US to Invest $1B in L3Harris Missile Solutions Unit
The US is set to invest $1 billion in L3Harris’ newly created Missile Solutions unit to expand US production of solid rocket motors for critical missile programs.
The proposed partnership between L3Harris Technologies and the Department of Defense (DoD) will come in the form of a convertible preferred security that automatically converts into common equity when the unit goes public.
L3Harris intends to pursue an initial public offering (IPO) for the Missile Solutions business in the second half of 2026, creating a standalone company focused on supplying propulsion systems for both US and allied missile programs at a larger scale.
Missile Solutions consolidates L3Harris’ capabilities following its acquisition of Aerojet Rocketdyne, uniting development, production, and support for offensive and defensive missile systems.
The DoD’s investment is designed to accelerate the expansion of production capacity for programs including the PAC‑3, THAAD, Tomahawk, and Standard Missile.
L3Harris will retain a controlling interest in the unit while leveraging the IPO to unlock new growth opportunities for both shareholders and the DoD.
L3Harris’ Footprint in US Defense Programs
Beyond missile propulsion, L3Harris has deep and diversified ties across US defense programs.
In 2025, L3Harris upgraded US Army tactical radios, strengthening digital battlefield communications and enabling faster, secure transmission of critical data across units.
The company supplied manpack communication systems for the Next Generation Command and Control program, enhancing battlefield connectivity.
The same year, L3Harris delivered electronic warfare equipment to the US military with the Meadowlands system, supporting both tactical and strategic EW capabilities.
In December 2025, the company also contributed communications systems to the DoD’s doomsday and continuity-of-government programs, further illustrating its role in high-security, mission-critical operations.
