L3Harris Details Financial Objectives And Value Creation Strategy At 2023 Investor Day; Presented Medium-Term Financial Framework Based On The Company's Current Portfolio, Through 2026: $23B In Revenue, 16% Segment Operating Margins, $2.8B Free Cash Flow
Portfolio Pulse from Benzinga Newsdesk
L3Harris Technologies (NYSE:LHX) outlined its financial goals and value creation strategy at its 2023 Investor Day, targeting $23B in revenue, 16% segment operating margins, and $2.8B free cash flow by 2026. The company plans to focus on operational improvements, reduce expenses, and enhance productivity to drive margin expansion and cash flow growth. L3Harris will halt its M&A program to strengthen its balance sheet and return excess capital to shareholders after reaching a leverage target by the end of 2024. The capital deployment priorities include R&D investments, capital expenditures, debt reduction, and shareholder returns.
December 12, 2023 | 6:02 pm
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POSITIVE IMPACT
L3Harris Technologies aims for significant financial growth by 2026, with plans to improve operations and margins, halt M&A activities, and return excess cash to shareholders. The focus on internal development and shareholder returns could positively influence investor sentiment.
The announcement of L3Harris's financial objectives and the decision to prioritize operational improvements and shareholder returns typically generate positive investor sentiment. The halt of M&A activities to focus on internal growth and the commitment to return excess cash to shareholders are seen as strong indicators of confidence in the company's future performance. This strategic shift is likely to be viewed favorably in the short term, potentially leading to an increase in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100