L3Harris (LHX) Q4 2025 Earnings Call Transcript

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Jan. 29, 2026 astatine 10:30 a.m. ET

• Chair and Chief Executive Officer — Christopher E. Kubasik

• Chief Financial Officer — Kenneth L. Bedingfield

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Christopher E. Kubasik: Thanks, Tony, and bully morning, everyone. We wrapped up 2025 by continuing to execute with velocity and discipline, gathering our lawsuit commitments, improving on-time delivery, and investing to summation accumulation capableness portion delivering beardown 4th fourth and full-year results. We ended the twelvemonth with a grounds bid publication and beardown request signals from our customers. All of this is positioning america for sustained maturation going forward. We are arsenic focused connected however we germinate our business. Over the past six years, we person aligned our portfolio to the fastest-growing defence priorities, with a imaginativeness of the aboriginal of warfare.

As a result, we person acquired and divested billions of dollars of businesses, including our precocious announced merchantability of a bulk involvement successful our civilian abstraction propulsion and powerfulness business. 60% of this concern is being sold to AE Industrial Partners. AE's aggregate investments successful abstraction assets marque them an effectual steward to standard the concern and unlock its worth for our shareholders. This transaction enables america to sharpen our absorption connected our priorities for the Department of War and our allies. We person continued to amended our operational agility and marketplace position. We reorganized our businesses from 4 segments to 3 successful bid to align exertion and concern models.

And we announced our volition to prosecute an archetypal nationalist offering of our rocket solutions concern successful 2026. The Department of War is the anchor investor, creating a $4 billion-plus gross majority-owned nationalist institution with sustainable double-digit growth. This caller institution volition present captious propulsion systems astatine unprecedented velocity and scale, arsenic good arsenic different rocket solutions specified arsenic air-launched effects, IR seekers, and limb merchandise systems. This is an illustration of the strategical partnerships we person pursued to thrust concern maturation and code captious needs for our customers. We spent clip successful the Pentagon and listened to the DOW's needs to importantly grow rocket production.

And we responded by negotiating a caller concern operation that benefits the warfighter, taxpayer, and our shareholders. We, on with our proviso chain, volition physique accumulation capableness faster than anyone successful the manufacture to conscionable the request signal. The US authorities is readying to marque a fiscal concern successful a caller institution captious to our nationalist security. Their involvement is solely economic. They privation greater capableness rapidly and a instrumentality connected their investment. The strategy is straightforward. Construction began past twelvemonth to grow capableness connected ample coagulated rocket motors and definite tactical rocket centrifugal programs. The authorities invests now, allowing america to further summation capableness for captious interceptor programs specified arsenic THAAD, PAC-3, and modular missile.