L3Harris To Divest Controlling Interest In Space Propulsion Business To AE Industrial In

In a move that promises to reshape the landscape of the defence industry, L3Harris Technologies has agreed to divest a controlling interest in its Space Propulsion and Power Systems business to AE Industrial. This significant transaction, which values the business at $845m, is expected to close in the second half of 2026, pending regulatory approvals and other customary conditions.

According to Airforce Technology, L3Harris will retain an approximately 40% stake in the newly established space technology entity with AE Industrial. The deal, which excludes the RS-25 rocket engine business, marks a strategic shift for L3Harris as it seeks to align its portfolio with the Department of Defense’s vision for a faster, more agile defence industrial base.

L3Harris chairman and CEO Christopher Kubasik emphasized the company’s commitment to driving value for shareholders and customers while prioritizing core mission priorities. As part of this restructuring, L3Harris has reorganized its business segments from four to three, effective January 5, 2026. The new divisions will be Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions. This reorganization aims to streamline operations and enhance focus on key areas.

Sam Mehta will lead Space & Mission Systems, which will integrate satellite and payload operations with missile warning ← →