(Editor’s note: The story and headline have been updated with the company’s official press statement; adds LHX pre-market share movement)
L3Harris Technologies (NYSE:LHX) said on Monday it will sell a 60% stake in its space and propulsion businesses to private equity firm AE Industrial Partners for $845 million, including debt.
The deal, which is expected to close in the second half of 2026, will see the defense contractor retain a 40% stake in the business. The company will, however, continue to have sole ownership of the RS-25 rocket engine, which is currently used on NASA’s space launch system for the Artemis program.
The space propulsion assets being sold include the RL-10 second-stage rocket engine, a crucial component used in the Vulcan rocket, a joint venture between Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT).
The deal was first reported by Reuters on Sunday.
See Also: Why Venezuela Is Poor Despite Having The World’s Largest Oil Reserves
L3Harris Sharpens Focus On Defense Growth
The sale comes as L3Harris continues to focus on national security, shedding some of its NASA business lines. In December, the company secured a contract worth up to $843 million to build 18 more infrared national-security missile-tracking satellites, which will be integrated and tested at its Palm Bay campus.
The company reported better-than-expected Q3 earnings, with a 7% year-over-year increase in total revenue. L3Harris CEO Christopher Kubasik said strong demand, a record backlog, and early investments in growth areas such as space and munitions keep the company on track to meet its 2026 financial targets and support long-term profitable growth.
Benzinga’s Edge Rankings place L3 Harris in the 70th percentile for quality and the 85th percentile for momentum, reflecting its strong performance in both areas. Check the detailed report here.
Price Action: Over the past year, L3 Harris stock surged 49.04%, as per Benzinga Pro. On Friday, the stock closed 3.72% higher at $304.48 and was trading 0.66% higher in pre-market trading on Monday.
READ NEXT:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Recent Comments