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THIRD QUARTER 2025 EARNINGS PRESENTATION October 30, 2025
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2L3HARRIS 2025 Third Quarter Earnings Presentation 3Q25 QUARTER HIGHLIGHTS Orders of $7B driving record backlog; book-to-bill ratio of 1.2x Segment operating margin of 15.9%; eighth consecutive quarter of year-over-year margin expansion Non-GAAP EPS growth of 10%; 15% on a pension-adjusted basis Increasing guidance on strong performance & higher expectations Organic growth up 10% driving meaningful progress towards our 2026 Financial Framework
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3L3HARRIS 2025 Third Quarter Earnings Presentation Trusted Disruptor strategy ensures we are agile, fast, and align with key defense priorities 1) NGFM - reference the 3Q25 earnings release for a reconciliation to comparable GAAP measure. A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort. DELIVERING SHAREHOLDER VALUE Revenue Adjusted Segment Operating Margin 1 Adjusted Free Cash Flow 1 2025 Guidance ~$22B (Prior: ~$21.75B) high 15% (Prior: mid - high 15%) ~$2.65B $23B $3.0B 2026 Outlook low 16% Drive profitable growth, ensuring we continue to deliver on commitments to customers and shareholders Disciplined capital deployment to invest in the business and return excess cash to shareholders
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4L3HARRIS 2025 Third Quarter Earnings Presentation $900M Adjusted Segment Operating Income1 15.9% Adjusted Segment Operating Margin1 $2.70 Non-GAAP Diluted EPS1 $6.7B Orders 1.2x Book-to-Bill $449M Adjusted Free Cash Flow1 $678M Dividends 1) NGFM - reference the 3Q25 earnings release for a reconciliation to comparable GAAP measure. $1B Share Repurchases THIRD QUARTER 2025 FINANCIAL RESULTS $36.3B Total Backlog $5.7B Revenue Year-to-Date Capital Deployment
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5L3HARRIS 2025 Third Quarter Earnings Presentation LHX POWERING NEXT-GENERATION MISSILE DEFENSE FOR AMERICA: SPACE VEHICLES The appearance of U.S. Department of War visual information does not imply or constitute DOW endorsement. PAYLOADS AND COMMSPROPULSION & DACS SPACE-BASED INTERCEPTORS IR SENSOR PAYLOAD FACILITY LOW-EARTH ORBIT SATELLITE FACILITY SRM CAPACITY EXPANSION Numerous Next-Generation Missile Defense capabilities across the company Strategic investments laying the groundwork
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6L3HARRIS 2025 Third Quarter Earnings Presentation Revenue: increased 6% + Increased international deliveries for software-defined resilient communications and data-link equipment + Next Generation Jammer program ramp, our flagship Electronic Warfare tactical jamming pod ($ millions) $1,382 $1,462 3Q24 3Q25 Revenue Adjusted Operating Income and Margin $359 $382 3Q24 3Q25 26.0% 26.1% Margin: increased 10 basis points + LHX NeXt - Lower volume of proprietary waveform license sales COMMUNICATION SYSTEMS 3Q25 DRIVERS
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7L3HARRIS 2025 Third Quarter Earnings Presentation ($ millions) $1,608 $1,700 $1,450 3Q24 3Q25 $204 $204 3Q24 3Q25 12.7% 12.0% Margin: decreased 70 basis points + Favorable performance - Commercial Aviation Solutions divestiture INTEGRATED MISSION SYSTEMS 3Q25 DRIVERS Revenue: increased 6%, 17%1 organically + Multiple ISR classified programs ramping - Commercial Aviation Solutions divestiture Revenue Adjusted Operating Income and Margin CAS Divestiture Organic 1) NGFM - reference the 3Q25 earnings release for a reconciliation to comparable GAAP measure.
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8 L3HARRIS 2025 Third Quarter Earnings Presentation Margin: increased 50 basis points + Improved program performance + Monetization of legacy end-of-life assets + LHX NeXt - Unfavorable mix ($ millions) SPACE & AIRBORNE SYSTEMS $195 $218 3Q24 3Q25 11.6% 12.1% 3Q25 DRIVERS Revenue Adjusted Operating Income and Margin Revenue: increased 7% + Increased FAA volume in Mission Networks + Higher volume in Airborne Combat Systems - Lower classified program volume in Intel & Cyber $1,683 $1,809 3Q24 3Q25
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9L3HARRIS 2025 Third Quarter Earnings Presentation The appearance of U.S. Department of War visual information does not imply or constitute DOW endorsement. $669 $755 $659 3Q24 3Q25 $76 $96 3Q24 3Q25 12.7% AEROJET ROCKETDYNE 11.4% Revenue: increased 13%, 15%1 organically + Increased production volumes across key missile, munitions, and space programs + New program ramp - Aerojet Ordnance Tennessee, Inc. divestiture Margin: increased 130 basis points + Improved program performance + LHX NeXt 3Q25 DRIVERS Revenue Adjusted Operating Income and Margin ($ millions) AOT Divestiture Organic 1) NGFM - reference the 3Q25 earnings release for a reconciliation to comparable GAAP measure.
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10L3HARRIS 2025 Third Quarter Earnings Presentation SAS CONSOLIDATED Revenue Operating Margin1 CS ~$7.1B low 12% ~$6.5B (Prior: ~$6.4B) low - mid 12% (Prior: ~12%) ~$5.7B (Prior: $5.6B - $5.7B) ~25% Revenue ~$22B (Prior: ~$21.75B) Non-GAAP Diluted EPS1 high 15% (Prior: mid - high 15%) $10.50 - $10.70 (Prior: $10.40 - $10.60) ~$2.65B Adjusted segment operating margin1 FCF1 $2.8B - $2.9B (Prior: ~$2.8B) mid 12% SEGMENT 1) NGFM - a reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort. 2025 GUIDANCE IMS AR
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11L3HARRIS 2025 Third Quarter Earnings Presentation 2025 2025 Current Prior FAS/CAS operating adjustment ~$15 million ~$15 million Non-service FAS pension income ~$285 million ~$285 million Net FAS/CAS pension ~$300 million ~$300 million Net interest expense ~$600 million ~$600 million Effective tax rate on non-GAAP earnings1 13.5% - 14.5% 13.5% - 14.5% Weighted average diluted shares ~188 ~188 Capital expenditures ~2% revenue ~2% revenue 2025 SUPPLEMENTAL INFORMATION 1) NGFM - A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort.
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12L3HARRIS 2025 Third Quarter Earnings Presentation EPS RECONCILIATION 3Q 3Q YoY 2024 2025 Growth % GAAP Diluted EPS $2.10 $2.46 17% LHX NeXt implementation costs 0.22 0.13 Merger, acquisition, and divestiture-related expenses 0.13 0.05 Tax & other 0.01 0.06 Non-GAAP Diluted EPS1 $2.46 $2.70 10% Net FAS/CAS pension (0.41) (0.34) Pension Adjusted Non-GAAP EPS1 $2.05 $2.36 15% 1) NGFM - reference the 3Q25 earnings release for a reconciliation to comparable GAAP measure.
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13L3HARRIS 2025 Third Quarter Earnings Presentation Forward-Looking Statements; Non-GAAP Measures This presentation contains forward-looking statements within the meaning of federal securities laws made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples include, but are not limited to: statements about 2025 guidance and 2025 outlook; 2025 supplemental information; 2026 financial framework; capital allocation priorities, including payout targets; future product deliveries; projection of other financial items; and assumptions underlying any of the foregoing. Persons reading this presentation are cautioned not to place undue reliance on forward-looking statements. The company's consolidated results, future trends and forward-looking statements could be affected by many factors, risks and uncertainties, including but not limited to those in our Q325 earnings release or in "Risk Factors" in our Form 10-K for fiscal 2024, available on our investor relations webpage at www.l3harris.com/investors. Forward-looking statements are made as of the date of this presentation, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. This presentation also contains non-GAAP financial measures (“NGFMs”), including adjusted segment operating income and margin, adjusted free cash flow (FCF), organic revenue, non-GAAP EPS, pension adjusted non-GAAP EPS, net debt to adjusted EBITDA and effective tax rate on non-GAAP earnings, each of which is defined in and reconciled in our Q325 earnings release. A reconciliation of forward-looking NGFMs to comparable GAAP measures is not available without unreasonable effort because of inherent difficulty in forecasting and quantifying the comparable GAAP measures and the applicable adjustments and other amounts that would be necessary for such a reconciliation, as further described in our Q325 earnings release.