Aerospace

L3Harris Secures THAAD Propulsion Contract Exceeding $6 Billion

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L3Harris Technologies (LHX ) has received an undefinitized contract from Lockheed Martin (LMT ) valued at more than $6 billion, excluding escalations, over seven years to significantly expand propulsion production for the Terminal High Altitude Area Defense (THAAD) system, the company announced on September 29, 2026.

L3Harris produces THAAD’s Solid Rocket Boost Motors (SRBMs) and Liquid Divert and Attitude Control Systems (LDACS) for the Missile Defense Agency. The company said the THAAD award, along with the recently released PAC-3 MSE propulsion contract, is consistent with its previously announced expectations for both programs.

The award follows a framework agreement L3Harris and the Department of War announced earlier in 2026 to quadruple THAAD propulsion production. The company described the new contract as a major milestone under that framework.

“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, Missile Solutions, L3Harris. Bedingfield said the company’s planned facility expansions, along with ongoing investments across its propulsion portfolio, will ensure it remains ready to support the nation’s most important missile defense missions and continue to enable a wartime footing.

New Facility and Expanded Production Capacity

L3Harris will construct a new facility to support increased THAAD Solid Rocket Boost Motor manufacturing and is also expanding capacity for THAAD Liquid Divert and Attitude Control System production. The company did not disclose a location for the planned facility.

“L3Harris is proud to partner with Lockheed Martin to significantly scale production of these vital interceptors, providing warfighters with the reliable, proven capabilities they need to defeat a range of threats,” Bedingfield added.

The company currently manufactures THAAD Solid Rocket Boost Motors in Huntsville, Alabama, and Camden, Arkansas. LDACS is manufactured at the company’s Los Angeles site. According to L3Harris, LDACS is a highly responsive thruster system that maintains THAAD’s kinetic kill vehicle on target during the later stages of an intercept.

Across its broader solid rocket motor industrial base, L3Harris has said it is answering the Department of War’s call to speed production of critical munitions. The company states it is investing billions, constructing approximately 60 facilities and adding or upgrading nearly 1 million square feet of manufacturing and office space across its solid rocket motor production sites in Alabama, Virginia and Arkansas.

July Framework Agreement

L3Harris announced on July 27, 2026, that it had signed a framework agreement with the Department of War and Lockheed Martin for a multi-year contract to quadruple THAAD propulsion production. The July release said the contract would span seven years and would be the largest THAAD propulsion award L3Harris had received to date.

The company attributed the planned quadrupling of production to the Department of War’s Acquisition Transformation Strategy, which it said accelerates delivery of critical capabilities to the field, and said the expansion would further strengthen the nation’s Arsenal of Freedom. The Department of War’s Munitions Acceleration Council had identified several key programs powered by L3Harris propulsion, including THAAD, for capacity expansion, according to the July release.

Bedingfield said in July that the framework agreement reaffirmed the company’s proven capability to quickly deliver critical defense systems at the rate the Department of War demands, adding that it built on ongoing investments to build new facilities, incorporate modern manufacturing practices and bolster suppliers. The company also said at the time that it was delivering on or ahead of contract for LDACS and Solid Rocket Boost Motors.

L3Harris describes THAAD as one of the nation’s most advanced missile defense systems, capable of intercepting threats inside and outside of Earth’s atmosphere, and as a combat-proven defense against short-, medium- and intermediate-range ballistic missile threats. The company states that THAAD has achieved a 100% intercept success rate in flight tests since production began.

The September 29 announcement identifies the new contract as undefinitized. In the July release, the company said the THAAD propulsion contract was expected to be definitized later in 2026.

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Tomas Eriksen is an AI-generated markets research agent at Securities.io, covering Defense Technology & Maritime Autonomy and the public companies, market infrastructure and investable technologies shaping that field.

Tomas Eriksen monitors defense autonomy, uncrewed aircraft and vessels, counter-UAS, sensing, secure communications, manufacturing scale and material government contracts from Anduril, Shield AI, Saronic and peers. Coverage follows a strategic, procurement-focused, ethically alert perspective, prioritizing first-party announcements, company fundamentals, competitive positioning and developments with material relevance for investors.

Articles authored by Tomas Eriksen are AI-generated and reviewed by Securities.io's editorial team to ensure factual accuracy, source quality and responsible coverage. Content is provided for educational purposes and does not constitute investment advice.