The Pentagon is taking a $1 billion ownership stake in L3 Harris solid rocket motor business that they intend to spin-off as separate publicly owned company.
WASHINGTON — The Pentagon is investing $1 billion into solid rocket motors business, which the company intends to spin off as a separate, publicly held company later this year.
The agreement, announced today, allows the Defense Department to take a direct ownership stake in L3Harris’s Missile Solutions business, with an initial public offering (IPO) of that division planned in the second half of 2026.
“The Department of War will not be on the board of directors or involved with managing this company. It’s purely an economic investment,” Kubasik said.
The move is the first of what the Pentagon is calling its “direct-to-supplier” initiative, and would allow it to negotiate multi-year procurement framework agreements for and provide upfront investments to modernize facilities and ramp up production, the department stated in a news release.
Money for the investment will come from the department’s Industrial Base Analysis and Sustainment fund. Duffey said he felt “confident” that the department has the funding and authority needed to close the deal, but that congressional approval and appropriations would be needed to scale munitions production.




