• L3Harris Technologies recently received a nearly US$400 million contract to supply additional solid rocket boost motors and Liquid Divert and Attitude Control Systems for the Missile Defense Agency’s THAAD missile defense system, which has a 100% success rate in 17 intercept tests since production began.
• This award deepens L3Harris’s role in a key U.S. and allied missile defense program, adding to its long-term backlog and highlighting demand for its propulsion technology.
• We’ll now examine how this new THAAD propulsion contract influences L3Harris’s investment narrative around defense demand and earnings quality.

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L3Harris Technologies Investment Narrative Recap

To own L3Harris, you need to believe in durable demand for advanced defense technologies, balanced against execution and budget risks, especially on complex government programs. The new US$400 million THAAD propulsion contract supports the near term defense demand catalyst and slightly eases concerns about program timing, but it does not remove the broader risks tied to fixed price development work and dependence on major defense acquisition programs.

The recent completion of L3Harris’s multiyear US$6,771.21 million share repurchase, alongside the THAAD award, gives this contract extra context: it arrives just as capital returns and large program execution are both central to the story. Together, they focus attention on whether L3Harris can keep converting its US$38.7 billion backlog into higher quality earnings while managing exposure to U.S. budget decisions and subcontractor dependencies.

Yet investors should be aware that L3Harris’s reliance on other prime contractors for programs like THAAD still leaves it exposed if...

L3Harris Technologies' narrative projects $24.9 billion revenue and $2.7 billion earnings by 2028. This requires 5.2% yearly revenue growth and about a $1.0 billion earnings increase from $1.7 billion today.

Uncover how L3Harris Technologies' forecasts yield a $380.63 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community cluster tightly around US$380.63 to US$381.53, showing how even a small group can see things differently. Against that, the THAAD propulsion award highlights how concentrated exposure to U.S. defense programs may influence how you think about L3Harris’s future performance and whether to compare several viewpoints before acting.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 10% more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free L3Harris Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate L3Harris Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.