Story
L3Harris Secures $70.8 Million U.S. Navy Contract Modification
L3Harris Technologies (NYSE:LHX) has secured a $70.8 million modification to an existing U.S. Navy contract to provide naval equipment, components, and engineering support. The award exercises previously negotiated options on contract N00024-24-C-6200, extending the company's work with the service branch through the end of the decade.
Contract Details
The agreement is a hybrid contract, combining firm-fixed-price and cost-plus-fixed-fee structures. This type of arrangement manages cost risks for the government while allowing for flexibility in engineering support services.
Work under the modification is scheduled for completion by October 2029. The tasks will be performed across three of the company's U.S. locations:
- Millersville, Maryland (57%)
- Liverpool, New York (40%)
- Ashaway, Rhode Island (3%)
AdFunding and Financials
The contract will be financed through multiple U.S. Navy appropriations across several fiscal years, indicating its integration into long-term naval planning. The funding is sourced as follows:
- $50.3 million (71%) from fiscal 2026 other procurement funds.
- $10.1 million (15%) from fiscal 2024 shipbuilding and conversion funds.
- $10.1 million (15%) from fiscal 2025 shipbuilding and conversion funds.
For investors, this modification adds to L3Harris's revenue backlog, providing predictable income over the next several years. Government contracts of this nature are a core component of revenue stability for major defense firms.