The defense giant plans to spin off its solid rocket motor business with a $1 billion DoD investment already in hand, retaining roughly 80% ownership post-offering.
L3Harris Technologies is preparing to take its Missile Solutions business public, selecting JPMorgan and Morgan Stanley as financial advisors for what could become one of the most significant defense-sector IPOs in recent memory. The unit, which builds solid rocket motors and propulsion systems, already has a $1 billion investment from the US Department of Defense backing it up.
The company confidentially filed a draft registration statement on April 29, 2026, with plans to launch the offering in the second half of 2026, contingent on market conditions.
A billion-dollar vote of confidence
The $1 billion investment, which closed on April 23, 2026, is structured as convertible preferred securities that automatically convert into regular equity once the IPO happens, making the Pentagon a minority equity holder in a publicly traded missile company.
L3Harris plans to retain approximately 80% ownership of the Missile Solutions unit after the offering. The DoD’s stake comes through the conversion of those preferred securities plus warrants.
The investment funds are earmarked for three priorities: expanding production facilities, accelerating research and development, and scaling up manufacturing of solid rocket motors.
Built on the Aerojet Rocketdyne foundation
The Missile Solutions unit is the product of L3Harris’s 2023 acquisition of Aerojet Rocketdyne, which gave the company a dominant position in solid rocket motor production. L3Harris is targeting mid- to high-teens annual growth for the missile business.
The US and its allies have been scrambling to replenish munitions stockpiles that were drawn down by conflicts in Ukraine and the Middle East, making supply chains for missile components, particularly solid rocket motors, a national security priority.
Vinson & Elkins is serving as legal counsel for the IPO process.
