The US Department of Defense intends to invest $1 billion in the missile division of L3Harris Technologies Inc. in order to strengthen direct ties between the US government and a major defense contractor. This is reported by foreign media.
As part of the deal, the Pentagon will invest $1 billion in preferred stock, which will be automatically converted into ordinary shares after the Missile Solutions IPO as a separate commercial entity in the second half of 2026. At the same time, L3Harris will retain a controlling stake in Missile Solutions.
From the point of view of L3Harris, the deal will significantly increase the ability to create solid-fuel rocket engines for American missiles. Over the past year, the Donald Trump administration has acquired controlling stakes in several American defense companies in order to increase production of the SM-6 and SM-3 Block IIA missile systems, as well as modernize the PrSM attack missiles.
In particular, Lockheed Martin Corp. Reached an agreement with the US Department of Defense to more than triple the production of Patriot PAC-3 missiles from 600 to 2,000 units per year. In 2023, Anduril Industries acquired a solid-fuel rocket engine company and invested more than $75 million in the construction of a manufacturing facility in Mchenry, Mississippi. In December 2025, Boeing selected Anduril to develop rocket engines for the benefit of the US Armed Forces.
In December 2025, Donald Trump approved the country's defense budget for fiscal year 2026, which exceeds $900 billion with an estimated increase to $1.5 trillion in 2027. The Ministry of Defense is moving to direct investments in order to ensure the sustainability of ammunition supplies.
Thus, the American government gets a stake in a company that participates in tenders for defense contracts, which may attract the attention of lawmakers and regulators in terms of possible conflicts of interest and violations of market competition.
The leadership of L3Harris emphasizes the change of priorities in the US defense policy after the consolidation of the industry. Christopher Kubasik, CEO of the company, noted that the new structure will become a key partner of the Pentagon and will accelerate the release of vital components based on investments and operational changes.
L3Harris Technologies is an American military industrial company in the field of electronics and information technology. The company develops defense and commercial technologies for applications in the air, land, sea, space and cyberspace fields. L3Harris was founded in 2019 as part of the merger of Harris Corporation and L3 Technologies. The headquarters is located in Melborn, Florida.
