The US plans to invest $1 billion in L3Harris’ newly established Missile Solutions business to expand production of solid rocket motors critical for major missile programs.
The investment will be in the form of a convertible preferred security, which converts into common equity once the unit goes public. L3Harris is targeting a second-half 2026 IPO to create a standalone company focused on providing propulsion systems for US and allied missile programs at scale.
Missile Solutions consolidates L3Harris’ missile development, production, and support capabilities following its acquisition of Aerojet Rocketdyne. The Pentagon’s funding will accelerate production for key programs such as PAC‑3, THAAD, Tomahawk, and Standard Missiles.
L3Harris will retain majority control while using the IPO to unlock new growth opportunities for shareholders and the DoD. Beyond missile propulsion, L3Harris has a diversified defense portfolio, including tactical radios for the Army, Next Generation C2 manpack systems, Meadowlands electronic warfare equipment, and secure communications for US continuity-of-government operations.
