L3Harris Technologies finalized a $1 billion strategic investment from the Department of War (DoW) into its Missile Solutions (MSL) business. The company will use the capital to modernize facilities and accelerate research and development. The funding also aims to increase production capacity for PAC-3, THAAD, and Tomahawk missile programs.
The investment consists of a convertible preferred security. This security converts to common equity during a planned Initial Public Offering (IPO) for the MSL business. L3Harris intends to launch the IPO in the second half of 2026, depending on market conditions.
L3Harris will maintain majority ownership of the MSL unit after the transaction. The MSL entity formed in early 2026 by merging L3Harris missile capabilities with legacy Aerojet Rocketdyne assets. This move supports government efforts to strengthen the defense industrial base amid rising global demand.