The US government is set to inject $1 billion into L3Harris’ newly formed Missile Solutions division to boost the production of solid rocket motors for critical missile programs.
The investment will be structured as a convertible preferred security, automatically converting to common stock when the unit goes public. L3Harris aims to launch an IPO for Missile Solutions in late 2026, creating a standalone company focused on supplying propulsion systems for both domestic and allied missile programs.
Following L3Harris’ acquisition of Aerojet Rocketdyne, Missile Solutions unifies development, manufacturing, and support for offensive and defensive missile systems. The Pentagon’s funding is intended to accelerate production for programs including PAC‑3, THAAD, Tomahawk, and Standard Missiles.
While retaining majority control, L3Harris plans to use the IPO to drive growth for shareholders and the Department of Defense. The company’s broader defense portfolio includes tactical radios for the Army, Next Generation C2 communications, electronic warfare platforms, and high-security communications for critical government operations.
