceflight Now Published Aug 7, 2024: Firefly Aerospace announces contract with L3Harris for up to 20 launches on Alpha rocket - Microelectronics · electronic component supply basket (undisclosed) Medium confidence
L3Harris procures components and materials, including microelectronics, for its communications, sensing and space products from multiple suppliers, some of which must be sourced only from U.S. Government-approved supply sources. Individual suppliers and amounts are undisclosed. - Solid propellant · specialty chemical raw material basket (undisclosed) Low confidence
Aerojet Rocketdyne's solid rocket motor production consumes specialty-chemical oxidizers and propellant feedstocks such as ammonium perchlorate. The narrow supply base for these inputs is cited as a constraint on capacity expansion, but individual suppliers and contract values are not disclosed.Mentions EN Army Technology Published May 20, 2024: Aerojet Rocketdyne to accelerate solid rocket motors in missiles
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Textron | lead2 | +59.9 | -8.2 | +13.7 | -4.8 | +14.1 | +4.3 |
| Leonardo S.p.A. | lead2 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -6.8 |
| Korea Aerospace Industries | lead2 | +15.4 | +34.6 | +7 | +5.5 | +217.9 | -14 |
| Lockheed Martin | lead1 | +3.2 | +40.5 | -4.3 | +10 | +2.5 | +9.5 |
| RTX | lead1 | +23.3 | +20 | -14.4 | +40.8 | +61.4 | +7.6 |
| Intuitive Machines | lead1 | · | +3.7 | -74.4 | +610.8 | -10.6 | -0.6 |
| L3Harris | node | +15 | -0.5 | +3.7 | +1.9 | +42.3 | -0.2 |
| Firefly Aerospace | benef1 | · | · | · | · | · | +7.7 |
| SpaceX | benef2 | · | · | · | · | · | +0.7 |
| Northrop Grumman | benef2 | +29.3 | +43 | -12.8 | +1.9 | +23.6 | -4.6 |
YTD as of 2026-07-10 · source: Yahoo Finance
L3Harris's thesis is a U.S. defense prime that vertically integrated communications, space and missile propulsion through acquisition. FY2025 revenue of $21.865B (+2.5%) with 75% U.S. Government share gives high earnings stability, and a $38.7B backlog ($26.9B funded) pre-commits future sales. The 2023 Aerojet Rocketdyne acquisition brought solid and liquid rocket motors in-house, making it the sole SRM supplier on missile programs where Lockheed and RTX are prime — PAC-3 MSE, Javelin and more — and surging missile demand drives that segment. In space its footprint is broad: SDA Tracking Layer satellites (Tranche 3 up to $843M), NASA RS-25 engines, Firefly launches and Intuitive Machines pressure vessels. During FY2025 it divested Commercial Aviation and transferred part of Space Technology (excluding RS-25) to focus on the defense core. Re-rating triggers are missile SRM capacity expansion, follow-on SDA Tracking Layer awards, and the defense-budget and foreign-military-sales flow.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 3 · Hold 2 · Sell 0 · Avg. target $360 · Price $291.32 (07-11) · Upside +24%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| UBS · Gavin Parsons | Neutral | $312 | Jun 29, 2026 | Report ↗ |
| Bernstein · Douglas Harned | Outperform | $405 | Jun 3, 2026 | Report ↗ |
| Deutsche Bank · Scott Deuschle | Hold | $300 | May 12, 2026 | Report ↗ |
| J.P. Morgan · Seth Seifman | Overweight | $380 | May 7, 2026 | Report ↗ |
| Goldman Sachs · Noah Poponak | Buy | $405 | May 4, 2026 | Report ↗ |
Neutral at $312, a cautious view that recognizes defense budget momentum but sees limited upside at the current valuation.