Marotta Controls wins first thrust vector control contract from L3Harris

L3Harris Technologies (NYSE:LHX) recently awarded Marotta Controls a contract to develop flight actuator hardware for an advanced thrust vector control system, marking Marotta's entry into the TVC market. This strategic collaboration follows L3Harris's strong Q3 2025 earnings, which exceeded analyst expectations with an EPS of $2.70 and revenue of $5.7 billion. Analysts, including Bernstein SocGen Group and BofA Securities, have reiterated Buy/Outperform ratings and raised price targets, citing the company's robust execution, a rising backlog of $36.3 billion, and the success of its LHX NeXt transformation program, reinforcing its strong performance and strategic alignment within the defense sector.

Analysis

L3Harris Technologies (NYSE:LHX) has secured a new contract with Marotta Controls for flight actuator hardware, marking Marotta's entry into the advanced thrust vector control (TVC) market for missile defense. This collaboration follows L3Harris's robust third-quarter 2025 earnings, which significantly exceeded analyst expectations with an EPS of $2.70 against a $2.59 forecast, and revenue of $5.7 billion, surpassing the anticipated $5.53 billion. The company's stock has demonstrated strong momentum, rising nearly 40% over the past six months and trading near its 52-week high of $308.12.

Analyst sentiment remains highly positive, with Bernstein SocGen Group reiterating an Outperform rating and a $369.00 price target, citing strong execution and alignment with Pentagon growth plans. BofA Securities also adjusted its price target upward to $350.00 from $315.00, maintaining a Buy rating, attributing this to the ongoing success of L3Harris’s LHX NeXt transformation program. Despite a P/E ratio of 32.55, InvestingPro data indicates L3Harris is slightly undervalued based on its Fair Value assessment.

The new contract with Marotta Controls expands L3Harris's strategic capabilities in critical defense technologies, leveraging Marotta's expertise in actuation. L3Harris's rising backlog, which reached $36.3 billion in the third quarter, provides substantial revenue visibility and underscores sustained demand within the defense sector. These developments collectively reinforce L3Harris's strong market position and strategic alignment within the industry.

Key Decisions for Investors

• Investors should monitor L3Harris's continued execution of its LHX NeXt transformation program and its impact on future earnings and operational efficiencies.
• Evaluate the long-term implications of the Marotta Controls contract for L3Harris's strategic positioning in missile defense and its potential to diversify its supply chain.
• Consider L3Harris's valuation metrics, including its P/E ratio of 32.55 and InvestingPro's "slightly undervalued" assessment, against its strong earnings performance and analyst price target upgrades.