L3Harris Wins $4.7 Billion Lockheed Contract for PAC-3 Propulsion

Overview

• L3Harris confirmed on Sept. 8, 2026 that it has a seven-year, $4.7 billion undefinitized contract from Lockheed Martin to supply propulsion parts for the PAC-3 Missile Segment Enhancement interceptor.
• The award covers three propulsion subsystems: an advanced two-pulse solid rocket motor that delivers staged thrust, a Lethality Enhancer that boosts interceptor effect on targets, and Attitude Control Motors that steer the missile.
• To meet expected output, L3Harris began site work in Camden, Arkansas in June and plans for the new production facilities to be operational in 2027 as part of a wider manufacturing buildout across several states.
• Because the contract is undefinitized, final prices, delivery schedules and full funding must still be negotiated and approved, creating near-term execution and budget risk for deliveries.
• L3Harris reported a Q2 earnings beat, declared a $1.25 quarterly dividend, and disclosed that CalSTRS increased its stake to roughly 44.98 percent, while the stock trades near its 52-week low and analysts have trimmed price targets.