L3Harris Technologies (NYSE: LHX) completed a $1 billion investment from the Department of War in its Missile Solutions business unit, according to a company statement.

The investment takes the form of convertible preferred securities that will convert to common equity upon an initial public offering. The Department of War will also receive warrants to purchase common stock in the missile unit. L3Harris plans to pursue an IPO of the Missile Solutions business in the second half of 2026, subject to market conditions.

The funding will support expansion and modernization of facilities, research and development acceleration, and increased production capacity for missile systems including PAC-3, THAAD, Tomahawk and Standard Missile programs.

L3Harris created the Missile Solutions business in early 2026, combining missile capabilities from across the company including operations from legacy Aerojet Rocketdyne. The company will maintain majority ownership of more than 80% in the business unit and consolidate its financial results.

"This strategic partnership with the Department of War is a testament to the critical role L3Harris plays in our national security," said Christopher Kubasik, Chairman and CEO of L3Harris. "The investment will allow us to accelerate innovation and enhance our ability to deliver the advanced capabilities our warfighters need to deter and defeat emerging threats."

The investment will fund expansion and modernization projects at solid rocket motor production facilities in Camden, Arkansas; Huntsville, Alabama; and Orange, Virginia, among other locations. The company plans to use the Department of War investment alongside future IPO proceeds and other capital sources for these initiatives.