L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) Company Report

L3Harris and the Department of War announced a first-of-its-kind $1 billion preferred convertible funding to spin out and scale a pure-play Missile Solutions enterprise, with L3Harris retaining majority control.
The new segment consolidates Aerojet Rocketdyne’s propulsion, DACS, advanced effects, seekers, and launch technologies—including the RS-25 engine—under a realigned three-segment structure focused on speed, capacity, and profitability.
Carve-out is financed via DoD’s convertible preferred notes (convertible at IPO subject to market conditions), aligning incentives with warfighter readiness and taxpayer returns while L3Harris continues consolidation on its balance sheet.
Planned capital investments include over 60 new buildings across four U.S. sites to modernize production and more than triple solid rocket motor output by the end of the decade.
L3Harris sold its civil space propulsion and power systems business but retained a 40% equity stake to streamline focus on defense priorities.

1 day ago

Transcript

L3Harris announces partnership with Department of War to form pure-play Missile Solutions

LHX

New Projects/Investments

Convertible Preferred Issuance

L3Harris formed a first-of-its-kind partnership with the Department of War through a $1 billion preferred convertible investment, creating a pure-play Missile Solutions business focused on solid rocket motors and missile subsystems; L3Harris retains majority ownership and operational control while the DoW holds an economic stake without governance rights.
The company realigned from four to three segments—Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions—to better align capabilities and business models with Department of War priorities.
Missile Solutions, which includes propulsion, DACS, advanced effects, seekers, and launch technologies and employs over 7,000 people across 18 sites, will see investments to more than triple rocket motor production capacity by 2030 through new and expanded facilities in Arkansas, Virginia, California, and Alabama.
The DoW’s investment funds the modernization of production processes—transitioning to modular, flexible factory lines that support multiple programs—and underpins multi-year contracts (up to seven years) with projected demand for missiles and motors extending into the 2040s.

1 day ago

Transcript

L3Harris to spin off Missile Solutions business with $1B DoW investment

LHX

Convertible Preferred Issuance

New Projects/Investments

L3Harris is creating a new Missile Solutions company to expand solid rocket motor (SRM) production for key programs including PAC-3, THAAD, Tomahawk, and Standard Missile.
The Department of War will be the anchor investor through a $1 billion convertible preferred security to fund capacity expansion.
L3Harris intends to pursue an IPO of the Missile Solutions unit in 2H 2026, while retaining majority ownership.
The company has realigned into three reporting segments: Missile Solutions, Communications & Spectrum Dominance, and Space & Mission Systems.
The pro forma Missile Solutions business generated $3.6–$3.8 billion in 2025 revenue with ~7,000 employees across 18 sites and ~40 facilities.

1 day ago

Presentation

L3Harris announces Department of War $1 billion convertible investment to expand missile production

LHX

Convertible Preferred Issuance

New Projects/Investments

L3Harris secured a $1 billion preferred convertible investment from the Department of War to form a pure-play Missile Solutions company focused on solid rocket motors.
The new Missile Solutions entity will remain majority-owned by L3Harris, with the DoW holding an economic stake only (no board or management rights); an IPO is planned to further finance expansion.
Capital projects include modernizing sites in Camden (AR), Orange (VA), Huntsville (AL) and Canoga Park (CA), adding 1 million sq ft, eight automated factory areas and six casting lines, aiming to more than triple rocket motor capacity by 2030.
Management expects more than doubling of Missile Solutions sales by 2030, backed by multi-year contracts (up to seven years) and durable demand extending into the 2040s.

1 day ago

Transcript

L3Harris to spin off Missile Solutions after Pentagon $1B investment

LHX

Convertible Preferred Issuance

New Projects/Investments

DoD to invest $1 billion in L3Harris’ Missile Solutions unit via a convertible preferred security to expand U.S. solid rocket motor capacity
L3Harris will spin off the Missile Solutions business and pursue an IPO in H2 2026, while retaining a controlling stake
Acquisition of Aerojet Rocketdyne has already materially increased production capacity for programs including PAC-3 and THAAD
Announcement drove L3Harris shares up over 12% in pre-market trading (prior close $340.68)

1 day ago

WSJ

L3Harris proposes $1B DoW-backed spin-off of Missile Solutions unit

LHX

New Projects/Investments

Convertible Preferred Issuance

L3Harris announced a proposed $1 billion investment from the Department of War into its newly created Missile Solutions business via a convertible preferred security.
The preferred securities are slated to convert into equity upon an IPO, which L3Harris plans to pursue in the second half of 2026.
Post-transaction, L3Harris will retain a controlling interest in the independently traded Missile Solutions company.
The standalone unit will accelerate capacity for solid rocket motor production supporting key missile programs such as PAC-3, THAAD, Tomahawk, and Standard Missile.

1 day ago

Press Release

L3Harris reorganizes into three business segments

LHX

Management Change

On Jan. 5, 2026, L3Harris consolidated its operations from four to three segments: Space & Mission Systems; Communications & Spectrum Dominance; and Missile Solutions.
The segment leaders are Sam Mehta (Space & Mission Systems), Jon Rambeau (Communications & Spectrum Dominance), and Ken Bedingfield (Missile Solutions), with Bedingfield also remaining SVP & CFO.
Edward Zoiss was appointed VP, Engineering & Innovation, effective Jan. 5, 2026, after serving as President of the Space & Airborne Systems segment through Jan. 2, 2026.
CEO Christopher Kubasik said the restructure better aligns technical capabilities and investment priorities with the “future of warfare” and warfighter needs.
L3Harris will present realigned 2025 financial results under the new segment structure on its Jan. 29 earnings call.

Jan 5, 2026, 10:14 PM

8-K

L3Harris reorganizes into three business segments

LHX

Management Change

Effective Jan. 5, L3Harris consolidated its operations from four into three business segments: Space & Mission Systems; Communications & Spectrum Dominance; and Missile Solutions.
Sam Mehta will lead Space & Mission Systems, Jon Rambeau heads Communications & Spectrum Dominance, and Ken Bedingfield directs Missile Solutions while remaining SVP & CFO; Ed Zoiss is appointed VP, Engineering & Innovation.
The reorganization aligns capabilities—satellite/payload integration, resilient communications/electronic warfare, and advanced missile technologies—with the future of warfare.
Additional details, including the realignment of 2025 financial results into the new segments, will be provided on the Jan. 29 earnings call.

Jan 5, 2026, 5:00 PM

Press Release

L3Harris to sell majority stake in Space Propulsion & Power business

LHX

M&A

L3Harris will sell a controlling interest in its Space Propulsion & Power Systems business to AE Industrial Partners for an enterprise value of $845 million.
The company will retain approximately 40% ownership in the new space technology entity.
The RS-25 rocket engine business is specifically excluded from this transaction.
The deal is expected to close in H2 2026, subject to regulatory approvals and other customary conditions.
Jefferies LLC serves as exclusive financial advisor to L3Harris on the transaction.

Jan 5, 2026, 12:00 PM

Press Release

L3Harris to sell majority stake in Rocketdyne space propulsion business

LHX

M&A

AE Industrial Partners will acquire a controlling interest in L3Harris’s Space Propulsion & Power Systems business, while L3Harris retains a minority stake and remains a strategic partner.
The deal covers five U.S. locations producing upper-stage rocket engines for national security, civil and commercial missions.
AE Industrial plans to revive the “Rocketdyne” name, modernize production of the RL10 engine and accelerate future propulsion technologies, including nuclear propulsion.
AE Industrial Partners manages $7.5 billion AUM and has completed over 140 investments in aerospace and national security sectors since 2015.

Jan 5, 2026, 12:00 PM

Press Release