LHX - Earnings call transcript Q1 2024 | L3Harris Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to the L3Harris Technologies First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

It is now my pleasure to introduce your host, Mark Kratz, Vice President of Investor Relations.

You may now begin, Mr. Kratz.

Mark Kratz

morning to Good XXXX first Rob. call. earnings you, and our welcome quarter Thank

morning Kubasik, first are Ken this and me Joining Chris CFO. detailing financial we guidance. release Bedingfield, our Yesterday, published earnings our quarter our results our and CEO;

provided on website. We a earnings supplemental presentation also our

forward-looking materially. uncertainties a cause that As constitute actual today's involve statements results will discussion These reminder, differ could risks, certain to include statements. assumptions and

our more information, our reference filings. For earnings release SEC and please

financial measures, in non-GAAP are reconciled We measures discuss will which to GAAP the also release. earnings

turn now like over I'd to it to Chris.

Christopher Kubasik

and everyone. we strategic good acquisitions Thanks, a built merger Mark, after X divestitures, targeted with morning, focus. have of Harris LX security and and and a the ago years company Since national

technologies national stage setting industry-leading motors rocket trusted fight. with simultaneously in top align margins. threat disruptor that line our global the growth strategy while critical future security are to and critical Responsive domains space, our the communications increasing to environment. and The for ourselves for LXHarris the all have differentiate resilient priorities are and We portfolio

Bill, global included defense. environment The one conflict. Appropriations Domestically, billion to with $XXX Congress security recently be XXXX the and tensions for passed heightened continues regional which

the a are to opportunities. of with Our strong continue the off geographically growth enterprise. as a are for solutions we positioned Demand X.XXx and ratio. Internationally, see our funded, programs year and across diverse well started we we remains profitable book-to-bill for much of strong products pipeline and

This and CJADCX an part a As long-time to program displacing to is an million provide integral $XXX incumbent. networking awarded interoperability Taiwan, mission. supports recently our were secure a of the example, we win

billion, Other opportunities along international in We FMS of over the the the tactical an year. including particularly half opportunities, continued primarily the than backlog, are These Europe, supplemental $X tactical international maintain pipeline for with by confidence radio international us in second DoD's a Ukraine. funding, robust radios. of more totaling several strong give to billion. cases, Turning supported $XX ramp in

President and aid signed programs. the in for for the the includes Earlier a Israel key a start this $XX for this Ukraine, been the equipment package and since has of that supplier foreign key LXHarris week, need remains strong. conflict, Ukraine billion in defense funding Taiwan

Our products and are same exceeding The capabilities while access theater the needed provide being bill our small expectations. used time defense will U.S. in support and to supplemental businesses. base, midsized the including at industrial allies

that call we bill just incremental the give you opportunities will on the more With it recently next the passed, provides. earnings information during

and proud workforce to the our Our support country is globe. its allies around

to Turning XXXX.

quarter. products. businesses, reflect consecutive contracts on-time Our deliveries. schedule performance, our strong second programs executing positive diverse and set EACs which and quality net driving we our for of first quarter the improving results improving are cost We're our drive across and improvement helped product and on In higher

rigor savings accelerating programs. in development performing risk disciplined programmatic that is is to pay starting programs, NeXt business development starting woods XXXX. see on the to of say the are well but our see I that not focus we bidding we're LHX Turning of to is off. also the contribute, XXXX out and all to benefit and abating. cost and and This

basis million, and expanding detail, the to but revenue operating resulting XX will year-over-year up financials was margins that points Ken double-digit was more in XX.X%. income to cover in I wanted $XXX highlight up

flow to commitments. and XXXX our are start the year, free cash guidance EPS raising revenue strong the while Given reaffirming our we margin

to customers initiative and tools in industry-leading enable to systems technologies, supply we our chain. will committed billion Investor investing in workforce us our maintain savings cost gross LHX Day, on to optimizing our support $X NeXt by margins focused and The our At XXXX, while and employees. infrastructure

in activity fewer And the NeXt reduction year. accelerating we XXXX. than began about that people in this are X% we a our month, will when earlier LHX workforce result implemented We

focused are processes, organizational our we noncore reductions, these rightsizing on footprint. streamlining maximize eliminating With physical our efficiency structure and to

To summarize.

date rate committed. will by the our put gross to savings us to am our year. $XXX as confident and previously more target, $X ahead that million of run Our the collective billion of know our target the There's team leadership savings do, I have end actions NeXt LHX work in of efforts and yield

continue closing Operationally, we within our accelerate by and to and the deliveries to reduce back deliveries Rocketdyne and improve of with future which tools, growth. work customers have multiple and to processes the support continue critical acquisition, we implemented progress Aerojet our products programs green, we've late XX%. Since to and make to segment. helped returned these We've DoD

it Aligned provider primary the growth, interceptor. a this that to recently that the announced of with to selected be for we over the the was Agency's were program. life opportunity anticipate be Defense We Missile propulsion multibillion-dollar next-generation

rate repurchase the to into finance rate variable and our year, and capital replace with share repurchase our executing get saving On consecutive for an to half the XXrd in were notes, points. opportunity operations, debt basis refinance the target. QX, saw about we We market increased XXX of dividend team Outside of fixed XXXX some back deployment. share it able

our be previously proceeds to X.X which our leverage We divestitures, used ratio. gross from $X announced below expect about largely will target billion in the reduce

step financial framework first on delivering on our the focused commitments. results solid we a our quarter remain laid We Investor out forward at and towards are achieving Day,

provide turn to now additional over Ken I'll perspective. to it

Kenneth Bedingfield

Thanks, Chris.

with results a ISR Tranche NATO SOCOM for Marine for country tactical Corps international for radios, jets and billion, U.S. and $XXX leverages reported nearly award that for business Let's $X.X quarter. missionized for $XXX million of handheld domestic tracking million an the start over X, consolidated solid We our gains SDA including capabilities.

as and at with QX $XX lower aircraft IMS grew given over and we at of XX% margin opportunity XXXX. procurements sales X improvements our move in segments. resulting in Revenue X discipline. growth 'XX, remains Backlog bidding recent reflects X% in forward operational expansion billion and supports Revenue organically in QX

operating to of benefits Chris expanded XX.X%, mentioned, LHX and while points NeXt. basis to from the up operational XX improved see margins also program performance As starting

to operating margin Free X% and pension-adjusted was are flows XX%. primarily the of a higher On EPS interest million partially performance, $X.XX lowest grew basis, year. income. was offset by quarter quarter first lower up outflow of per from cash over pension an expense cash first share EPS segment as $XXX typically the

in cash growth recall, the you $X.X cash derisked and XXXX of end flow at As will confident this free remain year we billion. we to 'XX, delivering taxes

to Rocketdyne highlighted turn we to CS like businesses. for Systems from Space growth revenue our I grew for quarter. that the SAS strong and organic and as now to earlier I'd see in the XX% segment some continue segments of Aerojet Communications and details demand Tactical acquisition

each satellites X of Tranche segments. SDA throughout on making we LXHarris as HBTSS of development On the margins. drove We X progress In programs, tracking including X the part are of operational missile-tracking our SAS, programs. recent improvements and launch

With areas in largely in a the maturing these behind points realize basis new we and processes benefits forward. SAS beginning the space move These as and investments XXX by risk the factor contributing quarter. growth margins are were of expanding us, we to efficiencies

our results the a made prominent first the stronger continue progress an dividends. Communications, improvements segments The improvement it perform $XX sector business to pay million results. as versus first performance, program focus segment, as We synergy System with EACs in will Integrated by net CS which in benefits in operational This driven communications Link solid within saw resulting was These in of lower-margin a all rigor the Tactical realize Vision of year. through increased our quarter deliveries, most on half where were broadband to on of XXXX. continues drove our the Tactical continues we anticipate in well business Data And consolidated of DoD level sector. we

On capital allocation.

the Our same. remains plan

dilution. continue focus on will share at We repurchase to balance we beyond deleveraging the sheet opportunities accelerate to before look offsetting

to dividends first quarter, and the we repurchases. shareholders million returned through share $XXX over During

to XXXX on Moving guidance.

are our while flow our range cash to We $X.X we billion, billion. $XX.X free of revenue of commitment reaffirm tightening billion $XX.X

to total increase notable is now where We prior XX%. of the for SAS, most are are guidance company in approximately This expect margin than from up XX% XX%, increasing guidance of versus approximately year margins XX%. greater the we pension Aerojet of operations, with for mid- of acquired our to guidance we our updating guidance At year, own. last combined assets end pension prior we high the Rocketdyne also income. Outside of

our so have Our outlook, more we than positive new those figures accordingly. actuarial update is updated

guidance. on Lastly

half-weighted Interest I $XX.XX would out has We DoD our our continue to to will are to make and remain our second also perspective, than will half point Both increasing earnings From executing our from have a first the deliver along the remain free guidance $XX.XX expense of on per profile. year, second and shareholders. heavier $XX.XX. share, reverse to range a CS a we guidance international with less mix modeling a XXXX, opportunity a tactical in into that Overall, of the segment margin half our that on cash quarter. prior programs. $XX.XX should to start to focused to good up customers in commitments trends second flow as the elevated we of way

let's open With that, line the Rob? for questions.

Operator

Sachs. our from And Poponak first with Goldman Instructions] Noah question [Operator is

Noah Poponak

disruptor size Chris, the to and of been prime to degree. growing working have in you trying talked profile sector and and and I the trusted you've ask, more the strategy, been to the you've kind wanted that's about a

thing same some maybe think, just that I out do the new will some And that that the a think Will and be that of LHX success is entrants they've of that? about companies earnings? that cash little is in Now does And the of that? do Or you than then, one have the I for enough Ken, you that crowd multiple adjusted had effort try pie the or big you? we're all all more of clarification for -- to space, NeXt. past, how noncash? in on seeing, mean

Christopher Kubasik

Relative as thanks Noah, portfolio right. budget, well our Yes, I the to is I supplemental and year said, All fiscal is strategy $XXX the billion. think aligned. and we're pie working, over 'XX the question. well between for the the

of think there's I So plenty DoD funding.

as entrants, We've entrants your the approach new like old, with level. work to team of Relative new X I but these I think us where at going and which we're collaboratively highest the question. know with to since years sometimes the one you're to taken

a lot So new tend little software-focused. be of a more to the entrants

little more are traditional, including hardware-focused. the a think ourselves, I

collaboratively. working we're So

we new There's where been in a QX program. significant some entrant awards are subcontractor a actually that a want recent to

under And sometimes, they work us.

them talked in but say venture companies are I've So embracing who and we're working and also them. much smaller working of great And technology. with investments have those I collaboratively about with capital Shield past our course, would the

our working, So and think approach. it's that's been Ken? I

Kenneth Bedingfield

businesses. their the you're the we program. And primarily leverage to what see reflect first to out that cash in No, the then operationalize the and costs Yes. looked and We of hard the trying for think the costs that of that in to that perspective, in see release. about that then out adjusting are XXXX, NeXt in the performance. businesses the to starting talked here to and from implementation from like I target working the benefit an are program schedules related adjusting severance LHX we're benefits LHX perspective, quarter. reflected the certainly NeXt cash a And And you'll all earnings just off

Christopher Kubasik

Look, disclosures. the feedback our relative gotten to we've Yes.

Ken's adjustments and much under transparent. these cut non-GAAP to back leadership, So more onetime we're on trying be

will it you clear to So out laid analyze. I think for be all

Operator

from with Our of Pete next the Alembic line question Skibitski Global. comes

Peter Skibitski

your supplementals, get your NGI do target mentioned, outlook partner, as Chris, your the does more how $XX that how ability should impact I say? for with -- $XX fiscal about Aerojet? considering bullish to that you you hit 'XX billion And billion, does the on also win

Christopher Kubasik

No, as about is talked We $XX evolving which to absolutely. merchant billion before, both billion? supplier, missile a NGI, a is protect huge for U.S. ballistic were the teams. on and $XX threats, the win Yes, against designed long-range OEM. I've

definitely a Rocketdyne. made model, Aerojet we looked our gives went at in this we of and So the -- this factored back us acquisition deal when tailwind. When really looked I not was

in especially Rocketdyne is It's that going to with it's our the discussions, internal still great to technology, Prime. obviously, goals. going own be program. We're with motors. quantities at rocket a But from to the the Aerojet accretive, as a large solid start So to be least, are perspective, development determined.

you we selected been the signed But in a We provider. as as haven't yet. a actually awarded media, and were propulsion contract saw

frame, revenue again, I the imagine. exciting. slower to be will 'XX-'XX as hit ramp financials. very time you And it's we'll a our think start would So think it But I see

Operator

The next Liwag from question line Kristine comes Stanley. with the of Morgan

Kristine Liwag

are color December, you focus? new Since LHX been? this us NeXt Do they Committee formed the overlap? come progress you initiatives under And any pipe What to your give has Review compares as back well? key how areas a on have Business in how can that

Christopher Kubasik

X-K. I did you Review comprised of a in it's Kristine, each. been Yes, And of Board Board set X Chris. saw. laid brought have hours of up Business ad we the at items program variety of programs, in for reviewed through review meeting operations, We've we're month deployment of times the goals. the a hoc would We bidding the Committee that kind the And couple been a topics members, as out capital that NeXt through a in few say the LHX just reviewed anything we've charter and filed from the looked the strategy. process, we our the They've they've the process, strategy the portfolio, charter. from checking

through meetings. more. And halfway the middle the BRC of will are topics some our topics year I or Board about probably feel then report to maybe and Directors one Some of like with we're so, recommendations observations little the out findings. process, and meeting, a are X

say collaborative process. a been I'd So it's very

I orient think Board what to some it's we're for new company been way and company, quickly the good trying it's about and members to a the accomplish. good

well say point. to I'd is all So going this

more come. So to

Operator

the from UBS. of is Parsons with question next Gavin line The

Gavin Parsons

buckets. basis much Wanted I a drivers EACs, the inflation, NeXt and of think hand, nearly ask in in go for points repricing parse to year-over-year what drivers? to so know them of to lot a how XXX but hand is the on that way a expansion. out Just that versus margin If if between were about there's on? there's way mix the of

Kenneth Bedingfield

we're Gavin, Ken. the moving terms benefits would the some across in I that seeing seeing Chris in of Yes. improvement it's say kind say mix high-level as of, the I of we're of buckets growing. seeing of kind would some board. are higher of mix the the some mature mix of development the of some phase. From and phase of of the business perspective, cost-plus into areas a a out more contracts are we that mentioned,

as was a a example, mix. higher space within has bit cost-plus So an grower SAS and a strong of

to price So we But for to our from bidding on the of how the the just disciplined that seeing of and as on each each come other in certainly put through of we LHX NeXt And programs our in year then ability about kind perform works contributing. confidence and this I the a of bit. But individual to buckets. performing start some most as terms to as little discipline think wouldn't want of are way year kind major of numbers part, bridge buckets last largely, you those are contributing. well

Operator

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

Peter Arment

you've is it -- And a is gross think Chris NeXt. to on lot already tied on labor Ken, of to progress targets, I and saving LHX of starting tied about X/X reductions. your made

You recently there. made an announcement

you've the you've future portfolio. could on on any thoughts color to will portfolio terms kind you in further actions shaping, shaping just you If a then give for LHX that and more in related of evolve just all of think taking. that had been things on little the what's us on how Also optimal

Christopher Kubasik

Yes. No. Thanks, Peter.

be And do the workforce a need be what So us the NeXt. more for X/X that is of The as part quick complicated. little are about facilities, LHX to probably yes, we for is of little a more it. you to think, and part the going the hitter next said, there. going timely I way a And got to key

Looking at the infrastructure.

a goal facilities to getting have XXX of We down from XXX.

the process X start about that the identified we've quarter. X or that here in have second We we'll

believe have consolidate that a case into be and a to systems. smaller IT. the of centers entities by us these to Ultimately get from we larger We've continuing data in able all in is more bit invested our I'm ERP but technology the and to reduce our to initiatives not, move little business of layer some will sorry, access that data or better facility. We're relocate getting, So it would laying X. to -- cost consolidate, unified be And called of to XX centers of quickly. on down data talked the to systems get about XX then, data top course,

that's off XXXX. We've that's So already outsourced infrastructure. advantage that, That's enterprise. lead into some and We've take going it's with effectively of kicked time, why and going that the the of indirect taking to to buying the procurement. XXXX power

a of So that's quantity. both combination price and

So all are that our we're the tracking the supply integration the products. And the called that. of the overall but to to critical of then it's with products supply really the it It's ultimately, we chain. cost of our chain, reducing functions goal beyond

and an engineering contracting So such. component, clearly supply a component, chain there's there's

the that's million of but get savings. To So your shaping. portfolio is ongoing, that we're where so to question $XXX or on process going next

that I'll you coming we antenna what many in as it. hundred the an that's to know, As are close we'll dollars portfolio, quarter able And not. just commercial The of we're going to our to just of be a you, in we've a year, the assure million these of announced, the we noncore, I good do ratio second give the at We're middle And But give can have based and proceeds. Relative us to rest sell, which extent then to this we're there. that. more taking X. X and identified update get business, can half desperate couple low, think $X the of a That'll we're of for offers look second process. the we price hit too you tracking aviation leverage to billion people are on to hard going year. the be be the in is to our specific. of

we'll we there. from the before valuations business run and proceed on keep better get transactions. to forward and need Otherwise, we go So other

Operator

question with line comes of Jason Citigroup. from the next Gursky Our

Jason Gursky

Communications And of comments refresh We've kind a maybe updated when couple spend give well. on next of got your give had offer just And got introduced. XX minutes funding kind hits. and We've the you the maybe the business? up environment. years fiscal some all kind plays of thoughts 'XX, of last passed; they that you around had hardware how would take on 'XX over reported this as out us that of that and expected walking us since few out some the supplementals on some and Link Chris,

months over what business? on have X Communications Just learned of couple the the here we last

Christopher Kubasik

Jason. Thanks, Yes.

and me there's let to on and a go Link data going Link into developed or So XX,XXX to platforms, that footprint of that XX are variations other platforms we start then Again, have with XX. links be we've those footprint. able

So I think we're starting see to that.

XX-type was be Our goal for XX like to as capability a to get you tell that up, the can Link providing is all team it opportunities coming And the be supplier. space. SDA going going transport of and now, are we're looks into space. I Link merchant our on ultimate teams to

So the that. Relative by segment. to won a for want cross-company we're our win I reiterate opportunity networking, million led Taiwan, excited Communication about was which we Communications to the that $XXX Systems, in

strategy, the getting actually only process, about and in through is And supplemental contract, talking funds in through approved deliver record and a get a the mentioned, really here I I some we as been a our in model globally. capacity depending QX, booked. And to quickly U.S. And certain mean, facility, disruptor And trusted I were absolute the how going but not configuration out Europe. it X have CJADCX the to initiative under to FMS SOCOM the the The delivered. this backlog time. Relative deliver good system of to backlog. in as currently of honest, able it with that cases marine just us really has these on mentioned, supports be is the the comes, about allows our our we So radio going can ability potentially are big been talking radios that's modernization, quite for us. deal within country orders news. for our And and to business that contract I and there's the Rochester week Even the radios, get to country. we've know be we

So the be confidence will which XXXX a don't we given. clearly ramp second and We countries up. get half delivered look the radios be way signed which when those I will in we've get the high have a really at into have But funding will that factor it, in guidance of contract. turns clearly And XXXX. the

daily, And better our expectation. and business and feel just about whole And the paying in-theater products, again, focus So in the working tested way. off. on huge is a communications resilient the they're being exceeding

Operator

next Ken the with of Capital is Herbert from RBC question Our Markets. line

Kenneth Herbert

a Chris just question. and Ken, maybe X-part

on First, the segment. Communications

little ramp You, the quarter, of obviously, mix in clearly in first that. implies in bit to did there The guidance you about think XX% we and some puts we like should about second any a anything about upside segment some think the but half, with the could it quarter. just talk maybe margins slight And first sounds there's the depressed international if be second onetime quarter? the as there second Can quarter? in takes and a

international second CS margin And business, the segment term, than the And of of the opportunity about a level, international a but talk -- at then year. growing or higher impact you the then longer seems the the within then just U.S. obviously, just broadly? just be Can more faster maybe to half

Kenneth Bedingfield

take one. I'll that Sure.

margins. a question to was communicate of to 'XX. as quarter. well the think higher quarter reflect mix first part we kind expect be on mix And a guide with domestic what of XX% saw consistent the the 'XX. We So we're that expect that second half the to delivered CS than late is first I by we of in domestic CS performance first team. in higher mid the great to did I 'XX which CS margin low for the see XX% domestic margin think the And than trying quarter, does for second in we mix in We as the

XX% as margins IMS segments and closely some perform, able have we remarks, the programs components to should country. I make a of necessarily would with expect risks margin are international up opportunities We that on year, I that margin partners, his different from opportunity be And additional as to we question, international Solid realize well, Jason's Clearly, prepared performance and stronger allies looking some the as we, about will so an ISR how by and mid the we deliveries But at end certainly, have program and year quite about from about those could that business. QX international beyond what NATO we benefit driving would other to impact. as come low for be track results. to some those margins to and that we ultimate international that's talked we're tend channels the kind trying full to -- yield of communicate We strong that think some our the full year in similar think see to of at customer CS in remarks international higher lot the as the to you don't full across a certainly Chris in think again, and board. In side. But talked in their international at the international my about CS then to and the business. margins we of for recognizing 'XX segment. as that perform, the to country's those. margins expect a perspective. And our in response But generate opportunity, particular look

will in of is do the of the the ability to kind CS So move terms see international it the into quickest-turn business. I clearly we and into shorter-cycle take to comment, sales. orders turn continuing segment that segment,

So a But kind with for move and that time. a program, see just an program the talked be that revenue comments. more into over Chris I'll to that, it more multiyear will example, of few ISR we'll about turn bit we a

Christopher Kubasik

Yes, Ken.

synonymous sales, international reminder, low foreign consistent of is that revenue a with a to where where focus XX% our of most other is we're that's margins step And international are the our Ken the strategy improvement reminder, a half business. direct international we margins. in and has DoD our the commercial comes direction. part and military right grow part, just have the to for from higher in of margin is supplementals that's the tend customers, as more sale. higher margins, and But our the big said, as These And about as which is. Just half with work is

Operator

the from question Gautam Our Cowen. TD line of next Khanna with is

Gautam Khanna

guys? hear you me, Can

Christopher Kubasik

Yes, we can.

Gautam Khanna

Terrific. had X just quick I questions.

wondering was us more trends. give tactical the granularity I you First, could on if book-to-build RF backlog

something mentioned year in a then you And EACs little just overall with of kind those to mix sort if You the next back And on respect a SOCOM. and question could had that of turned what And on that I if IMS still perhaps talk bit business? and not, this profit about if have segment holding positive? accruals?

Kenneth Bedingfield

a solid at time. business, bookings looking backlog dollar multibillion turn, Yes. shortest-cycle this in in quarter. We've at the at quick I very And a From business that a this pretty got time, for business. order solid our tactical very for a a a radio point backlog backlog perspective, would had say robust is -- in that in we're point that

terms opportunity we -- would radios of to And business, business Tactical significantly that great appropriate 'XX. backlog prepared to in opportunities. I really as on factory than Communications it Radio, that to and think market Chris everything international EACs. as kind remarks, a business. the a on pretty a as business. our opportunities, mentioned, think the would the opportunity needed the as every business and Marine enables customers perspective. of terms Air part Next And programs the of huge the those We that Gen EAC IMS, very the them and at say while was great working about great through a into then that, better based for and Chris we one opportunity battlefield. At strong of that I is so longest-cycle the to net in a performance critical IMS clearly, mentioned, Survival new a quick demand as say supplemental expand I and that to the down-selected deliver question SOCOM excited needs IMS a that we're in the I customer critical the QX and better the important continue which turn about were with partnership is of to as about performed a Corps operations So for get also Force kind was from the well. And expand model segment turn takes is talked system. for

XX.X%, realizing for out great for in starting IMS I to I operations rates, the at work well terms benefits sectors strong full working doing to all the programs, quarter there of their first IMS the on the IMS both NeXt we performance as the really programs. the as hard think stabilize deliver on some year put segment performance LHX their that of had think within in 'XX. And are of towards guidance that

the the So of of we're strong as 'XX. we look quarters performance and remaining kind out stabilization continued really excited the into about

Operator

Our next of question Richard Seaport is from Partners. the Research line with Safran

Richard Safran

more to to We're I about wrong, X no too was Chris, for ask Ken, think prime. you Stand-in bid. a hearing I'm about an And correct lot opportunity wanted me I things risk industry. be to being pushed Attack. It Mark, to much if decided

about adjusting for competitors their talked One of in that bids. just your

bidding So going curious what for about is prime? I you about And what's the opportunity thinking be your was to next forward.

Christopher Kubasik

Richard. Thanks, Yes.

that We on few an so times. And on our time price-to-win amount people different and we've irrelevant, sending to I've of a bidding interesting we this focus strategy approach. referenced of money think outside bidding lot the industry and on talked been of discipline. inordinate a hiring It's strategy. kind find there. X taken pretty a consultants. There's but trying been going A in things the -- consistent about I on

a What is What add is we our supply if labor? up, move capabilities, reasonable And chain? deemed what's overhead? our And if on We book is and bid And that's What past the it's that the high, and we put our performance too on. based appropriate fee? we in. it's order.

fixed-price contract the options. to for Attack sense. on change bit a types It's so. But contracts. over was again, are it programs plain of year with So price last option that's we a common think in little that's give fixed where will Stand-in be just priced and a And bidding we importantly asked to an more product development, bid a or And is yet fixed for not simple weapon, any here a I developed. right the of

perform maybe I of in others negative subcontractor people department of cause our or agree or me, the We supplier successful got when capabilities based contracting these a bad action, with an than a take In don't. the there. contract. be there are happens. do, And are and the bad it's either a you approach corrective and prime. I Nobody we across root -- the is but have most that's merchant do that on there think what was to you We've that industry, approach, where some times and we again, prime a But mean we're trying an you guess, not, next the opportunities X. just what been perfect, I customer to issues, there needs. There performance on more delivery Armed is cannot best and what Overwatch. see EACs order are vehicle. a a

It's bidding we're ISR up Detection a to other global This So aircraft XX System. the with capabilities. and opportunity a which Exploitation is aligns It's big HADES, XX and aircraft. to Army. We're High Accuracy already. clearly basically the up X,XXX. our for

be us. for So win that big a would

I'll merger. maritime, where space space. but at that We in usually we we've had have ranges primed, of satellites bunch now, I just in date opportunities, orbit question and some there's follow-on get classified some a undersea plug a the for no

We quarter, and prime, SATS XX in there's pipeline. awarded in as launched the we've more and X been the

of those lot of have So follow-on, we are Aerojet course, at programs. of head. those top to Rocketdyne. And And but a just the opportunities not off my mind are come those prime

So guess, tracking. I thinking I SDA Tranche SDA. X for was

we're that for be know, have the X, you could X, of an company As satellites. awarded get X Tranche a and quarter another and satellites. total XX fourth XX in should the for been to We X Tranche only RFP

So hope that Richard. helps,

Operator

question of with Our the line next David from Barclays. is Strauss

David Strauss

in performance ask the I about wanted quarter. to the

I full your guidance. think year well above

you you're just are Tier And out And F-XX how [indiscernible] thinking you're then on touch then X. press you a lot a X the how there where in supplier, that? So those. if programs about could

Kenneth Bedingfield

Thanks the Appreciate Yes. for David. it. question,

little question the up but SAS the performance breaking quarter. I bit, you a believe were think in I was about

about in the the bit as a margin as talked some update of we They temper performance, the to team the And could programs. on in are also bit some to X little we XX.X% their a SAS development space adjustments. grow, quarter, in that XX% a there, approximately to That saw And well book little programs. quarters margin in bit EAC did continues from upside they you've performance little And got about the SAS margins by first of cost-plus including more mix. XX.X% the mix. strong we on quarter, talked program rate. the performing year. But for last the drivers a kind We And that's guidance And first quarter. solid were the of the some of little maturing of the rate.

from to as it -- rate the you forward, guide is confident that very little in the that higher up versus out full there adjustment we're hard period at a gets in for there. a out that we working we to catch we're SAS XX-day the know do try move I some bit. but flows year out figure SAS, confident pick to and team there as XX%. do team where the result drive does that speak in cume And you You tempered through how approximately in up put that But impact booking

Christopher Kubasik

And I was think second part your F-XX. of question

deliveries production Our tracking. are

here ramp next starting up a month. We in coming production have

good to relations Lockheed. So we continue with have

They'll ramp talking themselves. investments We've the deliver was made need. know. to most up them aircraft, I we're you they infrastructure have comment to of the on to that's fact, as starting plan. They'll we And just in our In further be as start going But quicker. yesterday. aircraft, that delivering and to even

core team the the month-over-month, is. where about focus of quarter-over-quarter. So the and all that's processor, improvement And continued it's

Operator

from is the question next Our line Fargo. of Wells Matt Akers with

Matthew Akers

particular. wonder I international on IMS you in the comment at if Chris, pipeline could

just quarter, orders You mentioned curious kind if the starting move to in of are award the there. but

Christopher Kubasik

the talked this this not I Electronic long thinking NATO Matt. that get -- X on market. we mean the disrupting we about space years And market, jet something back IMS, we and this ago, Aircraft. always X ago. We the I it pretty Thanks, is give I were Yes. this Attack example. like did about years much But ISR mean at feels ago. invented and created biz

last biz in the on over jet have X different years We or XX X platforms. X orders

I that NATO longer-term opportunities Mid take X things kind in There's to or Europe, the this country. have opportunity we year So get one mentioned some These East. in of a booked.

out whatever electronic to jet attack, down-selected. there. third East our huge that opportunity relative ISR, the we're So biz bid are still the a market capabilities, in on Far being There's for

that billion of dollars in be XXXX. a So couple could

So international work believe very market doing customers. from later early side. some CXXX Once have we're get excited pick we making we start next think that opportunities. Maritime, a that or this from about interest I have with I the lot year, to Australia. some going still that. Armed is to international Overwatch, deliveries we're starting year And aircraft of up capabilities

great SAS, EW. opportunities there So of on but F-XX Shield Viper as we well. continue is to actually capability see out

WESCAM that's growing as the So pretty all globe. market of I with opportunities turrets, that then, high-growth And with a over the well. just see course, much

Kenneth Bedingfield

biz aircraft, IMS. I total X in We comments, I'll a to that opportunities that that bringing did order add get the of on Yes. order terms in quick international program think aircraft. X to Overwatch, on Armed I XX. maybe confidence at matures, us greater just for And Chris, program to gives real think, as the your jets for that so beyond delivery

looking building that confidence the So on to one.

Operator

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

Sheila Kahyaoglu

lot your synergies is LHX with focused over today you up discussion profit XX%. was guys past, the In on great because clearly have which of NeXt, a talked revenue about

So Chris, the about bid targets, Maybe years? incumbent. over out about and do a and top few outlook for but and to the think any What it XX-year is gains? you your you investment? we share mentioned gains market way over there laid line how think know revenue share a Taiwan, revenue mid-single-digit I you won means potential next growth

Christopher Kubasik

for And bid. A invest XX at just Thanks, absolutely space look perfect where we different where there's a Yes. satellites is And We're a SDA selective the prime in alone. And are and I weeks pick I a We're that share. we've our or there's from as as said earlier, example I a since can the in less are hot tracking take this of a awarded Sheila. company been And including companies sign if a money market and domains, being disrupted you we've SPACs the taking XX we -- think market. of lot merger, we of and it's one couple lot a withdrawing as months, of market. paper making ]. up market. see market, [ But every success. that

be we're different giving are with good better want. where capability they with I Maybe referenced we've I filling it's So business domain, a I lesser to with airborne done for platforms, really the what incumbents -- really long-term about going what to in Armed missions again, feel and degree, the that jets. them in Overwatch, more space. The replacing think gaps

market opportunity example. We've back and an recovery long-term of our using be incumbent in ranges game maritime think changer we go We found a talked is XX-year with real a could on torpedo customers, That and couple a an just undersea that business. had around to no been regard, historically to received market, my for came out unmanned a that Our world-class. as the years, work about solution. And I and a undersea the X well work and Again, we launch undersea you different globe, up it's unseat our get in system vehicles. get have and is hot opinion. there

for haven't which radios. we the one We talk the about Force, good Air Survival the is much work the On really there. Radio. that Gen An lot exciting a about radios, of is talked Next

And seeing performance couple companies a and X we're cyber. doing we on stay dislodging that another growth have in of well. the threat. we're new as down-selected then, that. and good be competing a X in And of that of and And of something of could example, you So to course, incumbent. And going innovate on market. domain a there innovation long-term in every daily ahead There's day, years, kind to good

So answers I that hope your question.

Operator

question Bernstein. with is Harned last Doug Our from

Douglas Harned

you Aerojet win little the looking about Chris, at now, Rocketdyne, Aerojet ramp example, get you at about talk production you better. But demand I there, talked And you when -- get the what that with the when in can really growth bit stand you I And better earlier. to is talking and that and and for Camden, situation ago at look the being demand the get you right Can see market the remember to production up? So potentially potential year at serious -- and the a you from to when bottlenecks Rocketdyne, about in move able business I could look you up? how you're higher? now, then where of bottlenecks just business? in kind NGI getting trying mean, a of out think were process back to and those

Christopher Kubasik

are it about you. question. acquisition. where at And look great, I was Yes. with we agree months Doug, XX this I announced think great When yes, And I when ago we better conflict Nobody of case anticipated demand, was better. thought Ukraine would The defense gets there business no a be People spending done. billion the Israel. $XXX and XXXX. in for now,

on opportunities tactical of SRMs. So tons missiles, the the nuclear NGI, just deterrent,

not me. Over X top double-digit years, growth unreasonable the the long seem does call on term, it line X, to

course, on some have capacity. based The and them of to, invest in the chain. We low bottlenecks, are performance of and yields supply

on to working They, be need made -- in to it's tend I And placed government an to rocket we we the better think whether suppliers, XX-week are. orders. get What it's chain, the getting with equipment time, would that ovens. I we motor believe a someone nozzles have help and we've regard, the igniters, more suppliers. I to don't our the continue I unfortunately, solid good going progress ramp. need that we've expand, the cases. potential. We've give those think prime. think off the we once think lead to to the supply investing but that I money ordered the is in, can additional in continue to the mixers, unlock XX-, And continue help additional

facilities buildings, modify some them. take DPA have money existing We to build and

right piece So signals. But ability ] this the and for factories the we're stifle have everything companies I year, invest to we'll grow demand potential the Budget making a the Act kind consolidation think and for now, decade [ by investments the tailwind. inconsistent Control and is of the And of digitized and and dividend a processes. and end fixing

burn it's great to is about I is, time So to out acquisition. by all going think continue But processes. excited as if And to the in of kind down catch pretty XXXX invest up it. the stays delinquent turn we get and and and backlog to simultaneously put be a XXXX, really XXXX,

call will So workforce I appreciate with let joining thank for for and quarter. you And of many first in team in the be and the engaging team come. all great today. to the the of question, the the leadership Mark, person you Obviously, thank Doug. Ken, And all, just a And myself up. months first me wrap it

you all, thank and have a weekend. So great

Operator

This Thank you. teleconference. today's concludes

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

L3Harris (LHX) 26 Apr 242024 Q1 Earnings call transcript