L3Harris corporate headquarters in Melbourne, Florida. Photo: L3Harris

Revenue was nearly flat for L3Harris Space & Airborne Systems segment in the third quarter of 2022, while its Communication Systems segment saw a modest increase in revenue of 4% compared to the previous year. Overall, revenue at the company was flat during the quarter and L3Harris reduced overall 2022 guidance. 

Space & Airborne Systems (SAS) revenue increased 1% compared to the same time last year, with an increase of $68 million in Space, reflecting growth in responsive satellite programs. Segment revenue was $1.5 billion during the quarter. 

SAS funded book-to-bill was 1.15x, driven by increased demand in Space and Mission Avionics. L3Harris highlighted the $800 million award during the quarter for satellites as part of the Space Development Agency’s National Defense Space Architecture. 

The Communications Systems segment, which includes satellite terminals, reported a 4% revenue increase in Q3 compared to last year. Segment revenue in Q3 was about $1.1 billion. This was due to a $94 million increase in Tactical Communications from increased volume, despite a decrease in Broadband Communications and Integrated Vision Solutions.

Overall, L3Harris reported $4.246 billion in revenue, flat compared to Q3 2021. Company-wide funded book-to-bill is 1.19x, underpinned by strength in Tactical Communications, Space, Broadband Communications, and several other businesses.

The company reduced its full-year outlook across all financial metrics, which it said reflects the timing and ramp of key awards and macroeconomic headwinds impacting program performance, program timing, and volumes. L3Harris now expects about $16.8 billion in revenue, compared to previous guidance of between $17.3 billion to $17.7 billion. 

Space & Airborne Systems is now expected to post about $6.8 billion in revenue, flat compared to 2021, versus prior projections of flat to 2% growth. 

Communication Systems is expected to post about $4.2 billion in revenue, down 3% compared to 2021, compared to prior projections of flat to up to 2% growth. 

Management said there is continued impact from supply chain disruptions, labor mobility, and rising inflation. The effect has been most acute for  businesses that rely on electronic components, including tactical and public safety radios, night vision goggles, and imaging sensors.

“Supplier disruptions had a greater than expected impact on the third quarter. Revenues at product-based businesses were affected by about $70 million in the quarter and about $200 million year-to-date, reflecting consistent headwinds sequentially,” the company said.  

L3Harris’s deal to acquire Viasat’s Tactical Data Links product line for $1.96 billion was announced after the close of the quarter.