Key insights
- L3Harris Technologies secured a significant seven-year contract valued at over $6 billion from Lockheed Martin to expand production of propulsion systems for the THAAD missile defense system. This award aligns with L3Harris' prior expectations and involves constructing a new facility to boost manufacturing capacity. The contract highlights L3Harris' capability in delivering critical defense technologies at scale.
L3Harris Technologies (LHX) has received an undefinitized contract from Lockheed Martin valued at more than $6 billion, excluding escalations, over seven years to expand propulsion production for the Terminal High Altitude Area Defense (THAAD) missile defense system, according to a company press release.
The contract follows a framework agreement between L3Harris and the Department of Defense announced earlier in 2026 to quadruple THAAD propulsion production. L3Harris said the award is consistent with the company’s previously announced expectations for the program.
As part of the contract, L3Harris plans to construct a new facility to support increased THAAD Solid Rocket Boost Motor manufacturing and expand capacity for THAAD’s Liquid Divert and Attitude Control production.
"This contract underscores L3Harris’ demonstrated ability to quickly deliver critical defense technologies at the scale and speed required by the Department of War," said Ken Bedingfield, President of Missile Solutions at L3Harris.
The award comes alongside a separately announced PAC-3 MSE propulsion contract. L3Harris described THAAD as capable of intercepting threats inside and outside Earth’s atmosphere, noting the system has achieved a 100% intercept success rate in flight tests since production began.
ProPicks AI evaluates LHX alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if LHX is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space?