Pentagon Takes Direct Ownership Stake in L3Harris's Missile Solutions Business

The Pentagon has agreed to invest $1 billion into L3Harris’s solid rocket motors business, with plans to spin off the division as a separate company later this year. The department will take a direct ownership stake in the business, which will be publicly traded. This move is part of the Pentagon’s ‘direct-to-supplier’ initiative, aimed at increasing production capacity and reducing lead times for critical components. L3Harris CEO Chris Kubasik stated that the company remains committed to providing high-quality services despite the spin-off.