LHX Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
LHX reported total revenue of $19.42 billion for the fiscal year ended December 29, 2023, representing a significant increase from $17.06 billion in the previous year. This growth can be attributed to various factors, including the inclusion of TDL and AJRD, which contributed an additional $174 million in revenue. Additionally, the implementation costs related to the LHX NeXt initiative, amounting to $115 million, were included in the revenue figures.
LHX demonstrated strong revenue growth in the latest quarter, driven by the inclusion of acquisitions and the implementation of the LHX NeXt program. The company's management highlighted the positive impact of these initiatives on increasing agility and competitiveness. The inclusion of TDL and AJRD contributed to the overall revenue growth, while the LHX NeXt program is expected to continue driving revenue in the coming years through workforce optimization, IT expenses, and other related costs.
Despite the overall positive performance, LHX faced certain challenges in the latest quarter. The company reported higher asset group and business divestiture-related losses of $59 million, which impacted the financial results. Additionally, there was a $42 million expense related to deferred compensation plans, compared to $29 million of income in the previous year, which posed a challenge to the company's financial performance.
LHX's LHX NeXt initiative, aimed at transforming multiple functions, systems, and processes, is expected to continue through 2025. The company incurred costs related to this effort, including workforce optimization, IT expenses, and third-party consulting expenses. Furthermore, LHX recorded charges of $25 million during the latest quarter as part of the LHX NeXt program restructuring activities.
LHX delivered a strong performance in the latest quarter, with a significant increase in revenue compared to the previous year. The inclusion of acquisitions and the implementation of the LHX NeXt program were key drivers of this growth. However, the company faced challenges such as asset group and business divestiture-related losses and expenses related to deferred compensation plans. Overall, LHX's focus on transformation and competitiveness through the LHX NeXt initiative positions it well for future growth.