Department of Defense Invests $1 Billion in L3Harris Missile Solutions, Plans IPO in 2026

Melbourne-based L3Harris Technologies (NYSE: LHX) announced a $1 billion investment from the Department of Defense to create a direct-to-supplier partnership with its new Missile Solutions company, which will later become a separate entity. L3Harris plans to pursue an IPO for Missile Solutions in the second half of 2026 while retaining a controlling interest.

The partnership aims to scale the domestic supply chain for solid rocket motors, modernize facilities, increase production, and strengthen industrial resilience as part of the DOD’s Go Direct-to-Supplier initiative. L3Harris CEO Christopher Kubasik described the venture as a key component in supporting U.S. defense capabilities and deterring adversaries.

This move follows L3Harris’s recent decision to sell a controlling stake in its Space Propulsion and Power Systems business to AE Industrial Partners, signaling a broader strategic shift toward defense-focused operations. Industry experts note that these steps enhance Florida’s aerospace and defense ecosystem while allowing L3Harris to concentrate investments on critical defense programs.

Read More: L3Harris secures $1B Department of Defense investment to scale rocket motor production