LHX - Earnings call transcript Q2 2022 | L3Harris Technologies, Inc.

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Operator

Greetings. Welcome to the L3Harris Technologies Second Quarter Calendar Year 2022 Earnings Call. [Operator Instructions].

As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Rajeev Lalwani, Vice President of Investor Relations.

begin. may You

Rajeev Lalwani

pleased Good XXXX Rob. after welcome our that to market feedback. the Thank call. morning, We quarter we're format streamlined earnings yesterday, letter continue, published second given closed positive you, a and to our the investor

will today's call answering questions. focused be So on primarily your

Chris for few statements forward-looking words are CEO; Michelle Kubasik, measures. me Joining call Turner, and on and our the our A non-GAAP CFO.

differ uncertainties and that cause materially. assumptions risks, to involve statements Forward-looking actual could results

investor in letter where non-GAAP our you to our I'll SEC Relations more filings. comparable will of brief see For some is a for information, of reconciliation and financial call Chris, this turn GAAP also A please it lXharris.com, section of which comments. website, measures the be over to replay that, measures available. is included Investor With

Christopher Kubasik

a were rapidly where up contrast there's support ago, best. by also environment. be threat budgets are stark to in Rajeev, our by of and the evident, trusted targeted awards you, years international month how spending defense a the outside I'm Thank execute progress mission-critical this notable to of strategy. of as budgets and elsewhere. shaping solutions We're expansion capabilities We're is pursuing growing good and And everyone. our $X continue flat alone. customers a globally. in This billion investing had are in changing need over our threats to and to disruptor morning, encouraged as we're couple prime The Okay. encouraged in and expected urgency we've at NATO we U.S., company,

offsetting our the environment. masking are outside our inflation ahead. as factors time, shift as of labor supply that X.XXx book-to-bill well progress in Our as such there this are opportunities quarter tightening supports markets same control, the and chain, and in budget the At the of

highlight challenges. however, to working that results, Our we're mitigate these

flow revenues, for more a and commentary results stable year half we than kept EPS last stepped Nonetheless, from consistent relatively back with quarter weighted margins breakeven quarter are free and prior back second year-over-year cash of million. cash. Our $XXX our to

while on awards, In pointing of Based given prolonged and of now reiterating to some the board. the measured our we the protest end more that somewhat are timing across supply especially range we're activity and macroeconomic the approach, decided key addition, take low recovery, including chain to the geopolitical uncertainties a a unpredictable. we're guide,

Rob, noise, our open the So we With that, the on strategy. despite execute continue let's for questions. to line

Operator

Instructions]. [Operator

from Barclays. the David with Our of first line Strauss comes question

David Strauss

you terms 'XX you can And X? F-XX of of in you materialize $XXX job still you When a the through do of relative million through budget your peers? capture And about recover come then think to the to your came us great you in letter picture, there bigger in in did that it terms on 'XX? lay the beginning a investor in Chris, year the seeing positions numbers? give upside to that land and plus and ups And this think Refresh begin to the that 'XX. industry headwind could for of before highlighting do see Tech likely strategy how really the look whether upside

Christopher Kubasik

right. All Thanks, David.

I there. think about there were in questions three

Let can them. get me if see I

all integrated list really the ICP, I down to but involved Usually, F-XX. with comes start give processor. long with, the we're components me it that a Let answer and core the

completed month. because So delivered of we certification, think a and to you first the actually shorter last Lockheed I answer I'm give the going were today, flight safety flight to systems Martin

late, meeting and progressing. relative that news but delivery, it's little great a nonetheless, So TRX to

delivery. Lockheed So and this the is support XXXX focus whole to to year, later delivered here aircraft getting XX our last enable hardware starts their

about team weekends better worked to has much get here. a nights the long the feeling and know made. lot So I of they progress

accurate, working. we've prime strategy numbers more appreciate this financial And talked based on and your trusted I what think it's We've So more told with effort. to about more innovation, you that disruptor I remain international. the before. strategy, Relative

when the has in program been winning a the an this July, a course, we've program. a this year, of of wins was SDA And the continue in Navy, us big we so about. company Expeditionary ISR I Capability, free investments is for in through we year venture The look with on been also prime the to EAGL, another a innovation, new for a Minarik. the optics. a to space R&D of Engagement position investment pillar Link, small fair tied So earlier great really far year, in I which radio quarter, with optic Shield at win. X we're again, Tranche Cooperative modernization spend MUSV, Advanced to called priming And And high to mentioned, amount significant our wins. goal excited a of share awarded space month this And we last had tracking here JADCX Ground and majority CEC, a is the of HBTSS. which I'm called quite more free We've made capital. which initiative the were handful

mid-single-digit And growth we've had there. of past at internationally, then pretty years. high couple So level, excited the a

have opportunities given over are sense. just country we last Europe. of been always Italy has where focused resources X.Xx. lot put we in And and book-to-bill makes month, I think the our the and added think the And over focus the Our these program, countries a opportunities Poland ability to to

see when to as far we're it. going As

markups. chasing getting We've are excited programs 'XX it's We're very that think see we're the our budget. of to been matter The a supported. tracking supported. opportunities just I the are

very the whether news the of week. earlier budget well So out the we're positioned, this some base including markup, the coming or Senate of

So need we basically a budget.

there'll everybody think thinks CR. I So be a

to see and industry benefit. we'll 'XX, made, start I'm guessing when are So the LXHarris awards

Operator

the line is next Kahyaoglu Jefferies. The with question from Sheila of

Sheila Kahyaoglu

try to rules. to I'm the follow going

How about question is improvement? on the single-digit David's top The low line of that follow-up much talk versus growth And progress the accelerating you is half. EW how forward, avionics about of better coming the on in do the drivers F-XX? a volumes? to given and the SAS. space for growth accelerating Can going you some mid-single-digit business from Just first think decline from

Christopher Kubasik

This clearly first Yes, ask a opportunity. I'll the and tracking Michelle that then take color huge more give fastest-growing in maybe little the had But SDA shot, on earlier month sector space our is sector. this company. a we just the for win to X Tranche is

excited And again, it's XX particular for example win. won If about this you where X This Tranche recall, Pretty we is priming. an X we're satellites. satellites.

We have the value and capabilities, payload the that's where ultimately resides.

responsive our strategy. a years A was million as reminder, of nonexistent. it couple $XXX So ago, XX really ties satellites, it and award, satellite into

we orbit. Now satellites have low and orbit in orbit, geosynchronous earth medium earth

going well. So really it's

at with merger, no business had the Missile think date of Agency. we Defense I the the

Now the growing we're business that smack middle in of line.

So I'm really we pleased where are. with

the the to orbits weather, day, looking, mentioned, other alone. a look like I in But you about ground I want have talk and missile pipeline capabilities quite space $XX were all exciting. I we capabilities, of and it's sector? And in even defense, billion Michelle the think you rest at about Michelle, our when

Michelle Turner

No. Yes.

ramp From summary about of this of Avionics space a is in the F-XX. mid-single we nice on did that perspective, in You a terms Mission high to in talked growth. digits terms

expect production, we'll Intel head as we then you'll grow as didn't And mention classified in to to it, that in that second second also, So as continuing but Cyber, well. and right? well, see ramp half. come the is Our into half Chris the and business see

Operator

the from Bank of is question line Epstein with of America. next The Ron

Unidentified Analyst

for is any seeing be great. would chain you're easing and This chip whether you're of seeing be give an to color sort might there? Can Elizabeth of you the able the provide side what Ron. you some Or on on color supply on

Christopher Kubasik

Yes.

Let me start.

past, I that high bidder the industry level, I to consideration the whole without supply adapting quickly at at certainty you'd as whole as new chain. with In the the just-in-time serious a least supply And go reductions, a on Just think And LXHarris, there's inventory we're and focus realized the now can. norm was always in low-cost single we has sources. delivery. inventory, at think of

streams mitigate revamp our we I a short in we're So the trying resiliency think pretty job looking doing work chain and going And avoid to the long we the how in also parallel. multiple supply disruptions, term, good have for we're but term.

stock, invested We're smart So Tier tools I've past, to understand inventory, critical I the builds materials, in which get mentioned in balance. our beyond we've safety investing visibility end-to-end in inventory X.

then chain think You'll for localized balance and we're network see get shorten to every our the sheet, even the quicker. parts we're to And whole looking production to distributed business it's multiple on our but supply part. more move And at that I trying to sources decision. right

from But norm, XXX, years a doing. to we So this a complete opinion. Michelle, bit what is in the our where about little we're This talk were almost the want X do is you in headwinds a recovery? new turnaround, the ago.

Michelle Turner

Yes.

terms same, impact, So would So numbers. To what's a point, first electronic we in particularly a little just see components. right? anticipated year, within bit the of the it to half into frame the Chris' coming we that

are that results. in half seeing our first We out play of terms

also seeing talked about we improvement. Additionally, quarter-over-year sequential

our back January. into originally seeing it that in Albeit guide We we is what QX QX more from additionally QX, QX. are than into in from modest anticipated original

in Many pointing work working. that continuing also of to that come end XXXX. in that second 'XX when away months those I'd start from of the supply suppliers for online talked along So of our risk moving part impacts those to terms Chris and to chain look seeing update, of particular the low been redesigning point, is, how mitigations are We're X you guidance the half. range, Chris' out parts. with to in this of about talking about, elongation the at activities. into sole-source of those highlight We've the we're

where of effect. to is our part with some of the And so starting terms the actions those we're in of getting in of recovery half results take second confidence that

Operator

from Safran Seaport of Our next the question Richard line from comes Global.

Richard Safran

XXXX? SOCOM could mentioned continues outlook improvement be aviation? growth program, where back that what Textron. into interested talk you competing a might And you're momentum half So with comment think on business. might about in And I the you for thought you also, the I'm bit the if you commercial Overwatch the more Armed in

Christopher Kubasik

to me let take and Overwatch, aviation. Michelle Armed talk will about Rich, you Right,

internationally. that that gone So approach had we and take back this to and think in sheet yes, this of There's It's East. is position program. R&D requirements. a discussions into fighting billion aircraft. money in the to the with and potentially dollar fair this capital. We've with us align demos type countries had Team lot clearly to It's We've we that countries have domestically more, are for spent need a in of decided win place in of And here a that a capability well program couple XX program early to 'XX amount a Africa, of late Middle of lots even goes opportunity this clean for a XXXX. good terrorism. has

maritime it pretty is the border initial protection affordable where pretty whether it's is, potential program. I strike, flexible, light think, ISR, or operations,

we has because validate out one have something carriages my our for also it our It's capabilities. and international it's another of in products, the it and in it prime I our and week the key we next I important weapon opinion. of a Wescam think radios, EW started really comes Hopefully, the the to So to pull-through and be would know kind a merger company, turrets, clean to with sheet. has We And And potential. wait see. invested to watch, opportunity strategy X. a integrator, it's or in innovation. thesis

excited what Michelle. it. with pretty we'll happens. about And that, go see So we'll I'm to maybe

Michelle Turner

Yes. of of part And this of look half. to those I business, in around our in ramp. would Overwatch the When at Armed missionization. didn't our terms just expectations We second in half growth, overall particularly add ISR you have terms aircraft these first is the

programs is of here, we're this one X So them. to chasing X

aviation. the question point, and about excited potential Chris' the win. this seeing commercial Back we're to on so to a online come about And hearing

So recovery. fifth be of quarter consecutive double-digit our are continuing will we growth. to This see

And The we businesses, which half the end overall our to that, of first also Public through year, Safety, that's the includes XXXX. of going was double digits. our anticipate continue commercial up

Operator

of with from is line question Arment next Peter The Baird. the

Peter Arment

a budget. back to question little circling Chris, the bit on David's

X months. the revenues kind to out international XX I guess in 'XX? international And Any Ukraine budget LX's in of I color specifically, of we or given actions playing activity? has you of Europe? kind XX% for see Europe. there, total mean, the just in LX averaging So and I all expect should accelerate guess around in your book-to-bill bookings X the are what above been do past

Christopher Kubasik

to in talked Clearly, already X the about aircraft, question, the think that have and of competency won in budget. Yes. we we path I No, capabilities some Europe. Security opportunities for I Ukraine, in the to we've with ISR Clearly, add been been we with have where a Peter. Initiative, a Assistance continue appreciate -- and we've USAI We've the get the country. money, experience to core aircraft this we particular Ukraine always working a that's have lot past,

even So we've Poland the well most to NATO high the mentioned, the it to a some favorably a submitted and where the Europe, there. progress even level. I a our opportunity, goggles, as again, XXXX comms, expect capabilities, the us see few making radios, resilient in clearly, continue 'XX. we're night few bids, in a SATCOM, at vision term And open countries. us going I big impacting financials position into where near and That's ISR is with offices comms,

Operator

The next question the comes Doug of from Harned with line Bernstein.

Douglas Harned

understand wanted in to Tactical try what's I on Communications bit going little a better. to

but backlog, delivered, though that, big wanted trajectory you what a first, see I chain if chain time a got chain constraints the forward, held go keep constrained more risks margin do you margins. get see to is long-term mean, then And even of rising or you've inflation? lot better a exposure a well, we've to pretty growth there I you you've understand up, with ease how same outlook? at supply what -- the we along supply to of issues. have the do we've are And had surge supply been once issues. Margins persistent the and inflation as seen with got expect as you your around radios of kind once You've see

Christopher Kubasik

Thanks. Okay.

mean, Let demand importance then few will absolutely one radios, you're has highlighted, a comms. There's Ukraine think me I and the I make right. conflict the points, give that high you resilient our that's Michelle and thing the numbers. for in of

we So radios. the radios called and over there. Force. the Defense in hear Kingdom opportunities what's for We've Deltic that X X. should Australia, in XXX month That's next talked with We Australian have X,XXX the Phase of on about million the or Arabia maybe Saudi

up congressional cleared first of our first going couple in they've more. X,XXX The in ordered And have and Rochester, August, so thousand a we're or notification. to article acceptance

So Morpheus award that's U.K., the process. through congressional notification going the In approximately. the million program, again, $XXX

say. I So backlog, things year, you those highlight there was it shortage have will all are knew to chain the a we'd supply that and think as serve. was building last I we

So in invested capacity. the we

to all I've we week, numbers, have And parts, been the our pretty deliver the our down our on these past The And now component we night redesigned without mention goggles, year, able list, components, that products, Last helpful. we're and we balls do Michelle make and give Michelle, it's to capacity. carefully. but we're data, redesign just was grow I'll to parts thing our suppliers that's radios, whether our more need can vision now looking availability. commitments before constraints. based to about we products be watching how I in over to in on you we actually any products. So will better last obviously, X continue at the we've XX or had and and this giving WESCAM clearly X,XXX reengineer red but talked our

they've our of to how team able So I'm pretty been proud engineering and adapt.

talk at and about want of high the capacity the you capability? to kind level. that's ramp So a Michelle,

Michelle Turner

Yes.

half, Communications in consistent did the constraints. our -- expectations, first our we so double component digits, we did just electronic low Doug, to Tactical with down driven the point, So see your really by

that's into we As the that, going grow go second in expect half, digits. high to double we

about an see do It's that, your X.X XXXX. Chris that billion. the go your a we critical to the for to to We and expect to We've the to we continuing have electronic elevated improve. So investments going It's from point. starts into made point, talked perspective. be components that about half backlog, second as ease capacity and

healthy a I'd be the additionally, within at Tactical XXXX. as backlog have that into note X.XX international is quarter. we book-to-bill we'll And looking question, to the So go within international we Communcations the

but overall these to And as really environment, the considered also we're And being orders benefit speaks so go will opportunities seeing. of are that a conflict years. of that, be expect this XXXX, Ukraine a into us we a couple that over we lot for

XXXX, it you so in about into XXXX. and XXXX think terms of And should

Operator

Research. line Robert is question Vertical with the Stallard from of next Our coming

Robert Stallard

on Chris, potentially what deals And whether the comment happened I you wondering was that, conjunction M&A and there? additional with if pipeline? situation in any could NSO you this have in

Christopher Kubasik

we're that clearly, the help M&A at customers. us pipeline, Yes. opportunities I would are relative for our to looking time, to all say, solutions looking game-changing with our going

we're looking a So at handful. yes,

We look watching M&A continue and or basis. environment also overlap potentially be what the could and at a We're regulatory regular issues. on approved any potential seeing antitrust to

say, U.S. the I'd it I on next continue us. the happen, in leadership anything to NSO, at going process. this And or time, I and have position at clear X, us to deal aligned fully is there things security think we with We look national with matter. quarter Relative all but a announce made look. we're that don't we'll reporting all least to the no in out the So a to see healthy

them, someone but So not talking to else maybe is me.

So I that helps. hope

Operator

Global. of the is with Skibitski Pete question line Alembic next The from

Peter Skibitski

in for -- dragged something longer this anyone know Chris, low-band us of resolved? I than Can getting expected. next-gen protest. milestones about, but any super of kind ongoing key give probably it's dates jammer, probably way of frustrated terms on that you're or sense you

Christopher Kubasik

get this don't a time longer Pete, really anybody I wanted. than Yes. about Yes. much, frustrated has Well, but taken

an So there's path us a forward. to Northrop. a agreement between as be and all signed to going re-procurement We

to a in that So selection I progressing. we'll X. X but about. to we and We'll update into mid-XXXX, and XXXX, our And make respect proposal. it's the we'll RFP threats month process -- we'll or that hopefully reviews X capabilities protest, needs earlier, It's talking think, get I we and that to or the in I been And and move about judges the and expect would allow keep think the different next there's people the on. such, really maybe Navy

was it of revenue plan So had $XXX million this year. over we our in for

kind of move that's our So team our The into is technology. go. We solution, again, We hopefully. given select a for it the headwind. We'll like us and we'll wait little to us like Navy ready 'XX. to

Operator

coming Our question Goldman from with Sachs. is Poponak of next Noah the line

Noah Poponak

XQ? you acceleration bit more of just if to revenue the half back see a much you talk The you could relative versus anything in flow slide? looking the prior it little cash as much on Wondered versus XQ about side how How of that's at mid-single, have you're in that And that timing payment there's then to visibility growth well? the terms guide? if organic could now, as things

Michelle Turner

Chris, to in, Yes, then complement. you free I'll and jump feel can

One chain point, X drivers, half, of in So recovery. it's terms supply second to components. the the in your is around really

the I as assumption pretty year. earlier, back the so of stick have had healthy And going into that hockey we'd we noted an half a

we've and sitting in change what do chain in as in range, environment guide half. XXXX, here had I challenges note, similar supply going we lower have the to a end the seeing the have still QX will though, we into the a the that in to that QX, of QX. we're we hockey second terms into we're the of elongate mitigated although As bit stick

the the half. we And in to is first so consistent profile delivered very what risk on

X second are is wins. new with SDA, mentioned Chris The along new that already around awards program we've SPEIR. These won.

be And programs. number of around pursuing. talked the programs we are our a that is missionization come missionization programs so about Armed online. accelerating are piece We And other the Overwatch. will There ISR those back third half, ISR then we as

your QX, I say, consistent. within QX. a would We happening awards to happen expect in point, QX, between Noah, ramp and to with QX fairly it's those And

see QX to not You're stick going to from another hockey QX.

that So hitting continue we're the to fourth focused into now, on expectations is in with QX expected what quarter.

Christopher Kubasik

a the pandemic, the and And chime in just kind I controllables. chain, higher team, think, approach system. we're the lot the level, supply let's been years that taken, we taking the stuff Noah. Ukraine, out approach I'll talked last X in, of leadership a -- inflation, frustration, we've There's just clearly all of the At have we it's there is know. the to control whether unprecedented,

than we're and to for So you when someone shows early. let to is. we half We're last and the future the ballway that And call very, of it's harder a late. the visibility, losing can't just control dynamic. then to know from mitigate been we predict laid in what day, in a things. are things to kind our very interesting a the daily can that on all we is what second cases. talking the we next the be given literally the that mean, downside days the the control basis. There a relax we give those -- hard where changes the out, volatility I several supplier of and guidance best thing the really Michelle it's it's going calm and has and want decades up it about communicate a some ability uncertainty trying and week stay The We're upside a not they're get week and that to

sometimes looking some take get but dissipating. they awarded and they Sometimes forward slip, these norm we're new longer to the uncertainties of and to

Michelle Turner

split. your for a like is QX, to XX-XX between and QX second terms question half split back of just cash. really in the expectation The Noah, And to go more

Operator

is with Stanley. next Liwag Stanley, of at the from Morgan Kristine question The line Morgan

Kristine Liwag

of I were for Phase selected You stand-and-attack down weapon. the

your talk LHX. heritage. So about competitors something a up the focusing strategy here? on market is there strike missile that weapon you're Or And strong this traditional with you more you're like about new generally? for this relatively to something Can missile your plays strength? program Is sounds against territory like

Christopher Kubasik

a back We question. right is great, I their great or years. in Agile set we that's Development X up -- This in spot. No, I think, mentioned weapons, sweet Yes. the going started When Group. X investing

have We missile. is opportunities. tactical classified multiple This an air-to-ground

been when the it. classified look get capability successful has us look We're threats, and shape getting at tweaking things We've also is And you sheet not at down Seekers, at slow. this a selected I'm of our I where out really little capabilities, our be There's the taken in taking We're good I the think for and clean we're right? you here, taking budget, decades -- clean And unique team great it's a I think which the see a mentioned that's on proud I We're approach. you starts to it Armed going approach. look I in differentiator. an Overwatch. Like selected. what's we're that's our existing capabilities. here. one. think anything, investing to think I sheet in mentioned that on down it

know think of there's X of us. us. I there's X I

in And down select the August, 'XX, then offs begin. XXXX, they'll think sometime X, and X the get and to we'll And award. the fund probably I early Gate fly in

And think And stand-and-attack LXHarris in It's were I of that a people when It's And this about. years a the disrupt core So hear competency it's is weapon. I market want I to there'll talked ahead. what be a lot us. market. a they I've like. the think going similar more this of for surprised clearly to

Operator

Research. from comes question next Our line of George Shapiro, the Shapiro

George Shapiro

million of due Where you that usual, was cash meet need wondering on to to issues. guidance it you first than flow Or are expect because does go? the obviously, like half. your it's supply cash like inventories I for first some more much to chain half? assume weighted your the second flow, that's in where half do XXX I up to go

Michelle Turner

Yes. question, Thanks for the George.

cash look in right. versus half, second coming our the half, a when So healthy that reduction at absolutely from Most of our of first with second assumptions. is amount capital working you're you generation half

the so And that are to inventories, about point half we in of ramp. second your anticipation building clearly,

of look And at overall revenues, when in XX% a key driver portfolio, you our within about second sales of half. so is our the our that terms which is uptick product-based

coming piece missionization I programs business, sits second note extent online in the also is within our in other buying The of to half, that aircraft anticipation that the would are within the inventory. ISR we those

several that And pursuing. those the second a pursuing or X noted so half. programs We Chris we're happening anticipate the couple we're X of of in

alleviate will meet to to that expectations. allow cash pressures as inventory well so And the us the

Operator

Spingarn the from is question next Research. Melius line Our Robert of with

Robert Spingarn

and Michelle, elongated year's In be could Chris, CR back in I And of wanted capacity and hockey if bookings, on you could year there the talked guidance? you're in other 'XX year? a all words, is how half a in monster sticks the much sort but that 'XX, With then et of or year, don't in of we just then to and rising chain supply you prior guide have this budgets, for headwinds to especially extrapolate present strong noncontrollable risk then of in some this low and these 'XX And impact of itself 'XX cetera, and end these the questions QX, the issues? necessarily spring-loaded have a now recovery. so 'XX. the about about that we that pointing or to slow outlays tight capture labor,

Christopher Kubasik

it. got is CR I be mean, Okay. impact No, kind to could one, to And the going first that to something of questions. you answer 'XX. The obviously great

being whenever a is. I think you invested capacity, called as monster years. I'd it year, in a monster don't I So see that year, prior But you issue. is We no, that said? love what the the an

of couple here mentioned world-class a you Systems Cooperative business. is program. months Broadband of the EAGL in I have with City the CEC, We out Communication the win if Capability Lake had They've great the which Salt a for Engagement factory, will, earlier, JADCX,

hopefully course, they'll get next-gen Of jammer.

turret. those facility seeing a that mentioned We in in where WESCAM, up we're capital in investments in the for Canada. We've the Rochester. made invested spent new extra we we've So the surge

Labor chain X,XXX a So facilities product get we hired businesses, I labor front. pretty I the on of doing over the think more We've turnaround, okay. think have If for good we year. so far people than the themselves. this we've supply is been capability. turn quick actual the probably constraint the we'll be And potential

of same does. We interns. new hiring have that the challenges with hiring college attrition the We're we're rest the But grads. industry

us. and thousands find a it's think getting hundreds people of exciting, of we're company I literally that resumes work and for come interesting to

Relative about So to some get of we wins We bottom good And strategic planning that. line low to line about Michelle? should position I is going but 'XX, through to these in growth, continue if can the stuff our we're we pretty our feel top lumpy. now. be growth. and talk pretty mid-single-digit process actually a

Michelle Turner

Yes.

CR, regards some on CR -- level of in the in a this of year. our guide to So the in second question that QX assumes there is

Operator

will final Ciarmoli the from be Our Michael question line of with Truist.

Michael Ciarmoli

higher it can those you've you long should or know how of investor pass maybe takes the through you through And could as turn materials can some just evolution I about got that prices? walk and margin quantify bigger us flow short-duration impact. Maybe the if margin increases or sort a don't rates? of coming we I are raw price can on quick backlog. think are you to think through parse billing how labor? the Maybe the out guys headwinds inflation from you that relatively letter what mentioned what's And

Michelle Turner

Yes. question, for Michael. the Thanks

our program $XX about what play the year in mix, million portfolio point your with And our out that shared we of QX. It's million about year. consistent anticipate of terms about to a back last impacts our price. we gross fixed had So inflationary about We overall XX% about is duration. within $XXX within of of call, in

we're we're to environment. prior QX, middle the we XXXX. in QX. of allow new We'll to year. that year so see we having play next ensuring And some that what are focusing see starting and clauses We'll for that this of of see control can the impacts Where But probably second current remnants is clauses some economy inflationary now inflationary our contracts the contracts that EPA starting in of the through here a out the placing inflationary anticipate to pressures half into the to of environment. right the on we

Okay.

missions. So globe. strong teammates for on the XX,XXX stakeholders, before thank matters few We time again forward have to focus place. do around today, you meeting your value creating call, for And in I making for the What recognize connecting our weekend. take next critical the the our world you and ending Thanks, support a look months. in of safer to customers' terms moment in of everyone, remaining LXHarris great particularly a to of a want our all

Operator

This Thank you. today's teleconference. concludes

You may wonderful have Thank and this disconnect your day. a participation, time. you lines your for at

L3Harris (LHX) 29 Jul 222022 Q2 Earnings call transcript