L3Harris closes $1 billion Department of War investment in Missile Solutions business
Defense contractor plans facility upgrades and production expansion ahead of planned IPO
L3Harris Technologies has closed a $1 billion strategic investment from the Department of War (DoW) in its Missile Solutions (MSL) business, with the capital earmarked for facility modernization, research and development, and expanded production capacity across several US sites.
The investment was structured as a convertible preferred security in MSL, which will convert into common equity upon an initial public offering (IPO). The DoW also received warrants to purchase common stock in MSL. L3Harris stated it intends to pursue an MSL IPO in the second half of 2026, subject to market conditions, with the company retaining a majority stake of more than 80%.
Production sites and program priorities
The capital will be directed toward the expansion and modernization of solid rocket motor production facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia, among other locations. L3Harris reported that the investment would support DoW priorities, including the PAC-3, Terminal High Altitude Area Defense (THAAD), Tomahawk, and Standard Missile programs.
The company has been shifting production of in-space satellite thrusters from conventional machining to additive manufacturing in a bid to reduce delivery times for US national security space programs, as part of a growing adoption of AM processes.
MSL was formed in early 2026, consolidating missile capabilities from across L3Harris, including operations from legacy Aerojet Rocketdyne.
“This strategic partnership with the Department of War is a testament to the critical role L3Harris plays in our national security,” stated Christopher Kubasik, Chairman and Chief Executive Officer of 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.”
L3Harris stated it would consolidate MSL’s financial results. Additional funding for the expansion program is expected to come from future IPO proceeds and other capital sources.
