(Reuters) -U.S. defense contractor L3Harris Technologies on Thursday cut its full-year profit and revenue forecasts after missing quarterly sales expectations, citing decreased volumes in its space unit and the divestment of its aviation solutions business.
Shares of the company fell about 3% in premarket trading.
The Melbourne, Florida-based company said it expects an adjusted profit of between $10.30 and $10.50 per share in 2025, lower than its previous forecast of $10.55 to $10.85.
It completed the sale of its commercial aviation business, through which L3 provided flight training, analytics and avionics services, for $800 million to TJC in March.
L3Harris said the sale would result in a reduction of about $525 million to expected revenues this year.
Its revenue is now expected to come in between $21.4 billion and $21.7 billion for 2025.
U.S. defense contractors, like other industries with complex manufacturing operations, are bracing for impacts from U.S. President Donald Trump’s trade war, which has pressured an already strained supply chain.
L3Harris reported total revenue of $5.13 billion in the quarter, down 1.5% year-over-year and lower than analysts’ average estimate of about $5.22 billion, according to data compiled by LSEG.
The fall comes predominantly as its space business saw sales fall 8% on slowing volumes related to classified development programs.
It posted an adjusted profit per share of $2.41, compared to expectations of $2.32.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Saumyadeb Chakrabarty)
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