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L3Harris Sells 60% of Space Propulsion Unit to AE Industrial in $845 Million Deal

The deal sharpens L3Harris’s defense focus.

Overview

  • L3Harris will retain a 40% stake while AE Industrial acquires control, with Reuters reporting the buyer will pay over $500 million for its share.
  • The RS-25 engine program that powers NASA’s Space Launch System is excluded and remains fully owned by L3Harris.
  • The portfolio includes RL-10 upper-stage engines, in-space propulsion, space power and nuclear technologies, plus related avionics across five U.S. sites.
  • AE Industrial plans to restore the Rocketdyne name and modernize production of legacy products such as the RL-10, leveraging its investments in York Space Systems, Redwire and Firefly Aerospace.
  • Closing is targeted for the second half of 2026 pending regulatory approvals, and L3Harris plans to direct proceeds toward rocket motor and missile production capacity and other corporate priorities.