The U.S. government has announced a substantial investment of $1 billion into L3Harris Technologies’ newly established Missile Solutions unit, aiming to boost domestic production of solid rocket motors essential for crucial missile programs. This partnership between L3Harris and the Department of Defense (DoD) will manifest as a convertible preferred security, which will transition into common equity once the unit is publicly traded.
L3Harris has ambitious plans to launch an initial public offering (IPO) for the Missile Solutions business in the latter half of 2026. The goal is to create an independent entity dedicated to the large-scale supply of propulsion systems for U.S. and allied missile initiatives. This move follows L3Harris’s recent acquisition of Aerojet Rocketdyne, allowing the company to consolidate its capabilities and enhance development, production, and support for both offensive and defensive missile systems.
The DoD’s investment is strategically designed to expedite the expansion of production capacities for significant military programs, including the PAC-3, THAAD, Tomahawk, and Standard Missile systems. L3Harris plans to maintain a controlling interest in the Missile Solutions unit while using the upcoming IPO as a means to unlock new growth avenues for shareholders and the Department of Defense alike.
L3Harris boasts a robust presence in U.S. defense programs that extends beyond missile propulsion. In 2025, the company successfully upgraded U.S. Army tactical radios, significantly improving digital battlefield communications and facilitating the rapid and secure exchange of vital information among military units. Additionally, it provided manpack communication systems for the Next Generation Command and Control program, enhancing connectivity on the battlefield.
That same year, L3Harris delivered advanced electronic warfare equipment to the military, including the Meadowlands system, which bolsters both tactical and strategic electronic warfare capabilities. Furthermore, in December 2025, the company played a crucial role in supporting the DoD’s continuity-of-government initiatives by supplying communication systems critical for high-security operations, solidifying its position as a key player in mission-critical defense activities.
