L3Harris booked $11 billion in contractual orders tied to PAC-3 and THAAD missile-defense programs on its October 29 earnings call, a haul that gives the company more visibility on future deliveries. For investors, the immediate takeaway is not just the order size but the pace behind it: management is talking about faster motor output, higher backlog, and a larger pipeline than the market had priced in.
Sam Mehta said the company’s rocket motor programs were just getting started and told investors L3Harris was looking to triple THAAD solid rocket motor deliveries in 2027 compared with 2026, while also doubling PAC-3 motor deliveries in 2027 versus 2026. He also said the company would do the same on numerous additional rocket motor programs, a signal that the order gains are being paired with production plans rather than left as one-off bookings.
September 30 backlog hits $53.2 billion
L3Harris reported a record $53.2 billion backlog as of September 30, up from $42 billion at the end of the previous quarter, and a book-to-bill ratio of 3.2 times. That book-to-bill ratio means the company booked $3.20 of orders for every $1 of sales in the period, a pace that helps explain why the order book is expanding so quickly.
$6.1 billion in sales excluding acquisitions and divestments, up 9% year over year, and $3.28 in earnings per share, up 33%, rounded out the quarter. Those figures show the missile-defense and rocket-motor mix is already feeding through to the income statement, not just building future demand.
Bank of America and Citi move higher
$375 and $348 were the new price targets from Bank of America and Citi, respectively, after the results, with both maintaining Buy ratings. Bank of America lifted its target from $325, while Citi resumed coverage with its own bullish call, adding another layer of support after the earnings update.
16% was the share gain in the month that ended on November 10, when L3Harris finished trading at $275.17. Even after that run, the stock remained below its 200-day moving average of $302.79, though it was above its 50-day moving average of $250.16, leaving the shares in a middle ground between short-term strength and the longer-term trend.
$20.65 times was the forward price-earnings ratio attached to the stock, which leaves room for investors to weigh execution against valuation. Mehta’s comments matter most because they point to 2027 output, not just 2025 orders, and the open question is how much of the record $53.2 billion backlog turns into revenue and deliveries over the next two years.
