(Reuters) - L3Harris Technologies ( LHX ) forecast 2025 sales above estimates and posted higher-than-expected fourth-quarter results on Thursday, bolstered by strong demand for weapons due to higher defense spending amid global geopolitical tensions.

Demand for arms and military equipment has ballooned as a result of the Russia-Ukraine war and ongoing conflicts in the Middle East, benefiting defense contractors such as L3Harris ( LHX ).

The company also raised its cost-saving goal to $1.2 billion by the end of 2025, a year ahead of its previously disclosed timeline. L3Harris ( LHX ) said it had achieved $800 million in cost savings in 2024.

A slower recovery in supply chain issues has led to higher costs, denting margins and leading companies in the sector to look for other ways to cut expenses.

Last year, L3Harris ( LHX ) cut 5% of its workforce, or about 2,500 employees, as part of a cost-saving measure.

L3Harris ( LHX ) reported a per-share adjusted profit of $3.47 for the quarter, surpassing analysts' average estimate of $3.42, according to data compiled by LSEG.

Revenue rose 3% to $5.52 billion, while analysts had expected $5.50 billion.

The defense contractor, which makes solid rocket motors used in missiles on the battlefield in Ukraine, said it expects 2025 sales in the range of $21.8 billion to $22.2 billion, the midpoint of which is above expectations of $21.86 billion.

(Reporting by Utkarsh Shetti in Bengaluru)