L3Harris Technologies Secures $60M Air Force Contract for C-HOBS Sensors
On September 14, L3Harris Technologies (NYSE:LHX) announced a $60 million contract from the U.S. Air Force to continue producing its DSU-43/B Cockpit Selectable Height of Burst Sensor systems. These sensors allow aircrews to adjust detonation altitude for precision targeting and are produced at L3Harris' Cincinnati facility. The order supports ongoing efforts by the company to expand production capacity for proximity fuzes and sensors, aligning with increased defense spending amid a wartime footing. The C-HOBS contract is part of LHX's Missile Solutions division, which reported 14% year-over-year revenue growth in Q2 to $1.05 billion. The company also has over $20 billion in pending contracts for the segment and maintains a record backlog of $42 billion as of June 30, 2026. While bulls view this contract as reinforcing recurring business with the Air Force on precision-guidance electronics, bears argue it is relatively small and unlikely to significantly impact LHX's stock performance. The company faces near-term headwinds including a delayed IPO for its Missile Solutions division (now expected in mid-2027) and an elevated forward P/E ratio of 20.70 compared to the sector median of 19.17.
Tickers: $LHX
Topics: C-HOBS sensors L3Harris Technologies U.S. Air Force contract