The US Department of Defense is preparing to invest $1 billion in L3Harris Technologies’ newly established Missile Solutions unit, aiming to significantly expand domestic production of solid rocket motors for critical missile programs. The move reflects growing urgency within the Pentagon to strengthen missile industrial capacity amid rising global demand and security challenges.
The investment will be structured as a convertible preferred security, which will automatically convert into common equity once the Missile Solutions business is taken public. L3Harris has confirmed plans to pursue an initial public offering (IPO) in the second half of 2026, positioning Missile Solutions as a standalone company dedicated to large-scale propulsion manufacturing for US and allied missile systems.
Missile Solutions consolidates L3Harris’ propulsion expertise following its acquisition of Aerojet Rocketdyne, bringing together development, production, testing, and sustainment under a single organizational structure. The Pentagon’s funding is intended to accelerate capacity growth for key missile programs, including Patriot PAC-3, THAAD, Tomahawk cruise missiles, and the Standard Missile family, all of which rely on advanced solid rocket motor technology.
L3Harris will retain a controlling stake in the new unit while leveraging the IPO to unlock long-term growth for both shareholders and the US defense ecosystem. Beyond missile propulsion, the company remains deeply embedded across US military modernization efforts, delivering tactical radios, command-and-control systems, electronic warfare capabilities, and high-security communications for continuity-of-government missions.
