Pentagon Invests $1B in L3Harris Solid Rocket Motor Spin Off

January 13, 2026 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2026-1768315890321-1894

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.

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Key Takeaways

The Pentagon is investing $1 billion into L3Harris’s solid rocket motors business.
L3Harris plans to spin off the business as a separate, publicly held company later this year.
The department will take a direct ownership stake in the business with an initial public offering (IPO) planned in the second half of 2026.

L3Harris Lockheed Martin

Strategic Implications

This investment may indicate the Pentagon’s desire to increase its control over the defense industrial base and promote competition. The spin-off could also suggest a focus on speed and efficiency in munitions production, which is essential for military operations. However, concerns about potential disadvantages to other solid rocket motor providers remain.