L3Harris Technologies said it expects a return to stronger growth in 2026 following a largely flat performance in its Space and Airborne Systems segment last year, citing an internal reorganization and improving program execution after disruptions caused by a U.S. government shutdown.
In 2025, revenue in the Space and Airborne Systems (SAS) segment rose 1% year-on-year to $6.9 billion, as lower space systems volumes and reduced classified work in intelligence and cyber were partly offset by cost controls and stabilizing program performance. The company said delayed contract awards linked to the government shutdown pushed some expected fourth-quarter revenue into later periods.
Operating margin in the segment improved by 50 basis points to 12.3%, reflecting cost-saving measures and improved execution, the company said.
Beginning in 2026, L3Harris will fold its space-related activities into a newly created Space & Mission Systems (SMS) segment, combining elements of the current SAS unit and the Integrated Mission Solutions business. The new segment is expected to generate about $11.5 billion in revenue next year, driven by growth in intelligence, surveillance and reconnaissance aircraft missionization and space solutions.
The company’s Communications Systems business reported revenue of $5.7 billion in 2025, up 4% year-on-year, supported by higher international deliveries of software-defined resilient communications products and progress on the Next Generation Jammer electronic warfare program. Operating margin in the segment improved by 90 basis points.
As part of the reorganization, Communications Systems will become part of a broader Communications & Spectrum Dominance (CSD) segment, which will also include the WESCAM sensor business and other electronic warfare programs. L3Harris forecasts $8 billion in revenue for CSD in 2026.
The company will also establish a Missile Solutions (MSL) segment, combining Aerojet with missile systems such as seekers, air-launched effects and advanced propulsion technologies. MSL revenue is projected at $4.4 billion next year.
Across the group, L3Harris reported total 2025 revenue of $21.9 billion, up 3% from a year earlier but slightly below the $22 billion outlook issued in October. For 2026, the company forecast revenue of between $23 billion and $23.5 billion, representing growth of just over 6% at the midpoint.
