What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does L3Harris Technologies (LHX) spend its free cash flow?

For TTM through Q2 2026, L3Harris Technologies generated $3.05B of operating cash flow and $2.59B of free cash flow — a free cash flow margin of 84.8% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did L3Harris Technologies (LHX) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent L3Harris Technologies's shareholder returns for TTM through Q2 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

L3Harris Technologies (LHX) Cash Flow Waterfall

Operating CF

$3.05B

Capex

-$464M

Free Cash Flow

$2.59B

FCF Margin

+84.8%

Cash flow waterfall for L3Harris Technologies (LHX) — TTM through Q2 2026

Free cash flow: $2.59B

Cash flow breakdown for L3Harris Technologies (LHX) — TTM through Q2 2026

Line item	Amount	Running total
Operating Cash Flow	$3.05B	$3.05B
Capital Expenditure	-$464M	$2.59B
Free Cash Flow	$2.59B	$2.59B
Other Investing	$30M	$2.62B
Share Buybacks	-$881M	$1.74B
Dividends Paid	-$913M	$825M
Net Debt Change	-$904M	-$79M
Other Financing & FX	$152M	$73M
Net Cash Increase	$73M	$73M

Operating Cash Flow$3.05B
Capital Expenditure-$464M
Free Cash Flow$2.59B
Other Investing$30M
Share Buybacks-$881M
Dividends Paid-$913M
Net Debt Change-$904M
Other Financing & FX$152M
Net Cash Increase$73M

Want to see what drove the FCF change?Free Cash Flow Bridge

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