US Defense Contractor Aligns Portfolio with Mission Priorities Amid Space Technology Shift

L3Harris Technologies has agreed to sell a majority stake in its Propulsion and Power Systems division to AE Industrial Partners for $845 million. The deal ensures the company’s portfolio aligns with US mission priorities, according to L3Harris CEO Christopher Kubasik. The transaction encompasses business units across five locations, developing upper-stage rocket engines used in national security, civil, and commercial missions. AE Industrial plans to restore the ‘Rocketdyne’ name for the acquired business, honoring its heritage and innovation within space propulsion technology. The deal is expected to close in the second half of 2026, subject to regulatory approvals.