L3Harris Technologies, Inc. (NYSE:LHX) on Friday said it secured a new U.S. Navy contract supporting Marine Corps strike modernization efforts. The award centers on Red WolfTM vehicles designed for long-range precision missions.

The U.S. Naval Air Systems Command selected the company to develop, test, and manufacture the systems.

The work supports the Marines’ Precision Attack Strike Munition program.

Program Scope And Timing

The Navy announced the selection on Saturday following extensive operational testing. The effort moves from demonstrations toward production and fielding.

The selection follows 52 launched-effects vehicle flights conducted across multiple environments. Recent trials included low-altitude firings from a Marine AH-1Z helicopter.

Military planners increasingly prioritize affordable systems that can deploy at scale. Recent conflicts highlighted vulnerabilities created by large volumes of inexpensive drones.

“Recent conflicts and incursions over NATO airspace, particularly with the increased use of mass-produced drones, demonstrates the urgent need for cost-effective alternatives to exquisite munitions,” said Christopher Kubasik, Chairman and CEO, L3Harris.

“Our proven Red Wolf system can bring affordable mass to the Marine’s arsenal of advanced munitions within the timeline U.S. officials have outlined to support the most lethal fighting force in the world,” Kubasik said.

Red Wolf expands engagement distance for weapons launched from vertical takeoff platforms. The system demonstrated ranges reaching about 200 nautical miles during validated testing.

Battlefield Advantages

The vehicle supports beyond line-of-sight communications and autonomous over-the-horizon engagements. These features allow more aircraft to participate in strike operations.

L3Harris previously fielded Red Wolf under the Long-Range Advanced Missile initiative. That effort operated within the Defense Innovation Acceleration program.

2026 Guidance

On Thursday, L3Harris said it expects adjusted earnings per share of $11.30 to $11.50 in fiscal 2026, coming in below the Street’s estimate of $12.46, even as the company lifted its revenue outlook.

The defense contractor raised its fiscal 2026 sales guidance to a range of $23.0 billion to $23.5 billion, up from its prior $23.0 billion forecast and slightly above the consensus estimate of $23.327 billion.

By segment, the company projects Space & Mission Systems to generate approximately $11.5 billion, Communication & Spectrum Dominance around $8.0 billion, and Missiles Solutions approximately $4.4 billion.

Segment operating margins are expected to reach the mid-10% range for Space & Mission Systems, approximately 25% for Communication & Spectrum Dominance, and the mid-12% range for Missiles Solutions, resulting in a total operating margin in the low 16% range.

The company anticipates free cash flow of approximately $3.0 billion.

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