TLDR
- L3Harris CEO Christopher Kubasik stepped down immediately after a conduct review found behavior inconsistent with the company’s Code of Conduct.
- Insider Sam Mehta has been appointed as the new president and CEO, effective immediately.
- LHX stock fell around 3% on the news, trading at $282.54.
- The conduct issue was unrelated to financials, controls, customer relationships, or operational performance.
- L3Harris reaffirmed its 2026 revenue, margin, EPS, and free cash flow guidance.
L3Harris Technologies (LHX) stock dropped roughly 3% on Monday after the defense contractor announced CEO Christopher Kubasik had stepped down, effective immediately, following an internal conduct review.
The stock was trading at $282.54, down 3.2%, while the S&P 500 was off just 0.1%.
L3Harris Technologies, Inc., LHX
The company said it “became aware of certain conduct by Kubasik that was not consistent with the values of the Company as outlined in its Code of Conduct.” L3Harris was clear that the conduct had nothing to do with financial reporting, internal controls, customer relationships, or operational performance.
Following an investigation assisted by independent counsel, the board decided a separation agreement with Kubasik was in the best interests of the company.
Lewis Hay III, Lead Independent Director, was named Independent Chairman of the Board. He said: “The Board and Chris have agreed that implementing our succession plan today is the right thing to do. We thank him for his service.”
Sam Mehta Takes the Helm
Sam Mehta has been named the new president and CEO. He joined L3Harris in 2023 and most recently served as president of the Space and Mission Systems and Communications and Spectrum Dominance segments, which together account for more than 80% of the company’s total revenue.
“I am honored by the opportunity to serve as President and CEO of L3Harris,” Mehta said. “Today, L3Harris has a portfolio purpose-built for the future of warfare, and we are well-positioned to continue executing our focused growth strategy as The Trusted Disruptor.”
Two additional appointments came alongside his promotion. Lauren Barnes was named President of SMS, and Christopher Aebli was named President of CSD, both effective immediately.
Kubasik had a long run at the helm. He joined L3 Technologies in 2015, steered the 2019 merger with Harris, took the CEO title of the combined company in June 2021, and oversaw the 2023 acquisition of Aerojet Rocketdyne.
LHX Stock Has Lagged Peers
When Kubasik became CEO, LHX stock was around $215. Coming into Monday, it was up roughly 35% since then, but that trailed the S&P 500 by around 45 percentage points over the same period.
Vertical Research Partners analyst Rob Stallard noted Monday that it has “not escaped investors’ attention that L3 Harris Technologies’ stock has underperformed its U.S. defense peers under Kubasik’s leadership,” adding that underperformance versus peers is around 45 percentage points over five years.
Stallard had measured words for the new man in charge: “We have high regard for Sam Mehta, who in our experience has been an effective manager and a good communicator. He may be a catalyst for closing the performance gap.”
The stock was already under pressure before Monday. LHX had fallen nearly 20% since fighting in Iran began in early March, as investors grew cautious on defense spending if Democrats were to retake the House in the 2026 midterm elections.
Despite the leadership shake-up, L3Harris reaffirmed its full 2026 guidance, including consolidated revenue, organic growth, segment operating margin, GAAP EPS, and free cash flow targets.
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