L3Harris Technologies (NYSE: LHX) has announced a first-of-its-kind proposed partnership with the Department of War (DoW) to significantly increase capacity to build solid rocket motors that power vital U.S. and allied missiles.
L3Harris and the DoW have agreed to the terms of a proposed DoW investment in L3Harris’ Missile Solutions business through a $1 billion convertible preferred security, which would automatically convert into common equity upon an initial public offering (IPO). Consistent with the terms of the proposed investment, L3Harris intends to pursue an IPO of the Missile Solutions business in the second half of 2026, creating a public company focused on delivering critical propulsion systems at unprecedented speed and scale. As the Trusted Disruptor in defense tech, L3Harris designed this novel partnership with the DoW in support of the DoW’s new acquisition transformation strategy.
Since its acquisition of Aerojet Rocketdyne, L3Harris has significantly invested to transform and grow its production operations, and recently created the Missile Solutions business, combining all aspects of its capabilities in support of offensive and defensive missile systems. The investment from the DoW, along with sustained, long-term demand, will support Missile Solutions’ rapid expansion of capacity for the DoW’s critical missile programs, such as PAC-3, THAAD, Tomahawk and Standard Missile.
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Download free sample pages More information“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. “Recent Trump Administration actions have placed renewed emphasis on strengthening the defense industrial base and reinvigorating competition following a 30-year wave of consolidation. 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.”
Following these transactions, L3Harris will retain a controlling interest in the Missile Solutions business. The development of the independent Missile Solutions business is expected to unlock meaningful value for L3Harris, its shareholders and the warfighter by sharpening strategic focus and driving industry-leading growth.
L3Harris will host an investor conference to discuss the DoW’s partnership with the Missile Solutions business on Tuesday, Jan. 13, 2026, at 9 AM ET. Instructions for streaming the event live can be found at L3Harris.com.
J.P. Morgan Securities LLC is acting as financial advisor to L3Harris, and Vinson & Elkins LLP is acting as legal advisor to L3Harris on the proposed transaction.
