On January 5, L3Harris Technologies announced that AE Industrial Partners has agreed to acquire a controlling interest in L3Harris’ Space Propulsion and Power Systems business at a total enterprise value of $845 million.
Transaction closing is expected in the second half of 2026, subject to obtaining regulatory approvals and satisfaction of other customary closing conditions. L3Harris’ RS-25 rocket engine business is excluded from the sale. L3Harris will retain a ~40% ownership stake in the new space technology business with AE Industrial.
“L3Harris is strongly committed to the Department of War’s (DoW) vision for a faster, more agile defense industrial base while remaining laser-focused on driving value for our shareholders and customers,” said Christopher Kubasik, chairman and CEO, L3Harris. “This transaction further aligns the L3Harris portfolio with DoW core mission priorities.”
Source: L3Harris
Start 2026 ahead of the competition with a paid subscription to IC News. You’ll get full access to our searchable archive of 15,000+ articles, plus new articles each weekday.
By Loren Blinde
January 6, 2026
