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L3Harris Sells Majority Stake in Civilian Space Propulsion Unit

January 5, 2026

2 min read

Key Takeaways

L3Harris sells 60% stake in civilian space propulsion unit.
AE Industrial Partners buys majority stake for $845 million.
L3Harris retains 40% share of the business unit.
RS-25 rocket engine business excluded from sale.

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Strategic Implications

This sale may indicate L3Harris' strategic shift towards military space markets, which could strengthen its position as a defense contractor. The move suggests a focus on core mission priorities and driving value for shareholders, which may benefit the company in the long term.

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What Happened

Private Equity Firm Buys Into Historic Rocketdyne Business

L3Harris Technologies is selling a majority stake in its civilian space propulsion unit to private equity firm AE Industrial Partners for $845 million. The company will retain a 40% share of the business unit, which focuses on technologies related to NASA and civil space activities. The sale excludes the RS-25 rocket engine business, which is the primary propulsion system on NASA’s Space Launch System. The new entity will be named Rocketdyne, in recognition of its heritage and innovation in space propulsion technology. According to Breaking Defense, the transaction aligns L3Harris’ portfolio with the Department of War’s vision for a faster and more agile defense industrial base.

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