L3Harris To Offload Majority Stake In Space Propulsion Businesses For Over $500 Million: Report

L3Harris Technologies (NYSE:LHX) is reportedly on the verge of selling a 60% stake in its space and propulsion businesses to private equity firm AE Industrial Partners.

$500 Million Deal Targets Space, Golden Dome

The deal, which is expected to be finalized soon, will see L3Harris retain a 40% stake in the businesses with an enterprise value of $845 million, with AE Industrial paying over $500 million for its 60% stake, as per a Reuters report on Sunday. The acquisition could open up new opportunities for AE Industrial in space exploration and the Pentagon’s Golden Dome initiative.

The space propulsion assets being sold include the RL-10 second-stage rocket engine, a crucial component used in the Vulcan rocket, a joint venture between Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT). L3Harris will, however, retain full ownership of the RS-25 rocket engine, currently in use on NASA’s Space Launch System for the Artemis program.

L3Harris and AE Industrial did not immediately respond to Benzinga‘s requests for comment.

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L3Harris Sharpens Focus On Defense Growth

The impending sale comes as L3Harris continues to focus on national security, shedding some of its NASA business lines. In December, the company recently secured a contract worth up to $843 million to build 18 more infrared national-security missile-tracking satellites, which will be integrated and tested at its Palm Bay campus.

The company reported better-than-expected Q3 earnings, with a 7% year-over-year increase in total revenue. L3Harris CEO Christopher Kubasik said strong demand, a record backlog, and early investments in growth areas such as space and munitions keep the company on track to meet its 2026 financial targets and support long-term profitable growth.

Benzinga's Edge Rankings place L3 Harris in the 70th percentile for quality and the 85th percentile for momentum, reflecting its strong performance in both areas. Check the detailed report here. 

Price Action: Over the past year, L3 Harris stock surged 49.04%, as per Benzinga Pro. On Friday, the stock closed 3.72% higher at $304.48.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.