L3Harris Sells Civil Space Propulsion Unit Amid Military Focus

January 5, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1767643311311-1725

L3Harris Pivots to DoD Market with $845 Million Sale

L3Harris Technologies has sold a majority stake in its civilian space propulsion unit to private equity firm AE Industrial Partners for $845 million. The deal represents L3Harris’ continued pivot towards the military space market, with Chairman and CEO Christopher Kubasik emphasizing alignment with DoD vision for a faster, more agile defense industrial base. As part of the sale, AE Industrial will acquire 60% share of the business unit, while L3Harris maintains about 40%. The RL10 engine and nuclear power systems remain under L3Harris control. According to Breaking Defense, the new entity, Rocketdyne, aims to modernize production of the RL10 by applying modern manufacturing discipline.

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Key Takeaways

L3Harris sells majority stake in civilian space propulsion unit.
AE Industrial Partners acquires 60% share for $845 million.
RL10 engine and nuclear power systems remain under L3Harris control.

L3Harris Technologies AE Industrial Partners

Strategic Implications

This sale may indicate L3Harris’ commitment to the military space market, as it aligns with DoD core mission priorities. The acquisition by AE Industrial Partners suggests a focus on modernizing production of the RL10 engine and applying modern manufacturing discipline. This could position Rocketdyne for increased innovation and collaboration in national defense technology.