L3Harris vs Textron
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KIRA’s take AI analyst
I put L3Harris and Textron side by side, using each one’s latest annual report. Here is what stands out:
- L3Harris is the larger business, with $21.9B of revenue in fiscal 2025 against $14.8B for Textron.
- Textron grew revenue faster (8.0%, against 2.5%).
- L3Harris turned more of its sales into free cash flow (12.3% FCF margin, against 6.3%).
- Investors pay more for each dollar of L3Harris’s earnings: a P/E of 26.2x against 14.7x for Textron.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
L3Harris
LHX
2/6
Net marginFCF margin
Textron
TXT
4/6
Revenue growth5-year growthReturn on equityShare count change
Side by side
Best in the row
| Latest fiscal year | LHX FY25 | TXT FY25 |
|---|---|---|
| Size | ||
| Market cap | $48.7B | $13.7B |
| Revenue | $21.9B | $14.8B |
| Free cash flow | $2.7B | $929M |
| Net income | $1.6B | $921M |
| Growth | ||
| Revenue growth | 2.5% | 8.0% |
| 5-year growth | 3.7% | 4.9% |
| Share count change | −1.2% | −5.3% |
| Profitability | ||
| Gross margin | 25.7% | — |
| Operating margin | 9.7% | — |
| Net margin | 7.4% | 6.2% |
| FCF margin | 12.3% | 6.3% |
| Return on capital | 5.8% | — |
| Return on equity | 8.2% | 12.2% |
| Balance sheet | ||
| Net debt | $10.0B | — |
| Net debt / EBITDA | 3.0x | — |
| Dividends and buybacks | $2.1B | $840M |
| Valuation & quality | ||
| P/E | 26.2x | 14.7x |
| Piotroski F-score | 8 | — |
Ten years
Revenue
FY16
LHX $6.0B
TXT $13.8B
FY17
LHX $5.9B
TXT $14.2B
FY18
LHX $6.2B
TXT $14.0B
FY19
LHX $6.8B
TXT $13.6B
FY20
LHX $18.2B
TXT $11.7B
FY21
LHX $17.8B
TXT $12.4B
FY22
LHX $17.1B
TXT $12.9B
FY23
LHX $19.4B
TXT $13.7B
FY24
LHX $21.3B
TXT $13.7B
FY25
LHX $21.9B
TXT $14.8B
LHX
TXT
Operating margin
FY16
LHX 17.6%
TXT —
FY17
LHX 18.2%
TXT —
FY18
LHX 18.2%
TXT —
FY19
LHX 21.3%
TXT —
FY20
LHX 11.9%
TXT —
FY21
LHX 11.8%
TXT —
FY22
LHX 6.6%
TXT —
FY23
LHX 7.3%
TXT —
FY24
LHX 9.0%
TXT —
FY25
LHX 9.7%
TXT —
LHX
TXT
Free cash flow
FY16
LHX $772M
TXT $479M
FY17
LHX $450M
TXT $513M
FY18
LHX $615M
TXT $738M
FY19
LHX $1.0B
TXT $675M
FY20
LHX $2.4B
TXT $451M
FY21
LHX $2.3B
TXT $1.2B
FY22
LHX $1.9B
TXT $1.1B
FY23
LHX $1.6B
TXT $864M
FY24
LHX $2.2B
TXT $650M
FY25
LHX $2.7B
TXT $929M
LHX
TXT
Return on capital
FY16
LHX 9.8%
TXT —
FY17
LHX 11.5%
TXT —
FY18
LHX 13.1%
TXT —
FY19
LHX 18.9%
TXT —
FY20
LHX 10.8%
TXT —
FY21
LHX 6.6%
TXT —
FY22
LHX 3.7%
TXT —
FY23
LHX 5.0%
TXT —
FY24
LHX 5.8%
TXT —
FY25
LHX 5.8%
TXT —
LHX
TXT
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.