On August 5, L3Harris Technologies, Inc. rose 3.02% in regular trading, trading at $286.245/share, with turnover of $221 million. The gain was driven by the company's announcement that it has formally completed the divestiture of its commercial space propulsion, power, and electronics business.
L3Harris sold a majority interest in these units to private equity firm AE Industrial Partners at an enterprise value of $845 million. The company will retain approximately 40% minority ownership in the newly formed entity, to be named Rocketdyne. Notably, L3Harris' RS-25 rocket engine operations are excluded from the transaction and remain under the company's direct control.
Management stated that proceeds will be deployed to expand production facilities and invest in advanced technologies to address unprecedented demand growth in defense and space. The divestiture aligns with L3Harris' broader strategic focus on core defense capabilities, following a strong Q2 in which EPS of $3.13 beat estimates by nearly 12% and full-year guidance was raised to $11.80-$12.00. Separately, L3Harris selected Intuitive Machines to support spacecraft platform development for the Space Development Agency's missile defense mission, reinforcing its positioning in national security space programs.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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