L3Harris Wins $6B Lockheed Contract for THAAD Propulsion
LHX is trading near its 52-week low of $234.59 (1.4% above the low) on light trading volume (0.1× avg).
Summary
L3Harris secured an undefinitized contract valued at more than $6 billion over seven years, excluding escalation, from Lockheed Martin to expand propulsion production for the THAAD missile defense system. The company plans to build a facility to increase production of solid rocket boost motors used by THAAD and is expanding capacity to manufacture THAAD’s liquid divert and attitude control propulsion systems. This follows the July framework agreement with Lockheed and the Department of War, and the $4.7B PAC-3 propulsion contract in September, reinforcing L3Harris's role as a key propulsion supplier. The award adds significant backlog and revenue visibility, supporting the company's missile segment growth. The contract is a material positive for L3Harris, though Lockheed Martin (LMT) is the prime contractor and also benefits from the program.
Updated with a Seeking Alpha report · What changed
Updates
· Seeking Alpha — L3Harris received a contract from Lockheed Martin valued at more than $6 billion over seven years to expand propulsion production for the THAAD missile defense system.
- Contract Terms — The contract value excludes escalation and is undefinitized.
- Production Expansion — L3Harris plans to build a facility to increase production of solid rocket boost motors used by THAAD and is expanding capacity to manufacture THAAD’s liquid divert and attitude control propulsion systems.
All 4 details
- The contract value excludes escalation.
- The contract is undefinitized.
- L3Harris plans to build a facility to increase production of solid rocket boost motors used by THAAD.
- L3Harris is expanding capacity to manufacture THAAD’s liquid divert and attitude control propulsion systems.
At the time of this announcement, LHX was trading at $237.86 on NYSE in the Manufacturing sector, with a market capitalization of approximately $44.3B. The 52-week trading range was $234.59 to $379.23. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.