The United States is planning to invest $1 billion in L3Harris’ newly established Missile Solutions unit to expand domestic production of solid rocket motors for key missile programs.
The investment will take the form of a convertible preferred security, which will automatically convert into common equity when the unit completes its public listing. L3Harris plans to take Missile Solutions public via an IPO in the second half of 2026, creating a standalone company dedicated to supplying propulsion systems for US and allied missile programs at scale.
The Missile Solutions business consolidates L3Harris’ capabilities following its acquisition of Aerojet Rocketdyne, bringing together development, production, and support for both offensive and defensive missile systems. The Pentagon’s funding aims to accelerate production for programs such as PAC‑3, THAAD, Tomahawk, and the Standard Missile family.
L3Harris will maintain a controlling stake in the unit while leveraging the IPO to unlock growth opportunities for both investors and the Department of Defense. Beyond propulsion, the company has a strong presence across US defense programs, including tactical radios for the Army, Next Generation Command and Control manpack systems, electronic warfare with Meadowlands, and communications for continuity-of-government operations.
