L3Harris Technologies, Inc. (LHX), a technology company, on Tuesday said the U.S. Department of War (DoW) has agreed to make a $1 billion investment in its Missile Solutions business through a convertible preferred security, aimed at expanding production capacity of U.S. solid rocket motors. Following the news, L3Harris shares were up more than 12% in pre-market.
L3Harris said it plans to pursue an IPO of the Missile Solutions business in the second half of 2026 , with the convertible preferred security set to automatically convert into common equity upon the IPO. Since acquiring Aerojet Rocketdyne, now operating as Missile Solutions, the company has significantly increased solid rocket motor capacity.
Following the transactions, L3Harris will retain a controlling interest in the business.
The DoW investment, together with sustained long-term demand, is expected to support rapid capacity expansion at Missile Solutions for DoW's critical missile programs including PAC-3, THAAD, Tomahawk and Standard Missile.
"We're taking action to build today's 'Arsenal of Freedom' by launching a pure-play missile solutions provider," said Christopher Kubasik, Chairman and CEO, L3Harris. "Building on several years of sustained investment and operational improvements by L3Harris, this new company will serve as a key partner to the DoW in supporting efforts to deter and defeat America's adversaries."
On Monday, L3Harris stock closed at $340.68, up 1.46%.
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