(Reuters) – L3Harris Applied sciences forecast 2025 gross sales above estimates and posted higher-than-expected fourth-quarter outcomes on Thursday, bolstered by robust demand for weapons attributable to larger protection spending amid world geopolitical tensions.
Demand for arms and navy tools has ballooned because of the Russia-Ukraine warfare and ongoing conflicts within the Center East, benefiting protection contractors similar to L3Harris.
The corporate additionally raised its cost-saving aim to $1.2 billion by the top of 2025, a yr forward of its beforehand disclosed timeline. L3Harris stated it had achieved $800 million in price financial savings in 2024.
A slower restoration in provide chain points has led to larger prices, denting margins and main corporations within the sector to search for different methods to chop bills.
Final yr, L3Harris reduce 5% of its workforce, or about 2,500 staff, as a part of a cost-saving measure.
L3Harris reported a per-share adjusted revenue of $3.47 for the quarter, surpassing analysts’ common estimate of $3.42, in keeping with knowledge compiled by LSEG.
Income rose 3% to $5.52 billion, whereas analysts had anticipated $5.50 billion.
The protection contractor, which makes strong rocket motors utilized in missiles on the battlefield in Ukraine, stated it expects 2025 gross sales within the vary of $21.8 billion to $22.2 billion, the midpoint of which is above expectations of $21.86 billion.
(Reporting by Utkarsh Shetti in Bengaluru)
