L3Harris Backlog Hits Record $53.2 Billion on Missile Orders; Company Raises EPS Outlook

L3Harris Technologies booked $19.3 billion of orders in the third quarter, pushing its backlog to a record $53.2 billion on a surge of missile propulsion contracts, and raised its full-year profit forecast, according to the earnings release it filed with an 8-K on Thursday.

The defense contractor's book-to-bill ratio, which compares new orders with revenue, was 3.2 times for the quarter. Its Missile Solutions segment alone posted a book-to-bill of 11.8 times.

The company now expects 2026 GAAP earnings of $12.25 to $12.35 a share, up from $11.80 to $12.00. It raised the bottom of its revenue range, now $23.5 billion to $23.7 billion versus $23.2 billion to $23.7 billion previously, and kept its free cash flow target at $3 billion.

Profit outpaces sales

Revenue rose 7% to $6.06 billion from $5.66 billion, or 9% on an organic basis, driven by double-digit growth in the Space & Mission Systems and Missile Solutions segments, the company said. Diluted EPS climbed 33% to $3.28 from $2.46.

Operating margin widened 200 basis points to 13.0%, helped by higher revenue and lower corporate expenses. L3Harris said the EPS gain also reflected lower interest expense and a lower effective tax rate, which fell to 14.9% from 18.5%.

"We grew backlog to record levels, underscoring the consistently strong demand for our mission-critical capabilities. Our priority now is to convert that demand into results," President and CEO Sam Mehta said in the release.

Missile contracts fill the order book

The quarter's highlights included a $6.3 billion, seven-year undefinitized contract to scale propulsion production for the THAAD missile defense system and a $4.7 billion, seven-year contract for propulsion on the PAC-3 MSE interceptor, both excluding escalations.

L3Harris also cited a $250 million follow-on contract for GMLRS rocket propulsion units, more than $500 million of orders for its VAMPIRE counter-drone system, and an $876 million contract modification for the Navy's Next Generation Jammer Low Band electronic warfare system. In October, it opened a solid rocket motor production facility in Camden, Arkansas.

Segments and cash

Space & Mission Systems revenue rose to $3.09 billion from $2.80 billion, and the company raised its full-year revenue outlook for the segment to about $11.9 billion from about $11.7 billion. Communications & Spectrum Dominance revenue increased to $2.00 billion from $1.94 billion, though its full-year outlook was trimmed to about $7.9 billion from about $8 billion. Missile Solutions revenue grew to $1.06 billion from $1.01 billion.

Free cash flow nearly tripled, rising 195% to $1.26 billion from $427 million, as operating cash flow reached $1.44 billion. L3Harris ended the quarter with $11.0 billion of total debt and $2.5 billion in cash and equivalents.

The company repurchased $73 million of stock in the quarter, down from $176 million a year earlier, and paid $234 million in dividends.

By the numbers

• $53.2 billion: record backlog
• $19.3 billion: third-quarter orders, a 3.2x book-to-bill
• $6.06 billion: revenue, up 7%
• $3.28: diluted EPS, up 33%
• $12.25 to $12.35: new 2026 GAAP EPS guidance

Sources

1. L3Harris Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000202058-26-000084)

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