L3Harris corporate headquarters in Melbourne, Florida. Photo: L3Harris

L3Harris Technologies released its full year 2021 financial results on Monday, reporting $17.8 billion in revenue, down 2% compared to 2020. The company said the revenue decrease was due to divestitures in the Aviation Systems segment and supply chain-related constraints within Communication Systems. 

The L3Harris Space & Airborne Systems saw a modest 3% revenue increase for the year, reporting $5.1 billion sales. This increase was driven by a ramp on missile defense and other responsive programs, and classified growth in intel and cyber. Space & Airborne Systems operating income increased 4% to $970 million, and segment funded book-to-bill was 1.03.

The company highlighted key contract awards in the fourth quarter, including more than $225 million in classified responsive and exquisite space awards, and a $100 million award to provide three fully-digital navigation payloads to be integrated into GPS III follow-on space vehicles. 

L3 Harris’ Communication Systems division, which includes its tactical satellite technology portfolio, dipped in revenue in 2021. The segment reported $4.3 billion revenue, down 4% compared to 2020. The company said there were product delivery delays from supply chain-related constraints in tactical communications, and lower volume on legacy unmanned platforms in broadband communications, along with a modest decline in public safety. Operating income increased 1% to $1.1 million, and segment funded book-to-bill was 1.10.

Key contract awards in the fourth quarter included a five-year contract from the U.S. Defense Logistics Agency worth more than $250 million for legacy radios and accessories, and approximately $225 million to provide multi-channel Falcon IV handheld radios to international customers.

“The L3Harris team delivered solid EPS growth, consistent with expectations, despite supply chain headwinds and budget uncertainty,” said CEO Christopher Kubasik. “In 2022, we look forward to taking the next step as the industry’s trusted disruptor to deliver innovative and affordable solutions, and with a focus on creating value over the long term.” 

The company provided guidance for 2022, projecting revenue between $17.3 billion to $17.7 billion.