L3Harris quarterly revenue misses estimates on government shutdown pressures

Jan 29 (Reuters) - Defense contractor L3Harris Technologies missed Wall Street estimates for fourth-quarter gross connected Thursday, arsenic a prolonged U.S. authorities shutdown delayed ​contract awards.

The shutdown, the longest successful the country's history, lasted 43 days ‌and ended successful November, disrupted procurement enactment for the subject and wounded defence suppliers similar L3Harris.

Shares of ‌L3Harris fell 5% successful premarket trading successful New York.

The institution took a deed successful its abstraction systems business, which was besides bogged down by little volumes successful its classified intel and cyber program.

In October, CEO Christopher Kubasik said that the shutdown was besides ⁠slowing down its planetary export ‌licenses and currency collections.

L3Harris besides saw little fourth-quarter income for its civilian connection products, which partially offset physics warfare-related gains successful ‍its connection systems business.

Additionally, U.S. defence contractors, similar different industries with analyzable manufacturing operations, person been impacted by U.S. President Donald Trump's commercialized war, which has pressured an already strained proviso ​chain.

Larger adjacent RTX said connected Tuesday that it took a deed of $600 ‌million from tariff impacts successful 2025.

L3Harris' full gross for the 4th fourth came successful astatine $5.65 billion, up lone 2% from a twelvemonth earlier and little than Wall Street estimates of $5.78 billion, arsenic per LSEG-compiled data.

It forecast 2026 gross betwixt $23 cardinal and $23.5 billion, astir successful enactment with analysts' expectations of $23.33 billion.

However, the institution said its outlook ⁠includes the financials of its abstraction exertion business, ​in which it sold a 60% involvement to ​AE Industrial Partners successful January.

The woody is expected to adjacent successful the 2nd fractional of 2026, aft which L3Harris volition update its guidance, ‍which could perchance ⁠pressure revenue.

Also earlier this month, L3Harris announced a first-of-its-kind concern with the Department of War, which invested $1 cardinal successful the defence contractor's rocket centrifugal business.

However, ⁠the government's equity involvement introduces a imaginable struggle of interest, arsenic the Pentagon would clasp ownership successful ‌a institution that routinely competes for large defence contracts.

(Reporting by Aishwarya ‌Jain successful Bengaluru; Editing by Shailesh Kuber)