- Earlier this week, L3Harris Technologies announced multi-year framework agreements with the Department of War and Lockheed Martin to massively expand propulsion production for PAC-3 MSE and THAAD missile defense systems over seven years, alongside a confirmed quarterly dividend of US$1.2500 per share payable in September 2026.
- These long-term propulsion deals highlight L3Harris’s deepening role in U.S. missile defense infrastructure, underpinned by billions in capacity investments across its Alabama, Virginia and Arkansas manufacturing footprint.
- We’ll now examine how this long-term missile propulsion capacity expansion could influence L3Harris’s existing investment narrative and growth assumptions.
Find 49 companies with promising cash flow potential yet trading below their fair value.
L3Harris Technologies Investment Narrative Recap
To own L3Harris today, you need to believe in sustained demand for advanced missile defense, communications and space systems, supported by steady U.S. and allied defense spending. The new seven-year PAC-3 MSE and THAAD propulsion frameworks reinforce the short term growth story around munitions capacity, while the biggest ongoing risk remains U.S. budget and program decisions that could slow or reprioritize funding across key space and missile programs.
Among recent announcements, the company’s raised 2026 revenue and EPS guidance stands out, because it was issued before these propulsion awards were announced and already reflected solid momentum. Seeing that upgraded outlook alongside long duration missile contracts and a growing backlog tightens the focus on execution risk in fixed price development work and on how efficiently L3Harris can scale its expanded manufacturing footprint.
But even with these multi year contracts in place, investors still need to think carefully about how exposed L3Harris remains to future U.S. budget decisions and...
Read the full narrative on L3Harris Technologies (it's free!)
L3Harris Technologies' narrative projects $27.8 billion revenue and $3.0 billion earnings by 2029. This requires 7.3% yearly revenue growth and about a $1.3 billion earnings increase from $1.7 billion today.
Uncover how L3Harris Technologies' forecasts yield a $381.95 fair value, a 25% upside to its current price.
Exploring Other Perspectives
Two fair value estimates from the Simply Wall St Community cluster between US$381.95 and US$442.44 per share, reminding you that private investor views can diverge widely. Against that backdrop, the long term missile propulsion capacity build out highlights how much future performance may still hinge on U.S. defense spending priorities, so it is worth weighing several competing scenarios before forming your own view.
Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth just $381.95!
The Verdict Is Yours
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your L3Harris Technologies research is our analysis highlighting 6 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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