L3Harris Technologies
Overview
L3Harris generates space revenue through its Space & Airborne Systems (SAS) segment ($6.9B FY2025), which covers classified NRO sensor payloads, GPS/navigation systems, SDA tracking-layer satellite prime contracts, and USSF space communications. The Aerojet Rocketdyne acquisition (2023) added solid and liquid rocket propulsion. LHX executes a portfolio strategy combining classified sensor excellence with proliferated satellite prime contracting.
Moat: L3Harris has won SDA Tracking Layer awards across every tranche (T0: 4 satellites, T1: 18, T2: 18, T3: 18 — 58 satellites total), making it the most embedded tracking-layer prime in the Proliferated Warfighter Space Architecture. Its classified NRO optical and RF sensor heritage is decades deep. NTS-3 positions L3Harris as the U.S. leader in experimental GPS augmentation.
Business
Primary customers
- Defense: U.S. Space Force
- Defense: National Reconnaissance Office
- Defense: Space Development Agency
- Defense: U.S. Air Force
- Government: NASA
Sectors
Defense Sensors & Space Systems · Missile Warning · Navigation · Satellite Communications
Key Products
- SDA Tracking Layer Satellitesdevelopment
Proliferated LEO infrared missile-warning and tracking satellites for Space Development Agency Tranches 0, 1, 2, and 3; 58 satellites on contract.
First flight: 2023-06-12
- GPS Navigation Technology Satellite-3 (NTS-3)development
USSF experimental navigation satellite — first U.S. integrated navigation satellite system in nearly 50 years. L3Harris is prime contractor; readying for launch.
- Space & Airborne Systems Sensor Payloadsoperational
Classified electro-optical, infrared, and radio-frequency sensor payloads for NRO intelligence satellites — most details classified.
- AEHF / MUOS / Protected SATCOM Payloadsoperational
Advanced Extremely High Frequency and Mobile User Objective System communications payloads and terminals for jam-resistant DoD satellite communications.
Government Contracts
| Agency | Program | Amount | Year | Source |
|---|---|---|---|---|
| USSF | GPS Navigation Technology Satellite-3 (NTS-3) — prime contractor | ~$380M (USSF Rapid Capabilities Office) | 2019 | |
| SDA | Tranche 3 Tracking Layer (18 infrared satellites) | $843M | 2025 | |
| SDA | Tranche 2 Tracking Layer (18 satellites) | $919M | 2024 | |
| USSF / NRO | Classified RF/optical sensor payloads and space communications | Classified (multiple programs) | 2019 |
Near-term Catalysts
- 2025-Q4
NTS-3 launch and on-orbit GPS augmentation demonstrations
Successful NTS-3 demonstrations could unlock a production contract for next-generation navigation satellites worth billions for USSF.
- 2026-Q1
SDA Tranche 3 satellite production ramp
LHX's $843M T3 award begins converting into revenue; record $38.7B backlog with 1.3x book-to-bill underpins multi-year SAS segment growth.
Top Risks
- Integration and margin risk from the 2023 Aerojet Rocketdyne acquisition — Aerojet segment contributed $2.8B FY2025 revenue but integration complexity and potential pension liabilities remain execution risks.
- SDA fixed-price satellite contracts expose L3Harris to cost-overrun risk on 18-satellite T3 production; previous tracking-layer primes have faced margin pressure on new architectures.
- Federal budget pressure on USSF and NRO discretionary spending could delay classified space programs that represent a significant but undisclosed fraction of SAS revenue.
Recent Milestones
- 2026-01
FY2025: revenue $21.9B (+3%), Space & Airborne Systems $6.9B, backlog $38.7B, book-to-bill 1.3x
- 2025-12
Awarded $843M SDA Tranche 3 Tracking Layer contract for 18 infrared satellites
- 2025-08
NTS-3 experimental GPS navigation satellite completing pre-launch testing
- 2025-01
FY2024: revenue $21.3B (+10%), record backlog $34B, cost savings $800M — target raised to $1.2B
- 2024-01
Awarded SDA Tranche 2 Tracking Layer contract for 18 satellites ($919M)
Recent News
- 2026-01
- 2025-12
- L3Harris NTS-3 experimental GPS satellite readies for launch — first U.S. experimental nav sat in 50 yearsL3Harris Newsroom2025-08
- 2025-01
- SDA selects L3Harris, Lockheed Martin, and Sierra Space for Tranche 2 Tracking Layer contractsSpace Development Agency2024-01
What investors should know
Q1What does L3Harris Technologies do in space?⌄
Q2How does L3Harris make money in space?⌄
Q3Who are L3Harris's primary space customers?⌄
Q4What is L3Harris's competitive moat in space?⌄
Q5What are the top risks for L3Harris investors?⌄
Q6What near-term catalysts could move L3Harris stock?⌄
Q7How does L3Harris compare to RTX Corp (Raytheon)?⌄
Peers
Compare side-by-side →Sources & References
Agency Document
- SDA Tranche 2 Tracking Layer Award · 2024-01-16
SEC Filing
- SEC 10-K FY2025 (L3Harris) · 2026-02-12
Investor Relations
Press Release
- L3Harris FY2025 Earnings Release · 2026-01-29
- L3Harris FY2024 Earnings Release · 2025-01-30
- L3Harris SDA T3 Award · 2025-12-19