LHXL3Harris
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LHX?
L3Harris earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 5.9%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2027
- Cash conversion
- 1.70×
Cash conversion · 1.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.27%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 12% |
| FY2022 | 12% |
| FY2023 | 6.6% |
| FY2024 | 7.3% |
| FY2025 | 9.0% |
| FY2026 | 5.5% |
Details›
- Gross margin12 months to Q2 2027
- 26%
- Operating margin12 months to Q2 2027
- 5.9%
- Net margin12 months to Q2 2027
- 4.8%
- Free cash flow margin
- 7.2%
- Revenue, trailing twelve months
- $39.1B
- Free cash flow, trailing twelve months
- $2.81B
- Net income, trailing twelve months
- $1.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from LHX and who it buys from, as the companies report it.
- U.S. government75%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; LHX’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Aerospace & Defense
The closest names by size in the same industry