L3Harris secures $1B from the Department of War for missile solutions business

L3Harris Technologies has closed a $1 billion strategic investment from the Department of War in its Missile Solutions (MSL) business to expand and modernize facilities, accelerate research and development, and increase production capacity for national security technologies.

The investment is a convertible preferred security in MSL that will convert into common equity upon an initial public offering. The Department of War will also receive certain warrants to purchase common stock in MSL. L3Harris intends to pursue an IPO of MSL in the second half of 2026, pending market conditions.

MSL, created in early 2026, brings together missile capabilities from across L3Harris, including operations of legacy Aerojet Rocketdyne. The company is investing billions to transform and grow production operations at MSL in support of Department of War priorities such as PAC-3, THAAD, Tomahawk and Standard Missile.

“This strategic partnership with the Department of War is a testament to the critical role L3Harris plays in our national security,” said Christopher Kubasik, Chairman and CEO, L3Harris. “The investment will allow us to accelerate innovation and enhance our ability to deliver the advanced capabilities our warfighters need to deter and defeat emerging threats. We are proud to partner with the DoW to ensure the resilience of our defense industrial base for years to come.”

Funding from the Department of War, together with anticipated IPO proceeds and other capital, will support expansion and modernization at solid rocket motor production facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia; among other locations.

L3Harris will remain the majority shareholder, holding more than 80% of the new MSL business, and will consolidate MSL’s financial results.