U.S. Army Awards L3Harris ENVG-B Production Order

Rhea-AI Summary

L3Harris Technologies (NYSE:LHX) secures a $256 million order from the U.S. Army for the Enhanced Night Vision Goggle – Binocular (ENVG-B) program, with a total value of nearly $1 billion over 10 years. The company's commitment to providing modern night-vision solutions to U.S. soldiers and its partnership with the Army highlight its dedication to national security.

Insights

Defense Industry Analyst

The $256 million order for the Enhanced Night Vision Goggle – Binocular (ENVG-B) placed by the U.S. Army to L3Harris Technologies represents a significant investment in military technology, reflecting the ongoing modernization efforts by the defense sector. In the context of defense spending, such contracts are pivotal for companies like L3Harris, contributing to their revenue stream and underlining their importance as suppliers of advanced military equipment.

Analyzing the financial aspect, a contract of this size can have a noticeable impact on L3Harris's financial performance, potentially affecting its stock as investors react to the company's strengthened backlog. The deal, part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract nearing $1 billion over 10 years, suggests a long-term income source, which is significant for stability and growth projections.

Furthermore, the mention of 'Figure of Merit' levels, which denote the performance standard for night vision technology, highlights the competitive advantage L3Harris could have in this domain. Ensuring that soldiers have state-of-the-art situational awareness tools is critical in maintaining defense superiority. The resultant improved product performance can lead to more contracts and enhance the company's market position.

Market Research Analyst

From a market standpoint, the continued partnership between L3Harris and the U.S. Army exemplifies the reliance of national defense on private sector technology and innovation. The focus on enhancing situational awareness at greater distances, especially in nocturnal environments, is a testament to the evolving battlefield requirements and the corresponding demand for advanced military equipment.

Given the scale of the order and the extended duration of the IDIQ contract, investor confidence in L3Harris may be bolstered due to the implied stability and forecasted revenue. Additionally, the company's delivery track record, with over 13,000 ENVG-B systems and 20,000 advanced vision goggles already supplied, presents a solid case for their operational reliability and fulfillment capabilities, potentially influencing stock market performance and investor sentiment.

It's also key to consider the ripple effect such a contract could have on the industry, possibly stimulating competition and innovation among other defense technology providers. The emphasis on keeping the system 'ahead of the threat' may prompt parallel advancements within the sector, potentially impacting market dynamics and investment strategies within the defense industry.

LONDONDERRY, N.H.--(BUSINESS WIRE)-- L3Harris Technologies (NYSE:LHX) received a $256 million order from the U.S. Army for continued production of the Enhanced Night Vision Goggle – Binocular (ENVG-B). This is the first order for the ENVG-B’s Program of Record full-scale production IDIQ, which will total nearly $1 billion over 10 years.

“We are committed to ensuring U.S. soldiers stay steps ahead of peer adversaries at all times, and we are honored to put modern night-vision solutions into the hands of more warfighters as part of the ENVG-B program,” said Christopher E. Kubasik, Chair and CEO, L3Harris. “Our continued partnership with the Army and internal technology investments will keep this system ahead of the threat for years to come.”

“L3Harris’ Londonderry workforce plays a critical role in support of our national security,” said Sen. Jeanne Shaheen, D-N.H. “This award I helped secure for the ENVG-B program will continue to support production of their cutting-edge night vision capability for the warfighter. I’ll continue working in Congress to keep New Hampshire on the frontlines of producing this critical technology.”

The L3Harris ENVG-B systems enhance situational awareness at greater distances at night and in low-light environments with industry-leading Figure of Merit levels. L3Harris has delivered more than 13,000 ENVG-B systems to the Army to date. The company has also delivered more than 20,000 advanced vision goggles to warfighters worldwide, including the company’s Binocular Night Vision Device – Fused solution.

About L3Harris Technologies

L3Harris Technologies is the Trusted Disruptor in the defense industry. With customers’ mission-critical needs always in mind, our 50,000 employees deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security.

Forward-Looking Statements

This press release contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Statements about the value or expected value of orders, contracts or programs and about system capabilities are forward-looking and involve risks and uncertainties. L3Harris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240415947192/en/

Jason Simpson

Communication Systems

Jason.Simpson01@L3Harris.com

603-400-9285

Sara Banda

Corporate

Media@L3Harris.com

321-306-8927

Source: L3Harris Technologies

FAQ

What is the value of the order L3Harris received from the U.S. Army for the ENVG-B program?

L3Harris received a $256 million order from the U.S. Army for the ENVG-B program.

How many ENVG-B systems has L3Harris delivered to the Army so far?

L3Harris has delivered more than 13,000 ENVG-B systems to the Army to date.

What is the total value of the ENVG-B program over 10 years?

The total value of the ENVG-B program over 10 years is nearly $1 billion.

What is the Figure of Merit level of L3Harris' ENVG-B systems?

L3Harris' ENVG-B systems enhance situational awareness at greater distances at night and in low-light environments with industry-leading Figure of Merit levels.