Major Korea AEW&C Contract Might Change The Case For Investing In L3Harris Technologies (LHX)

• L3Harris Technologies recently announced it has secured a contract valued at over US$2.26 billion to deliver modified Bombardier Global 6500 airborne early warning and control (AEW&C) aircraft to the Republic of Korea Air Force, in collaboration with Bombardier, Israel Aerospace Industries' ELTA Systems, and Korean Air.
• This project stands out for its scale, technological integration, and focus on enhanced interoperability with U.S., NATO, and allied defense partners in the Indo-Pacific region.
• We'll explore how this major international AEW&C aircraft contract may reinforce L3Harris Technologies’ defense leadership and future revenue outlook.

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L3Harris Technologies Investment Narrative Recap

To believe in L3Harris Technologies as a shareholder, you must see enduring international demand for advanced defense and communications solutions as a driver for long-term growth. The recently secured US$2.26 billion AEW&C contract with Korea serves as a significant short-term catalyst, directly reinforcing L3Harris’s leadership in high-value defense projects; however, dependency risks from large partnership-driven contracts remain one of the largest uncertainties that could affect revenue timing and margins. Among the recent announcements, L3Harris's expanded VAMPIRE™ system, designed to counter small unmanned threats, highlights how product innovation supports its portfolio and aligns with trends in allied defense requirements. This product line's continued evolution signals management’s focus on diversified capabilities, which may complement large program wins but does not significantly alter the risk of partnership dependencies seen in the new Korea contract. In contrast, investors should be aware that as L3Harris’s role often involves working with multiple partners, the resulting execution risks from...

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

L3Harris Technologies' outlook projects $24.9 billion in revenue and $2.7 billion in earnings by 2028. This implies annual revenue growth of 5.2% and a $1.0 billion increase in earnings from the current level of $1.7 billion.

Uncover how L3Harris Technologies' forecasts yield a $309.11 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates for L3Harris range from US$309.11 to US$327.48 per share. While you weigh these differing community views, remember that dependency on major program partners could materially shape future contract outcomes and revenue streams.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 12% 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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