Some senators were skeptical Tuesday of the Pentagon’s newly announced plans to take an equity stake in solid rocket motor maker L3Harris.
The company said Tuesday it plans to spin off its missile business, which the Defense Department pledged will be backed by a $1 billion convertible preferred security provided by the government. The missile business would then go public in the second half of 2026, L3Harris announced. Solid rocket motors power munitions, which have seen skyrocketing demand in recent years.
The Trump administration has for months signaled an interest in taking equity stakes in major defense suppliers. But Tuesday was the first concrete step DOD has made in that direction.
