L3Harris is investing billions to grow its production operations at MSL in support of DoW priorities like PAC-3, THAAD, Tomahawk and Standard Missile.
A Florida-based company has closed a $1 billion strategic investment from the U.S. Department of War (DoW) in its Missile Solutions (MSL) business.
L3Harris Technologies will use the funds to expand and modernize facilities, accelerate research and development, and increase production capacity for critical national security technologies.
The company revealed that the investment from the DoW is in the form of a convertible preferred security of the MSL business, which will convert into common equity upon an initial public offering (IPO).
Department of War will receive certain warrants to purchase stock in MSL
In addition, the DoW will receive certain warrants to purchase common stock in MSL. As previously announced, L3Harris intends to pursue an IPO of MSL in the second half of 2026, pending market conditions.
“This strategic partnership with the Department of War is a testament to the critical role L3Harris plays in our national security,” said Christopher Kubasik, Chairman and CEO, L3Harris.
“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. We are proud to partner with the DoW to ensure the resilience of our defense industrial base for years to come.”
Missile production operations to get a boost
The company also underlined that it’s investing billions to transform and grow its production operations at MSL in support of DoW priorities like PAC-3, THAAD, Tomahawk and Standard Missile. MSL was created in early 2026, bringing together the missile capabilities from across L3Harris, including the operations of legacy Aerojet Rocketdyne, according to a press release.
L3Harris also highlighted that the DoW investment, along with future IPO proceeds and other sources of capital, will be used to further a variety of expansion and modernization efforts at solid rocket motor production facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia; among other sites.
The company also pointed out that it will remain the majority shareholder (>80%) in the new MSL business and will consolidate the financial results of MSL.
The $1 billion investment marks a pivotal step for L3Harris and the U.S. defense sector. By combining financial backing with long-term strategic planning, the initiative is expected to enhance missile production capabilities, strengthen national security, and position the Missile Solutions business for future growth through a public listing.
The Missile Solutions unit was established in early 2026, consolidating missile-related capabilities from across L3Harris, including operations from the former Aerojet Rocketdyne.
This deal underscores a broader trend of increased collaboration between government and defense contractors to address supply chain challenges and rising demand for advanced weapon systems. By investing directly in industrial capacity, the government aims to ensure reliable production of critical technologies.
The primary goal of this investment is to expand and modernize missile production infrastructure, boost research and development, and increase manufacturing output for advanced defense systems. The funds will help enhance the company’s ability to produce critical missile technologies used in key defense programs, ensuring readiness to address evolving global security challenges.
Get the latest in engineering, tech, space & science - delivered daily to your inbox.
Prabhat, an alumnus of the Indian Institute of Mass Communication, is a tech and defense journalist. While he enjoys writing on modern weapons and emerging tech, he has also reported on global politics and business. He has been previously associated with well-known media houses, including the International Business Times (Singapore Edition) and ANI.