L3Harris Technologies, Inc. LHX recently disclosed that it has inked a long-term contract worth up to $1.10 billion (€1 billion) with the Dutch Ministry of Defense for the delivery of upgraded Falcon IV radios for the FOXTROT program.

The FOXTROT program is a major digitization and modernization project of the Dutch Ministry of Defense. It aims to transform the Netherlands Armed Forces into an information-driven, integrated force by replacing legacy communication systems and improving its battlefield management systems.

The delivery of upgraded Falcon IV radios will provide increased capabilities to strengthen the Netherlands Armed Forces, discourage regional crises, and directly support coalition and security cooperation activities.

L3Harris’ Expertise in Military Communications
 

Military operations heavily rely on the ability to exchange accurate information across the battlefield safely and securely. Modernizing and upgrading military radio communication systems constitute a substantial part of defense budgets. This offers strong growth opportunities to L3Harris, which can deliver tactical communication services to counter new tactics and techniques adopted by enemies.

L3Harris is a leading provider of resilient communication solutions worldwide. Its Tactical Communications business designs, produces and supports strong and interoperable secure communication solutions such as tactical radios, software, waveforms, satellite terminals and end-to-end battlefield systems.

The company's Falcon IV tactical radios are designed to provide a decisive advantage in all areas of operations. Its Mobile User Objective System-enabled technologies and legacy satellite communication allow warfighter connectivity in harsh and distant environments. Its tactical Mobile Ad Hoc Network, which is self-forming and self-healing, improves communications while increasing edge warfighter efficiency.

L3Harris has a wide variety of tactical radios in its portfolio, such as Tactical VHF/UHF Radios, Tactical Handheld Radios, Falcon Radio Product Line, Tactical Multiband Radios and a few more. Such significant products in its portfolio enable L3Harris to witness a stream of order flows.

Opportunities for LHX’s Peers
 

Other defense contractors that are anticipated to benefit from the expanding Military Communication market spending are as follows:

Northrop Grumman NOC: The company delivers secure, protected and survivable communications to help U.S. military services achieve information superiority. For safe, jam-resistant, tactical and strategic communications for military tactical and strategic forces, NOC’s Enhanced Polar System offers constant coverage in the polar zone, representing an evolution of requirements for protected, extremely high-frequency satellite communications in the North Polar Region.

Northrop has a long-term (three to five years) earnings growth rate of 4.2%. The Zacks Consensus Estimate for NOC’s 2025 sales suggests growth of 3% from the prior-year reported figure.

General Dynamics Corporation GD: This company is another notable provider of tactical communication systems. GD’s Digital Modular Radio is the first software-defined radio to be adopted as a communication system standard by the U.S. military. It is one of the Navy's most adaptable tactical radio systems that can support voice and data satellite communication networks.

General Dynamics has a long-term earnings growth rate of 9.8%. The Zacks Consensus Estimate for GD’s 2025 sales implies growth of 5.5% from the prior-year reported figure.

BAE Systems BAESY: The company develops radio frequency communications, datalinks and flight control systems for the upcoming generation of military aircraft. Its Network Tactical Common Data Link enables the exchange of command-and-control information across separate or independent networks. It also allows the simultaneous transmission and reception of real-time intelligence, surveillance and reconnaissance data from multiple sources.

BAESY has a long-term earnings growth rate of 11.9%. The Zacks Consensus Estimate for the company’s 2025 sales suggests growth of 53.7% from the prior-year reported figure.

LHX Stock Price Movement
 

In the past three months, shares of L3Harris have risen 3.7% compared with the industry’s 16.9% growth.

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LHX’s Zacks Rank
 

L3Harris currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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