April 30 (Reuters) – Defense supplier L3Harris Technologies lifted its 2026 profit forecast after beating first-quarter revenue estimates on Thursday, as it banks on strong demand from the Pentagon for its weapons and military intelligence systems.
A series of conflicts, including the U.S.-Israel war on Iran, have depleted the Pentagon’s supplies and prompted fresh orders for missiles and munitions, benefiting defense contractors such as L3Harris.
The supplier’s missile solutions segment, which makes propulsion and hypersonic weapons, posted an 18% rise in revenue for the first quarter.
Late on Wednesday, L3Harris confidentially filed for the IPO of its missile solutions unit, as part of a deal with the Department of Defense announced in January.
Under the deal, the department has invested $1 billion in the soon to be spun-off company to ramp up production of solid rocket motors, used in a wide range of missiles such as Tomahawks and Patriot interceptors.
L3Harris’ space and mission systems business, which focuses on satellite capabilities and missile defense systems, posted a 24% rise in first-quarter sales.
It was helped by a ramp-up in production of its intelligence, surveillance and reconnaissance systems for classified and international aircraft programs.
The Melbourne, Florida-based company now expects annual per-share profit between $11.40 and $11.60, with the midpoint higher than its previous forecast range of $11.30 to $11.50.
Its first-quarter profit rose by a third to $2.72 per share, from $2.04 last year.
Total quarterly revenue was $5.74 billion, compared with expectations of $5.42 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)
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