{"id":389535,"date":"2026-01-05T17:40:13","date_gmt":"2026-01-05T17:40:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/389535\/"},"modified":"2026-01-05T17:40:13","modified_gmt":"2026-01-05T17:40:13","slug":"l3harris-to-sell-majority-stake-in-space-propulsion-unit-to-ae-industrial","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/389535\/","title":{"rendered":"L3Harris to sell majority stake in space propulsion unit to AE Industrial"},"content":{"rendered":"

WASHINGTON \u2014 L3Harris Technologies said Jan. 5 it will sell a majority stake in its space propulsion business to private equity firm AE Industrial Partners, marking the first major restructuring of its space portfolio since acquiring Aerojet Rocketdyne in 2023<\/a>.<\/p>\n

AE Industrial agreed to acquire a 60% interest in L3Harris\u2019 Space Propulsion and Power Systems business, a stake valued at $845 million. L3Harris will retain a\u00a0 40% ownership stake in the business, with the transaction expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions.<\/p>\n

The Space Propulsion and Power Systems unit develops advanced rocket engines, in-space propulsion systems and space power technologies. Its portfolio includes the RL-10 upper-stage engine, in-space electric thrusters and power systems used on spacecraft and exploration missions, as well as work on next-generation capabilities such as nuclear surface and in-space power concepts. The business supplies hardware for missions ranging from Mars rovers to NASA\u2019s lunar Gateway.<\/p>\n

The deal excludes the RS-25 rocket engine program, which will remain fully owned and operated by L3Harris. The RS-25 engine powers NASA\u2019s Space Launch System for Artemis lunar missions and carries long-term contractual and mission commitments. By retaining the program, L3Harris preserves its role as the prime supplier and maintains continuity for NASA.<\/p>\n

Sale aligns with L3Harris focus on defense<\/p>\n

L3Harris said the transaction reflects a broader strategic refocus toward core national defense priorities, particularly missile production and other defense systems. The assets being divested \u2014 including RL-10 engines used on commercial and government launch vehicles, in-space propulsion technologies and space power systems \u2014 are seen as better suited to integration within a broader commercial and space-focused investment portfolio.<\/p>\n

The RL-10 second-stage engine is used on the Vulcan rocket built by United Launch Alliance, the joint venture of Boeing and Lockheed Martin.<\/p>\n

\u201cL3Harris is strongly committed to the Department of War\u2019s vision for a faster, more agile defense industrial base while remaining laser-focused on driving value for our shareholders and customers,\u201d Christopher Kubasik, chairman and CEO of L3Harris, said in a statement. \u201cThis transaction further aligns the L3Harris portfolio with DoW core mission priorities.\u201d<\/p>\n

The sale is the first major reworking of L3Harris\u2019 space propulsion business since it acquired Aerojet Rocketdyne in 2023 and folded its propulsion and space power assets into the company.<\/p>\n

AE Industrial said it plans to restore and use the Rocketdyne name for the acquired business, reviving one of the most recognizable brands in U.S. rocket propulsion.<\/p>\n

\u201cRocketdyne is more than just a company, it is the birthplace of U.S. rocket propulsion,\u201d Kirk Konert, managing partner at AE Industrial, said in a statement. \u201cThis transaction will not only modernize and give new life to a pioneer of space and national defense technology, but it will also create a new hybrid model of agile collaboration, combining the stability and power of a national defense prime with the innovation of a specialized investor. By taking the historic engine \u2013 the RL10 \u2013 and applying modern manufacturing discipline, we will honor its design while revolutionizing the production line.\u201d<\/p>\n

AE Industrial\u2019s space investments include launch provider Firefly Aerospace, space infrastructure firm Redwire Space and satellite manufacturer York Space Systems.<\/p>\n

The partnership between AE Industrial and L3Harris will also seek to accelerate development of future propulsion technologies, including nuclear propulsion, which both companies say will be critical for deep-space exploration and operations in the cislunar domain.<\/p>\n

\u201cWe see a unique opportunity to apply our deep experience in scaling space systems to this iconic business,\u201d said Jon Lusczakoski, a principal at AE Industrial.<\/p>\n

\n\tRelated<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON \u2014 L3Harris Technologies said Jan. 5 it will sell a majority stake in its space propulsion business…\n","protected":false},"author":2,"featured_media":389536,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[189196,504,15923,55606,189197,79,722,193],"class_list":{"0":"post-389535","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-space","8":"tag-ae-industrial-partners","9":"tag-artemis","10":"tag-l3harris-technologies","11":"tag-propulsion","12":"tag-rl10","13":"tag-science","14":"tag-sn","15":"tag-space"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/389535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=389535"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/389535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/389536"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=389535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=389535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=389535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}