L3Harris Technologies, Inc. (NYSE: LHX) reported fourth-quarter 2020 revenue of $4.7 billion, down 3.6% versus the prior year, and flat on an organic basis. GAAP net income was $184 million, down 54% versus the prior year. Adjusted EBIT was $864 million, up 3.5% versus the prior year, and adjusted EBIT margin expanded 120 basis points (bps) to 18.5%. GAAP EPS was $0.92, down 48%, and non-GAAP EPS was $3.14, up 10% versus prior year.
Revenue of $4.7 billion, down 3.6% versus prior year; flat on an organic basis; funded book-to-bill of 0.93 in Fourth Quarter 2020.
Revenue of $18.2 billion, up 42% versus prior year, 0.5% versus prior-year pro format, and 2.9% on an organic basis; funded book-to-bill of 1.04.
Fourth-quarter revenue decreased 3.6% versus the prior year primarily due to divestitures and COVID-related impacts, mainly for commercial-related sales. Organic revenue was flat for the quarter as 3.7% growth in core U.S. and international businesses, excluding commercial aviation and Public Safety, was offset by the anticipated COVIDrelated decline. At the segment level, revenue growth was driven by Space and Airborne Systems and Communication Systems, offset by a decline in Aviation Systems primarily due to COVID-related impacts. Funded book-to-bill was 0.93 for the quarter.
Full-year revenue increased 42% versus the prior year primarily due to the post-merger inclusion of L3 operations in results, partially offset by divestitures and COVID-related impacts, mainly for commercial-related sales. Full-year revenue increased 0.5% versus prior-year pro forma and 2.9% on an organic basis as 5.6% growth in core U.S. and international businesses, excluding commercial aviation and Public Safety, more than offset the COVID-related decline. At the segment level, revenue growth was driven by Space and Airborne Systems, Integrated Mission Systems, and Communication Systems, partially offset by a decline in Aviation Systems primarily due to COVIDrelated impacts. Funded book-to-bill was 1.04 for the year.
Fourth-quarter revenue was flat as strong growth in Maritime from a ramp in manned and classified platforms was offset by a moderate decline in ISR due to aircraft timing and in Electro-Optical due to program timing. Fourth-quarter operating income increased 7.2% to $209 million, and operating margin expanded 100 bps to 14.3% versus the prior year, driven by cost management, integration benefits, and operational excellence.
Fourth-quarter revenue increased 4.3% versus the prior year and 4.8% on an organic basis, primarily due to a ramp on the F-35 platform in Mission Avionics and growth in Space from recent program wins, partially offset by a moderate decline in Intel & Cyber due to program timing. Fourth-quarter operating income increased 13% to $245 million, and operating margin expanded 150 bps to 19.5% versus the prior year, driven by cost management, operational excellence and integration benefits, net of program mix.
Fourth-quarter revenue increased 2.1% versus the prior year and 3.4% on an organic basis from strong growth in Tactical Communications, primarily from the Middle East and Central Asia, as well as the continued ramp in U.S. DoD modernization. This growth was partially offset by international program timing in Integrated Vision Solutions and lower demand within Public Safety due to anticipated COVID-related impacts. Fourth-quarter operating income increased 14% to $296 million, and operating margin expanded 280 bps to 25.9% versus the prior year from operational excellence, integration benefits, and cost management.
Full-year revenue increased 33%, operating income increased 30% and operating margin contracted 60 bps versus the prior year, primarily due to the post-merger inclusion of L3 operations in results. Full-year revenue increased 3.9% versus prior year pro forma and 4.4% on an organic basis from strong growth in Tactical Communications, primarily from the ramp in U.S. DoD modernization that also benefited Integrated Vision Solutions, partially offset by lower demand in Public Safety due to COVID-related impacts. Full-year GAAP and non-GAAP operating income increased 13%, and operating margin expanded 200 bps to 24.4% versus prior-year pro forma from operational excellence, integration benefits, and cost management. The funded book-to-bill was 0.94.
Fourth-quarter revenue decreased 22% versus the prior year primarily due to the divestiture of the airport security and automation business, and 11% on an organic basis driven by COVID-related impacts in the commercial aviation business, consistent with expectations. This decline was partially offset by growth in Defense Aviation, from a ramp on classified programs and combat propulsion systems, and higher FAA volume in Mission Networks. The fourth-quarter GAAP operating loss was driven by charges for impairment of goodwill and other assets related to our commercial aviation business, other COVID-related impacts, and the divestiture of the airport security and automation business, partially offset by growth in Defense Aviation and Mission Networks. Non-GAAP operating income decreased 22% due to COVID-related impacts and the divestiture of the airport security and automation business, net of growth in Defense Aviation and Mission Networks. Non-GAAP operating margin was flat at 14.9% as operational excellence, integration benefits, and cost management offset COVID-related headwinds.
Source: www.l3harris.com
