Harris continued to strengthen its position in electronic warfare and avionics on long-term platforms. The company received contracts totaling $115 million to upgrade electronic warfare systems on international F-16s for Poland and Iraq. These awards are under the previously announced $400 million sole-source IDIQ and follow similar awards received for Turkey and Morocco. The company also received $71 million in orders for F-35 avionics components under LRIP 12-14.
In addition to awards on long-term platforms, Harris leveraged its expertise in avionics open systems and was awarded a contract to develop the mission processor for a large military unmanned aerial vehicle and a new trainer aircraft. Each of these awards comes with significant follow-on opportunity.
First half segment revenue was up 7% driven by double-digit growth on F-35, F/A-18 and F-16 platforms. Operating margin expanded 90 bps driven by strong execution. Segment book-to-bill was strong at 1.18.
Space and Intelligence Systems |
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($ millions) | Second Quarter | First Half | ||||||||||||||||||||||||||
FY 2019 | FY 2018 | Change | FY 2019 | FY 2018 | Change | |||||||||||||||||||||||
Revenue | $ | 513 | $ | 462 | 11% | $ | 1,001 | $ | 928 | 8% | ||||||||||||||||||
Operating income | $ | 92 | $ | 80 | 15% | $ | 178 | $ | 167 | 7% | ||||||||||||||||||
Operating margin | 17.9 | % | 17.3 | % | 60bps | 17.8 | % | 18.0 | % | (20)bps | ||||||||||||||||||