US Navy Awards L3Harris Nearly $1 Billion IDIQ Contract

Rhea-AI Summary

L3Harris Technologies has secured a $999 million indefinite delivery, indefinite quantity contract from the U.S. Navy. The five-year agreement involves delivering Multifunctional Information Distribution System Joint Tactical Radio System Terminals (MIDS JTRS) to U.S. and coalition forces. L3Harris, one of two providers of the MIDS JTRS solution, will supply software-defined Link 16 resilient communication radios for various platforms. The contract extends the company's 24-year history of providing communications interoperability solutions to U.S. armed services and 57 allied nations.

Positive

• Secured major $999 million contract with U.S. Navy
• Five-year contract duration provides stable revenue stream
• Strategic position as one of only two MIDS JTRS providers
• Established presence with 24-year history and 57 allied nations as customers

Negative

• Shares contract with another provider, limiting total addressable market

Insights

Defense Industry Analyst

This $999 million IDIQ contract win represents a significant strategic victory for L3Harris in the defense communications sector. The MIDS JTRS terminals are important components of the Link 16 tactical data network, which serves as the backbone of military communications across NATO and allied forces. With L3Harris being one of only two providers, this positions them strongly in a duopolistic market structure.

The contract's five-year duration provides stable, predictable revenue streams and strengthens L3Harris's position following their strategic acquisition of the Link 16 Tactical Data Links product line in January 2023. The extensive deployment across all U.S. armed services and 57 allied nations creates substantial barriers to entry and ensures long-term program sustainability.

This award demonstrates L3Harris's continued dominance in military communications infrastructure, particularly significant given increasing global tensions and the growing importance of interoperable military communications systems.

MELBOURNE, Fla.--(BUSINESS WIRE)-- L3Harris Technologies (NYSE: LHX) has received an indefinite delivery, indefinite quantity award from the U.S. Navy, worth up to $999 million, to provide U.S. and coalition forces with resilient communications technology.

Over the next five years, L3Harris will deliver its Multifunctional Information Distribution System Joint Tactical Radio System Terminals (MIDS JTRS). L3Harris is one of two providers of the MIDS JTRS solution, which is a critical, software-defined Link 16 resilient communication radio for a variety of air, ground and maritime platforms.

“The current threat environment requires the United States and its coalition partners collaborating together, in real time, to stamp out adversarial aggression near ally and partner sovereign borders,” said Christopher E. Kubasik, Chair and CEO, L3Harris. “Our resilient technology ensures all users in these coalitions know where friendly forces are and what they are doing to inform a common operating picture and achieve mission success.”

Link 16 is a fully interoperable multi-domain network that provides assured communications, situational awareness, command and control and targeting information to coalition forces around the world. L3Harris completed its acquisition of the Link 16 Tactical Data Links product line in January 2023. In addition to MIDS JTRS, L3Harris offers a full line of resilient communication devices and systems to provide access to Link 16 from virtually every platform in air, on land or at sea – with efforts underway to expand the capability to space-borne assets.

The contract continues the company’s 24 previous years of support delivering a standard communications interoperability solution to all U.S. armed services and 57 allied nations.

About L3Harris Technologies

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

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/20241125575835/en/

Media Contacts:

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 L3Harris (LHX) new U.S. Navy contract?

L3Harris (LHX) received a contract worth up to $999 million from the U.S. Navy.

What technology will L3Harris (LHX) provide under the new Navy contract?

L3Harris will provide Multifunctional Information Distribution System Joint Tactical Radio System Terminals (MIDS JTRS), which are software-defined Link 16 resilient communication radios.

How long is the duration of L3Harris (LHX) new Navy contract?

The contract will run for five years.

How many allied nations use L3Harris (LHX) communication solutions?

L3Harris provides communication interoperability solutions to 57 allied nations.