What L3HARRIS TECHNOLOGIES, INC. /DE/ told the SEC could break it.

L3Harris derived 75% of FY2025 revenue from U.S. Government customers (directly or through prime contractors, including foreign military sales funded by the U.S. Government); no other single customer accounted for more than 5% of revenue, creating extreme concentration on federal defense appropriations.

“In fiscal 2025, the percentage of our revenue that was derived from sales to U.S. Government customers, whether directly or through prime contractors, including foreign military sales funded through the U.S. Government, was 75% and no other customer accounted for more than 5% of our revenue.”

L3Harris discloses that certain materials in its supply chain were previously sourced from Russia (specialty metals, now under sanctions) and that certain equipment is currently sourced from China or areas at risk of additional trade restrictions, creating ongoing supply chain vulnerability to geopolitical sanctions.

“some materials and components in our supply chain have previously been sourced from areas now under sanctions or other trade restrictions, such as specialty metals from Russia and certain equipment from China, or are currently sourced from areas which are at risk of sanctions or other trade restrictive actions, not just by the United States but by other nations or groups, such as the European Union.”

L3Harris depends on single suppliers for certain components and relies on a limited number of certified microelectronics suppliers; the company has limited negotiating leverage with sole-source suppliers and qualifying alternate sources is difficult and costly.

“In some instances, we depend upon a single supplier for certain components, which adds risk because that supplier may at times be unable to meet our needs and because we may have limited negotiating leverage with sole-source suppliers. Identifying and qualifying dual and second-source suppliers can be difficult, time-consuming and may result in increased costs.”