L3Harris corporate headquarters in Melbourne, Florida. Photo: L3Harris

L3Harris reported challenges on classified programs in its Space and Airborne segment while revenue for the segment was flat during the third quarter of 2024. L3Harris reported Q3 financials on Oct. 24. 

Revenue in the Space and Airborne segment was $1.7 billion during the quarter, flat compared to the same time last year. During the second quarter, L3Harris divested an antenna business. Excluding the divestiture impact, organic revenue increased 2% from growth in classified programs in Intel and Cyber and increased volume in its FAA mission-critical safety of flight networks business.

The operating margin for Space and Airborne decreased 90 bps and was impacted by challenges on classified development programs in the space business. Operating margin during the quarter was 11.6%. 

“We did realize some program pressures, in particular, in the space area on a couple of classified programs that we bid a number of years ago,” CFO Kenneth Bedingfield told investors on Friday. “These are very important programs to our customers. … Realizing some schedule pressure and working to accelerate, and that’s been driving a little bit of cost on us.”

The Communications Systems business, which includes satellite terminals, increased revenue 10% year-over-year to $1.4 billion during the quarter. L3Harris reported demand for resilient communication equipment, related waveforms, and night vision devices. The segment also saw growth for software-defined tactical radios from NATO countries. 

Company-wide, L3Harris increased revenue by 8% during the third quarter to $5.3 billion. Growth came from the Aerojet Rocketdyne acquisition and Communication Systems segment. 

Separately, L3Harris announced a strategic partnership with Palantir this week relating to complementary capabilities in L3Harris’ sensors and software-defined systems and Palantir’s Artificial Intelligence Platform. The news release highlighted the potential of this partnership for on-orbit processing for satellites. 

“Together, Palantir and L3Harris are investing in novel solutions that will push computing to the far edge, from radios as sensors to orbital processing on satellites that will help lead the future of communication and tactical decision-making,” L3Harris said in a statement.