L3Harris announced a new contract to produce Army Tactical Missile System (ATACMS) rocket motors, valued at more than $65 million, with deliveries scheduled from 2027 through 2028. The award expands the company’s missile‑propulsion business and adds a multi‑year revenue stream to its defense portfolio.
The contract covers the fabrication, testing, and delivery of M124 rocket motors, igniters, exit cones, and related components. L3Harris has supplied ATACMS components for over 30 years and operates a Camden, Arkansas facility that annually produces over 115,000 solid‑rocket motors and conducts more than 6,000 hot‑fire tests. The facility is also expanding with over 20 new advanced propulsion facilities to meet growing demand.
The ATACMS system is a combat‑proven, long‑range guided missile manufactured by Lockheed Martin, using solid propellant and capable of up to 190 miles (300 km) range. L3Harris’s role as a key supplier reinforces its position in U.S. and allied missile programs.
The contract aligns with L3Harris’s broader strategy to expand solid‑propellant production capacity. The company’s recent Q4 2025 earnings showed an EPS beat of $2.86 versus $2.76 estimate, while revenue missed at $5.65 B versus $5.76 B estimate, indicating that new contracts like this are critical to improving revenue outlook.
Management emphasized the importance of the contract: "L3Harris remains focused on delivering advanced propulsion solutions to meet the needs of the ATACMS program. These contracts demonstrate our ongoing commitment to equip the U.S. Army and allied forces with reliable, combat‑proven missile technology that enhances operational readiness." The award is expected to add a multi‑year revenue stream and support margin expansion in 2026.
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