Al Root
President Donald Trump's mantra of peace through strength will include investing directly in missile production with L3Harris Technologies. Its stock is flying.
On Tuesday, defense prime contractor L3Harris Technologies announced a "first-of-its-kind proposed partnership with the Department of War." The DoW, as L3Harris refers to what is also commonly called the Defense Department, will invest $1 billion in L3Harris' missile solutions business. That business will then become a separately traded company in an initial public offering that L3Harris will maintain majority control of.
"We're taking action to build today's 'Arsenal of Freedom' by launching a pure-play missile solutions provider," L3 Harris CEO Christopher Kubasik, Chairman and CEO, L3Harris.
The IPO is slated for the second half of 2026.
L3Harris stock was up 12.3% in premarket trading, while the S&P 500 and Dow Jones Industrial Average futures were down about 0.1%.
It's another example of the War Department investing directly in companies to strengthen the defense supply chain. In July, it invested in MP Materials to ensure an adequate supply of rare earth materials critical for modern defense applications.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
January 13, 2026 08:00 ET (13:00 GMT)
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