CluenexL3Harris LHX
L3Harris scores weak on business quality (4.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What L3Harris does
L3Harris Technologies builds mission-critical communication systems, avionics, and space payloads, selling primarily to the US Department of Defense and allied governments.
- What it does best
L3Harris dominates secure tactical communications for defense agencies, backed by an operating margin of 13.6%. High switching costs and strict military specs lock customers in, keeping competitors from displacing installed gear easily.
- The main risk
Carrying $11 billion of total debt against $1.1 billion of cash creates vulnerability to rising borrowing costs, leaving interest coverage at just 5.6x.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 13.6% alongside a net margin of 8.1%. Margins remain constrained by fixed-price development contracts, meaning scale brings limited margin expansion.
Switching costs and strict military certifications lock defense agencies into its communications ecosystem. Gross margin of 25.5% ranks in the bottom quartile of its sector, limiting financial flexibility.
Revenue grew 2.5% to $22.9B, ticking up slowly compared to historical periods. Growth remains modest as the business absorbs prior integration steps.
Total debt sits at $11.1B against $1.1B in cash, while interest coverage of 5.6x leaves little margin for error. Free cash flow reached $2.8B, getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on LHX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
L3Harris scores weak on the Cluenex quality check (4.5 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, after the close.
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Cite this page: Cluenex, “L3Harris (LHX)”, https://cluenex.com/stocks/lhx/, data as of Oct 10, 2026.