How L3Harris’s Record Javelin Propulsion Contract Could Impact LHX Earnings and Market Position

• On September 15, 2025, L3Harris Technologies was awarded a contract worth up to US$292 million to continue producing propulsion systems for the Javelin weapon, representing the program’s largest propulsion contract and extending production for five years.
• This contract highlights L3Harris’s expanded manufacturing capabilities, digital production advances, and the company’s focus on real-time quality and production control.
• We’ll examine how this record Javelin propulsion contract may influence the outlook for L3Harris’s earnings growth and market position.

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L3Harris Technologies Investment Narrative Recap

To be a shareholder in L3Harris Technologies, you need to believe in the company's ability to capture value from rising U.S. defense spending and execution on key programs. The recent US$292 million Javelin propulsion contract provides a record backlog and enhances visibility for future earnings, but doesn't materially change the short-term catalyst, which continues to be performance and growth in major U.S. defense contracts. The largest risk remains tied to reliance on third-party suppliers and successful program delivery.

Among recent announcements, the completion of a 92,000-square-foot spacecraft manufacturing facility under Project LEO stands out. This expansion signals L3Harris's deeper push into next-generation satellite and space-based technology, a sector aligned with defense budget priorities. Success in these areas could provide important tailwinds if bottlenecks in third-party contractor performance are managed well.

However, investors should also be aware that, even as new contracts support growth, risks from dependencies on other contractors remain front and center, especially as...

Read the full narrative on L3Harris Technologies (it's free!)

L3Harris Technologies' narrative projects $24.9 billion in revenue and $2.7 billion in earnings by 2028. This requires 5.2% yearly revenue growth and a $1.0 billion earnings increase from $1.7 billion today.

Uncover how L3Harris Technologies' forecasts yield a $302.58 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fair value estimates from two Simply Wall St Community members span US$302.58 to US$331.99 per share. While these opinions show wide-ranging expectations, the continued dependence on third-party contractors could significantly influence L3Harris’s ability to meet future earnings goals. Consider how different viewpoints may shape your understanding.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 13% more than the current price!

Build Your Own L3Harris Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free L3Harris Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate L3Harris Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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