Defense Contractor L3Harris Shifts Strategy: Halts M&A To Strengthen Balance Sheet And Boost Shareholder Returns

L3Harris Technologies Inc LHX said it plans to discontinue its merger and acquisition (M&A) program for the foreseeable future.

The company attributed the move to strengthen its balance sheet and return all excess capital to shareholders.

L3Harris sees revenue of $23 billion through 2026, with 16% segment operating margins and $2.8 billion free cash flow.

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For 2024 - 2026, the company plans to prioritize investment in the business, including research and development and capital expenditures. It also plans for paying down debt to achieve a leverage of 3.0x.

"We will focus on driving operational improvements to enhance productivity, reduce expenses, drive margin expansion and generate strong cash flow," said chair and CEO Christopher E. Kubasik.

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Price Action: LHX shares closed lower by 0.38% at $200.31 on Tuesday.

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