After spending much of its corporate history as a very-low-visibility supplier to America’s military, L3 Technologies is stepping out on the eve of its merger with Harris Corporation. The resulting combination will be the sixth-biggest military contractor in the world, but as the company told reporters this week, even before the deal is consummated CEO Chris Kubasik has brought major changes to L3’s culture. He has divested most services to focus on technology, he has realigned operating units, and he has pressed subordinates to find functional synergies in support of agile innovation. Kubasik’s moves seem to be paying off: revenues are up, margins are expanding, and book-to-bill is running at 1.25x. Once L3 and Harris get together, they will be a formidable force in the defense market. I have written a commentary for Forbes here.
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