L3Harris Technologies (LHX) Wins $200M Deal for Tactical Radios – September 28, 2021

L3Harris Technologies, Inc. (LHX Free report) recently secured a production order with -rate for the U.S. Army’s HMS (Handheld, Manpack & & Small Form Fit) program. As part of the deal, L3Harris will provide advanced multi-channel multimedia tactical radio solutions for the US military, supporting their integrated tactical network.

Transaction details

Valued at more than $ 200 million, the U.S. military awarded L3Harris with an order for multi-channel software-defined Falcon IV AN / PRC-163 Leader portable radios and AN / PRC-158 radios with backpacks. The deal could include the delivery of 100,000 two-channel Leader radios and 65,000 HMS Manpack radios to the military.

In addition, the contract includes a five-year base for military contracts for an indefinite amount for an indefinite amount for Leader and manpack portable radios with an additional five-year option and a ceiling of over $ 16 billion.

The significance of the radio stations AN / PRC -163 and AN / PRC -158

Strong geopolitical tensions worldwide have led the countries to strengthen their defense systems. In this context, the Integrated Tactical Network is an integral part of defense, as a seamless connection is important at all levels of the defense system. An efficient network system facilitates the interoperability of the army. It also provides better security in the military.

In this context, it is worth mentioning that L3Harris’ AN / PRC -163 and AN / PRC-158 radios offer features that can effectively support the US Army’s integrated tactical network. AN / PRC-163 provides simultaneous multi-channel communication, advanced SA (situational awareness) and ISR (intelligence, surveillance and reconnaissance) video mission module and AN / PRC-158 radio are able to meet all the requirements of JTRS COMSEC and TRANSEC, thus transmitting and receiving voice and data simultaneously.

Such enhanced features should have made these two radios the ideal choice for the US military for the integrated tactical network program. The latest deal is proof of that.

Look forward

The US military’s ongoing efforts to modernize the entire network system with software-defined radio technologies are the driving factors behind the growing demand for modern tactical radios.

This is quite evident from the allocation of an investment plan of $ 5.6 billion for cybersecurity, which includes network upgrades, in the US defense budget in 2022. Undoubtedly, this implies a strong influx of orders for L3Harris in the future.

Other specialties in the field of defense that would benefit from the strong demand for a modern communication system are Lockheed Martin (LMT Free report), Northrop Gruman (NIGHT Free report) and Raytheon Technologies Corp (RTX Free report).

Lockheed Martin’s Whetstone network system is designed to extend communication with soldiers beyond the scope of conventional networks, while the Northrop Grumman Battlefield Airborne Communication Node provides fighters with basic information for pursuing and defeating the enemy. Raytheon’s AN / ARC-210 (V), which is equipped on more than 200 platforms, provides line-of-sight (LOS) fighters with UHF / VHF (AM / FM) protection against voice / data congestion and outside LOS satellite communications ( SATCOM).

Price movement

Last year, shares of L3Harris rose 24.9% compared to industrygrowth of 11.5%.

Image source: Zacks Investment Research

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