Harrow (HROW) posted adjusted earnings per share of $1.12 for Q4 2025, exceeding expectations by $0.03, driven by strong performance in its defense and energy segments. The company raised full-year 2026 guidance, signaling confidence in sustained demand.
- Harrow (HROW) reported Q4 2025 adjusted EPS of $1.12, exceeding consensus by $0.03
- Revenue of $487 million, with defense segment at $215 million and energy at $272 million
- Full-year 2026 revenue guidance raised to $2.02B–$2.08B
- Capital allocation: $220M in 2026, with 60% to defense tech, 40% to energy infrastructure
- Dividend increased to $0.20/share; $150M buyback authorization remaining
- HROW shares rose 2.8% post-earnings; BA and XOM saw modest gains
Harrow (HROW) delivered a modest but meaningful earnings beat in its Q4 2025 results, reporting adjusted EPS of $1.12 compared to the consensus estimate of $1.09. The company attributed the outperformance to increased contract volumes in its defense systems division and higher throughput at its energy infrastructure assets in the Permian Basin. Revenue for the quarter reached $487 million, a 7.2% year-over-year increase, with the defense segment contributing $215 million and energy $272 million. The company's guidance for fiscal 2026 reflects a strategic expansion in both sectors. Harrow raised its full-year revenue outlook to a range of $2.02 billion to $2.08 billion, up from the previous $1.98 billion to $2.04 billion. Capital expenditure plans for 2026 are set at $220 million, with 60% allocated to defense technology modernization and 40% to energy asset upgrades. This marks a shift toward higher tech integration in military systems and enhanced low-carbon energy efficiency. Market reaction was positive but measured. HROW shares rose 2.8% in after-hours trading following the call. Defense peers such as Boeing (BA) and energy players like ExxonMobil (XOM) saw modest gains, suggesting sector-wide investor confidence. Analysts noted that Harrow’s ability to maintain margins above 28% in a volatile macro environment underscores operational discipline. The company reiterated its commitment to shareholder returns, with a quarterly dividend of $0.20 per share—consistent with prior periods—and a $150 million share repurchase authorization remaining through 2026. The guidance shift and disciplined capital allocation have positioned Harrow as a resilience play amid geopolitical and energy transition pressures.