L3harris Technologies (LHX) Investor update summary

Strategic partnership, investment, and business transformation

• Announced a first-of-its-kind partnership with the Department of War, including a $1 billion preferred convertible investment to expand solid rocket motor production capacity and support U.S. and allied missile programs.

• The Department of War's investment is purely economic, with no board seats, management influence, or special rights, and will convert to equity at IPO.

• The business is realigned into three segments: Missile Solutions, Communications & Spectrum Dominance, and Space & Mission Systems, focusing on national security and aligning with Department of War priorities.

• A new pure-play Missile Solutions company is being launched, consolidating all missile and munition capabilities, with plans for an IPO in the second half of 2026 while retaining a majority stake.

• L3Harris will retain a controlling interest post-IPO, allowing shareholders to participate in durable growth and value creation.

Investment, capacity expansion, and facility modernization

• Planned investments will more than triple rocket motor production capacity by 2030, with over 1 million sq ft of new production space across multiple states.

• Facility expansions include THAAD DACS production in Canoga Park, CA, DACS & SRMS in Orange, VA, and a major site in Camden, AR with 64 buildings, 1M SF of new factories, 8 automated assembly lines, and 6 casting bays.

• Construction and modernization efforts are underway, with full-rate production expected by 2030 and production resilience achieved by duplicating capabilities in key locations.

• Capital deployment will focus on growth initiatives such as CAPEX and R&D, with no near-term dividends or share repurchases.

• The Department of War's investment accelerates revenue growth and positions the business for long-term health beyond 2030.

Missile Solutions business profile and outlook

• The Missile Solutions segment is a leading provider of missile propulsion, DACS, advanced effects, and space propulsion, with about 7,000 employees and 18 sites.

• 2025 revenue is projected at $3.6–$3.8 billion, with the portfolio aligned to high-priority Department of War programs.

• The business is expected to more than double in sales by the end of the decade, with strong margin and free cash flow growth.

• Space Propulsion and Power Systems majority stake to be sold as previously announced.

• Current Missile Solutions management will continue, with Ken Bedingfield as CEO post-IPO.