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L3Harris Nears Sale of 60% Stake in Space Propulsion Portfolio to AE Industrial

Proceeds would bolster missile and rocket‑motor capacity to support a shift toward national‑security demand.

An L3Harris logo is displayed above a stand on the first day of the Indo Pacific International Maritime Exposition in Sydney, Australia, November 4, 2025. REUTERS/Hollie Adams/File Photo

Overview

  • AE Industrial would pay over $500 million for 60% of a portfolio valued at about $845 million, with L3Harris retaining a 40% stake, according to Reuters.
  • The portfolio reportedly includes the RL‑10 second‑stage engine used on ULA’s Vulcan, in‑space propulsion systems, nuclear power technology development, and launch‑support electronics.
  • L3Harris will keep sole ownership of the RS‑25 engine along with its workforce and facilities.
  • An announcement could come soon and closing is targeted for the second half of 2026 pending customary conditions, and both companies declined to comment.
  • The planned divestiture advances L3Harris’s refocus on missile production, and it would expand AE Industrial’s space footprint that already includes York Space Systems, Redwire, and Firefly Aerospace.