The investment is structured as a convertible preferred security that will convert into common equity following an initial public offering. The Department of War will also receive warrants to purchase additional common stock in the business.
L3Harris said it plans to pursue an IPO of its Missile Solutions unit in the second half of 2026, subject to market conditions. The company will remain the majority shareholder, retaining more than 80 percent ownership.
The Missile Solutions business was established in early 2026 by combining missile-related capabilities across the company. This includes operations from legacy Aerojet Rocketdyne.
The investment supports programs aligned with Department of War priorities. These include systems such as PAC-3, THAAD, Tomahawk and Standard Missile.
Christopher Kubasik, Chairman and Chief Executive Officer of L3Harris Technologies, said: “This strategic partnership with the Department of War is a testament to the critical role L3Harris plays in our national security.” He added: “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.”
He said the partnership will also strengthen industrial capacity. “We are proud to partner with the DoW to ensure the resilience of our defense industrial base for years to come,” Kubasik said.
The company said the funding, along with future IPO proceeds and other capital sources, will support expansion across multiple sites. These include solid rocket motor production facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia.
L3Harris said it will continue to consolidate the financial results of the Missile Solutions business. The investment is intended to support long-term growth and increased production capacity across its missile portfolio.
