L3Harris Technologies (NYSE: LHX) reported $4.4 billion in revenue for the fourth quarter of 2021 and $17.8 billion in full year revenue.
The Melbourne, Florida-based defense company said its 2021 operating cash flow was $2.7 billion, with an adjusted free cash flow of $2.75 billion.
“The L3Harris team delivered solid EPS growth, consistent with expectations, despite supply chain headwinds and budget uncertainty,” said L3Harris Vice Chair and CEO Christopher Kubasik, a three-time Wash100 Award winner.
Q4 sales declined by 7 percent and by 2 percent for all of 2021, which was attributable primarily to the company’s sales of certain subsidiary aviation businesses and the supply chain blockages that Kubasik referenced.
The company’s integrated missions sector revenue saw an uptick of 6 percent in the October-December period, due to growth associated with intelligence, surveillance, target acquisition and reconnaissance services. Operating income for the segment was $259 million, up 24 percent from the prior year period.
L3Harris posted a 2 percent increase in space and airborne systems revenue for the quarter compared to the same period a year ago. This segment’s book-to-bill ratio was 0.95 and its operating income decreased by 4 percent to $235 million.
A notable award received by the space and airborne unit was a $125 contract from the U.S. Space Force that calls for the construction of ground-operating, deployable electronic warfare systems.
The communications business took an 11 percent dip, as a result of the supply chain delays that affected its tactical communications component, as well as its broadband communications’ legacy platform volume decrease and other factors.
Still, L3Harris landed a five-year, indefinite-delivery/indefinite-quantity contract worth over $250 million from the Defense Logistics Agency. The contract ordered legacy radios and accessories.
The largest downturn was in the company’s Q4 aviation systems revenue, which decreased 37 percent compared to the prior year period. This was a function of the aforementioned sale of subsidiary aviation businesses, in addition to contract roll-offs and diminished volume of FAA mission networks.
However, L3Harris did net $90 million in a classified contract award for next-generation systems, which the company called a significant win that could yield “multi-billion-dollar follow-on opportunities.”
In this light, Kubasik said the company has its sights set on creating lasting growth and revenue over the long-term and predicts 2022 to be a year of opportunities driven by L3Harris’ status as a “trusted disruptor.”