(Reuters) – L3Harris Technologies forecast 2025 sales above estimates and posted higher-than-expected fourth-quarter results on Thursday, bolstered by strong demand for weapons due to higher defense spending amid global geopolitical tensions.
Demand for arms and military equipment has ballooned as a result of the Russia-Ukraine war and ongoing conflicts in the Middle East, benefiting defense contractors such as L3Harris.
The company also raised its cost-saving goal to $1.2 billion by the end of 2025, a year ahead of its previously disclosed timeline. L3Harris said it had achieved $800 million in cost savings in 2024.
A slower recovery in supply chain issues has led to higher costs, denting margins and leading companies in the sector to look for other ways to cut expenses.
Last year, L3Harris cut 5% of its workforce, or about 2,500 employees, as part of a cost-saving measure.
L3Harris reported a per-share adjusted profit of $3.47 for the quarter, surpassing analysts’ average estimate of $3.42, according to data compiled by LSEG.
Revenue rose 3% to $5.52 billion, while analysts had expected $5.50 billion.
The defense contractor, which makes solid rocket motors used in missiles on the battlefield in Ukraine, said it expects 2025 sales in the range 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)
