L3Harris corporate headquarters in Melbourne, Florida. Photo: L3Harris

L3Harris grew revenue by 14% in 2023 compared to 2022, primarily due to acquiring Aerojet Rocketdyne and Viasat’s Tactical Data Links business.

L3Harris reported $19.4 billion in revenue in 2023, according to its full year results released Jan. 26. Operating income was $1.4 billion, up 27% compared to 2022. 

Both segments that deal in satellite technology — Space and Airborne Systems and Communications Systems — grew in 2023. L3Harris reported that revenue increased 6% on an organic basis primarily from growth in these two segments. 

The Space and Airborne Systems segment delivered a 7.4% revenue increase year-over-year, reporting $6.9 billion in revenue. The company reported the increase was primarily from growth in space systems, mission networks, and intel and cyber.

The Space segment operating margin was 11.4% for the year, down 30 basis points. CEO Chris Kubasik addressed this on the call with investors and said it was driven by growth in early phase space programs. L3Harris is beginning to move into the more mature production phase of these programs and looks to improve margin in 2024, he said. 

“I’ve been impressed with what we’re doing in Space. To me, this demonstrates how we are thinking differently, responding quickly, making targeted investments, and seeing them pay off and growing in enduring markets. It’s exciting to see how much progress we have made in responsive space where we are taking share,” Kubasik said. 

He also highlighted recent awards including 18 satellites from the Space Development Agency for more than $900 million and the award to build advanced payloads for Japan’s next-generation weather satellite.

Communication Systems, which includes VSAT terminals, delivered a 20% year-over-year revenue increase in 2023, reporting $5 billion in revenue. The company said this was primarily from the TDL acquisition and higher volumes of legacy broadband communications programs, tactical communications and public safety products. 

L3Harris issued guidance for 2024, projecting revenue between $20.7 billion to $21.3 billion. 

Space and Airborne Systems guidance for 2024 is revenue between $6.9 billion to $7.1 billion. Communication Systems guidance for 2024 is between $5.3 billion to $5.4 billion. 

The company also reported a record backlog of $33 billion, more than doubling the $16 billion backlog when Harris and L3 Technologies merged in 2019.