L3Harris secured a nearly $400 million contract to supply solid rocket boost motors and Liquid Divert and Attitude Control Systems for the U.S. Missile Defense Agency’s THAAD system. The award expands L3Harris’s role as a key component supplier and will generate revenue over the life of the contract as the company delivers hardware to the prime contractor.
The contract follows L3Harris’s 2024 milestone of delivering the 1,000th solid rocket boost motor and 1,000th LDACS ahead of schedule, underscoring the company’s capacity to meet the high demand for THAAD interceptors. L3Harris manufactures the solid rocket motors in Huntsville, Alabama, and Camden, Arkansas, and the LDACS in Los Angeles, positioning it to scale production as the Pentagon ramps up interceptor output from 96 to 400 units per year.
THAAD is the only U.S. system designed to intercept missiles both inside and outside the atmosphere and has a 100 % success rate in 17 intercepts since production began. The new contract reinforces L3Harris’s strategic focus on high‑margin missile‑defense systems and provides a steady cash‑flow stream as the U.S. government continues to invest in THAAD capabilities amid rising ballistic‑missile threats.
Ken Bedingfield, President of Missile Solutions, said, “THAAD is the only U.S. system designed to intercept targets outside and inside the atmosphere, making it a critical part of the United States' missile defense system. THAAD is paramount to the security of this nation and our allies, and we are dedicated to delivering our proven propulsion for years to come.”
Christopher Kubasik, Chairman and CEO, added, “2025 was a clear inflection point for L3Harris. Our portfolio is directly aligned with the most critical national and global defense priorities, which drove record orders and strong organic growth, margins and cash flow. Throughout the year, we saw customers move with greater urgency, and our investments and agility allowed us to deliver on their missions with speed and scale.” He further noted, “As we look to 2026, our investments in technology and capacity along with a record backlog and strong demand signals give us confidence to deliver strong results. We remain disciplined in creating value for shareholders while continuing to invest in the business via capex and R&D.”
The Pentagon’s Direct‑to‑Supplier initiative and a $1 billion government investment in L3Harris’s solid‑rocket‑motor production capacity underscore the strategic importance of the contract. The expansion of production capacity at Camden, Arkansas, is expected to increase large solid‑rocket‑motor manufacturing by six‑fold, ensuring the company can meet the heightened demand for THAAD interceptors as the U.S. ramps up annual output.
The award adds a new source of revenue that will be recognized over the life of the contract as L3Harris delivers the required hardware to the prime contractor, further solidifying its position as a critical supplier in the U.S. missile‑defense ecosystem.
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