• L3Harris sells majority stake in Propulsion and Power Systems to AE Industrial for $845 million.
• AE Industrial takes 60% ownership, L3Harris retains 40%.
• RS-25 rocket engine business is excluded from the sale.
• Transaction expected to close in H2 2026.

This sale may signal L3Harris' focus on core defense priorities, potentially strengthening its position in the US defense industrial base. The deal could also indicate AE Industrial's growing interest in space technology and national security markets, which suggests a shift in the investment landscape for defense and aerospace companies.