The U.S. government will invest $1 billion in L3Harris Technologies’ growing rocket motor business, guaranteeing a steady supply of the much-needed motors used in a wide range of missiles such as Tomahawks and Patriot interceptors. Shares were up 11.4% in pre-market trading in New York.
The deal represents the latest U.S. government investment in Corporate America, which has included a 10% stake in chipmaker Intel and investments in critical mineral producers. It comes just a few days after President Donald Trump blasted defense contractors for slow production of weaponry.
L3Harris said on Tuesday it is planning an IPO of its growing rocket motor business into a new publicly traded company backed by a $1 billion government convertible security investment. The securities will automatically convert to common equity when the company goes public later in 2026.
“We are fundamentally shifting our approach to securing our munitions supply chain,” said Michael Duffey, Under Secretary of Defense for Acquisition and Sustainment. “By investing directly in suppliers we are building the resilient industrial base needed for the Arsenal of Freedom.”
